- In most cases, VAT in Portugal is 23%.
- There is a reduced rate of 13% that applies to certain services.
There is a further reduced rate of 6% that relates mainly to basic food products.
- The VAT rates for Madeira are lower (22%, 12% and 5%).
In the Azores the V.A.T rate are staring July 1, 2021 16%, 9% and 4%.
- VAT is payable on assets and services in Portugal as well as on imports into Portugal.
- Exports from Portugal are exempt from VAT.
- Income from medications and medical services as well as income from insurance and banking services are exempt from VAT.
- Reports to the VAT authorities are made monthly but if the annual income is below Euro 650,000 the report is made every three months.
- When the annual turnover is less than Euro 9,976, income is exempt from VAT; on the other hand, Vat may not be offset against expenses.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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