The Secretary of State for Taxation ordered the measures to be applied to loan contracts during the bank’s suspension.
The payment of value-added tax to households and companies that have loan contracts guaranteed by banks in default has been suspended. The Minister of Taxation, Mendonça Mendes (Mendonça Mendes) issued an order that will take effect for the monthly installments specified in the contract, which will take effect before the suspension takes effect.
according to Business magazine On Tuesday, the order went against the general provisions of the VAT Code. In a contract longer than one year, if the goods or services provided can last for a period of time (so-called instalment payments), VAT needs to be paid every 12 months. Without this order, families and companies will be required to pay contract value-added tax.
The suspension system was implemented in March 2020 and will be valid until September 30, 2021. It also stipulates that before the end of the period, it prohibits the cancellation of the contract credit line and the extension or suspension of credit.