Compliance Alert - VAT changes for specific goods and services since 1 January 2023
Portuguese Tax Authorities have announced changes in the VAT regime and threshold that benefits specific businesses.
Portugal has decreased the VAT rate to 6% for certain goods and services, including, but not limited to, specific food items, services in entertainment, transportation, and more.
The threshold for the VAT registration exemption for special schemes has increased for the year 2023 and will continue to grow until it reaches EUR 15 000 in 2025:
• 2023 - threshold increased from EUR 12 500 to EUR 13 500
• 2024 - threshold will increase from EUR 13 500 to EUR 14 500
• 2025 - threshold will increase from EUR 14 500 to EUR 15 000
The specifics for these changes have been listed in an Official Letter No.: 30254 from the Tax Authorities (in Portuguese).