VAT in Portugal – VAT rates in 2026

VAT in Portugal operates in line with the rules applicable throughout the European Union. It is an indirect tax applied to most goods and services. Portuguese VAT is charged at every stage of the supply chain – from producer, through distributor, to the final seller – but the actual cost is borne by the consumer. Businesses can deduct input VAT, which means they ultimately settle only the difference between VAT paid and VAT due.

The Portuguese system follows EU standards, but it is important to understand its specifics, especially if you are involved in cross-border sales, e-commerce, or plan to establish a business in Portugal.

What is the VAT rate in Portugal in 2026?

In 2026, three basic VAT rates apply in Portugal: the standard rate, the reduced rate, and the super-reduced rate. In addition, there are exemptions and separate rules for autonomous regions. The information below is valid as of 1 January 2026 and is based on the provisions of the Portuguese VAT Code.

The standard VAT rate in Portugal is 23% and applies to the vast majority of goods and services. This is the default rate used whenever a product or service does not qualify for a reduced rate.

The reduced VAT rate is 13% and covers, among others, certain food products, catering services, electricity, agricultural services, passenger transport, and other selected categories.

The super-reduced VAT rate in Portugal is 6%. It applies to basic necessities such as selected food items, books, newspapers, medicines, tickets for cultural events, as well as educational and medical services.

If you are wondering how much VAT applies in Portugal for a specific product or service, it depends on the classification of goods under Portuguese regulations. In case of doubt, the classification should be confirmed by a local accountant or tax advisor.

VAT rates in Portugal’s autonomous regions

Portugal also includes two autonomous regions: Madeira and the Azores. Reduced VAT rates apply there compared to mainland rates, due to their special status and local fiscal policy.

In the Azores:

• standard rate: 16%

• reduced rate: 9%

• super-reduced rate: 4%

In Madeira:

• standard rate: 22%

• reduced rate: 12%

• super-reduced rate: 5%

If you sell goods or services to customers in the Azores or Madeira, the VAT rate applicable is determined by the place of supply. These differences are particularly important in e-commerce and distance selling.

VAT registration in Portugal

Foreign companies carrying out business activities in Portugal may be required to register for VAT. This applies, among others, to:

• selling goods or services to Portuguese customers,

• storing goods in Portuguese logistics centers,

• carrying out intra-Community supplies and imports.

Registration is completed with the Portuguese tax authority (Autoridade Tributária e Aduaneira). The VAT number has the format PT followed by 9 digits. After registration, the company must keep sales and purchase records, issue invoices in accordance with local regulations, and submit monthly or quarterly VAT returns.

VAT returns and reporting obligations

Portuguese VAT requires regular reporting. Businesses are required to submit:

• VAT returns (Modelo 30 or Modelo 22),

• the SAF-T file (Standard Audit File for Tax),

• the annual transaction summary (IES – Informação Empresarial Simplificada).

Deadlines depend on the size of the business and the type of activity. Monthly filers must submit returns by the 10th day of the month following the reporting period. Quarterly filers have more time – until the 15th day of the second month after the end of the quarter.

VAT exemptions in Portugal

Not all transactions are subject to VAT. Portuguese VAT law provides exemptions for certain activities, including:

• educational services,

• medical and healthcare services,

• sale of used real estate after a specified holding period,

• certain financial and insurance transactions.

VAT exemption does not always mean exemption from registration – some businesses must still register for VAT, keep records, and submit returns.

VAT in Portugal and e-commerce

Portugal applies the OSS (One Stop Shop) rules in line with EU directives. If you sell goods online to private consumers in Portugal and exceed the annual EU distance sales threshold of EUR 10,000, you must charge Portuguese VAT. This can be done without local registration by using the OSS system in your country of establishment.

Under OSS, you declare sales to Portugal and apply the relevant Portuguese VAT rates. This is a simplification, but it requires accurate records and up-to-date VAT rates in your sales systems.

VAT invoices and documentation

Portuguese regulations require VAT invoices to comply with local rules. An invoice must include, among others:

• the seller’s VAT number,

• the buyer’s VAT number (if applicable),

• the invoice and supply date,

• the VAT rate applied,

• net and gross amounts,

• any VAT exemptions and their legal basis.

Invoices must also be generated in systems approved by the Portuguese tax authority or compliant with its electronic reporting requirements (SAF-T). Errors or non-compliance may result in financial penalties.

VAT on import and export in Portugal

Goods imported into Portugal from outside the EU are subject to VAT at the border. The importer must pay VAT at the applicable rate and may later deduct it in the VAT return if carrying out taxable activities.

Exports outside the EU are exempt from VAT, provided there is documentation confirming the actual export of goods. Within the EU, supplies to other Member States are also VAT-exempt, but only if the buyer has a valid VAT number and proper documentation is maintained.

Portuguese VAT – changes and outlook

In 2026, no major changes were introduced to the VAT rate structure. However, modifications were made to the scope of reduced rates, particularly in the tourism and education sectors. The Portuguese government updates VAT regulations annually, so businesses should monitor changes and adjust their sales and accounting systems accordingly.

It is also worth noting the increasing focus on electronic controls – the digitalization of the Portuguese tax system is progressing rapidly, and reporting errors may result in significant financial consequences.

Portuguese VAT remains stable but not entirely predictable. It is a system that requires constant attention. Understanding the rules, rates, and obligations helps avoid mistakes and supports efficient business operations, both locally and cross-border. If you plan to sell in this market or cooperate with Portuguese partners, up-to-date knowledge of Portuguese VAT rates is essential.