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VAT in Portugal

VAT Guide for EU countries within Europe in 2022

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 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.

Basic information

EU membership1986
ISO codePT
VAT introduced in Portugal1986
Nom de la TVA in PortugalImposto sobre o valoracrescentado (IVA)
VAT ID format in PortugalPT999999999
Territories with special status in Portugaln/a

VAT rates in Portugal

Standard VAT rate23 %
Reduced VAT rate (1)13 %
Reduced VAT rate (2)6 %
Super reduced VAT raten/a
VAT parking rate13 %
Zero VAT rateno

Thresholds triggering VAT reporting obligations in Portugal

Intrastat threshold at introduction350 000 EUR
Intrastat threshold on dispatch250 000 EUR
Distance selling thresholdAs of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Portugal

Intrastat returnmonthly depending on threshold
EC Sales List (ESL) returnmonthly according to threshold/conditions, quarterly depending on threshold/conditions
VAT returnsmonthly depending on threshold, quarterly depending on threshold/for certain services, annually
Reporting currencyEUR

VAT-related penalties in Portugal

Failure to file a VAT returnA fine of 300 euros to 7500 euros depending on the infraction
Late payment of VATA fine between 50 euros and 165,000 euros depending on the offence. Annual late payment interest rate of 4.705%.
Failure to report ESL/DEBA fine of 300 euros to 7500 euros per ESL declaration.

Useful links on VAT in Portugal

Tax Administration in PortugalTax authorities
Ministry of Finance in PortugalMinistry of Finance
Check a VAT number in PortugalCheck a VAT number
EU VAT GuideEU VAT Guide
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.

Les taux de TVA actuellement en vigueur in Portugal sont les suivants:

  • 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

Certain transactions in Europe may require VAT registration and the filing of VAT returns in Portugal:

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

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 of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the 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 ratesin 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.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

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. 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.

How do I get a VAT number in Portugal?

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

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:

  • 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%.

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 introductio n in Portugal (350 000 EUR HT/an)
    – Intrastat threshold on dispatch in Portugal (250 000 EUR HT/an).
    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.

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:

  • 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.


*This information is subject to change without notice.

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