ARTICLE · 01 JULY 2025

1st Quarter 2025 VAT Developments In Portugal

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The first quarter of 2025 has seen significant developments in Portuguese VAT legislation, with several new measures being introduced to clarify, simplify, and modernize the VAT framework.

PortugalTax

Conceição Gamito

The first quarter of 2025 has seen significant developments in Portuguese VAT legislation, with several new measures being introduced to clarify, simplify, and modernize the VAT framework.

These changes affect a broad range of taxpayers, including non-profit organizations, suppliers of online or streaming events, small and medium-sized enterprises, and businesses engaged in cross-border trade within the EU.

Clarification of Non-Profit Organization Exemptions

On 12 February 2025, Circular Letter no. 25059 was published, providing new guidance on the VAT exemption applicable to non-profit organizations under Article 10 of the Portuguese VAT Code. To qualify as a non-profit organization for VAT purposes, entities must meet four cumulative conditions:

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