Whether you’re a European or non-European company, establishing certain activities in Portugal may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Portugal.
If you deal with companies in Portugal, you may be able to claim a VAT refund. Portuguese
Here you can find the specifics of VAT regulations in Portugal, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|VAT introduced in Portugal||1986|
|Nom de la TVA in Portugal||Imposto sobre o valoracrescentado (IVA)|
|VAT ID format in Portugal||PT999999999|
|Territories with special status in Portugal||n/a|
VAT rates in Portugal
|Standard VAT rate||23 %|
|Reduced VAT rate (1)||13 %|
|Reduced VAT rate (2)||6 %|
|Super reduced VAT rate||n/a|
|VAT parking rate||13 %|
|Zero VAT rate||no|
Thresholds triggering VAT reporting obligations in Portugal
|Intrastat threshold at introduction||350 000 EUR|
|Intrastat threshold on dispatch||250 000 EUR|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Portugal
|Intrastat return||monthly depending on threshold|
|EC Sales List (ESL) return||monthly according to threshold/conditions, quarterly depending on threshold/conditions|
|VAT returns||monthly depending on threshold, quarterly depending on threshold/for certain services, annually|
VAT-related penalties in Portugal
|Failure to file a VAT return||A fine of 300 euros to 7500 euros depending on the infraction|
|Late payment of VAT||A fine between 50 euros and 165,000 euros depending on the offence. Annual late payment interest rate of 4.705%.|
|Failure to report ESL/DEB||A fine of 300 euros to 7500 euros per ESL declaration.|
Useful links on VAT in Portugal
|Tax Administration in Portugal||Tax authorities|
|Ministry of Finance in Portugal||Ministry of Finance|
|Check a VAT number in Portugal||Check a VAT number|
|EU VAT Guide||EU VAT Guide|
Les taux de TVA actuellement en vigueur in Portugal sont les suivants:
Certain transactions in Europe may require VAT registration and the filing of VAT returns in Portugal:
In Portugal , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
You may need a VAT number in Portugal to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Portugal, use our VAT simulator or contact us.
VAT Portuguese is named Imposto sobre o valoracrescentado (IVA)and the VAT numbers in Portugal have the following structure: PT999999999.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Portugalyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Portugal must complete and submit VAT returns in Portugal detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly depending on threshold, quarterly depending on threshold/for certain services, annually.
Failure to comply with the deadlines imposed by the Portuguese authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Portugal:
In addition to VAT returns, companies may be required to provide the Portuguese authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Portugal can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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