{"id":2723,"date":"2025-04-15T12:42:48","date_gmt":"2025-04-15T12:42:48","guid":{"rendered":"https:\/\/anabruno.yourcode-staging.com\/supremo-tribunal-administrativo-uniformiza-jurisprudencia-sobre-aplicacao-da-taxa-reduzida-de-iva-nas-empreitadas-de-reabilitacao-urbana\/"},"modified":"2026-01-23T16:03:59","modified_gmt":"2026-01-23T16:03:59","slug":"supreme-administrative-court-fixes-case-law-on-the-application-of-the-reduced-vat-rate-in-urban-rehabilitation-works","status":"publish","type":"post","link":"https:\/\/anabruno.pt\/en\/supreme-administrative-court-fixes-case-law-on-the-application-of-the-reduced-vat-rate-in-urban-rehabilitation-works\/","title":{"rendered":"Supreme Administrative Court Fixes Case Law on the Application of the Reduced VAT Rate in Urban Rehabilitation Works"},"content":{"rendered":"[vc_row type=”full_width_content” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” 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Supreme Administrative Court Fixes Case Law on the Application of the Reduced VAT Rate in Urban Rehabilitation Works<\/h1>\n[\/vc_column_text][divider line_type=”No Line” custom_height=”30px”][vc_column_text css=”” text_direction=”default” el_class=”texto_justificado texto_normal”]On March 26, 2025, the Plenary Session of the Tax Litigation Division of the Supreme Administrative Court (STA) issued a ruling with decisive implications for the urban rehabilitation sector and for taxpayers who have applied the reduced 6% VAT rate to their construction contracts, under item 2.23 of List I of the VAT Code.<\/p>\n

The decision harmonizes case law in determining that the mere location of a project within an Urban Rehabilitation Area (ARU) is not sufficient to qualify for the reduced 6% VAT rate. According to the STA, it is also necessary for the construction contract to be part of an Urban Rehabilitation Operation (ORU), aligned with the strategic objectives defined for the ARU and compliant with the legal framework for urban rehabilitation (RJRU).<\/p>\n

The ruling clarifies three key points on the matter:<\/p>\n

1.\u00a0<\/strong>Conditions for Applying the 6% VAT Rate<\/b><\/p>\n

The application of the reduced rate requires not only that the project be located within an ARU, but also that it is part of an ORU formally approved by the municipal assembly and with legal effect. Failure to meet this second requirement constitutes a breach of the tax legality principle.<\/p>\n

2.\u00a0<\/strong>New Constructions Outside the Scope of Rehabilitation<\/b><\/p>\n

The newly harmonized case law excludes from the scope of item 2.23. the construction of new buildings on previously undeveloped land \u2013 even if within an ARU. The reduced VAT rate is therefore limited to the rehabilitation of pre-existing buildings.<\/p>\n

3.\u00a0<\/strong>Probative Value of Municipal Certification<\/b><\/p>\n

The ruling dismisses the notion that a simple municipal certificate is sufficient to prove that a construction contract qualifies as an Urban Rehabilitation Operation. Formal approval of the ORU is required.<\/p>\n

This decision is binding on administrative courts and authorizes the Tax Authority to retroactively claim the difference between the 6% and the standard 23% VAT rates, within the four-year statute of limitations. As a result, construction companies may face large-scale tax adjustments on previously executed contracts.<\/p>\n

We believe this ruling may have a serious impact on real estate development and could trigger a wave of tax litigation.<\/p>\n

For further information, please contact the Tax Law Department at Ana Bruno & Associados \u2013 Sociedade de Advogados, SP RL.<\/strong>[\/vc_column_text][divider line_type=”No Line” custom_height=”0px” custom_height_tablet=”40px” custom_height_phone=”40px”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” el_class=”no-print-pdf” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/12″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” sticky_content=”true” sticky_content_functionality=”js” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” el_class=”coluna-direita” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”.vc_custom_1759142906860{margin-bottom: 0px !important;}” text_direction=”default”]Authors of the News[\/vc_column_text][divider line_type=”No Line” custom_height=”10px”][vc_row_inner column_margin=”20px” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” el_class=”seta_area_equipa” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default” offset=”vc_col-xs-6″][image_with_animation image_url=”1483″ image_size=”full” max_width=”100%” max_width_mobile=”default” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” img_link=”\/en\/team\/sonia-reis\/” el_class=”autor-imagem”][divider line_type=”No Line” custom_height=”10px”][vc_column_text css=”” text_direction=”default”]\n

S\u00f3nia Martins Reis<\/h5>\n[\/vc_column_text][divider line_type=”No Line” custom_height=”10px”][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” el_class=”seta_area_equipa” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default” offset=”vc_col-xs-6″][image_with_animation image_url=”1470″ image_size=”full” max_width=”100%” max_width_mobile=”default” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” img_link=”\/en\/team\/david-rodrigues-custodio\/” el_class=”autor-imagem-2″][divider line_type=”No Line” custom_height=”10px”][vc_column_text css=”” text_direction=”default”]\n
David Rodrigues Cust\u00f3dio<\/h5>\n[\/vc_column_text][divider line_type=”No Line” custom_height=”10px”][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” el_class=”seta_area_equipa” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default” offset=”vc_col-xs-6″][image_with_animation image_url=”1482″ image_size=”full” max_width=”100%” max_width_mobile=”default” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” img_link=”\/en\/team\/ricardo-mendonca-leonardo\/” el_class=”autor-imagem-3″][divider line_type=”No Line” custom_height=”10px”][vc_column_text css=”” text_direction=”default”]\n
Ricardo Mendon\u00e7a Leonardo<\/h5>\n[\/vc_column_text][divider line_type=”No Line” custom_height=”10px”][\/vc_column_inner][\/vc_row_inner][vc_column_text css=”” text_direction=”default”]