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On 15th March 2010, Law 2/2010 was published changing the VAT refund regime, applicable to refund requests presented after the 1st July 2010.
Our purpose is to inform you about this new Law and regime, which improves the cash flow of Portuguese companies, improving the competitiveness of the International Business Centre of Madeira as well as its capacity to attract foreign investment.
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Changes to the VAT Refund Regime
On 15th March 2010, Law 2/2010 was published, changing the VAT refund regime, applicable to refund requests presented after the 1st July 2010.
With these changes, VAT refunds, when owed, should be made by the Tax Administration by the end of the 2nd month after the refund request. It should be noted that, previously, it should have been made within 90 days.
A monthly VAT refund scheme is also available to companies. Registration in this scheme is made at the request of the taxpayer, through the Tax Administration website, by the end of November of the previous year to which it will be effective. To these taxpayers, the refund should be made within 30 days of the request.
Taxpayers registered in this scheme are obliged to remain in it for 1 year.
After the said 60 or 30 days, as appropriate, if the Tax Administration has not made the refund, taxpayers may request interest.
With this Law, the amount for which the Tax Administration may demand a bank guarantee or other security, was increased from EUR 1.000 to EUR 30.000.
New Madeira, an independent corporate services provider with a vast experience attracting inward foreign investment to Madeira, has provided all professional services related to the evaluation, implementation and management of business-related structures in the International Business Centre of Madeira, since 1990.
Please feel free to consult our website at www.newmadeira.com.
Should you require further clarification on the above or to discuss any other specific structure, do not hesitate to contact us.
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