Portugal Tax Agency Issues Circular on Changes to Cash Accounting VAT Regime

The Portuguese Tax and Customs Authority March 25 issued Circular No. 25061, clarifying changes to the cash accounting VAT regime under Decree-Law No. 34/2025. The circular clarifies: 1) an increase in the annual turnover threshold for the cash accounting VAT regime to 2 million euros (US$2.1 million), from 500,000 euros (US$541,082), for qualifying VAT taxpayers; 2) that taxpayers must electronically notify the tax authorities if their turnover exceeds 2 million euros during the current year; and 3) that taxpayers under the general VAT regime can opt into the cash accounting VAT regime in October each year, with the regime taking ...