DECREE-LAW No. 49/2025, OF 27TH MARCH. APPROVAL OF TAX SIMPLIFICATION MEASURES AMENDING THE VAT CODE AND DECREE-LAW No. 28/2019, OF 15TH FEBRUARY.

lThis requirement will enter into force as from 1^st January 2026.

The change from quarterly to monthly tax frequency is no longer initiated by the Portuguese Tax Authorities. Once the respective requirements have been met, taxpayers (Companies) must change the frequency by submitting a declaration of changes during the month of January.

lChange from the normal QUARTERLY tax frequency regime to the normal MONTHLY tax frequency regime (by legal requirement)

If, during 2025, you earn a turnover greater than or equal to EUR 650,000.00, what happens?

lto the monthly reporting system in 2026

lWill submit a Declaration of Changes during January 2026, taking effect on 1st January 2026.

lTransition from the normal monthly reporting system to the normal quarterly reporting system (by legal requirement)

There is no legal obligation to switch from the monthly to the quarterly reporting system.

 Taxpayers covered by the monthly reporting system, whether by legal requirement or by choice, maintain this reporting system regardless of their revenue and if they do not opt for the quarterly reporting system when the conditions for this are met.

lThis obligation does not apply to companies registered under the special import regime, which are required to be included in the monthly VAT system.