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Vat Tax on Legal Services acquired outside of the EU

Emmaqlife

Hello Everyone,


I am a Canadian securing a lawyer to do our documents for NIF and D7. Do I have to pay VAT on their services. If I am currently residing in Canada and the address on our invoice is Canada I am reading that VAT does not have to be paid on the legal services provided.


If anyone has any insight on this. Greatly appreciated.

See also

The tax system in Portugal Double tax treaty UK/PortugalTaxes for expats in PortugalNIF online for EU citizenTax Accountant - NHR
JohnnyPT

Hi @Emmaqlife, Welcome.


Based on Portuguese tax law and VAT rules, it appears that you generally do not have to pay VAT on the legal services provided by a Portuguese law firm if you are a Canadian citizen residing in Canada and the services are for your personal use.


  1. Place of Supply Rule: The general rule for VAT on services is that the "place of supply" is where the customer is established or has their permanent address. Since you are a non-taxable person (an individual, not a business) residing in Canada, the service is considered to be "supplied" in Canada, which is outside the EU.


  1. Proof of Residence: The fact that you are currently residing in Canada and your invoice address is in Canada is crucial, as it serves as proof of your non-EU residency. This is the basis for the VAT exemption.

Strontium

Hello Everyone,
I am a Canadian securing a lawyer to do our documents for NIF and D7. Do I have to pay VAT on their services. If I am currently residing in Canada and the address on our invoice is Canada I am reading that VAT does not have to be paid on the legal services provided.

If anyone has any insight on this. Greatly appreciated. - @Emmaqlife

Hello and Welcome,

1    You don't say where your lawyer is based.

2    When you asked your lawyer about the billing/VAT what did he/she/they say?