Changes to the VAT Return

Ordinance No. 298/2026/1, of 16 July, has been published, approving new templates for the VAT Return, Annex R and the annexes relating to adjustments to Boxes 40 and 41, together with the corresponding completion instructions.

The new VAT return form provides for a more detailed breakdown of the information reported, introducing new sections and fields and establishing criteria for the automatic pre-filling of the taxable amount and VAT relating to certain transactions. Among other aspects, the amendments aim to accommodate the new VAT Grouping Regime, implement the adjustments arising from the Housing Package and allow for a more detailed breakdown of transactions and their respective taxation regimes.

Among the main changes are the following:

• Housing Package – new specific fields are introduced to report VAT adjustments arising from the application of item 2.42 of List I attached to the Portuguese VAT Code, whether in favour of the taxable person or the State, including the respective supporting annexes.
• VAT Group Regime – the return will allow the identification of returns submitted under the new VAT Grouping Regime, through the identification of the controlling entity.
• Greater disaggregation of information – several new sections and fields are introduced to distinguish transactions by VAT rate and applicable regime, including, among others, transactions subject to the reverse charge mechanism, special margin taxation schemes, transactions covered by the e-Tax free system, self-supplies, exempt transactions carrying the right to deduct input VAT and transactions supported by documents other than invoices.
• VAT adjustments – new fields are introduced for adjustments arising from errors of law, bad debts or doubtful debts, and transactions covered by the e-Tax free regime.

Entry into force

• The amendments relating to the Housing Package and the VAT Group Regime take effect from 1 July 2026.
• The remaining amendments will enter into force on 1 July 2027.