VAT OBLIGATIONS IN PORTUGAL
How is the tax period determined in Portugal?
Your company has to report its VAT position by filing periodical VAT returns on a quarterly basis if your annual turnover of preceding year does not exceed € 650.000 and on a monthly basis otherwise. Monthly reporting period can be opted for.
When should periodical VAT return be filed?
Monthly VAT return must be submitted by electronic means to Portuguese VAT authorities before the 10th day of the second month following the month during which the relevant tax period end. Quarterly VAT return must be submitted by the 15th day of the second month following the quarter to which transactions relate.
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Is this requirement laid down in the country and what is the filing deadline?
Your company is required to submit a yearly return along with listings of suppliers and/or customers if thresholds are reached. Annual return should be filed before July 15th of the next year.
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL] must be drawn up for each calendar month. Taxpayers filing quarterly VAT returns must however file the Statement on a quarterly basis, unless the amount of intra-EU delivery of goods during the current quarter or any of the four preceding quarters exceeds € 50.000, in which case it must be submitted monthly.When the threshold is exceeded, the requirement to submit a monthly recapitulative statement becomes irreversible. ESL must be filed by electronic means no later than the 20th day of the month after the end of the reporting period [month/quarter] to which it relates.
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The amount of VAT is normally due has the same deadline as the VAT return. The deadline for the payment of the Portuguese VAT has been amended (see our VAT news 06/2019): the taxpayers now have an additional 5 days in order to transfer the money to the bank account of the Portuguese Authorities. The deadlines for filing the Portuguese VAT returns remain however unchanged.
Are interim payments required?
Interim payments are not required.
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.