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, there are taxes applicable on the provision of goods and services in exchange for payment, as well as on certain intra-Community transactions and on imported goods brought into the country.
VAT applies to various transactions, including:
- The provision of goods and services for payment in Portugal by a taxable individual acting in that capacity.
- The importation of goods.
- Acquiring goods within the European Community for payment in Portugal.
- Purchasing new means of transport within the European Community for payment, whether by a taxable entity or a private individual in Portugal.
- Selling new means of transport for payment by any individual to a purchaser in another EU Member State.
Portugal – General VAT information
| Tax authority |
Tax and Customs Authority
|
| VAT in local language | Imposto sobre o valor acresentado (IVA) |
| Currency | € Euro |
| 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 | |
Thresholds |
|
| Registration | |
| Established | EUR 12,500 |
| Non-established | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Not available – must register for VAT individually |
| Voluntary Registration | Not available |
| Intra-EU Dispatches | EUR 250,000 |
| Intra-EU Arrivals | EUR 350,000 |
| Recovery of VAT by non-established businesses | Yes |
Compliance Returns and Deadlines |
|
| VAT Returns | Monthly (or annual turnover is lower than € 650,000) – 10th of the second following month Quarterly – 15th of the second following month |
| Frequency | Monthly and quarterly |
| European Sales Listing | 20th of the following month
|
| Intrastat | 15th of the following month |
| Electronic Invoicing | Mandatory in Portugal |
Last Updated: 29/11/2023
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