VAT in Portugal
The transaction code called Código do Imposto de Transacções, was replaced by the Vat Code, which was introduced in Portugal on January 1, 1986. The VAT laws in Portugal are based on EU legislation, of which Portugal was a founding member. Portugal is therefore obliged to implement the VAT Directives which provide guidance on VAT.
Should a conflict arise, the European Directive will take precedence. This VAT guide covers both the inland territory of Portugal as well as the autonomous regions of Azores and Madeira with reduced rates applicable to supplies in these islands.
Selling in Portugal?
Scope of Taxation
In Portugal VAT is charged on the following types of transactions:
- Supplies of goods within the territory of Portugal.
- Supplies of services are generally defined as any transaction which does not constitute a supply of goods with the territory of Portugal.
- Exports of goods outside the territory of the EU.
- Imports of goods from countries that do not belong to the European Union.
- Intra-community acquisitions of goods. These are generally defined as acquisitions of goods dispatched or transported to Portuguese territory from another EU Member State.
- Intra-Community supplies of goods (exports to the countries belonging to the EU).
Last Updated: 17/01/2022
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
Portugal – General VAT information
| National Legislation | https://www.acesso.gov.pt/ |
| VAT in local languages | Imposto sobre o Valor Acrescentado |
| VAT number format | PT+9 digits |
| PT123456789 | |
| VAT rates | Mainland Portugal – Standard 23%; Intermediate 13%; and Reduced 6% Madeira – Standard 22%; Intermediate 12%; and Reduced 5% Azores – Standard 16%; Intermediate 9%; and Reduced 4% |
| Zero-rated (0%) and exempt | |
| Frequency | Monthly or quarterly |
| Thresholds | |
| Registration | |
| Established | EUR 12.500 |
| Non-established | NONE |
| Intra-Community acquisitions | EUR 10.000 |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10.000 |
| Recovery of VAT by non-established businesses | YES |
| Compliance Returns and Supplementary Reports | |
| VAT Return | Monthly (or annual turnover is lower than EUR 650.000) – 10th of the second following month Quarterly – 15th of the second following month |
| European Sales and Purchase Listing (VAT-EU) | 20th of the following month |
| Intrastat | 15th of the following month |
| Annual Return | 15th of July (or until the 15th day of the 7th month following the end of the fiscal year, if different from the civil year) |