Portugal's Draft State Budget Law for 2019 (issued through the approval of Proposal Law no. 156/XII, of 13 October 2018) includes some potential measures that may be introduced to the Portuguese Value Added Tax (VAT) Code as follows:

• Transposition of the Council Directive (EU) 2016/1065 of 27 June 2016 addressing the VAT transposition rules of gift vouchers
• Transposition of the Council Directive (EU) 2017/2455 of 5 December 2017 addressing place of supply rules in terms of telecommunications, radio broadcasting or television services and electronic services
• Expansion of services subject to the reduced or intermediate VAT rate (still under public discussion, example, the bullfighting artists' services)

As the State Budget Law for 2019 is still a proposal, it is subject to changes and final approval prior to entry into force, which will be only after 1 January 2019.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young S.A., Lisbon

• Carlos Lobo
  carlos.lobo@pt.ey.com
• Amilcar Nunes
  amilcar.nunes@pt.ey.com

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ATTACHMENT

PDF version of this Tax Alert