Tax and Customs Authority

Tax Management Area - VAT

Circular no. 30180, of 31 March 2016, published on 4 April 2016

VAT – 2016 State Budget Law – Changes in the VAT Code and complementary legislation

Clarifies the scope of the most significant changes introduced to the VAT Code and supplementary legislation by Law no. 7-A/2016, of 30 March, which approved the State Budget for 2016.

Tax and Customs Authority

Personal Income Tax Services

Circular no. 20187, of 5 April 2016

Personal Income Tax Return Form 3 in force from January 2016

Clarifies a series of questions related to IRS return “Form 3” and its annexes, in force from 1 January 2016, intended for reporting income earned from 2015 onwards.

Tax and Customs Authority

Excise Duty and Vehicle Tax Services

Circular no. 35059, of 5 April 2016

Vehicle Tax – Tax incentives for scrapping end-of-life vehicles

Following the amendment to tax incentives for the car-scrapping of end-of-life vehicles, introduced by Law no. 7-A/2016, of 30 March (State Budget Law for 2016), this circular clarifies the new maximum amount of reduction in Vehicle Tax and its time limits, also addressing pending questions regarding the amount of maximum reduction in Vehicle Tax applicable holders of valid scrapping certificates issued under the Green Taxation Law, i.e. up to 31 December 2015.

Tax and Customs Authority

Personal Income Tax Services

Circular no. 20188, of 12 April 2016

Personal Income Tax – Deductions – Health expenses with occupational therapists

Clarifies that expenses with occupational therapists, even if they are not specifically referred to in Circular no. 20179, of 10 July 2015, are included in the concept of health expenses for the purposes of Article 78-C of the IRS Code.

Therefore, Taxpayers who, in 2015, have expenses regarding occupational therapy services should select the option introduced by Decree-Law no. 5/2016, of 8 February, completing table 6C in Annex H to the IRS return “Form 3”.

Tax and Customs Authority

Corporate Income Tax Services

Circular no. 20189, of 18 April 2016

Corporate Income Tax – Municipal Surtax Rates collectable in 2016 – Period of 2015

Rectifying Circular no. 20186/2016, of 26 February 2016, regarding the rates and scope of exemption from Municipal Surtax in the 2015 tax period (to be collected in 2016) of the Municipalities of Albergaria-a-Velha, Beja and Paredes, and republishing the table of Municipal Surtax rates for the 2015 period.

Tax and Customs Authority

Binding information concerning Case no. 10205, of 31 March 2016, published on 27 April 2016

Consignment – Goods sent on consignment from Portugal to another Member State

Clarifies that sales of goods on a consignment basis from Portugal to another Member State are ruled by the regime applicable to VAT on Intra-Community Transactions ("RITI"), being considered as an intra-community transfer of goods, exempt in accordance with Articles 7.1 and 7.14.(a) of RITI.

Tax Authorities also state that domestic provisions regarding consignment sales only apply to transactions made within Portuguese territory, as defined in Article 1.2.(a) of VAT Code.

Tax and Customs Authority

Binding information concerning Case no. 10128, of 20 April 2016, published on 27 April 2016

VAT – Background – Supply of Services by an IPSS regarding animation and family support activities in preschool education, promoted by the parish

Tax Authorities clarify that supply of services by a Private Institution for Social Solidarity (“IPSS”), related to animation and family support activities in preschool education, promoted by the parish, in the context of a public services contract entered into between an IPSS and a Parish are not covered by the VAT exemption provided for in Article 9.7 of the VAT Code, since the conditions for applying this exemption only occur when services are provided or the goods are delivered directly to users of social facilities.