Changes The Article 22 Of The Code Of Value Added Tax, Approved By Decree-Law No. 394-B/84 Of 26 December

Original Language Title: Altera o artigo 22.º do Código do Imposto sobre o Valor Acrescentado, aprovado pelo Decreto-Lei n.º 394-B/84, de 26 de Dezembro

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PORTUGUESE COMMUNIST PARTY Parliamentary Group DRAFT law No. 71/XI/1st Decreases the time limits for the VAT refund and fixed new deadlines and procedures for the effective delivery of tax in economic relations with the Public Administration, [Changes the code of value added tax (VAT), approved by Decree-Law No. 394-B/84, of September 26] the code of value added tax remains Unfortunately no change, some very unreasonable provisions, in particular with regard to the maintenance of certain time periods and how the conservation of certain procedures. However, notwithstanding the finding of this reality, in fact entirely consensual, the Government is resisting without plausible reasons, the introduction of legislative changes of the VAT code that have as main aim to allow new procedures, more agile and compatible with current needs and requirements of the economy. With the computerization system of generalized almost tax administration is not acceptable to continue without significant variation periods allowed for refund of value added tax. Is vulgar, despite the denials and commitments of the Government, that only VAT taxpayers receive refunds of value added tax to which they are entitled many months (four, five ...), after the date on which the application for return. This is not acceptable, much less if you understand that, in the 21st century, the VAT code in your article 22, determine a period of up to three months to effect such reimbursement after the submission of the request for return by the taxpayer. Nothing justifies the existing situation, there is no justification for the State to hide behind from wicked of the VAT code standards not to speed up processes and procedures that are clearly made electronically and hence are absolutely put in time much more reduced, offering identical or higher safety margin to such procedures. In addition, these deadlines and delays, (the first allowed by rules legal still seconds by the current standards, and also induced resulting from inefficiencies of Administration), the return of value added tax involves unavoidable losses to taxpayers, in particular for micro and small enterprises, reducing them drastically financial availabilities and, consequently, serious problems of Treasury often irreversible effects. This situation, which is already unacceptable and incomprehensible in normal conditions, is currently a special drama face the difficulties caused by the economic crisis the Country is facing, and it causes problems plus the Treasury most of the micro and small companies.

2 1 other recurring problem has to do with the consequences of the delays of many months in State payments to their suppliers or service providers.
These delays, which commonly exceed six months and often are only settled after about a year, do not emit, however, the companies providing goods or services to the State of their tax liabilities in the value added tax, with regard to the time of delivery of the VAT due for those services. The VAT Code imposes them, on the contrary, the VAT delivery deadlines that, faced with the reality described above, create truly incomprehensible and unacceptable situations. Is that the contractors or suppliers of goods to the public authorities are faced with a legal obligation to deliver the VAT on a quarterly basis, including the values of the tax that is owed them by the State before the companies, for causes of the delays in payments, having received this VAT of his own administration. This situation, at a time of growing difficulties of companies, in particular financial difficulties, is to aggravate the situation of many thousands of micro and small enterprises that render service or provide goods to the public administration, and may lead even to your bankruptcy and rising unemployment. The measures that the Government has announced to shorten payment periods invoices to suppliers of goods or services to the public administration have not solved the problem. And even that can mitigate, that may not be enough and the companies continue to have to pay the State the VAT for this because, even before they receive. Matter, therefore, create a rule that allows companies to whom the public administration not paid in time the invoices for the supply of goods and services, to be able to deliver to the State the value added tax due only after it has been received through the total or partial payment of overdue invoices and the amount actually received, in cases where this has not been received in full. In this way the legislation introduced a minimum of reasonableness, do you understand that taxpayers will continue to be required to observe the normal deadlines stipulated in the code of the VAT for the effective delivery of a tax which, after all, has not yet been received because it was the very directors who didn't pay the supplies and services that generated such a tax. The Parliamentary Group of the PCP understand, in summary, that, with or without the existence of the current crisis, the amendments to the code of value added tax are imperatives. It is with regard to the substantial shortening of the deadlines for repayment of VAT to most businesses, that there is no justification, either in relation to the generalization of a fairer and more rational regime for the effective delivery of tax resulting from economic relations, tax assessment, established between companies and the public administration.

3 therefore, the members of the parliamentary group of the Portuguese Communist Party, pursuant to the rules and constitutional, present the following draft law: article 1 Amendment to the code of value added tax (VAT) articles 2, 22 and 27 of the Code of value added tax, approved by Decree-Law No. 394-B/84 of 26 December , shall be replaced by the following: "article 2 [...]
1. […].
2. […].
3. […].
4. […]. 5. (new). The State and other legal persons governed by public law are taxable persons of the tax, also when they are purchasers in operations referred to in point (a)) of paragraph 1 of article 1.
Article 22 [...]
1. […].
2. […].
3. […].
4. […].
5. […].
6. […].

7. […]. 8. The repayments of tax, when due, shall be carried out by the Directorate-General of taxes by the end of the first month following the date of submission of the application, after which the taxable person is entitled to indemnity interest, pursuant to article 43 of the general tax law. 9. […].
10. [...].
11. [...].
12. [...].
13. [...].

4 […]
Article 27 [...]
1. […]. 2. (new)-in the case of the purchaser being the State and other legal persons governed by public law, without prejudice to the provisions of article 41, the tax is chargeable at the time of receipt of all or part of the price by the amount received. 3. [previous No. 2].
4. [previous paragraph 3].
5. [previous paragraph 4].
6. [previous No. 5].
7. [previous paragraph 6].
Article 2 transitional provision the General Directorate of taxes shall make all the necessary changes to ensure the observation of the period of reimbursement referred to in paragraph 8 of article 22 no later than 180 days after the entry into force of this law.
Article 3 entry into force this law shall enter into force on 1 January 2010.

Assembly of the Republic, 23 November 2009 NOVO members; RITA MOUSE; JORGE MACHADO; MICHAEL JAMES; BERNARDINO SOARES