Portugal Tax Agency Posts Circular on Small Business VAT Exemption Regime for Cross-Border Transactions

The Portuguese Tax and Customs Authority April 8 posted Circular No. 25065, on the VAT exemption regime for small businesses engaging in cross-border transactions within the EU, as enacted under Decree-Law No. 35/2025. Topics covered include: 1) a VAT exemption for businesses headquartered or domiciled in an EU State, if their annual turnover in the EU doesn’t exceed 100,000 euros (US$110,033); 2) conditions for businesses in Portugal to obtain the exemption; 3) declaration and invoicing requirements; 4) the inability to deduct input VAT under the special exemption regime; and 5) the July 1 eligibility end date for businesses established in ...