Tax and Customs Authority

Director-General’s Office

Circular No. 5/2013, of 2 July

For personal income tax purposes, the activity of operation of tourist developments pursued by natural persons is considered to be a commercial activity provided the taxable person has applied for the registration of the tourist development with the Registo Nacional de Empreendimentos Turísticos (National Registry of Tourist Developments); the income thereof falls within Category B for personal income tax purposes.

For personal income tax purposes, income obtained through the assignment of tourist operation by the owner of a property fit for such operation, which takes place before the registration of the tourist development with the Registo Nacional de Empreendimentos Turísticos, is classified as real estate income (Category F).

Tax and Customs Authority

Office of the Subdirector-General of the Tax Inspectorate

Circular Letter No. 50.001/2013 of 4 July

Clarifying the requirements to be complied with by invoicing programmes, in particular with regards to the following:

  • Signature of documents issued by the invoicing programme;
  • Process of identification of those documents and recording of the same in the databases;
  • Requirements of the software application;
  • Technical requirements concerning the identification system to which No. 3(b) of Portaria No. 363/2010, of 23 June, refers to;
  • Creation of the private/public key;
  • Creation of certificate.

Tax and Customs Authority

Director-General’s Office

Circular No. 6/2013 of 17 July

Following publication of Law No. 49/2013 of 16 July, laying down the rules of the Crédito Fiscal Extraordinário ao Investimento ("CFEI") (Extraordinary Investment Tax Credit), publishes some procedures within the regime:

  • CFEI applies to corporate income tax taxpayers, residents and non residents with a permanent establishment located in the Portuguese territory;
  • CFEI applies to all taxpayers pursuing a commercial, industrial and agricultural activity, which include the provisions of services, as main activity;
  • The list of intangible assets subject to ongoing depreciation set out in the CFEI is given by way of example, and all investment costs qualified as intangible assets capable of being depreciated for accounting and tax purposes are eligible to benefit from the CFEI;
  • For the purposes of article 4(5)(a) and (b) of the CFEI, the concept of "productive activity" should be interpreted by reference to the concept of "allocated to the operation", set out in number 1 of the same article;
  • The assets "allocated to the administrative activity" are the ones required to pursue the activity of the taxpayer are;
  • CFEI is also applicable to eligible assets acquired through financial lease provided the legal and accounting requirements are complied with.

Tax and Customs Authority

Binding Information concerning Case No. 4981, of 15 May 2013, published on 1 July 2013

Applicable provisions – Rates – "rural leases"

VAT is payable on the lease of agricultural land that is not previously prepared through drainage, ploughing, terracing or other practices falling within the concept of improvements and of land where no construction with the nature of improvement or acquired as a result of the institution of the acessão industrial imobiliária exists.

In such cases, the landlord must submit a beginning of activity or of alteration statement and the exemption scheme provided for in article 9 of the VAT law will apply, provided the corresponding requirements are fulfilled; the landlord will fall within the scope of the general regime where those requirements are not complied with or within the special exemption regime set out in articles 53 et seq. of the VAT law where all the requirements are met and the landlord does not choose to be taxed under the normal regime.

Tax and Customs Authority

Binding Information concerning Case No. 5021, of 26 June 2013, published on 1 July 2013

Rates – Veterinary medicine services in pet clinic and clinic and advisory services for livestock species; animal health services for bovine, ovine and caprine animals provided to an Organisation of Livestock Farmers of an agricultural cooperative

Veterinary services that contribute to pursue the activity of breeding animals together with cultivation or in which the latter has an essential nature are taxed at the reduced VAT rate.

Veterinary services for pets and veterinary medical services that contribute to pursue the activity of breeding animals that are unrelated to cultivation or in which the latter does not have an essential nature, are taxed at the normal rate, and, accordingly, the conclusion is that the reduced rate does not apply where the animal breeding activity is not included in an economic activity of animal breeding or is not intended for consumption.

Item 4.2, of List I ("Provision of services that do not play a part in agricultural production") only applies to situations in which the supplier of the services plays a part in the agricultural production of the acquirer of those services and not to situations in which it takes part in the agricultural production of third parties.

Tax and Customs Authority

Binding Information concerning Case No. 5165, of 26 June 2013, published on 1 July 2013

Provision of veterinary services where the animal breeding activity is done jointly with cultivation or has an essential nature

The supply of veterinary services in farms and agricultural companies for livestock species, production animals, is subject to a reduced VAT rate provided such animal breeding activities are pursued together with cultivation or the latter has an essential nature.

In the case of animals used for sports, in particular, horses, the reduced rate is only applied where those animals are raised together with a cultivation activity or the latter has an essential nature, while the normal rate is applied to veterinary services for animals used in sporting events, by security forces or simply for recreational purposes, since these cases do not amount to an agricultural production activity.

Tax and Customs Authority

Binding Information concerning Case No. 5161, of 26 June 2013, published on 1 July 2013

Rates – Provision of services relating to the certification and control of agricultural products

The activity of certification and control of agricultural products is taxed at the normal VAT rate, it does not fall within the scope of item 4.2(f) of the List attached to the VAT law – "technical assistance" –, nor within any other item of the lists attached to that law.

Tax and Customs Authority

Binding Information concerning Case No. 4937, with the order of the VAT services, of 30 April 2013, published on 1 July 2013

Rates – Agricultural animal keeping, breeding and fattening services

Agricultural services of animal keeping, breeding and fattening, provided for in item 4.2(d) of List I attached to the VAT law, are taxed at a reduced VAT law, in accordance with article 18(1)(a) of the VAT law.

Tax and Customs Authority

Binding Information concerning Case No. 2012 002303 – IVE No. 3779 and agreement of 11 July 2012, published on 8 July 2013

Stamp Duty – Suretyship -insurance

The suretyship-insurance transactions are subject to stamp duty under items 10 and 22 of the General Scale, albeit finalised in a single document because the referred items shall tax different aspects of such transactions.

Under item 10 of the General Scale – which provides for the taxation of guarantees –, the stamp duty is levied on value of the guaranteed obligations. Pursuant to the item 22 of the General Scale – which provides for the taxation of insurance operations – the stamp tax is levied on the profit of the insurance company resulting from the suretyship-insurance transaction.

Tax and Customs Authority

Binding Information relating to Case No. 2012 000074, of 17 April 2012, published on 8 July 2013

Stamp Duty – Donation of immovable property to ascendants

Pursuant to item 1.1 of the Stamp Duty General Scale, the donation of an immovable property to ascendants is subject to stamp duty at the rate of 0.8% of its value.