Tax and Customs Authority

Binding Information concerning Case No. 8 063, of 20 March 2015, published on 24 August 2015

Adjustments – Car hire – Supply to client of a full tank of fuel, the same occurring on the return of the vehicle – “full/empty tank” – Issuance of return note regarding the adjustments

Adjustments of Value Added Tax (“VAT”) resulting from refunds due to the non consumption of fuel already paid, during the period of car hire, may be documented for the purposes of Article 78(5) of the VAT Code by a bank statement which unequivocally demonstrates that the client was refunded, whenever the client is a final consumer.

However, if the client is a VAT taxable person, it will be required that the client confirms, in writing, to be aware of the adjustment stating the amount of tax rectified.

Tax and Customs Authority

Binding Information concerning Case No. 6 770, of 6 June 2015, published on 24 August 2015

Adjustments – Proof that the purchaser was informed of the adjustment

In the context of an adjustment, the requirement of Article 78(5) of the VAT Code is considered to be fulfilled whenever the taxable person is in possession of an e-mail message, containing all the information foreseen by Circular No. 33 129/1983, of 2 April of the DSCA, including that the purchaser was informed of the adjustment (indicating the amount of VAT adjusted) or that the purchaser has been reimbursed of the VAT paid.

Tax and Customs Authority

Binding Information concerning Case No. 7 709, of 17 June 2015, published on 24 August 2015

VAT Cash Accounting System – Rappel – Receipts – Debit notes – Right to deduction – Adjustments

In the absence of specific rules regarding adjustments to the taxable amount of transactions within the VAT Cash Accounting System, taxable persons covered by that system must comply with the general requirements provided for in Article 78 of the VAT Code.

Since, under the VAT Cash Accounting System, VAT is only due upon the issuance of the receipt of payment and the right to deduction exists when the taxable person is in possession of a receipt that proves payment, credit/debit invoices evidencing adjustments pursuant to Article 78 of the VAT Code are relevant especially for the purposes of the operations’ log, as required by that system.

Tax and Customs Authority

Binding Information concerning Case No. 8 404, of 24 July 2015, published on 24 August 2015

Reverse charge mechanism – Construction services – VAT wrongly assessed on invoice – Issuance of credit notes – Replacement of periodic statements

The reverse charge mechanism provided for in Article 2(1)(j) of the VAT Code applies both to the rendering of construction services and to the sale of construction materials to be incorporated in the construction in the context of the services provided.

When the entity invoicing the construction services is the same that invoices the sale of materials incorporated in the construction, in the context of those services, any VAT assessed in the invoices relating to the sale of construction materials is considered to be undue and, therefore, the invoices must be replaced with new ones containing the mention “VAT – reverse charge”.

Tax and Customs Authority

Office of the Subdirector-General of Property Tax

Circular Letter No. 40 111, of 30 July 2015, published on 18 August 2015

The ancillary obligation of reporting contracts to the Portuguese Tax and Customs Authority (“PTA”) within the context of the lease of common parts of a building in horizontal property shall be incumbent upon the condominium and should be fulfilled by the administrator of the condominium.

The administrator of the condominium must submit to a tax office, in advance and in person, the minutes that decided on the appointment to that position for the capacity to represent the condominium in that context to be registered.

Tax and Customs Authority

Office of the Subdirector-General of Property Tax

Circular Letter No. 40 112, of 30 July 2015, published on 18 August 2015

A legacy is represented by the head of household (the representative of the beneficiaries of the legacy), who individually undertakes all the acts of ordinary management.

The head of household is responsible for submitting Stamp Duty form 2, which must contain the tax number of the legacy and not those of the heirs.

When the head of household is, at the same time, an heir and aged 65 or older, the reporting obligation may be fulfilled, on behalf of the legacy, at any Tax Office.

Tax and Customs Authority

Office of the Subdirector-General of Income Tax and of International Relations Circular Letter No. 20 180, of 19 August 2015

Clarifies the legal tax framework applicable, for Personal Income Tax (“PIT”) purposes, to “leasing” and “local accommodation” activities, namely with regard to the following aspects:

  • Taxpayer option for taxation of property income under Category B – Income from business and professional services;
  • Different categories of PIT assessed within the activity of “local accommodation”, for example when the owner of the property is not the operator or when the operator transfers the operation to a third party; and,
  • Assignment of property owned privately by the taxpayer to business activities.

Tax and Customs Authority

Binding Information concerning Case No. 8 093, of 19 August 2015

Location of operations – Electronically supplied services – Operations provided by the applicant through the homebanking service

Operations carried out through homebanking services fall within the concept of “electronically supplied services” as foreseen by Article 6(9)(h) and (10)(h) of the VAT Code.

However, when any of the operations, even if provided through the internet or through an electronic network, requires human intervention it no longer qualifies as an electronically supplied service, thus being applicable the general rule of Article 6(6) of the VAT Code.

Tax and Customs Authority

Binding Information concerning Case No. 9 215, of 19 August 2015

Exemptions – Nutrition advisory services, provided at health clubs, fitness clubs and gyms, invoiced to their clients, as long as provided by duly qualified professionals under the terms of the applicable legislation

Nutrition advisory services invoiced by a health club, fitness club or gym to its clients may benefit from the VAT exemption provided for in Article 9(1) of the VAT Code, as long as such services are provided by duly qualified professionals under the terms of the applicable legislation.

The entity that provides and invoices the nutrition services must be registered with the PTA as a provider of this type of services and include a reference to the applicable VAT exemption in the invoices issued.

Tax and Customs Authority

Tax Management Area – VAT

Circular Letter No. 30 174, of 26 August 2015

The rendering of assistance services within the scope of non conventional therapeutic professions (such as acupuncture, osteopathy, naturopathy or chiropractic) does not fall under the scope of the exemption foreseen by Article 9(1) of the VAT Code, since the legislation regulating the practice of such activities does not qualify them as paramedic professions.

In this sense, the rendering of services within the scope of non conventional therapeutic professions is subject and not exempt from VAT.

Tax and Customs Authority

Office of the Director General

Circular No. 9, of 28 August 2015

Overturns Circular Letter No. 40 110, of 21 July 2015, clarifying the mechanisms to enforce the Municipal Property Tax reduced rates applicable to permanent dwellings, considering the number of dependants in the household.

In this sense, it is determined that the PTA will automatically levy Municipal Property Tax pursuant to the deliberations of the municipal assemblies, considering the number of dependants in the households, as per the information included in the model 3 PIT statements to be submitted in the year to which the Municipal Property Tax refers to.

In order to allow municipalities to deliberate on the rate reductions, the PTA will provide, until 15 September of each year, information regarding the number of households with one, two or three dependants which have their tax domicile in a real estate property intended for permanent dwelling use located in each municipality.