Portugal: New obligations to effect all VAT registered companies.
VAT News Updates
26th July 2019: By 31 October 2019 all companies must be registered in the central register of beneficial owners.
This obligation applies to companies that are registered for VAT purposes in Portugal. As part of the registration process, provision of data relating to the identity of a company’s shareholders, its administrative bodies and its beneficial owners, as well as data relating to the person registering the company is required.
The purpose behind this data request is to prevent terrorist financing and money laundering within the EU.
Non-compliance may result in sanctions and fines of up to EUR 50,000 being imposed.
Additionally, from 1 January 2020, companies will be required to issue invoices using software certified by the Portuguese tax authorities. According to the latest available information, this obligation also applies to companies that are not established in Portugal but are registered for VAT
purposes in Portugal and have a taxable (worldwide) annual turnover of more than EUR 75,000.
The obligation to use certified invoicing software is only waived if the reverse charge mechanism applies or if self-billing invoices are issued. Non-compliance may result in sanctions and fines of up to EUR 37,500 being imposed.
Taxback International are keeping a close eye on this and will update you with more information as we receive it.
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