2024 Guide – VAT in Portugal

Appoint a fiscal representative in Portugaland make sure to be 100% VAT compliant

VAT in Portugal

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 Portuguese VAT refund.

In this VAT guide, we have brought together the specific features of the Portuguese regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.

With EASYTAX, be 100% VAT compliant, always.

Basic information

EU membership 1986
ISO code PT
VAT introduced in Portugal 1986
VAT name 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 yes

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
Reporting currency EUR

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
Need VAT assistance in Portugal? Contact us now.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

A foreign company carrying out transactions in Portugal subject to Portuguese VAT, may be required to appoint a tax representative. Established in Portugal, the fiscal representative will fulfill the company’s VAT obligations to the Portuguese tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.

Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.

Why entrust your VAT obligations in Portugal to a tax representative?

To secure your operations, lighten your company’s administrative burden, and control tax risks in Portugal.
Intra-Community and Portuguese VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.

Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.

For VAT compliance in Portugal, choose EASYTAX

Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Portugal, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.

Need a tax representative in Portugal? Contact us now.

Portugal has been a member of the European Union since 1986 and was one of the 11 founding countries of the Eurozone in 1999. Two-thirds of the Portuguese economy is based on services, but it also relies on agriculture, particularly wine production, tourism and cork production, of which Portugal is the world’s leading producer.

VAT was introduced in Portugal on 1st January 1986. It is detailed the Portuguese VAT Code as well as in the Community VAT Directives.
All companies that independently and habitually carry out production, trade or service activities must register for VAT in Portugal. Consequently, it is recommended that these companies have a tax representative in Portugal to assist them in all their procedures.

The VAT rates currently in force in Portugal are as follows:

  • 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 yes

Need a tax representative in Portugal? Contact us now.

Do you need a VAT fiscal representative in Portugal? Certain operations may require VAT registration and the filing of VAT returns in Portugal:

To check whether your activities give rise to VAT obligations in Portugal, use our VAT simulator .

Need a VAT tax representative in Portugal? Contact us now.

When do e-sellers need to register for a VAT number in Portugal?

In Portugal , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay VAT in Portugal via the One Stop Shop.
  • or when they hold a stock of goods in Portugal and must report the stock supply transactions.

What are the VAT obligations for e-traders in Portugal ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT rates in Portugal: standard rate (23 %), reduced rates 1 and 2 (13 % and 6 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Portugal.

Find out more:

Need a VAT tax representative in Portugal? Contact us now.

Why identify yourself to VAT in Portugal?

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.

Portuguese VAT is named Imposto sobre o valoracrescentado (IVA)and the VAT numbers in Portugal have the following structure: PT999999999.

How do I get a VAT number in Portugal?

The administrations in charge of VAT in Portugal are the following: Tax authorities, Ministry of Finance.

VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Portugal, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

To check if your activities require VAT identification in Portugal, use our VAT simulator or contact us.

Companies with a VAT number in Portugalmust complete and file dVAT decl arations in Portugal detailing all taxable income (sales) and expenses (costs), at regular intervals: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:

  • Penalties for failure to file a VAT return in Portugal: A fine of 300 euros to 7500 euros depending on the infraction
  • Penalties for late payment of VAT in Portugal: A fine between 50 euros and 165,000 euros depending on the offence. Annual late payment interest rate of 4.705%.

Need VAT assistance in Portugal? Contact us now.

In addition to VAT returns, companies may be required to provide the Portuguese authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Portuguese authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introduction in Portugal (350 000 EUR excl.VAT per annum)
    – Intrastat threshold on dispatch in Portugal (250 000 EUR excl.VAT per annum).
    Failure to comply with the deadlines imposed by the Portuguese authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Portugal are for tax purposes.
    Failure to comply with the deadlines imposed by the Portuguese authorities for the filing of these ESL returns wil incur a penalty payment for the company.

Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.

In principle, a non-resident company in Portugal can recover all or part of the VAT incurred on its expenses.

There are three possible scenarios:

  • The company is established within the European Union or not, is already registered for VAT in Portugal, or is obliged to register for VAT in Portugal. In this case, it must apply for a VAT refund via the periodic VAT return filed in Portugal, according to a periodicity: monthly depending on threshold, quarterly depending on threshold/for certain services, annually.
  • The company is established within the European Union, is not registered for VAT in Portugal and is not required to do so. In this case, a VAT refund should be requested via the electronic portal of the tax authorities in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Portugal. In this case, they must use the services of a fiscal representative to carry out what is required by the Portuguese authorities on their behalf.
    > Learn more about our VAT recovery services.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

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