VAT Registration in Portugal
According to Articles 29(1)(a) and 31(1)(a) of the Portuguese VAT Code, individuals or entities engaging in activities subject to VAT in Portugal must register and submit a declaration of commencement of activities prior to starting such activities.
Registration can be completed either in paper format at any tax registry office or electronically via the finance portal on the Portuguese Tax and Customs website.
Register for VAT in Portugal
VAT Identification Number
A tax identification number in the format “PT123456789” is provided to the taxpayer, which must be included on all VAT-related documents.
Taxable Persons
As per Article 2 of the VAT Code, taxable persons refer to individuals or entities engaged in the production, trade, or supply of goods or services in a business in Portugal.
Mandatory Registration – No Threshold
All taxable persons must register under the Portuguese VAT regime, with no exemption or turnover threshold for registration. However, small taxpayers whose turnover does not exceed the exemption scheme threshold and who fulfill certain requirements may be eligible for a VAT exemption scheme.”
Voluntary VAT Registration
In Portugal, there is no provision for a voluntary VAT registration scheme. All taxable persons must register for VAT when commencing an activity.
VAT Group Registration
Under Portuguese VAT law, VAT grouping is not permitted. Legal entities must individually register for VAT, even if they are closely connected. Additionally, separate divisions of a single legal entity cannot be treated as distinct entities for VAT purposes.
Non-Established Businesses
A non-established business, meaning a business with no fixed establishment in Portugal, must generally register for VAT if it carries out a taxable transaction in Portugal. Such transactions include the supply of goods or services, or the import or intra-Community acquisition of goods.
EU entities
A taxpayer can choose to register for VAT. Before the taxpayer’s first taxable transaction or the beginning of the month when the taxpayer elects to register for VAT, this choice must be reported to the tax office. A new business is not charged VAT if it is not expected that the value of its supply would exceed the registration level.
Non-EU entities
A non-resident taxable person without a PE in Portugal must designate a tax representative who holds a letter of attorney conferring due powers and is jointly liable with the person it represents for the accomplishment of such duties in order to comply with the obligations arising from the carrying out of VAT-chargeable transactions in Portugal, including registration for this tax.
Suppose the taxable person is not formed in Portugal and has its head office if a PE or residence in another EU Member State, selecting a tax representative is optional.
The tax representative is jointly liable for the taxable person’s VAT obligations.
Selling in Portugal?
Registration process
- A self-employed individual or organization must file a declaration of activity commencement before beginning an activity. The declaration of commencement of activity must be presented no later than 15 days after the company is established with a business registry.
- The application for VAT registration must be submitted through the Portuguese government’s website (eportugal.gov.pt).
- Foreign taxpayers without a permanent home or permanent presence in Portugal can only obtain a Portuguese VAT number if they apply separately and offer products or services to Portugal.
- When yearly earnings are expected to exceed EUR 200.000, accounts must be maintained. If a decline in income is expected, you can switch to structured accounting at any moment.
Small businesses and voluntary registration
In general, every taxpayer in Portugal has the option of registering for VAT. Taxpayers who only engage in VAT-exempt activities may also register for VAT.
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
