Reasons for VAT Exemption!
You can use the list we've developed to quickly find the justification for your situation's exception.
What are the reasons for VAT exemption?
The reasons for VAT exemption are mentioned below.
M01 - 1 Artigo 16.º, n.º 6 do CIVA
Amounts paid in the name and on behalf of the purchaser of goods or the recipient of services, recorded by the taxable person in appropriate third-party accounts.
M02 - Artigo 6.º do Decreto-Lei n.º 198/90, de 19 de junho
Sales of goods worth more than €1,000 per invoice, made by a supplier to a national exporter, exported in the same state (see applicable rules).
M04 - Isento artigo 13.º do CIVA
Certain type of imports or re-imports. (see article for more details)
M05 - Isento artigo 14.º do CIVA
Exports, assimilated operations and international transport.
M06 - Isento artigo 15.º do CIVA
Operations related to suspensive regimes. (see complete list in the respective article)
M07 - Isento artigo 9.º do CIVA
Varied activities related to health, social support, arts & shows, insurance, lease of spaces, lotteries and duly authorized bets and others (see the complete list in the respective article)
M09 - IVA - não confere direito a dedução
Retailers who are natural persons, do not have or are obliged to have organized accounting for IRS purposes and have not had a volume of purchases in excess of €50,000 in the previous calendar year, to determine the tax due to the State, apply a coefficient of 25% to the value of the tax borne on the acquisition of goods intended for sale without transformation.
Taxable persons who, neither having nor being obliged to have organized accounting for the purposes of the IRS or IRC, nor carrying out import, export operations or related activities, nor carrying out an activity consisting of the transfer of goods or provision of services mentioned in Annex E of the Code VAT, have not reached, in the previous calendar year, a turnover of more than €10,000 or between €10,000 and €12,500 which, if taxed, would fall under small retailers.
M11 - Regime particular do tabaco
Tobacco growers and dealers. (see specific conditions in said Decree-Law)
M12 - Regime da margin de lucro – Agências de Viagens
Operations of travel agencies and tour organizers who act in their own name towards customers and use, for carrying out these operations, the transfer of goods or the provision of services carried out by third parties. The tax charged to the user, in the country of the agency's head office or permanent establishment, is levied only on the "gross margin" of the same. (See specific rules in said Decree-Law)
M13 - Regime da margem de lucro – Bens em segunda mão
Transfers of second-hand goods, carried out under the terms of this diploma, by taxable resellers or by organizers of auction sales acting in their own name, on behalf of a principal or pursuant to a sales commission agreement.
M14 - Regime da margin de lucro – Objetos de arte
Subject to VAT, according to the special margin taxation regime, transfers of art objects, carried out under the terms of this diploma, by taxable resellers or by auction sales organizers acting in their own name, on behalf of a principal or pursuant to a sales commission agreement.
M15 - Regime da margin de lucro - Objetos de colection e antiguidades
Transfers of collections and antiques, carried out under the terms of this diploma, by taxable resellers or by organizers of auction sales who act in their own name, on behalf of a principal or pursuant to a sales commission agreement.
M16 - Isento artigo 14.º do RITI
The transmission of goods, carried out by a taxable person, dispatched or transported by the seller, by the acquirer or on their behalf (with Finance Number (NIF) validated in the VIES), from the national territory to another Member State with destination to the acquirer, when This is a person natural or legal entity registered for the purposes of value added tax in another Member State.
M19 - Other exemptions
Outras isenções
Temporary exemptions determined in a separate diploma.
Agricultural products transferred to other taxable persons who do not benefit from this regime or an identical regime in the Member State where they are established; Agricultural products dispatched or transported to another Member State, whose purchaser is a legal person who is not a taxable person, but who carries out intra-community acquisitions subject to VAT in the Member State of destination or arrival of the goods; Agricultural services provided to other taxable persons who do not benefit from this regime or an identical regime in the Member State where the operations are located.
M21 - IVA – não confere direito à dedução (or similar expression)
Deliveries made by resellers on behalf of distributors.
M26 - IVA – Isenção de IVA com direito à dedução no cabaz alimentar
Transitional application of VAT exemption to certain food products.
Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who, in the national territory, are purchasers of the goods or services mentioned in Annex E of the CIVA and are entitled to total or partial deduction of the tax, provided that the respective transferors or providers are taxable persons.
Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who have their headquarters, permanent establishment or domicile in the national territory and who carry out operations that confer the right to total or partial deduction of the tax, when purchasing civil construction services, including refurbishment, repair, maintenance, conservation and demolition of real estate, on a contract or subcontract basis.
Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who have their headquarters, permanent establishment or domicile in the national territory and who carry out operations that confer the right to total or partial deduction of the tax, when they are purchasers of services whose object is emission rights, certified emission reductions or greenhouse gas emission reduction units, referred to in Decree-Law no. 233/2004, of 14 December. (Added by Law no. 3-B/2010-28/04).
When purchasing cork, wood, pine cones and pine nuts with bark. (Added by Decree-Law No. 165/2019, of 10/30).
See the complete list in the respective article.
The intra-community acquisition was subject to tax in the Member State of arrival of the dispatch or transport of the goods, provided that the following conditions were met at the same time: the taxable person had acquired the goods to carry out their subsequent transfer in that Member State and this operation included in the recapitulative statement referred to in paragraph 1 of article 30; (Wording provided by Article 4 of Decree-Law No. 186/2009, of 12/08, effective from 01/01/2010); the purchaser of the goods transferred in that Member State is a taxable person registered there for value added tax purposes); the acquirer is expressly designated, in the invoice issued by the taxable person, as the debtor of the tax for the transfer of goods carried out in that Member State.
See the complete list in the respective article.
See the complete list in the respective article.
M99 - Não sujetio ou não tributado
See other situations covered by exemptions in the articles indicated.
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(Author)
Raj Don
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