Portugal VAT

• 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.