Portugal Gazettes Law Partially Implementing EU Directives on Special VAT Exemption Regime for Small Businesses

The Portuguese Official Gazette Feb. 24 published Law No. 16/2025, amending the VAT Act to partially implement EU Directives 2020/285 and 2022/542 on the special tax exemption regime for small businesses. The law includes measures: 1) limiting the conditions for access to the regime to taxable persons that aren’t performing export operations and whose annual turnover doesn’t exceed 15,000 euros (US$15,763); 2) allowing small businesses residing in other EU countries to claim the VAT exemption if their annual turnover within the EU doesn’t exceed 100,000 euros (US$105,084); 3) establishing conditions for Portuguese businesses to apply the exemption in other EU ...