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Portugal VAT vouchers to boost tourism

Portugal is introducing a VAT discount programme to boost the tourism sector. 

Many countries’ tourism and hospitality sectors took a knock during the Covid pandemic. Portugal, where tourism comprises an important part of the economy, was no exception. 

When spending in the hospitality sector, the new IVAucher scheme gives customers the opportunity to either pay their VAT as normal or to keep the amount in the form of credit. The credit which can be spent on other tourism-sector purchases.

The programme takes effect in June 2021.

IVAucher is only available to people registered for tax in Portugal. To take advantage of the scheme, customers must provide their tax number at the time of purchase.

The IVAucher programme is part of a broader plan by Portuguese authorities to help uplift the country’s tourism sector. 

VAT relief for smaller businesses

Portugal has already implemented various VAT measures to assist businesses recover from the Covid downturn.

The country introduced an option for smaller businesses to pay their VAT in installments.

However, in order to qualify for the measure, businesses had to demonstrate that average monthly revenue has decreased by 25% or more in 2020 compared to 2019

Using VAT to boost tourism sector demand

In the wake of lockdowns and other Covid restrictions, various countries made efforts to boost demand in the tourism and hospitality sectors. 

For instance, UK authorities temporarily cut VAT from 20% to 5% on a number of goods, including food consumed on site and hotel accommodation. 

According to UK Chancellor Rishi Sunak, the VAT relief measures helped support more than 2.4 million employees working in the sector. 

However, not all countries have responded with rate cuts. By contrast, Botswana raised its VAT rate for the first time in a decade in response to a shortfall in revenues. However, Finance Minister Thapelo Matsheka expects a robust recovery as the economy picks up in the coming years. 

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VAT regulations are constantly developing. You therefore need technology to help your business adapt. Vatglobal’s proprietary VAT compliance technology makes meeting your VAT obligations simple, efficient and cost effective. 


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