CTT. The Portuguese Ombudsman asks for an end to undue charging of VAT on small-value non-Community shipments between private individuals

The Portuguese Postal Service (CTT) is unduly demanding payment of Value Added Tax (VAT) on small-value non-EU remittances between private individuals, concluded the Ombudsman after examining several complaints in this regard.

In a recommendation addressed to the Chairman of the Board of Directors of CTT – Correios de Portugal, S.A. and communicated to the Director of Customs Regulation Services of the Portuguese Tax Authority, the Ombudsman asks that an end be put to this practice, clarifying that goods dispatched from a third country by a private individual to another private individual remain exempt from VAT when they are for personal/family use and are not worth more than 45 euros, as per Decree-Law no. 398/86, of 26 November.

The exemption also covers excise taxes as long as the remittance between private individuals involves the goods identified in the same diploma, in the quantities listed therein.

It is further clarified that the VAT exemption that was abolished in July 2021 relates to extra-community acquisitions of a commercial nature, up to 22 euros in value, and not to shipments between individuals.

To read the full recommendation click here [in Portuguese only].

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