Portugal has published Decree-Law No. 35/2025 of 24 March 2025 in the Official Gazette, introducing measures to align with EU VAT law for small businesses. The Decree includes the EU small business scheme for cross-border supplies under Council Directive (EU) 2020/285 of 18 February 2020.
From 2025, businesses established in another EU Member State can apply for Portugal’s VAT exemption for small businesses if their turnover in Portugal stays under EUR 15,000 and their EU-wide turnover is under EUR 100,000.
Small companies in Portugal can qualify for VAT exemptions in other EU countries if their turnover remains under the local thresholds and doesn’t exceed EUR 100,000 across the EU.
Decree-Law No. 35/2025 entered in force on 24 March 2025.
