WHAT IS NEW?
- In general terms, VAT incurred in hospitality expenses (i.e. accommodation, food, beverage, transport, tolls, hospitality and expenses on immovable property or parts thereof for hosting purposes) is not deductible
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- When such VAT is incurred by event organizers (registered under NACE code 82300) for the purposes of a specific event, the Portuguese VAT Code allows, provided conditions are met, for a deduction, in the periodic Portuguese VAT returns, of 50% of its amounts
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- Under the new regime of Decree-Law no. 85/2022, the reimbursement of the additional 50% of the VAT is granted to event organizers in respect of such hospitality expenses
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- This means that with the additional 50% VAT reimbursement, 100% of the VAT incurred in the organization of events is recoverable
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