Decree-Law 23/2025 introduces amendments to
the VAT exemption scheme for small businesses, as well as measures
to reduce costs and simplify the process.
Under the former VAT exemption regulations, taxpayers with
registered offices in Portugal who did not maintain organised
accounting were eligible for the exemption, as long as they met the
following criteria:
- Did not engage in import, export, or related activities;
and
- Their turnover in the previous calendar year, did not exceed
€15,000.
The revised rules now extend this regime to micro-companies with
organised accounting, as well as to taxpayers involved in imports
and the sale of goods or services listed in Annex E of the VAT
Code. The previous rules only applied to companies established in
the Member State where the tax was due. However, under the new
rules, businesses with headquarters or domicile in other European
Union Member States now qualify for the VAT exemption if:
