Changes to online cultural services, profit margin regime for works of art, VAT cash regime and exemption for small companies
On March 24, 2025, Decree-Laws n.º 33/2025, 34/2025 and 35/2025 – introducing significant changes to the VAT regime – were published, reflecting the alignment with European directives and the modernization of various special regimes. The changes include the location of cultural services provided through virtual participation, the profit margin regime for works of art, and the expansion of the VAT cash regime.
The new legislative framework also includes a reformulation of the VAT exemption regime for small companies and now includes operators established in other Member States. It also introduces new reporting obligations with a direct impact on tax management companies. These changes will enter into force in phases, with the new VAT cash regime starting to apply on July 1, 2025.
Entry into force
These changes will enter into force in phases, with the new VAT cash regime starting to apply on July 1, 2025.