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Portuguese VAT – Rates & Registration

If a company not established in Portugal is providing ‘taxable supplies’ of goods or services in Portugal, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Portugal assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Portugal. Some of the most common examples are:

  • Importing goods into Portugal from outside the European Union
  • Buying and selling goods in Portugal (domestic reverse charge excluded)
  • Selling goods from Portugal which are delivered to customers outside of Portugal (business or private customers)
  • Acquiring goods in Portugal from another EU country (Intra-community acquisitions)
  • Holding inventory in Portugal for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Portugal where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Portugal, you should contact us immediately for a complimentary consultation.

Portuguese VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
23% (Standard) PT123456789 € 35,000 € 350,000 (Arrivals)
6 / 13 % (Reduced) € 250,000 (Dispatches)
VAT return periods

Monthly or quarterly

Annual returns

Yes

EC Sales Lists frequency

Monthly or quarterly

EC purchase lists

No

Other reporting requirements

Yes, annual statement listing all supplies exceeding €25,000 made to Portuguese businesses

Extended reverse charge

Services and goods provided by a non-established to a VAT registered customer in Portugal are subject to the reverse charge and the customer accounts for the VAT. The reverse charge also applies to certain domestic transactions between taxable persons. This applies to construction services. Please contact us if you would like details of how the extended reverse charge applies in Portugal.

Fiscal Representation

A business established in a country outside the EU must appoint a tax representative to register for VAT in Portugal.

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