- European Union Court of Justice (ECJ) judgment on Portugal’s reduced VAT rate for building renovation and repair services
- Taxpayer, a Portugal-based commercial company, supplied services to buildings owned by commercial companies
- Tax Agency refused to apply reduced VAT rate, stating it only applied to properties used for residential purposes
- ECJ ruled that reduced VAT rate can apply to renovation and repair services for private dwellings occupied for residential purposes
- Actual use for residential purposes not affected by property being used only at certain points in the year
- Unoccupied period of time does not alter private dwelling’s nature
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
