I. EDITORIAL – APPROVAL OF THE STATE BUDGET FOR 2019

As usual, the highlight of December is the approval of the State Budget for 2019.

The Law n.º 71/2018 of December 31, which approved the State Budget for 2019, promoted several relevant changes in the tax, social security and labor area, including  modifications to the contributory framework applicable for self-employed and the increase of some taxes (such as soft drinks, tobacco and the Real Estate Tax for real estate with a tax value above € 2.000.000,00.

It is worth highlighting the Decree-Law no. 110/2018 of 10 December approving the new Industrial Property Code, as well as Ordinance no. 328/2018 of 19 December, which defines the legal requirements for visas applicable for highly qualified workers in Portugal.

Finally, it is also noteworthy is the Ordinance no. 330-A / 2018 of December 20, which establishes the average value of construction per square meter, for the purposes of Article 39 of the Code of Municipal Tax over Real Estate, to be in force in 2019.

Regarding case-law, we point out the Judgment of the Court of Justice of European Union of December 6, in the case C-672/17, which delivered its understanding on the interpretation of the principle of neutrality as well as Articles 90 and 273 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax in the sense that these same do not preclude national legislation, which provides that the reduction of the taxable amount for value added tax (VAT), in the event of non-payment, cannot be made by the taxable person until it has given prior notice of its intention to cancel all or part of the VAT to the purchaser of goods or services, if that purchaser is a taxable person, for the purposes of correcting the deduction of VAT that the latter has made.