By 30th November 2019, all VAT-registered companies in Portugal will have to be registered on the Portuguese central beneficial ownership register. This registration deadline has recently been postponed from 30th June 2019.
An ultimate beneficial owner (UBO) is an individual who ultimately owns or controls more than 25% of a company’s shares or voting rights, or who otherwise exercise control over the company or its management.
Under EU law, Member States are required to set up registers of the ultimate beneficial owners (UBOs) of legal entities, as part of a series of measures designed to improve transparency in business and combat money laundering and terrorist financing.
Portugal therefore created its UBO central register. As part of the registration process, a company is required to provide data relating to the identity of its shareholders, its administrative bodies and its beneficial owners, as well as data relating to the person registering the company.
The initial declaration submission deadline of 30th June 2019 was applicable to companies that became registered for Portuguese VAT before 1st October 2018. Even though this date has been pushed back, companies that become VAT-registered In Portugal after 1st October 2018 should still go ahead and file their UBO declaration within 30 days of registration.
Penalties of up to EUR 50,000 may apply for non-compliance.
Non-residents’ Certified Software Requirement Delayed to 2020
We previously reported that the requirement for Portuguese companies to use certified invoicing software, in respect of their local Portuguese sales will be extended to non-resident companies from 1st July 2019. This effective date has now been delayed to 1st January 2020. The tax authorities have indicated that they will provide further guidance by 1st October 2019
This obligation is expected to impact foreign VAT-registered companies with a global annual turnover in excess of EUR 75,000.
Under the new rules, a foreign VAT-registered company will be required to comply with this obligation once it meets any of the following conditions:
- Its local Portuguese sales exceed the specified EUR 75,000 threshold;
- The company is already using invoicing software (not including electronic terminals, pre-printed documents or similar); or
- The company is either required to have organised accounts (financial statements) or has opted for this system, in accordance with the International accounting rules (IFRS and IAS).
Penalties of up to EUR 37,500 might apply for non-compliance.
The precise reasons for these delays are unclear but many businesses will be grateful for the extra time to ensure they are compliant with these new obligations.
Contact our VAT experts now and find out how these changes could affect your business.