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 2024
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
Portugal Tax Sources & Citations
- EN: Portugal Value Added Tax
- RU: НДС Португалия
- CN: 葡萄牙 增值税
- Portugal Autoridade Tributária e Aduaneira (Tax and Customs Authority) (1)
- Ernst & Young global VAT tax study, Portugal (updated 2024)
← Back to World VAT Rates