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May 15, 2026

Article 59 mandates that the Executive Regulation of the Decree-Law shall define the specific conditions and mechanisms for adjusting Input Tax. This adjustment is required in two primary scenarios involving a change of use before a supply is made. The first case is when Input Tax, initially attributed fully or partially to making Taxable Supplies, is affected by a change in the use of the related goods or services. The second case applies when Input Tax was attributed to making Exempt Supplies or for non-business activities, and the use of the associated goods or services subsequently changed.

Title 7 - Calculation of Due Tax

Chapter 2 - Apportionment and Adjustment of Input Tax

Article 59
Conditions and Mechanism of Input Tax Adjustment

The Executive Regulation of this Decree-Law shall specify the conditions and mechanism for adjusting Input Tax in the following cases:

If the Taxable Person attributes the Input Tax, either fully or partially, to make Taxable Supplies, but changed the use, or the intended use, of those Goods or Services prior to making the Taxable Supplies.
If the Taxable Person attributes the Input Tax, either fully or partially, to make Exempt Supplies or for activities that do not fall within the conduct of Business, but changed the use or the intended use of the Goods or Services related to the Input Tax prior to making Exempt Supplies.