Decree-Law no. 34_2025, of March 24th
This Decree-Law raises the turnover threshold for access to the cash VAT regime.
The cash accounting system, introduced for value-added tax (VAT) purposes by Decree-Law 71/2013 of May 30, amended by Laws 83-C/2013 of December 31 and 82-B/2014 of December 31, and in force since October 1, 2013, has so far only covered VAT taxpayers with an annual turnover of up to €500,000.00.
However, the intention was to introduce the scheme gradually, so that it could be assessed, through its application over time, whether it would be appropriate to extend it to a wider range of economic operators, thus helping to promote an improvement in the financial situation of the companies covered.
As the government believes that the conditions have been met to extend the scope of the cash VAT regime, the regime will now cover VAT taxpayers with an annual turnover of no more than €2,000,000.00.
In this way, VAT taxpayers who meet the other conditions for access to the scheme are given the opportunity to exercise this option, opening up the scheme to a significant number of economic agents in the business and professional sectors, thus helping to improve their financial management.
Entry into force: July 1, 2025
