VAT returns for domestic taxpayers based on invoice submissions
As part of its Tax Simplification Agenda, the Portuguese government has introduced the pre-filled VAT return mechanism (‘declaração periódica automática’), effective 1 July 2025, under Ordinance No. 242/2025/1. This initiative, implemented via Article 29-A of the VAT Code (added by Decree-Law No. 49/2025), aims to reduce compliance burdens, enhance service quality, and improve tax transparency.
The automatic VAT project has been phased in since 2018, with the Tax Authority pre-filling the VAT return fields. But it is necessary to continue to check that the invoice amounts are correctly entered, similar to what happens with automatic IRS declarations.
VAT registered business open to new returns
To qualify for the Automatic VAT Return, taxpayers must meet all the following criteria:
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Be resident in Portugal;
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Not part of the Cash VAT Regime (Decree-Law No. 71/2013);
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Have classified all invoices and correction documents in which they are identified as purchasers.
Taxpayers or transactions excluded
Even if the above conditions are met, the following taxpayers are excluded:
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Those involved in imports or exports;
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Those making intra-EU acquisitions of goods or services;
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Those operating under any special VAT regimes;
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Transactions based on manually entered invoices in the e-fatura system (not electronically issued and communicated by the seller) are excluded from VAT deduction in the automatic return.
Read more in our Portugal VAT guide.
Pre-filled VAT / GST returns
