On January 16, 2025, the government presented 30 measures for Tax Simplification with an expected impact on business activity. The Agenda for Tax Simplification, composed of measures aimed at reducing administrative costs, improving transparency and enhancing the quality of services provided.
The measures will be applied over the next 2 years. Among the most relevant measures is the IUC (Single Circulation Tax), a multipurpose medical certificate and VAT is also the most mentioned tax in the package.
What are the measures for tax simplification?
Tax simplification provides for initiatives aimed at making the tax system more efficient, transparent and easy to understand through the following measures:
- Simplification of the IES (Informação Empresarial Simplificada)
- Simplification of procedures for granting VAT refunds
- Simplification of invoicing rules
- Automatic submission of the periodic VAT return for individuals without taxable transactions
- Creation of a differentiated tax ID for category B
- Expedite the declaration of commencement or change of activity for green receipts
- Exemption from the regularization meeting in the context of tax inspection
- Increase the use of AI tools to accelerate the response to the taxpayer
- Improve taxpayer support in filling out the IRS return
- Simplification of Single Circulation Tax (IUC)
- Simplification of the delivery of the Atestado Médico de Incapacidade Multiuso (AMIM)
- Review of the regime of goods in circulation goods in circulation
- Improvement of the Finance Portal
- Harmonisation of the validity periods of tax and social security certificates of non-debt
- Pre-filling of the model 22 with the tax losses generated in previous years
- Set the minimum amount for the refund of Stamp Duty at ten euros
- Simplification of Stamp Duty in the context of free transfers
- Revise the VAT exemption waiver certificate scheme
- Amendment of the deadline for requesting payment in instalments of VAT
- Dematerialization of VAT records
- Exemption from Export Customs Declaration
- Simplification of customs procedures
- Unofficial communication of the identification of shareholders
- Harmonization of deadlines for compliance with reporting obligations
- Exemption from withholding tax for amounts below 25 euros
- Elimination of the individual taxpayers' process
- Simplification of various reporting obligations
- Simplification of procedures in the Vehicle Tax (ISV)
- Simplification of procedures under Excise Duties (IEC)
- Revisiting the SAF-T (PT) Accounting regime
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