Tax and Customs Authority

Binding Information concerning Case no. 10552, of 08-09-2016

Value Added Tax (VAT) – Exchange rates to appear on credit notes issued for purposes of invoice adjustment

Clarifies that the exchange rate to be used on credit notes that are issued by reference to invoices with data in a currency other than the domestic currency under the provisions of Article 16.8 and 9 of the VAT Code is the same that was used to assess the taxable amount of the invoices to which the credit notes relate to.

Tax and Customs Authority

Binding Information concerning Case no. 9697, of 07-09-2016

VAT – Rates – Exemptions – Transactions carried out by a volunteer fire brigade (Associação Humanitária de Bombeiros Voluntários), a non-profit organisation

Defines the VAT treatment of certain services provided by volunteer fire brigades. 

In particular, it concludes that the operations of “opening doors for the population”, “supply and transport of water for the population”, “filling of swimming pools” and “prevention at cinemas, football matches, palaces, fireworks” are VAT taxable transactions, not benefiting from the exemption provided for in Article 9.19 of the VAT Code or from any other exemption. 

Tax and Customs Authority

Binding Information concerning Case no. 10730, of 23-08-2016

VAT – Rates - Preparation and distribution of foodstuffs; pizzas, beverages and desserts – Menus, comprising different products, for immediate consumption in restaurants or to be taken away by the customer or for home delivery

Clarifies that the standard VAT rate is due on the total value of the commercial product comprising a take-away meal and soft drink, considering that the different goods that comprise the product group are subject to different VAT rates, soft drinks being subject to the highest rate of this tax.

If the products are transferred and invoiced at their individual prices, the corresponding VAT rate shall apply to each product. 

Lastly, it also establishes the interpretation that desserts sold in establishments engaged in the provision of ready-to-eat and take-away or home delivery meals are not covered by 1.8 in List II annexed to the VAT Code, being subject to the standard VAT rate. 

Tax and Customs Authority

Department of Customs Taxation

Circular Letter no. 15533/2016, of 14 October

Stipulates the average exchange rates to be used from 19 October 2016 onwards to determine the customs value of merchandise and establishes the exchange rates to be used in the conversion of ancillary foreign currencies. 

Tax and Customs Authority

Office of the Director General

Circular Letter no. 10002/2016, of 14 October

Determines the compliance with certain procedures in order to ensure the timely compliance of the right to assess taxes relating the year/period of 2012. 

With regard to Personal Income Tax (PIT), it establishes the 12 December 2016 as the deadline for sending collection documents. It further determines that, after that date, no collection documents shall be sent by post to taxable persons, given the risk of expiry of the corresponding right of assessment, with the exception of collection documents for amounts of lower than €500.00.

With regard to the assessment of Corporate Income Tax (CIT) and VAT, the aforementioned deadline for sending assessments by post is 21 November 2016. 

It further determines that, after the dates referred to above, any notifications must be made in person and are the responsibility of the regional services, which are responsible for their management, taking into account, in particular, the amounts of tax in question.