Do you know the changes in customs VAT payments?

The Government has just approved Ordinance no. 215/2017 of 20 July (see here), which regulates the option already taken in the State Budget Law for 2017, according to which the VAT payable for the import of the may be included in the periodic declaration and thus is no longer paid to customs at the time of customs clearance.

Great news for importing companies, as stated in the Ordinance: "This measure frees importing companies from the financial burden represented by the immediate payment or, when deferred, by the provision of guarantee, and it removes the tax disincentive to import directly through national ports, which still remained in Portuguese legislation after it had already been eliminated many years ago in most EU countries."

This measure will come into force in stages:

Firstly, as of 1 September, covering only the products listed in Annex C of the VAT Code (see here the list of these products with their tariff codes);

Secondly, it will apply to all imported goods from 1 March 2018.

 

Taxpayers who wish to exercise the option with effect on 1 September 2017, must make the request to the Tax Authority, electronically, on the Finance Portal, by 16 August.