PT Value-added tax (VAT) Rates Portugal — Value-added tax (VAT)

General VAT Rate Other Rates Local Currency
23% 13%, 6% Euro (EUR)

Portugal's general VAT rate is 23%, with other rates including 13% and 6% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Autoridade Tributária e Aduaneira (Tax and Customs Authority) (http://www.portaldasfinancas.gov.pt) in Lisbon.

Visitors to Portugal can qualify for a VAT refund on all purchases made for export - learn more about Portugal VAT refunds here.

Portugal has special reduced VAT rates on the following:

13% reduced VAT rate on:diesel; foodstuffs; wine and bottled water; live cultural events
6% reduced VAT rate on: foodstuffs; books: ebooks; DVDs etc; water; construction; hotels.

Portugal is a member of the European Union (EU) Member State trading bloc, which may affect international VAT collection and regulations.

Portugal's consumption tax is called the Value-added tax (VAT), locally known as Imposto sobre o valor acrescentado (IVA), which was introduced in January 1986.


Portugal VAT rates for 2017

Mainland:

Standard
23%
Intermediate
13%
Reduced
6%
Other
Exempt and exempt with credit

Autonomous region of Madeira:

Standard
22%
Intermediate
12%
Reduced
5%

Autonomous region of Azores:

Standard
18%
Intermediate
9%
Reduced
4%

Portugal VAT number format

Businesses in Portugal that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Autoridade Tributária e Aduaneira (Tax and Customs Authority), and will follow a certain format. The VAT number format is PT 5 1 2 3 4 5 6 7 8.


Portugal VAT return periods

Businesses in Portugal that are required to collect tax from consumers must file regular tax returns with the Autoridade Tributária e Aduaneira (Tax and Customs Authority) in Lisbon. Portugal's VAT return periods are:

Monthly
If the turnover in the preceding VAT year was equal or exceeded EUR650,000
Quarterly
If the turnover in the preceding VAT year did not exceed EUR650,000
Annual
All taxable persons that performed any taxable operations

Portugal Value-added tax (VAT) Thresholds

These are the revenue thresholds at which businesses in Portugal are required to start collecting and remitting tax.

Registration
None
Distance selling
EUR35,000
Intra-Community acquisitions
None

Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Portugal are required to collect taxes from the consumer.


Portugal VAT Refunds

Portugal has a VAT refund program that allows tourists and others to receive a refund of any Portugal VAT paid on goods purchased in Portugal that are being exported from the country.

The minimum purchase amount needed to claim a VAT refund is €61.35 Euros (which would yield a VAT refund of about €14.1105). SalesTaxHandbook has detailed information about Portugal's VAT refund program:

Learn More About Portugal VAT Refunds

PT Value-added tax (VAT) Rates Portugal Tax Sources & Citations

  • EN: Portugal Value Added Tax
  • RU: НДС Португалия
  • CN: 葡萄牙 增值税
Note: This page is intended to be a simple overview of Portugal's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the Portugal tax information on this page is incorrect or out of date.
Citations:
  1. Portugal Autoridade Tributária e Aduaneira (Tax and Customs Authority) (http://www.portaldasfinancas.gov.pt)
  2. Ernst & Young global VAT tax study, Portugal (updated 2017)

  3. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/pt-portugal