Decreto-Lei n.º 33/2025, enacted on March 24, 2025, partially transposes Article 1 of Directive (EU) 2022/542 concerning Value Added Tax (VAT) rates, amending the VAT Code and the special taxation regime for second-hand goods, art objects, collectibles, and antiques.
Key changes include:
- VAT Location Rules: Adjustments to the rules determining where VAT is applied for cultural, artistic, scientific, sporting, and educational services, especially those provided virtually. Services will now generally be taxed based on the location of the recipient.
- Special Tax Regime Changes: The special regime allowing the margin scheme for the resale of art and collectibles will no longer apply if these items were acquired at a reduced VAT rate, aiming to prevent competitive distortions.
- Provisions for Non-Taxable Persons: Services provided to non-VAT taxable persons, broadcasted virtually, will be taxed based on the recipient’s location.
- Transitional Measures: Existing resellers of art objects can deduct VAT on acquisitions made under the previous regime until the next tax period.
- Revocations: The decree revokes certain provisions of the VAT Code that are now outdated due to these changes.
The decree aims to align national VAT regulations with European standards while addressing the taxation of virtual services and second-hand goods.
Source diariodarepublica.pt
