On 21 October 2013, Portugal and Spain signed agreements regarding the strengthening of mutual assistance and automatic exchange of information on tax matters. These aim at fighting tax fraud and evasion and the parallel economy. The signed agreements refer to several potential fraudulent situations, including:
- Fake invoices: deduction of costs by Spanish tax resident entities based on invoices issued by Portuguese tax resident companies that effectively have no activity or that have even been liquidated;
- VAT refunds: companies resident for tax in Portugal that take on fuel in Spain, requesting the refund of the VAT incurred on the basis of their non-resident status.
For more information please contact:
PricewaterhouseCoopers & Associados – SROC, Lda
Rua Sousa Martins, 1 – 4º
1069-316 Lisboa/Lisbon – Portugal
Tel. +351 213 599 000