On 28 October 2026, the Tax Authority circulated Official Notice No. 90088/2026, announcing the availability of the VAT group adhesion request functionality within the ‘Change of Activity’ declaration on the Finance Portal (Portal das Finanças). This operationalizes Law No. 62/2025 of 27 October, which introduced the VAT group regime allowing financially, economically, and organizationally linked entities to consolidate VAT liabilities and refunds. The digital process eliminates paper submissions, requiring the representative member to submit the adhesion request electronically with supporting documentation proving the binding links. Groups approved will file a single periodic VAT return (Model 22) and benefit from cash-flow optimization through intra-group transaction netting. The regime applies from the first day of the quarter following approval.
Key Takeaways
- Digital-First Compliance: The entire adhesion process—from application to approval—is now managed online, reducing processing time from weeks to days and providing real-time status tracking.
- Eligibility Verification: Entities must demonstrate >50% voting rights control or effective management control, plus shared economic objectives; the portal includes automated checks against the commercial registry.
- Retroactive Opt-Out: Groups may dissolve with effect from the start of a calendar quarter, but only after a minimum 24-month membership, preventing abusive short-term grouping for VAT refund acceleration.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement