Changes to VAT Filing Frequency in Portugal for 2026:
What Is Changing, How It Works, and How to Prepare
Summary
From 2026, several important changes to the frequency of VAT returns in Portugal will come into effect. The most relevant include: the end of automatic notifications from the Tax Authority, the responsibility placed on taxpayers to verify their previous year’s turnover, and the obligation to submit a Change Declaration when applicable. The €650,000 turnover threshold becomes decisive. This article outlines what is changing,
Main Article
1. Legal context and purpose of the reform
The measures introduced by Decree-Law No. 49/2025 aim to simplify tax obligations and reduce administrative burden. Previously, the Tax Authority automatically informed each taxpayer of their VAT filing frequency. Under the new framework, that process ends taxpayers are now responsible for determining and updating their own VAT periodicity.
2. What has changed?
a) Taxpayers now take the initiative
The Tax Authority no longer updates the filing frequency automatically. Businesses must verify their turnover and update their VAT regime through a Change Declaration where required.
b) The €650,000 threshold
Turnover for 2025 determines the applicable frequency for 2026:
· ≥ €650,000 → mandatory monthly filing
· < €650,000 → quarterly filing is allowed; monthly filing remains optional
c) Change Declaration to be submitted in January 2026
Any required change must be formalised via a Change Declaration submitted only during January 2026, taking effect from 1 January 2026.
d) End of the minimum three-year stay in the monthly regime
The mandatory three-year permanence rule for the monthly regime has been abolished, providing greater flexibility.
3. Practical examples
Example 1: mandatory switch to monthly regime
A quarterly filer exceeds €650,000 in turnover in 2025.
→ Must file a Change Declaration in January 2026.
Example 2: optional switch to monthly regime
A quarterly filer remains below €650,000.
→ May voluntarily opt for monthly filing.
Example 3: mandatory continuation in monthly regime
A monthly filer remains above the threshold.
→ Must stay in the monthly regime.
Example 4: possibility of switching back to quarterly regime
A monthly filer drops below €650,000.
→ Not required to switch but may do so if preferred.
4. Practical impact on businesses
Benefits
· Increased autonomy and flexibility.
· Filing frequency aligned with economic reality.
· Improved tax and cash-flow planning.
Risks and considerations
· Missing the January deadline may result in an incorrect filing frequency.
· Incorrect turnover forecasts can lead to compliance issues.
· Changes may require internal adjustments in accounting and cash management.
Conclusion
The new VAT filing rules for 2026 reinforce taxpayer responsibility and require increased attention to turnover monitoring. Early preparation is essential to ensure compliance and avoid operational issues.
How Nominaurea can support its clients
1. Assessment and analysis
· Review of 2025 turnover.
· Determination of the appropriate regime.
2. Preparation of the Change Declaration
· Complete support in drafting and submitting the January 2026 declaration.
3. Internal and accounting adjustments
· Updating internal procedures to match the new filing frequency.
· Adjusting invoicing systems and reporting schedules.
4. Cash-flow planning
· Analysis of the impact of monthly vs quarterly VAT payments.
5. Training and ongoing support
· Training sessions for finance teams.
· Continuous assistance throughout 2025–2026.
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