Portugal's New VAT Guidance on Virtual Access to Cultural and Similar Events (2025)

April 10, 2025

New VAT rules regarding the place of supply for virtual access to cultural, artistic, sporting, scientific, educational, and recreational events to end consumers came into effect on January 1, 2025. Four months into 2025, the Portuguese Tax and Customs Authority issued guidance on applicable rules under the 2022 amendments to the EU VAT Directive.

Key Amendments to the VAT Law

The Portuguese Tax and Customs Authority implemented amendments regarding the place of supply rules for VAT purposes concerning services providing virtual access to cultural, artistic, sporting, scientific, educational, and recreational events through a Circular No. 25064 on March 27, 2025.

The general rule for supplying such services, including ancillary services, when provided to VAT taxable persons, meaning for B2B transactions, is where the buyer or consumer is located. Information such as business headquarters, permanent establishment, or residence determines the buyer's location. The same general rules apply for B2C transactions when the buyer or consumer is a non-taxable person, meaning that the consumer's location or residence is a place of supply.

Ancillary services include those directly related to event access, even if provided separately for a fee to those attending the in-scope events. However, intermediary services related to ticket sales are not considered ancillary services and are excluded from the general rule.

In addition to explaining general rules, the guidance includes a table that helps better understand how taxation rules apply depending on the type of event, where the event takes place, and where the consumer is located.

Conclusion

VAT rules for the place of supply of virtual events changed on the EU level under the influence of the ECJ rulings in cases C‑568/17 between the Netherlands Tax Authority and L.W. Geelen (Geelen case) and C-532/22 between the Romanian company Westside Unicat and the Romanian Tax Authority.

Before Portugal, several other EU countries amended their national VAT regulations and provided guidelines or explanatory notes on related rules.

Source: Portuguese Tax and Customs Authority, VATabout - EU - Introduction of New Taxability Rules for Virtual Events, VATabout - ECJ Case C-532/22

What are the new VAT rules for virtual events in Portugal?

New VAT rules, effective from January 1, 2025, determine that virtual access to cultural, artistic, educational, and other similar events is taxed based on the consumer's location.

How do the new VAT rules affect B2B transactions for virtual events in Portugal?

For B2B transactions, the place of supply for virtual events is determined by the location of the buyer or business, such as their headquarters or permanent establishment.

What is the place of supply for VAT purposes in B2C transactions for virtual events in Portugal?

For B2C transactions, the place of supply for virtual events is based on the consumer's location or residence, as per the new VAT rules implemented in 2025.

Are ancillary services related to virtual events subject to the same VAT rules?

Yes, ancillary services directly related to virtual event access, even if charged separately, are subject to the same VAT place of supply rules as the main event.

What services are excluded from the new VAT place of supply rules for virtual events in Portugal?

Intermediary services, such as ticket sales, are excluded from the new VAT place of supply rules and are not considered ancillary services.

How do the ECJ rulings impact the new VAT rules for virtual events in Portugal?

The recent ECJ rulings in cases C-568/17 and C-532/22 influenced the changes in the EU VAT Directive, leading to Portugal’s adoption of these updated VAT rules for virtual events.

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