Taxes in Europe Database v2
VAT Code, enacted by Decree Law 394–B/84 of 26 December 1984, as amended; Decree Law 221/85 of 3 July 1985; Decree Law 346/85 of 23 August 1985; Decree Law 347/85 of 23 August 1985; Law 9/86 of 30 April 1986; Decree Law 143/86 of 16 June 1986; Decree Law 185/86 of 14 July 1986; Decree Law 241/86 of 20 August 1986; Decree Law 295/87 of 31 July 1987; Decree Law 408/87 of 31 December 1987; Decree Law 122/88 of 20 April 1988; Decree Law 20/90 of 13 January 1990; Decree Law 113/90 of 5 April 1990; Decree Law 198/90 of 19 June 1990; Decree Law 290/92 of 28 December 1992; Decree Law 229/95 of 11 September 1995; Decree Law 199/96 of 18 October 1996; Decree Law 204/97 of 9 August 1997; Regional Legislative Decree 2/99/A of 20 January 1999; Decree Law 362/99 of 16 September 1999; Decree Law 418/99 of 21 October 1999; Decree Law 331/2001 of 20 December (IVA social); Decree Law 130/2003 of 28 June; Decree Law 147/2003 of 11 July; Decree Law 21/2007 of 29 January; Law 26-A/2008 of 27 June; Law 12-A/2010 of 30 June; Law 55-A/2010 of 31 December; Law 64-B/2011 of 30 December; Law 66-B/2012 of 31 December; Law 83-C/2013 of 31 December; Decree law 71/2013 of 30 May; Law 51/2013 of 30 May; Law 51/2013 of 24 July; Decree-law 158/2014 of 24 October; Law 75-A/2014 of 30 September; Law 82-B/2014 of 31 December; Law 82-D/2014 of 31 December.
A share in VAT revenues as established by the law is attributed to public bodies created by a decision of municipalities (local authorities) to promote tourism.
These transactions are liable but exempted.
Taxpayers are exempt (without the right to deduct tax paid on purchases) if
Taxpayers who qualify for the ‘simplified regime for small retailers' (see below) whose turnover in the preceding calendar year was less than € 12,500 are also exempt (without the right to deduct tax paid on purchases).
However, ‘small taxpayers' may opt for the general VAT regime.
Articles 59º A to 59º E of the VAT Code.
In force from January 2015.
From January 2015 the special scheme also applies to telecommunications and broadcasting services (MOSS)
Consideration received for the supply of goods or services, excluding the VAT itself but including other taxes, dues and charges as well as incidental expenses in respect of delivery, such as commissions, packaging, transport and insurance expenses, if not included in the price.
The taxable value of imports is determined in accordance with customs legislation, excluding VAT itself but including import duties and any other taxes or charges levied on importation, as well as incidental expenses such as commissions, packaging, transport and insurance expenses incurred up to the first destination within Portugal.
Exemptions without the right to deduct tax paid on purchases include:
The tax which must be paid for a given period is determined by subtracting from the amount of tax due on taxable operations the amount of tax paid on purchases. The right to deduct tax paid is subject to certain conditions and restriction laid down by the law.
Zero-rate or exemptions with the right to deduct tax paid on purchases include:
In Azores the standard VAT rate is 18% while in Madeira is 22%.
In the Autonomous Regions of Azores the standard rate is 18%, whereas the intermediate rate is 10% and the reduced rate is 5%. In AR Madeira the rates are 22%, 12% and 5%, respectively.
Parking rate of 13%.
Art. 18, n.º 2 of the VAT Code.
Applicable to live plants and some floricultural products, including bulbs, roots and the like. Decorative flowers and plants were reintroduced in 2013.
Parking rate 13.00%
The parking rate applies to some wines, equipment for agriculture and diesel for agriculture.
The taxpayers must submit a monthly or quarterly VAT return and pay the tax due (see above ‘Tax due date'). A central VAT department manages the collection and refund process.
Simplified regime for small retailers
Retailers may qualify for this simplified regime if
Tax is assessed quarterly by applying a coefficient of 0.25 to the VAT paid on purchases of goods for resale. The right to deduct is limited to tax paid on purchases and leasing of equipment goods or other goods not intended for resale. However, ‘small retailers' may opt for the general VAT regime.