The Decree-Law was recently published in the Diário da República and will come into force in July 2025, allowing companies that were not previously covered to join the scheme via the Finance Portal.  

From July 1, 2025, the new cash VAT regime will be extended to small and medium-sized enterprises (SMEs) with an annual turnover of up to two million euros. This scheme allows companies to pay VAT to the state only when payment is received from the customer, contributing to better cash management. Currently, the turnover limit is 500,000 euros, but with the new measure, more companies will be able to benefit from this more flexible payment model. 

With the introduction of this measure, the government aims to support SMEs by giving them greater financial flexibility. Companies that meet the criteria will be able to opt for this scheme and pay VAT to the state up to 12 months after the invoice has been issued, if the payment has not yet been made by the customer, allowing them to optimize their financial management. 

This measure allows many companies in Portugal to postpone the payment of VAT until the customer has paid, giving them greater flexibility. At a national level, this measure favours the strengthening of SMEs, which are the pillar of the national economy, contributing to boost its sustainability and growth. 

For OportoAccounting, this news represents an excellent opportunity to further support our clients in optimizing their fiscal and financial management. The extension of the cash VAT regime will allow many of the companies we work with to benefit from it, improving their cash flow capacity and financial planning. Our team of experts is ready to help companies adapt to the new regime. 

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