Since 1 January 2026, the rules for determining the periodicity of VAT returns in Portugal have changed.

The main change is simple: the tax authority no longer automatically updates your VAT regime (monthly or quarterly).

Now, the responsibility lies entirely with the company.

Why is the VAT regime no longer updated automatically?

Until 2025, the Portuguese tax authority automatically notified companies of their applicable regime.

Since 01/01/2026:

  • No automatic notification is sent
  • Each company must determine its own VAT periodicity
  • Any change had to be formalised via a change declaration filed in January 2026
⚠️ Warning
Doing nothing can lead to a reporting risk. Inaction no longer means compliance.

What is the determining threshold for VAT periodicity in 2026?

The periodicity of the VAT return in Portugal in 2026 depends directly on the turnover achieved in 2025.

Which rule applies:

  • Turnover ≥ €650,000 → Mandatory monthly regime
  • Turnover < €650,000 → Quarterly regime possible (with option for monthly)
⚠️ Warning
The €650,000 threshold therefore becomes the central criterion for determining your VAT regime.

Does the removal of the three-year commitment change the VAT strategy?

Yes. Since 2026, the mandatory requirement to remain in the monthly regime for three years has been removed.

What consequence:

The choice of VAT regime becomes a true financial management lever:

  • cash flow optimisation
  • better management of VAT flows
  • annual adaptation to changes in turnover
⚠️ Warning
This flexibility does, however, require rigorous annual monitoring.

What are the most common practical cases in 2026?

Here are the most common situations:

  • Company previously on quarterly regime that exceeded €650,000 in 2025
    • Mandatory switch to the monthly regime from January 2026
  • Company on quarterly regime that remained below the threshold
    • Possible continuation on quarterly
    • Possible option for monthly
  • Company on monthly regime that fell back below €650,000
    • Possible return to quarterly regime
    • Provided the change declaration was filed in January

Why carry out a VAT audit in Portugal in 2026?

Since 1 January 2026, the periodicity of VAT in Portugal is no longer a parameter automatically managed by the tax authority.

It now depends on:

  • an active decision by the company
  • an annual check of turnover
  • administrative formalisation in case of change

A quick diagnosis today can help you avoid risks tomorrow

The ASD Group teams will assist you in analysing your 2026 situation, verifying your reference turnover and confirming the applicable regime.

Contact our experts now

Source: Autoridade Tributária e Aduaneira (PDF in Portuguese)

Noémie Almot
Community Manager & Copywriter

Noémie is a specialised content writer at ASD Group. She creates and manages blog articles as well as news updates on our websites, with a focus on VAT, international taxes, customs operations, social regulations, and international trade. With her clear and educational writing style, she makes complex and technical topics easily understandable and relevant for businesses.