Portugal Tax Agency Issues Circular on VAT Guidelines for Single Taxable Transactions

The Portuguese Tax and Customs Authority Dec. 19 issued Circular No. 25049, clarifying VAT obligations for single taxable operations or isolated acts, including registration and compliance for occasional operations. The circular explains that: 1) a person performing a single taxable operation related to economic activity is considered a VAT taxpayer; 2) VAT registration is required for regular economic activities but not for isolated acts under 25,000 euros (US$26,027); 3) VAT applies to isolated acts at the applicable rate, with exemptions for operations outside Portugal; 4) invoices must be issued for isolated acts, with options depending on payment timing; and 5) ...