Tax and Customs Authority

Binding Information concerning Case no. 6428, of 27 March 2015, published on 2

April 2015

Location of operations – Supply of training services and other related services – analysis of the concept of “services related” to training

Informs that, despite Article 9 of the VAT Code expressly stating for the supply of food and accommodation services to be related to vocational training and, for this reason, be exempt from VAT, the application of this exemption is dependent, in each case, on it being concluded that these supplies of services:

  • Are effectively ancillary to the supply of vocational training services, which constitute the main supply;
  • Are  carried out  by  organisations  that  Article 9  of  the  VAT  Code  envisages  as providers of training services and are included in the scope of its licensed operations;
  • Are essential, and not merely useful, for the performance of the training services and within the scope of the goals of the former.

It concludes that training contracts entered into between a Portuguese educational cooperative and a company based in a third country, under the terms of which, apart from training courses in the areas of mechanics, renewable energy and domestic appliance repairs, the students are provided with food, accommodation and transport services, and if the amounts to be invoiced for each supplied service are broken down in the aforementioned contracts, those contracts are only exempt from VAT with regards to the supply of training services. Food, accommodation and transport services are not considered to be related to the training activities for purposes of applying the exemption established for training services, since they do not fulfil the abovementioned requirements.

Tax and Customs Authority

Office of the Subdirector-General of Income Taxes and International Relations Circular no. 20.176, of 2 April 2015

Discloses the most frequent questions arising from the most recent reform of Personal Income Tax (“PIT”) (which shall only be applicable to the tax returns to be submitted in 2016), and their respective answers.

Tax and Customs Authority

Excise Duty and Vehicle Tax Services

Circular no. 35.045, of 24 March 2015, published on 8 April 2015

Complementing Circular no. 35.037 [see our NEWSLETTER TAX | January, 2015], this circular approves instructions concerning the liquid containing nicotine in recipients used to charge and recharge electronic cigarettes, particularly with regards to the following aspects:

  • Terms and procedures for obtaining marketing authorisation on brands of liquids containing nicotine;
  • Requirements and procedures for operating a tax warehouse for the production of liquids containing nicotine; and
  • Registration of economic operators with Imprensa Nacional – Casa da Moeda (INCM).

Tax and Customs Authority

Area of Collection

Circular no. 90020, of 10 April 2015

This circular clarifies that the waiver to tax representation provided for in Article 130-A of the PIT Code merely applies to tax obligations related to PIT, not being effective for other taxes, including VAT.

It also clarifies that the waiver must be made by registered letter, preferably with return receipt, to the last known address of the represented party.

The tax representative must give notice of the waiver to the Tax and Customs Authority at any Tax Office, for the waiver to be effective towards it, by means of a copy of the waiver notice sent to the represented party, of the original record of the letter and of the original of return receipt (if any).