Instructions on the new VAT rate for housing construction and rehabilitation contracts

Following the publication of Decree-Law No. 97/2026, of 20 May, we had the opportunity to analyse, in our previous Informative Note, the main VAT changes applicable to housing construction and rehabilitation contracts.
On this matter, the Tax Authority has recently published two new administrative instructions.

These instructions explain how the Tax Authority interprets the new rules, addressing a number of open questions and providing practical guidance to taxpayers.