Portugal clarifies VAT correction procedures and reporting requirements

27 August 2026

Portugal's Tax Authority has issued new guidance on VAT invoice corrections and introduced updates to the periodic VAT return, reflecting the country's continued move towards digital VAT compliance.

For non-resident business registered for VAT in Portugal, the changes are particularly important as they clarify that credit notes can only be used where the VAT amount or taxable value changes. Errors such as an incorrect customer VAT number, name, or address must instead be corrected by cancelling and reissuing the invoice.

The new rules also formally recognise electronic evidence, including platform records, customer portal logs, and email correspondence, as proof that customers have been notified of VAT corrections. This is a welcome development for businesses managing Portuguese VAT obligations remotely.

Effected traders should review their invoicing, documentation, and VAT reporting processes to ensure they remain compliant and can support VAT adjustments in the event of a tax authority review.