The refund regime for VAT incurred and not deductible for expenses relating to the organization of congresses, fairs, exhibitions, seminars, conferences and similar, for companies whose main activity is the organization of these events, will now become permanent, through Decree-Law to be published in the coming days, the Ministry of Economy announced today.
The amount equivalent to 50% of VAT incurred and not deductible may be subject to a refund for the following expenses:
• Expenses for transport and travel for business and its staff, including tolls;
• Expenses related to accommodation, food and drinks;
• Reception expenses, including those relating to the reception of people outside the company;
• Expenses relating to properties or parts of properties and their equipment, mainly intended for such receptions.
In a note sent to newsrooms, the Ministry of Economy explains that, «in the pandemic context, through an exceptional and temporary regime published on August 11, 2020 and which was in force until the end of 2021, companies dedicated to the organization of congresses, fairs , exhibitions, seminars, conferences and the like, saw the possibility of refunding the amount equivalent to 50% of the VAT incurred and not deductible, on the aforementioned expenses, in a regime that now becomes permanent».
The Secretary of State for Tourism, Commerce and Services, Nuno Fazenda, states that “this is an important measure for the events sector which, after the abrupt fall in the most intense years of the pandemic, is now returning to its normal activity. This measure agreed in the Medium Term Agreement to improve income, wages and competitiveness is crucial for the sector to recover with confidence and stability”.
“The organization of congresses, fairs, exhibitions, seminars and conferences is one of the faces of the national economy and an important factor of international affirmation. For the quality of our know-how, of our companies and workers”, concludes Nuno Fazenda.
For his part, the Secretary of State for Tax Affairs points out that “with this measure, event and congress tourism companies can be completely exempt from VAT. This is an important support from the Government to continue to promote the growth of the Portuguese economy”.
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