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Measures List
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Measure Name
Date when measure came into force
Rates and tax base 2011/01/01
Standard rate on electricity and natural gas 2011/10/01
VAT State Budget Changes 2011/12/30
Increase in Azores VAT rates 2014/01/01
Results 1 - 4 of 4.

Generic Tax Name VAT
Tax name in the national language IVA - Imposto sobre o valor acrescentado
Tax name in English Value added tax
Member State PT-Portugal
Tax in force since 1986/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

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.



Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



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.

Geographical Scope
Territories excluded (article 6 2006/112/EC)


Whole country.
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


These transactions are liable but exempted.

Special scheme for SMEs (article 281 2006/112/EC and following) None
Graduated relief
Turnover threshold: 10,000.00  EUR/Natcur

Small Taxpayers 

Taxpayers are exempt (without the right to deduct tax paid on purchases) if

  • their turnover in the preceding calendar year was less than € 10,000, and
  • they are not required by the law to apply the standard accounting system for personal or corporate income tax purposes and do not opt for it, and
  • they do not carry out importation or exportation of goods or other similar activities as defined by the law, and
  • they do not supply goods or render services in connection with waste for recycling, as defined by the law.

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. 

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
6.00 %
Flat rate compensation percentage for forestry:
0.00 %
Flat rate compensation percentage for fisheries:

Articles 59º A to 59º E of the VAT Code.

In force from January 2015.

There is a special scheme on the following


From January 2015 the special scheme also applies to telecommunications and broadcasting services (MOSS)

Special derogations to continue to tax (annex X)


Special derogations to continue to exempt (annex X)



Taxable persons:

  • individuals and legal persons who carry out a business activity (manufacturing, trading, services, exploitation of natural resources, agriculture, independent professionals)
  • individuals and legal persons who carry out a single taxable transaction either in connection with the performance of the activities previously mentioned or subject to personal or corporate income tax
  • individuals and legal persons who, according to customs legislation, import goods
  • individuals and legal persons who unduly mention VAT on an invoice or similar document
  • individuals and legal persons who make intracommunity acquisitions of goods or purchase certain services under certain conditions defined by the law
  • public bodies in respect of certain business activities
  • individuals (who do not carry out a business activity) who make an intracommunity acquisition of a new means of transport
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)


The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)


By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible


Tax base

  • Supply of goods or services made in Portugal by taxable persons
  • Importation of goods
  • Intracommunity acquisitions of goods
  • Acquisition of certain services provided in Portugal (according to the law) by non-resident entities
  • Intracommunity acquisitions of new means of transport.


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.

Deductions, Allowances, Credits, Exemptions
Exempted sectors*

Exemptions without the right to deduct tax paid on purchases include:

  • medical services and professional services of physicians, dentists and nurses;
  • welfare services
  • cultural and sporting activities (when carried out by non-profit making organizations)
  • education and training, subject to the conditions laid down by the law
  • membership services of non-profit making associations such as trade unions and professional associations
  • postal services (except telecommunications)
  • burial and cremation services,
  • most banking and financial services;
  • insurance and reinsurance;
  • transfers of immovable property subject to the immovable property municipal transfer tax (IMT)
  • letting of immovable property
  • betting and gaming

Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

Doorstep sales.



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:

  • International passenger transport
  • Exportation of goods and assimilated transactions
  • Intracommunity supply of goods 
Rate(s) Structure
Standard VAT rate Rate: 23.00 %

In Azores the standard VAT rate is 18% while in Madeira is 22%.

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 6.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)

Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate: 18.00 %
Regions Azores and Madeira

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.

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:Yes

Parking rate of 13%.

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:Yes

Art. 18, n.º 2 of the VAT Code.

Special provisions under articles 122 2006/112/EC:Yes

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.

Tax due date
  • Monthly for taxpayers whose turnover in the previous year was at least € 650,000.00 (the 10th day of the second month following that in which the taxable events occurred)
  • Quarterly for taxpayers whose turnover in the preceding year was less than € 650,000.00 (the 15th day of the second month following the quarter in which the taxable events occurred)
Tax collector

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.

Special features

Simplified regime for small retailers

Retailers may qualify for this simplified regime if

  • they are individuals, and
  • they are not required by the law to apply the standard accounting system for personal or income tax purposes and do not opt for it, and
  • their purchases in the preceding calendar year did not exceed € 50,000.00.

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.

Economic function

Environmental taxes

Tax revenue
ESA95 code d211

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 13,995.00 EUR 8.31
2011 14,264.88 EUR 8.10
2010 13,527.13 EUR 7.52
2009 11,971.20 EUR 6.82
2008 14,423.17 EUR 8.06
2007 14,333.38 EUR 8.17
2006 13,763.61 EUR 8.28
2005 13,000.96 EUR 8.20
2004 11,568.71 EUR 7.59
2003 11,075.87 EUR 7.58
2002 10,668.12 EUR 7.48
2001 10,021.40 EUR 7.38
2000 9,733.50 EUR 7.58