Operations Outside the Scope of Value Added Tax: A Possible Analysis of the Portuguese Wine Sector

Objective: The study aims to analyse and clarify the VAT framework in participation association contracts, distinguishing between contractual and tax obligations. Method: It includes a case study and a detailed analysis of partnership contracts, case law, and tax doctrine. The data was interpreted in light of the relevant tax laws, distinguishing between contractual and tax obligations in order to determine the VAT framework. Results and conclusions: The results show that the liabilities borne by the associate (Entity B) should be considered supplies of services subject to VAT. The contribution of the associate (Entity B) is not subject to tax. These distinctions allow for a correct application of tax law. The conclusions reveal the possible readings of the application of VAT. Implications if the research: Research is important to ensure the correct application of tax law in partnership agreements. This analysis can help promote the correct application of VAT and more efficient financial management for both parties involved. It provides relevant insights for academia, society, and policymakers. Originality/value: It is the result of detailed observation of the VAT framework in association in participation contracts, providing possible insights in order to avoid possible tax uncertainties and ensure the correct reading of the tax law in more complex commercial transactions.