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July 30, 2026

This Public Clarification clarifies the Value Added Tax (VAT) registration obligations for a person owning multiple sole establishments. It mandates that a single VAT registration must be obtained for the owner and all their sole establishments combined, as a sole establishment is not a separate legal personality. It is not permissible to register each entity separately. The value of all taxable supplies made by the person and their establishments must be aggregated to determine if the mandatory registration threshold, as per Article 19 of the VAT Decree-Law, has been exceeded, requiring corrective voluntary disclosures if necessary.

VATP026

VAT Public Clarification

VAT registration of 'Sole Establishments'

Please be informed that Public Clarification VATP026 replaces Public Clarification VATP021.

Issue

A natural or legal person may own a number of sole establishments. There has been uncertainty on whether each sole establishment needs to obtain a separate VAT registration or whether all such establishments should be included under one VAT registration.