COVID-19: New deferral in Portugal on the payment of VAT and IRS and IRC withholding taxes
Tax Alert Portugal
The Portuguese Government approved a new review to the deferral scheme foreseen for tax compliance obligations by Dispatch no. 90/2021-XXII, 16 March, which makes the tax calendar more flexible concerning the VAT payment due regarding January 2021 by taxpayers subject to the monthly regime, as well as the delivery of IRS or IRC withholding taxes due in February.
Hence, the payment of said IRS or IRC withholding taxes and the payment of the VAT due under the monthly regime that have to be carried out by (i) taxpayers who have obtained a turnover up to the maximum limit of EUR 50 million or (ii) when the taxpayer's main activity falls under the economic activity classification of accommodation, catering and similar, or of culture, or (iii) who have started or restarted the activity as from 1 January 2020, inclusive, can be fulfilled:
Until the end of the period for voluntary payment; or
In three or six monthly installments, with a value equal to or greater than € 25, without interest or any penalties.
These taxpayers must also declare and demonstrate a decrease on the invoicing reported through the e-fatura of at least 25% on the monthly average of the full calendar year of 2020 when compared to the same period of the previous year.
The request for payment in monthly instalments must be submitted electronically in the Portuguese Tax Authorities’ website until the end of the voluntary payment period, in “Pagamentos > Flexibilização de Pagamentos > Aderir”.