As of 1st March 2018, the Portuguese import VAT deferment scheme, initially launched last September is extended to apply to all imports of goods.
Prior to 1st March 2018, the mechanism only applied to a limited range of goods including cereals, coffee and chemical products.
Under the scheme, qualifying businesses registered for Portuguese VAT and importing goods into Portugal are no longer required to pay import VAT upfront to the customs authorities. Instead, they may report the import VAT in their subsequent periodic VAT return and offset those liabilities against any deductible VAT incurred on sales. It is a scheme used widely throughout the EU which is beneficial for businesses because it removes the need to make any cash payments.
Businesses who wish to participate must apply through the Portuguese tax authority‘s website and eligibility is subject to satisfaction of certain requirements. Once opted into the scheme, businesses must remain enrolled for a minimum of six months.
If you have any questions on the above, please do get in touch