Import VAT deferment scheme in Portugal for non-residents

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Portugal

The Portuguese import VAT deferment scheme “liquidação automática do IVA nas importações”, initially launched last September. It is extended to apply to all imports of goods through “Orçamento do Estado de 2017 (OE2017)”.

Initially applied only to a limited range of goods including cereals, coffee, and chemical products. However, the scheme is not restricted anymore.

Conditions to access the scheme

Firstly, the applicant:

  • must be liable for a monthly VAT return
  • not liable for any restrictions on the right for a deduction
  • have a clear tax situation without any offences recorded
  • does not benefit, at the time the option takes effect. This will defer the payment of VAT on any previous imports.

Also, businesses registered or identified in Portugal for VAT purposes, as tax liable persons, with a right for deduction and importing goods into Portugal should no longer pay import VAT.

As a result, import VAT is now triggered at the date of the periodic VAT return. This will remove the need for you to make any payments.

Finally, non-residents must apply through the Portuguese tax authority “Autoridade Tributária e Aduaneira”, and also must remain enrolled for a minimum of six months.