CountryPortugal
EU Member StateYes
VAT TermIVA
Standard rate of VATMainland 23%; Azores 18% and Madeira 22%
Reduced ratestMainland 13% and 6%; Azores 9% and 4%; Madeira 12% and 5%
VAT identification number formatPT 123456789
VAT registration limit established businessesNil
VAT registration limit non-established businessesNil
VAT registration limit distance salesEURO 35,000
VAT return periodsMonthly or quarterly
Annual returnsYes
Intrastat thresholds: dispatches and arrivalsEURO 250,000 for dispatches and EURO 350,000 for arrivals
EC Sales Lists frequencyMonthly or quarterly
EC purchase listsNo
Other reporting requirementsYes, annual statement listing all supplies exceeding €25,000 made to Portuguese businesses
VAT recovery by non-established non-EU businessesA non-EU business is only allowed to recover the VAT if reciprocity agreement is signed between Portugal and the non-EU country
Expenses on which VAT is not recoverableMost countries including Portugal restrict input tax recovery on certain items. This may include costs related to cars, accommodation and meals and employee and business entertainment.
Reverse ChargeThe reverse charge mechanism applies to the majority of cross border services.
Extended reverse chargeServices 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 representative required for non-EU businessesA business established in a country outside the EU must appoint a tax representative to register for VAT in Portugal.
Use and enjoyment rulesUse and enjoyment rules have been implemented in Portugal for the hire of tangible property. Please contact us for details.
Local addressAccordance
Statute of limitationsRecovery of VAT by the tax authorities: The period is 4 years. Deduction and refund of VAT: The period is 4 years.

This information is correct at the time of publishing (January 2020) but may change at any time. This listing is produced for general guideline purposes only – for detailed information about any particular country and/or threshold, please contact us.

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