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The “AT” (Tax Office) wants to assure that all entrepreneurs receive their correspondence in a secure and unquestionable manner. To this end. all Sole Traders registered for VAT are now obliged to have an electronic post box with www.viaCTT.pt. The viaCTT account must be activated within 30 days after VAT registration. The rule applies to sole traders once they have reached an income of over than 10.000€ in the preceding year. Fines for non-compliance go from €50 to €250.
As an accommodation service business, Local Lodging is subject to VAT at the reduced rate of 6% (5% in Madeira and the Azores). Value Added Tax is applied to the price of lodging when annual income surpasses €10,000 and is reported quarterly to the Portuguese Tax Authority. In contrast, income from long-term lets (<30 days) is exempt from VAT.
Property owners who rent out an empty property, can continue to charge rent without VAT, unless the property is prepared for a commercial activity or if they offer additional services to the tenant, such as management, gardening or maintenance.