Annual VAT returns in Portugal: What Do You Need to Know?

Companies registered for VAT purposes in Portugal must submit an Annual VAT return. This is a recapitulative return for informative purposes, so normally there should not be any VAT payment due upon submission. This return is also known as IES/DA, Informação Empresarial Simplificada/ Declaração Annual. 

The tax authorities update the annual VAT return form and annexes updated every year. 

What is the deadline for submission?

The Annual VAT return in Portugal is due by 15th July of the year following the reporting period.

Please consider that for the annual VAT return (IES/DA) 2023, the submission deadline is extended to 31st July 2024. Have a look at the official annoucement.

However, the last annual VAT return submitted in Portugal upon de-registration is subject to a special deadline: 30 days after the de-registration date.

The tax calendar is updated every year and published by the tax authorities on their website.

Submission of the Annual VAT returns

The Annual VAT return must be submitted electronically. In order to prepare and submit the Portuguese annual VAT return, you will need to download specific software for completion from the tax authorities' website. Once you prepare the return, an XML file is generated for submission.

Important Notes About the Portuguese Annual VAT Returns 

• Nil annual VAT returns: in case no activity took place during the calendar year, you do not need to submit a nil annual VAT return.
• Tax Office Code: when completing the annual VAT return, you will need to include the competent tax office code corresponding to your company.
• Reporting period: the reporting period must be exact. Normally, it will match the natural year. However, if the company has registered during the year, the start date must be adjusted. Similarly, if the company has de-registered during the year, the end date must be adjusted accordingly.
• Companies de-registered during the reporting year: the last annual VAT return submitted in Portugal upon de-registration is subject to a special deadline: 30 days after the de-registration date. Also, when completing the annual VAT return in this scenario, you need to select a specific type of return, under option 2. Finally, the reporting period must be adjusted to reflect the de-registration date.
• UBO: you need to confirm whether or not there was any change in your previous information communicated.
• Special information reported: when the taxpayer had transactions with the same suppliers or customer exceeding EUR 25,000, you need to report additional information concerning the counterparties.