The Portuguese Government has approved eight new measures as part of the Tax Simplification Agenda, aiming to reduce bureaucracy and make the tax system more accessible for businesses and taxpayers. These new measures build upon the 30 initiatives already presented in January 2025.
With a direct impact on the day-to-day tax obligations of businesses and professionals, these updates involve adjustments to deadlines, procedures, and declarative obligations.
What changes with these new measures?
Among the key updates approved by the Council of Ministers are:
1. Flexible VAT reporting
Businesses can now choose between monthly or quarterly VAT reporting, allowing them to align the schedule with their invoicing practices.
2. Less bureaucracy for one-off services
In specific cases, the declaration of commencement of activity is no longer required for isolated acts such as occasional service provision.
3. Extended deadline for Modelo 10 submission
The deadline for submitting Modelo 10, a declaration reporting payments made to third parties, has been extended to provide greater flexibility and ease of compliance.
What is already being implemented?
In addition to the newly approved measures, the Government has started implementing other previously announced initiatives, including:
- Automatic submission of “zero” VAT returns;
- Removal of annexes Q and O from the IES declaration;
- New rules for withholding tax on payments under €25;
- Simplified procedures for postal shipments valued under €1,000.
Why are these changes relevant?
These measures aim to reduce operational costs, eliminate administrative redundancies, and harmonise deadlines and procedures, particularly in the context of periodic declarations and auxiliary obligations.
For companies, accountants, and self-employed professionals, staying informed of these changes is essential to ensure compliance and avoid unnecessary penalties.
The Reis & Pellicano team is available to answer questions and provide guidance on the appropriate tax framework for each situation.
