- Decree-Laws No. 33, 34, and 35/2025 were published on 24 March 2025.
- These laws introduce changes to the VAT Code and Personal Income Tax Code.
- Decree-Law No. 33 adjusts rules for online cultural services and restricts the margin scheme for art purchased at a reduced VAT rate.
- Decree-Law No. 34 extends the Cash Accounting Scheme to businesses with turnover up to EUR 2 million from 1 July 2025.
- Decree-Law No. 35 overhauls the VAT exemption scheme for small enterprises and sets new reporting obligations.
- Decree-Law No. 33 partially transposes Article 1 of Directive (EU) 2022/542.
- It amends VAT Code Articles 6 and 18 for virtual cultural services.
- Taxation for VAT-taxable persons occurs where the recipient is established.
- For non-VAT taxable persons, taxation is based on the recipient’s location.
- Portugal may tax services used or enjoyed within its territory.
- The special VAT scheme for second-hand goods and art is amended.
- Resellers can no longer opt for the margin scheme for art bought at reduced VAT.
- Transitional provisions allow VAT deduction on art until 29 March 2025.
Source: mlgts.pt
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.
