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This guide provides an overview of VAT (Value Added Tax) in Portugal, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is tailored for businesses engaging in transactions within Portugal or with Portuguese customers.
Portugal’s VAT system, governed by the Portuguese VAT Code, aligns with the EU VAT Directive. VAT applies to most goods and services supplied within Portugal, as well as on imports.
Euro (€)
PT followed by 9 digits (e.g., PT123456789)
Yes, required for non-EU businesses conducting VAT-related activities.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 23% | Standard Rate | Applies to most goods and services |
| 13% | Reduced Rate | Applies to foodstuffs, restaurant services, and certain supplies |
| 6% | Reduced Rate | Applies to essential goods, books, and medical supplies |
| 0% | Zero rate | Intra-community and export transactions |
| Business Type | VAT Registration Threshold |
| Resident Businesses | EUR 12,500 per annum |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in Portugal |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 10th day of the second month following the period | 10th day of the second month following the period |
| Quarterly | 15th day of the second month following the quarter | 15th day of the second month following the quarter |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 23% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Portugal applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.
Portugal mandates e-invoicing for B2G transactions. Currently, e-invoicing is not mandatory for B2B and B2C transactions in Portugal. However, businesses must use certified invoicing software if their annual turnover exceeds €50,000.
Portugal requires digital reporting of VAT-related transactions. Businesses must submit VAT data electronically to the Portuguese tax authorities via the SAF-T system.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Portuguese VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
