COVID-19: The VAT exemption applicable to domestic and intra-Community supplies of goods needed to combat the effects of the outbreak was extended from April to December
Portugal Tax Alert
The VAT exemption applicable to domestic supplies and intra-Community acquisitions of goods, needed to combat the effects of the COVID-19 disease by the State and other public bodies or by non-profit organizations, was extended from 30 April to 31 December 2021, by Law no. 33/2021 of 28 May.
We recall that this VAT exemption is established under article 2 of Law no. 13/2020, 7 May, amended several times.
Considering that this Law came into force on 29 May 2021, transactions that have taken place between 1 and 28 May without the application of said VAT exemption may now be adjusted accordingly. For such purpose, corresponding rectifying invoices can be properly issued, as previously explained by the Portuguese Tax Authority in Circular Letter no. 30222/2020, of 25 May, when said measure came into force in 2020.
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