Post by Lechêne, Iñiguez & Partners, SL

#Portugal 🇵🇹 Portugal has published Ordinance No. 244/2026/1, providing the official VAT return form and detailed filing instructions for the new VAT Group Regime, which comes into effect for tax periods beginning on or after 1 July 2026. The regime, introduced by Law No. 62/2025, allows companies with financial, economic and organisational links to consolidate their VAT positions and submit a single group VAT return through a designated parent (dominant) entity. Key features of the new framework include: 🔹 Centralised group reporting: The Tax and Customs Authority (AT) will automatically generate the VAT Group return by aggregating data from each group member's individual VAT return. 🔹 Parent company responsibility: The dominant entity must review and confirm the consolidated return within the statutory filing deadline. 🔹 Automatic submission mechanism: If the parent company does not confirm the return before the deadline, the declaration will automatically be deemed submitted. 🔹 Automatic rectifications: Any amendments to a member company's VAT return will automatically trigger corresponding adjustments to the group VAT declaration. 🔹 Refund and credit management: The regime establishes specific rules governing VAT refunds, carry-forward credits and the treatment of pre-group VAT balances. The new framework represents a significant change for Portuguese corporate groups, introducing a more streamlined VAT compliance process while requiring robust internal coordination between group entities and the dominant company. Businesses considering participation in the VAT Group Regime should begin reviewing their eligibility, reporting processes, governance structures and VAT data management systems ahead of the July 2026 implementation date. #VAT #VATGroup #Tax #TaxCompliance #IndirectTax #CorporateTax #InternationalTax #Finance