Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/7/2012

Portugal - VAT rules on place of supply, electronic data-transmissions 

September 7: Tax legislation transposes into Portuguese law certain EU VAT Directive provisions concerning (1) the place of supply of services and (2) invoicing rules with respect to value added tax (VAT), including electronic data-transmission rules.
  • Decree Law no. 197/2012 concerns transactions subject to VAT (specifically intra-EU transactions)
  • Decree Law no. 198/2012 concerns the system for electronic transmission of invoice data and rules for reporting VAT information

Except for the changes relating to electronic invoicing rules (which are effective 1 October 2012), the amendments generally are effective 1 January 2013.

VAT place of supply

Decree Law no. 197/2012 provides that “…the place of hiring, other than short-term hiring, of a means of transport to a non- taxable person shall be the place where the customer is established, has his permanent address or usually resides.”


Other changes include a requirement for the issuance of an invoice for all supplies of goods or services in the Portuguese territory (regardless of the acquirer’s VAT status or having (or not) requested the invoice) and the recognition of the invoice as the only document allowed to support a given taxable transaction.

VAT electronic data-transmission rules

Decree Law no. 198/2012 introduces a system for electronic transmission of data contained in invoices and other documents having tax relevance.


Taxable persons established in Portugal and conducting transactions subject to VAT must report invoice information on a monthly basis (by the 8th day of the next month that follows the month of the issuance of the invoice) to the Portuguese tax authorities by means of electronic data communications.


Read a September 2012 report [PDF 77 KB] prepared by the KPMG member firm in Portugal: Outline of VAT legislative changes


For more information, contact a tax professional with KPMG in Portugal:


Lídia Santos

+1 212 872 6541




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