Portugal Indirect Taxes Newsletter – N.º 6

This edition highlights the latest developments in indirect taxation, with a special focus on the clarifications issued by the Portuguese Tax Authority (AT) regarding the measures approved under the Housing Program, namely on the application of the reduced VAT rate to construction and rehabilitation works, the partial VAT refund regime, and the reverse charge mechanism applicable on the acquisition of construction services, as well as the rules for invoice rectification and VAT regularization. Additionally, we analyse the legislative intervention regarding item 2.23 of List I of the VAT Code, following the case law of the Supreme Administrative Court, as well as the revision of the IMI framework for wind and solar power generation centres.