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VAT in Portugal

VAT Guide for Non-EU countries within Europe

VAT in Portugal

If you deal with companies in Portugal, you may be able to claim a Portuguese VAT refund.
Whether you’re a European or non-European company, establishing certain activities in Portugal may mean you need to register for VAT. You will need to appoint a tax representative to fulfil your VAT reporting obligations in Portugal.
We have put together for you the specific information on the VAT regulations in Portugal.

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 no

Reporting frequency in Portugal

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 Penalty of between EUR 300 and EUR 3,750.
Late payment of VAT Penalty ranging from 30 to 100% of the amount of VAT due up to a limit of EUR 45,000. In case of fraud, penalty of 100 to 400% of the amount of VAT due up to a limit of EUR 165,000.
Failure to report ESL/DEB Penalty not specified

Useful links on VAT in Portugal

Tax Authorities in Portugal Tax authorities
Ministry of Finance in Portugal Ministry of Finance
Check a VAT number in Portugal Check a VAT number
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 current VAT rates 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 no

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.

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 .

These penalties are defined as follows in Portugal:

  • Penalties for failure to file a VAT return in Portugal: Penalty of between EUR 300 and EUR 3,750.
  • Penalties for late payment of VAT in Portugal: Penalty ranging from 30 to 100% of the amount of VAT due up to a limit of EUR 45,000. In case of fraud, penalty of 100 to 400% of the amount of VAT due up to a limit of EUR 165,000.

*This information is subject to change without notice.

OTHER COUNTRY GUIDES

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