Indirect tax ebook - Portugal

Filing

All VAT returns must be filed electronically.

VAT returns
Businesses whose annual turnover is more than €650,000 must prepare and file monthly returns within one month and ten days of the end of each month. Businesses whose annual turnover is less than €650,000 must prepare and file quarterly returns within one month and fifteen days of the end of each quarter.

The tax payable or recoverable is the difference between the tax due or income and the VAT recoverable on costs.

Annual returns
Annual returns must be submitted by the last working day of June of the following calendar year.

Filing penalties
Returns which are filed late can be fined between €200 and €5,000 if the taxpayer is an individual and between €400 and €10,000 if the taxpayer is a company.

Late payments are subject to interest at the rate of 4% per year of the tax and a penalty of 20% of tax is normally applicable.

Large traders
There are no specific rules for large traders.

• Introduction
• Scope
• Registration
• Tax rates
• Reporting & filing
• General tax application/Time of supply
• Other local requirements