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.
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:
Tax and Customs Authority
|VAT in local language
|Imposto sobre o valor acresentado (IVA)
|VAT number format
|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
|Intra-EU Distance sales and electronically supplied services to consumers (OSS)
|Not available – must register for VAT individually
|Recovery of VAT by non-established businesses
Compliance Returns and Deadlines
|Monthly (or annual turnover is lower than € 650,000) – 10th of the second following month
Quarterly – 15th of the second following month
|Monthly and quarterly
|European Sales Listing
|20th of the following month
|15th of the following month
|Mandatory in Portugal
Last Updated: 29/11/2023
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