Portugal is set to modernise its tax landscape with the introduction of a VAT grouping regime (Law No. 62/2025), effective July 1, 2026. This marks a significant development in the country’s VAT framework for corporate groups and multinational enterprises.
In a recent article for International Tax Review(ITR), Bárbara Miragaia analyses the scope and design of the new regime, assessing whether it delivers the level of simplification and VAT neutrality typically associated with VAT grouping regimes across the European Union.
While the framework introduces the ability to consolidate VAT positions, its restrictive eligibility criteria and the treatment of intra-group transactions remain key points of debate.
With the implementation date only days away, corporate groups should urgently evaluate their eligibility and the potential impact on their VAT compliance strategy.
