Portugal VAT Rates 2026

Portugal VAT Rates at a Glance

What is VAT Called in Portugal?

In Portugal, value added tax is officially known as Imposto sobre o Valor Acrescentado (IVA). It is administered by the Autoridade Tributária e Aduaneira (AT).

Like all EU member states, Portugal operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Autoridade Tributária e Aduaneira is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Portugal (13%)

Portugal applies a reduced VAT rate of 13% to the following categories of goods and services (subject to the specific conditions of Portugal VAT law):

• ✓Food and non-alcoholic beverages
• ✓Hotel accommodation
• ✓Passenger transport
• ✓Restaurant meals
• ✓Agricultural inputs
• ✓Cultural events

Additionally, Portugal applies a super-reduced rate of 6% to:

• ✓Basic foodstuffs (bread, milk, cooking oils)
• ✓Pharmaceutical products
• ✓Periodical publications and books
• ✓Agricultural inputs

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Portugal VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Portugal

Once registered, businesses are issued a Portugal VAT number (PT + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Portugal VAT with no registration threshold — the first taxable supply in Portugal triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Portugal

VAT returns in Portugal must be submitted electronically via the Autoridade Tributária e Aduaneira portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Portugal requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Portugal

To be valid for VAT recovery purposes, Portugal VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier name, address and Portuguese NIF (IVA number: PT + 9 digits)
2. 2Customer NIF and name (B2B)
3. 3Date of invoice and sequential number
4. 4AT certification code (código AT) on each invoice
5. 5Description of goods/services
6. 6Net amount, IVA rate, IVA amount
7. 7Total amount payable

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Portugal's national rules on simplified invoicing.

Reverse Charge Mechanism in Portugal

Portugal applies reverse charge to B2B services from abroad, construction services between registered persons, and supplies of scrap, waste, and recyclable materials.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Portugal VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Portugal

Portuguese businesses register for EU OSS via Portal das Finanças. Portugal's significant tourism and digital services export sectors create meaningful cross-border VAT obligations well-suited to the OSS framework.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Portugal (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Portugal VAT due on your OSS return is paid in your registration country and forwarded to Portugal's Autoridade Tributária e Aduaneira.

Portugal VAT: Background & History

Portugal implemented IVA in 1986, coinciding with EU accession. Portugal is notable for operating three distinct VAT territories with different rates: mainland Portugal (standard 23%), Madeira (22%), and the Azores (16%). This territorial rate differentiation exists because both Madeira and the Azores are outermost regions (regiões ultraperiféricas) with specific EU derogations. Portugal introduced mandatory e-invoicing certification (SAFT-PT) in 2009, requiring all invoicing software to be certified by AT — one of the earliest e-invoicing mandates in the EU.

Practical VAT Compliance Tips for Portugal

Frequently Asked Questions — Portugal VAT

Portugal VAT Tools