VAT Registration in Portugal

Register your company for VAT in Portugal

In Portugal, taxable individuals who engaged in VAT-applicable activities must register and submit a declaration of commencement of activities prior to starting their operations.

The registration process can be completed either by visiting any tax registry office or by using the online finance portal available on Portuguese Tax and Customs website.

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Register for VAT in Portugal

VAT Identification Number

Upon completion of the registration process, the taxpayer is assigned a tax identification number in the format of “PT123456789”. This number must be included on all documents related to VAT, in accordance with the regulations.

OSS Registration

Suppliers of certain inbound supplies of goods and services into EU Member States can benefit from a simplified registration scheme under the EU One Stop Shop.

This scheme allows for a single registration in one EU Member State to cover all qualifying supplies into the EU. It is important to note that the OSS registration scheme has replaced the Mini One Stop Shop registration that was in effect from 1 January 2015 until 30 June 2021 inclusive.

Taxable Persons

In Portugal, taxable persons are defined as individuals or legal entities engaged in business activities involving in production. Trade, or supply of goods and services.

Mandatory Registration

Under the Portuguese VAT regime, all taxable persons are required to register, regardless of their turnover or any potential exemption.

However, there is VAT exemption scheme available for small taxpayers who meet specific criteria, including having a turnover below the exemption scheme threshold. This scheme is designed to alleviate the administrative burden on small businesses and allows for certain tax benefits.

Voluntary  Registration

In Portugal, there is no voluntary VAT registration scheme available for taxable persons. It is mandatory for all individuals or entities engaged in taxable activities to register for VAT at the time they commence their business operations.

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Registration in Portugal

Exemptions from Registration

Public Authorities such as state, regional, and local government bodies are not considered taxable persons in relation to their activities or transactions as public authorities. Therefore, if these entities do not engage in any other activities or transactions, they are not required for VAT.

However, businesses with annual turnover that does not exceed the exemption scheme threshold are required to Portuguese VAT. Although they are exempt from the requirement to account for VAT, they are still obligated to comply with other VAT-related obligations, such as keeping proper records and submitting regular VAT returns.


Group and Divisional Registration

Portuguese VAT law does not allow for VAT grouping. Therefore, even if legal entities are closely connected, they must register for VAT individually. Separate divisions of a single legal entity generally cannot be treated as distinct entities for VAT purposes in Portugal.

In cases of a company with a branch located in another EU Member State, the two are considered a single legal person unless it can be demonstrated that the branch carries out an independent economic activity.


Registration, Non-established businesses,

A non-established business that engages in taxable transactions such as supply of goods or services, import, or intra-Community acquisitions of goods in Portugal, is generally required to register for VAT. However, if the reverse charge mechanism is applicable to a transaction carried out by a non-established business, there is no need for the business to register the Portuguese VAT.


VAT Representatives

If a non-resident taxable person carries out transactions chargeable to VAT in Portugal, they must comply with certain obligations, including registering for VAT. If they do not have a permanent establishment (PE) in Portugal or a head office, PE, or domicile in another EU Member State, they are required to appoint a tax representative. This tax representative must be authorized through a letter of attorney and is jointly responsible with the taxable person for fulfilling the relevant duties.

However, if the taxable person is not established in Portugal but has a head office, PE, or domicile in another EU Member State, they may opt not to appoint a tax representative.


Inbound B2C Services and the One Stop Shop

From 1 July 2021, non-established suppliers who offer Business-to-Consumer (B2C) services with a Portuguese place of supply can make their registration and reporting requirements easier across all EU Member States by enrolling in the EU-wide “One Stop Shop” (OSS) scheme through a single Member State. This means that instead of registering for VAT in each EU country where they supply services, they can register for the OSS scheme in one Member State and report and pay VAT for all their EU B2C transactions through the portal.


Distance Sales

Starting from 1 July 2021, the registration process for distance sellers within the EU and for those outside the EU selling low-value goods may be simplified through the implementation of the EU-wide “One Stop Shop” (OSS) regime. This system allows sellers to register for VAT in one EU Member State and then declare and pay VAT owed for sales made to customers in other EU Member States through single VAT return. This simplifies the registration and reporting process, making it more efficient for the sellers.




Last Updated: 29/11/2023


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

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