Portugal Introduces Automatic VAT Returns for Domestic Taxpayers
Portugal launches automatic, pre-filled VAT returns for resident businesses from July 2025 reporting period. Learn how it works, who it applies to, and how to stay compliant with Marosa.
Starting 1 July 2025, Portugal will launch automatic VAT returns for domestic taxpayers. This new system, based on Article 29-A of the Portuguese VAT Code, aims to reduce compliance burdens, improve accuracy, and simplify the filing process. The initiative is part of Portugal's broader effort to modernize its tax system and increase transparency.
Automatic VAT returns available only to resident businesses in Portugal.
What Are “Pre-Filled” VAT Returns?
Pre-filled VAT returns are draft VAT declarations generated by the Portuguese Tax Authorities using data already available from businesses and third parties. These drafts include:
- Sales and purchase data
- VAT amounts
- Invoice records submitted digitally
Instead of preparing VAT returns from scratch, eligible businesses will receive a pre-completed version. They can review, correct, or confirm the information before submission. This reduces human error, saves time, and streamlines tax compliance.
Check all VAT return deadlines across the EU.
Portugal’s Automatic VAT Return: Key Features
Under Article 29-A of the VAT Code, the Tax Authorities will generate a provisional periodic VAT return (declaração periódica provisória) using available data.
- Taxpayers can confirm and submit the draft, or make changes as needed.
- If a taxpayer has no transactions during the period, and does not submit a different return, the provisional return is automatically considered submitted.
- The feature will be available through the e-fatura portal and other integrated tax tools.
Read the official legal text from Portuguese VAT Law.
Who Is Affected by This Change?
The new rules apply only to resident Portuguese businesses that meet all of the following conditions (as per Order No. 242/2025/1, dated 29 May 2025):
- Resident in Portugal
- Not under the cash accounting scheme (Decree-Law No. 71/2013)
- Invoices and credit notes received are correctly classified in e-fatura.
Even if the previous conditions are met, the relevant taxpayers are excluded from the automatic VAT returns in a given reporting period if:
- Engaged in imports and exports
- Reverse charge purchases
- Operating under special VAT schemes
Separately, invoices and credit notes manually registered in e-fatura by the recipient, and not previously communicated by the issuer, will not be included in the automatic VAT return for deduction purposes.
How Marosa Can Help
Navigating new VAT regulations can be complex—especially with changes like automatic returns in Portugal. At Marosa, our experts help you stay compliant and up to date with every development across the EU.
Portugal’s move to automated VAT returns is a major step toward digital tax transformation. If your company is established in Portugal, now is the time to review your systems and ensure your invoices and VAT records are correctly classified in e-fatura.