Tax and Customs Authority

Binding Information concerning Case No. 10539, of 3 June 2016, published in July 2016

Rates – Hotels and similar establishments

Clarifies that, for VAT purposes, hotels and similar establishments – whose concept covers establishments that, despite of their classification, provide accommodation services, namely local accommodation establishments or student residence accommodation –, are to apply the reduced VAT rate of 6% regarding accommodation services.

Also clarifies that other services not included in accommodation services, namely laundry services, are subject to the standard rate of 23%.

Tax and Customs Authority

Binding Information concerning Case No. 10189, of 3 June 2016, published in July 2016 Location of operations – Operations related to natural gas transactions – Legal and tax framework of the value concerning "Peajes Portugal"

Clarifies that, within the supply of natural gas by a company based in Portugal to a Spanish tax resident company of the same group, the corresponding provision of services is not taxable in Portugal, even if the provider is established in Portugal, if the acquirer is a taxpayer established abroad.

Tax and Customs Authority

Binding Information concerning Case No. 10433, of 20 June 2016, published in July 2016 Provision of services – Onerous transfer of the right to the payment of the Basic Payment Regime (RPB –payments to farmers under support regime within the “Common Agricultural Policy)

Clarifies that, under the “Basic Payment Regime” – direct payments to farmers under the support regime within the “Common Agricultural Policy” –, the onerous transfer of the right to the payment is a provision of services, pursuant to Article 4, paragraph 1, of the VAT Code, subject to VAT at the normal rate of 23%.

Tax and Customs Authority

Binding Information concerning Case No. 10101, of 21 June 2016, published in July 2016 Deduction concerning mixed-use assets – Calculation of the deduction percentage and the budget allocation attributed by the State

Clarifies that the income obtained by a university by means of budget allocation cannot be considered an operation resulting from an economic activity and thus must be excluded from the denominator of the fraction regarding the calculation of mixed-use assets’ deduction, as otherwise distortions to the right to deduct VAT may occur.

Tax and Customs Authority

Binding information concerning Case No. 10540, of 11 July 2016

Location of operations – Intracommunity transport of goods – Services performed in Portugal, related to transport of goods destined to a Member State

Clarifies that the transport of goods that takes place exclusively in Portugal but destined to another Member State is considered an intracommunity transport of goods, under the terms of Article 5, paragraph 1, of the VAT Code.

Thus, being the acquirer a Portuguese VAT taxpayer, the operation is located in Portugal for VAT taxation purposes, in accordance with the rule stated in Article 6, paragraph 6, al. a), of the VAT Code, but exempt under the terms of Article 14, paragraph 1, al. q), of the VAT Code.