Portugal Sales Tax VAT

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The standard VAT rate in Portugal is 23%; with a reduced rate of 6% and intermediate rate of 13%. There are also different VAT rates applicable in the Portuguese Islands (Azores and Madeira). In Azores the standard VAT rate in Portugal is 18%, with reduced rate of 5% and intermediate rate of 10%.

Whilst Portugal is required to implement the VAT rules of the European Union, it still sets the level of its own VAT rate.  The only condition is that it is above 15%.  Suppliers of goods or services VAT registered in Portugal must charge the appropriate VAT rate, and collect the tax for onward payment to the Portuguese tax authorities through a VAT filling.

23% Standard Portugal SalesTax VAT Rate all other taxable goods and services.

13% Reduced Portugal Sales TaxVAT Rate some foodstuffs; admission to certain cultural events; restaurant & cafe food; some agricultural supplies; wine; mineral water; diesel for agriculture.

6% Reduced Portugal Sales Tax VAT Rate some foodstuffs; water supplies; certain pharmaceutical products; medical equipment for disabled persons; children’s car seats; children’s diapers; domestic passenger transport; some books (excluding e-books); certain newspapers and periodicals; TV licence; social housing; renovation and repair of private dwellings; certain agricultural supplies; hotel accommodation; some social services; some medical and dental care; collection of domestic waste, minor repairs of bicycles; domestic care services; fruit juices; firewood; cut flowers and plants for decorative use and food production; construction work on new buildings; some legal services.

0% Reduced Portugal Sales Tax VAT Rate intra-community and international passenger transport.

If you wish to apply for Sales Tax in Portugal, please register in the form below the reasons for needing sales tax VAT in Portugal or send us an email.