The tax framework for footballers regarding VAT in Portugal is a relevant topic, especially for players who play for amateur teams and provide services for remuneration. The Order of Certified Accountants (OCC) has issued a technical opinion clarifying the tax obligations of these professionals.
⚽ Footballer Activity as a Service Provision According to the VAT Code (CIVA), transmissions of goods and services provided in national territory, for consideration, by a taxable person acting as such, are subject to VAT. Thus, when a footballer receives remuneration for performing their duties and issues “recibos verdes” (green receipts – self-employment invoices), they are providing a service subject to VAT.
🧾 VAT Subjection Under Article 1 of the CIVA, the provision of services by a footballer is considered a taxable operation for VAT purposes. Article 4 of the same code defines services as operations carried out for consideration that do not constitute transmissions of goods. Therefore, the remunerated activity of a footballer falls within this definition.
🌍 Territoriality of Operations If the service is provided to a non-resident entity in national territory, it is necessary to analyze the territoriality of the operation, as provided in Article 6 of the CIVA. If the entity acquiring the service is located outside Portugal, there may be different implications in terms of VAT, depending on the nature of the operation and the location of the recipient.
🛡️ Possibility of Exemption Despite the subjection rules, there are operations that may benefit from VAT exemption. Article 9 of the CIVA provides for exemptions for certain activities, but it is necessary to verify whether the specific activity of the footballer falls within the foreseen situations for exemption.
✅ Conclusion Footballers who receive remuneration for performing their duties and issue “recibos verdes” are, as a rule, subject to VAT and must comply with the corresponding tax obligations. It is fundamental that these professionals are aware of their tax framework to ensure compliance with their tax obligations.
This article was prepared based on information available to date and is intended for informational purposes.