PLMJ partner Serena Cabrita Neto and senior associate Filipe Abreu speak to Público about deduction of VAT

Serena Cabrita Neto, a partner from PLMJ's tax practice, and Filipe Abreu, a senior associate from the same practice, have spoken to the newspaper Público about the fear, on the part of exporters, of the restrictions on the deduction of VAT on expenses they incur in their activities. "We need only think of a case in which a VAT taxable person, who receives an invoice in January, but because of a lapse in their administrative systems, only registers it in June. Up to now, there has been no problem, because the VAT appearing in the invoice will continue to be deductible for a period of two years. With the planned change to the legislation, taxpayers may see the period the deduction reduced to January or February", they explain.