BELIM CASTILHO
News

New regime for reimbursement of additional VAT for event organizers – Portugal

Ícone Newsletter Pessoa

WHAT IS THE REGIME ABOUT? 

  • Additional recovery of VAT for event organizers
  • This regime came to be after the government understood that Portugal needed to be competitive in the event organization industry
  • A temporary similar regime was granted between august 2020-2021 under COVID-19 incentives but this new regime seems to be remaining for the future

WHEN DID IT ENTER IN FORCE? 

 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
  • 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
  • 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
  • This means that with the additional 50% VAT reimbursement, 100% of the VAT incurred in the organization of events is recoverable  
Ícone Newsletter Edifícios

HOW DOES IT  WORK? 

  • An electronic request must be filed for this purpose 
  • The request  can be made from the 2nd month following the issuance of supplier’s invoices, import declarations or support documents to intracommunity operations, up to 1 year counted from the documents’ issuance date
  • The request should refer to monthly periods, covering all the documents issued in that month
  • The Tax Authorities are competent to analyse the request, within a 90 days deadline, but can delegate in the Tourism Institute of Portugal
Ícone Newsletter Calculadora Considering the early stages of this new regime, we understand that it is likely that:

 

(i) the Tax Authorities will delegate in the Tourism Institute of Portugal the analysis of the reimbursements; and

 

(ii) it may take some weeks for the functionality to request the reimbursement to be available.

 

We will continue monitoring this situation and revert on developments.

 

Request Info
 
Privacy Consent

This site uses cookies to enable our website to interact with your browser so as to provide you with better service and a more effective website. By clicking “Agree” you are consenting to the use of cookies. You may change the definitions of your Internet browser to disable cookies, but this may result in a reduced availability of the services provided in our website. To find out more, please read our Privacy Policy.
I Agree