Cash Accounting Scheme
A new Cash Accounting Scheme has been introduced in the Portuguese VAT Act with effect from October 1st, 2013. Under this scheme, taxpayers report the VAT charged on sales of goods or services on the date when the payment is received and the right to deduct input VAT arises when payment is made. The scheme is optional and subject to certain requirements [annual turnover exceeding € 500.000 and "B2B" transactions]. This important VAT change aimed at helping SMEs to improve their cash flow.