The deadline to submit the VAT periodic return of February was extended to 17 April. Electronic invoicing for public contracts is postponed to 2021

Tax Alert Portugal

In the context of the extraordinary measures adopted to minimize the impact of new coronavirus (COVID-19) on the Portuguese economy, the Portuguese Government decided to extend the deadline to submit the VAT periodic return of February from 10 to 17 April (with no penalties). The corresponding VAT can be payed until 20 April.

This measure does not preclude the request to pay in installments of the VAT due between April and June under Decree-Law no. 10-F/2020 of 26 March, as disclosed by Order no. 141/2020-XXII, of 6 April, of the Secretary of State for Tax Affairs.

In addition, the deadlines established for the mandatory adoption of the use of electronic invoices in public procurement and the adoption of the European electronic invoice model were once again postponed, according to the terms set below, as approved by Decree-Law no. 14-A/2020, of 7 April, which entered into force on April 8, 2020.

  1. From 18/04/2020 to 01/01/2021:
  • For contracting public entities, such as autonomous regions, local authorities, independent administrative entities, Bank of Portugal, public foundations, public associations and other bodies governed by public law whose contracts, at the will of the parties, are qualified as administrative contracts or subject to a substantive public law regime;
  • For public contractors who, irrespective of their public or private nature, conclude contracts in the exercise of materially administrative functions;
  • For private cocontractors which do not qualify as micro, small and medium-sized enterprises as defined below in points (b) and (c);
  1. From 01/01/2021 to 01/07/2021: for cocontracting entities that are small and medium-sized enterprises, according to Recommendation 2003/361/EC of the European Commission of 6 May 2003;
  2. From 01/01/2021 to 01/01/2022: for cocontracting entities which are micro-enterprises, in accordance with Recommendation 2003/361/EC of the European Commission of 6 May 2003, and for public entities when they are cocontracting entities.