Portugal VAT Guide

Understand VAT registration, rates, filing, e-invoicing and representation requirements in Portugal. Desucla represents, files and pays VAT for cross-border businesses.

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Last reviewed 01 June 2026

Reviewed by Desucla Tax Team

Last authority check 30 May 2026

Tax authority Portuguese Tax and Customs Authority (AT)

Source status Based on tax authority guidance, local legislation and Desucla operational experience.

Important: Important: This guide is general information, not tax advice. Requirements depend on your business model, customer type, transaction flows and local authority interpretation.

At a glance

Local tax name / acronym	Imposto sobre o valor acrescentado (IVA)
Standard rate	23% (22% Madeira; 18% Azores)
Reduced rates	13%: 6%; 0%
Registration threshold	€15,000 unless single taxable transaction not exceeding €25,000. Nil for non-residents; €10,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions nil
Filing frequency	Monthly if annual revenues exceed €650,000; Quarterly otherwise. There is no longer a requirement for 3 years’ trading to qualify for monthly filings option. All taxpayers must complete an annual VAT return by 15th of July in following year.
E-invoicing / digital reporting	In Portugal, e-invoicing is currently only mandatory for Business-to-Government (B2G) transactions. While Business-to-Business (B2B) and Business-to-Consumer (B2C) electronic invoicing are strictly voluntary
Typical registration lead time	2-6 weeks

Recent changes

NEW

Energy VAT rate temporary cuts

Portugal introduced temporary VAT relief on household electricity to help offset inflation and energy-price increases. The VAT rate on eligible electricity consumption was reduced from 13% to 6%, initially from October 2022, and subsequently extended through 2024, with expanded eligibility from January 2025.

UPDATED

2026 reduced VAT rate changes

Portugal’s 2026 Budget expands the reduced 6% IVA rate to olive oil processing, game meat, and artwork sold through galleries, while extending several VAT relief measures for agriculture and animal welfare.

NEW

Accounting SAF-T 2027 delay

Portugal has postponed the mandatory annual Accounting SAF-T (PT) reporting requirement by one year, with the first mandatory submission now due in 2028 for the 2027 fiscal year, giving businesses additional time to prepare their accounting systems.