Tax and Customs Authority

Binding Information relating to Case No. 6111, of 12 December 2012, published  on 05 September 2014

Invoices – Mandatory information that must be inserted by the invoicing  computer program or invoicing electronic equipment – Exercising the right to  deduction – Option to use pre-printed paper containing, in particular, the logo  and other information

Pursuant to the provisions of Article 36(14) of the Value Added Tax (“VAT”) Code all  mandatory information on invoices processed through computer systems must be  inserted by the relevant invoicing computer program or invoicing electronic equipment.

Notwithstanding, the Tax and Customs Authority clarifies that whenever the cost deductibility requirements for VAT purposes (Articles 19, 20 and 21 of the VAT Code) are  fulfilled, the irregular issuing of the invoice by the supplier does not preclude the  acquirer’s deduction right.

Tax and Customs Authority

Binding Information relating to Cases No. 683/2014 and 787/2014, published on 23 September 2014

Inclusion  of  the  micro-enterprises  and  permanent  establishments  of  non-resident entities in article 87, paragraph 2 of the Portuguese Corporate Income Tax Code. Qualification as small and medium sized enterprises

The Portuguese Tax Authority clarifies that the reduced tax rate foreseen in article 87(2) of the Corporate Income Tax (“CIT”) Code for small and medium enterprises (“SME”) is applicable to micro entities and to the Portuguese branches of non-resident SME which undertake, directly and primarily, an agricultural, commercial or industrial activity.

In order to benefit from the reduced tax rate, the companies must be duly certified as SME or produce evidence of compliance with the requirements foreseen to acquire SME qualification, as per the Annex to the Decree-Law 372/2007, of 6 November.