Conceição Gamito is quoted in an article in Jornal de Negócios entitled "Tax authorities change guidelines on VAT on commercial rents", in which she analyses the changes in the Tax Authority's (AT) understanding of VAT on commercial rents.

The crux of the matter is the taxation of commercial leases that include associated services. According to the AT's new position, such leases are not completely exempt from VAT, since they are considered separate supplies, one exempt and the other not. This paradigm has generated legal uncertainty, stating that "this new way of looking at VAT on commercial leases by the AT is yet another episode in this sort of 'rollercoaster'."

The lawyer highlights the lack of consistency in the binding information provided by the AT, mentioning that in situations where there is use of the space with associated services, the AT can consider a single transaction, taxing the contract globally. In her view, this represents a shift in the AT's stance.

Read the article here