The Portuguese Government has announced a set of 30 measures to simplify the tax system, covering areas such as VAT, invoicing rules, and the Vehicle Tax (IUC).
Faster VAT Refunds
One of the main changes is the acceleration of VAT refunds. Businesses and self-employed professionals can receive refunds faster by providing a guarantee equivalent to the refund amount, allowing for an automatic process while the tax authority reviews the request.
Simplified Invoicing Rules
Invoicing rules will be simplified to make it easier for businesses and professionals to issue and manage invoices. This measure aims to reduce bureaucracy and costs associated with fulfilling tax obligations.
Changes to Vehicle Tax Payment
Regarding the IUC, also known as the “vehicle tax,” changes in payment deadlines are planned. Starting in 2026, taxpayers will have the option to pay the tax by February or in two installments, offering greater flexibility in meeting this tax obligation.
These initiatives are part of the Tax Simplification Agenda, approved by the Council of Ministers, aiming to make the relationship between taxpayers and the tax administration simpler and more efficient.