To ensure compliance with VAT reporting in Portugal, businesses should consider several best practices. First, businesses should keep accurate and up-to-date records of all transactions, including sales, purchases, and VAT payments. This will help simplify the VAT reporting process and minimize the risk of errors.

Second, businesses should regularly review the VAT rates and exemptions applicable to their goods and services to ensure they are correctly applying VAT. Staying informed about changes in VAT legislation and regulations is also critical. Consulting with tax professionals or accountants who specialize in VAT reporting in Portugal can help businesses navigate the complexities of VAT compliance.

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