Overzicht Portugese BTW

If your company is not established in Portugal and is providing ‘taxable supplies’ of goods or services in Portugal, it might have to attain a non-resident VAT registration. This follows the EU VAT Directive, foreign traders are legally obliged to register for VAT in certain situations, in order to report taxable transactions and declare the VAT that needs be charged.

It is imperative that all businesses with any commercial actions in Portugal evaluate their compliance responsibilities and register before beginning any taxable transactions, if applicable.

What you should know

There are numerous circumstances in Portugal that can generate the responsibility to register for VAT. Below are some of the most common cases:

  • Goods being imported into Portugal from outside the EU;
  • Goods being bought or sold in Portugal;
  • Selling goods from Portugal that are delivered to customers out with Portugal (this applies to business or private customers);
  • Obtaining goods in Portugal from another country within the EU (Intra-community acquisitions);
  • Inventory of stock in Portugal for sale, circulation or delivery;
  • eCommerce sales of goods to customers, subject to Distance Selling VAT registration thresholds;
  • Arranging events in Portugal, if attendees or delegates pay admission.

If you are presently, or planning to conduct any of the above (or similar) transactions in Portugal, you should contact amavat® immediately to allow us to help you be VAT compliant.

VAT Rates, the Formats & the Thresholds

VAT Rates VAT No. Format Distance Selling Threshold Intrastat Threshold
23% (Standard)
6/13% (Reduced)
PT123456789 € 35,000 € 350,000 (Arrivals)
€ 250,000 (Dispatches)

*amavat® accept no responsibility for the above figures being 100% accurate, at all times. They will periodically updated - last update 27 May, 2019.

Additional VAT information for Portugal

‘VAT Return’ Periods
Monthly or quarterly

‘Annual Returns’
Yes

‘EC Sales Lists’ frequency
Monthly or quarterly

‘EC Purchase Lists’
No

Additional reporting requirements
Yes, by an annual statement, listing all supplies greater than €25,000.00 made to Portuguese businesses.

‘Extended Reverse Charge’
Services and goods provided by a non-established business to VAT registered customer in Portugal, are subject to the reverse charge and the customer should account for the VAT. The reverse charge will also apply to certain domestic transactions between taxable persons. This also applies to construction services. Please contact amavat® if you would like further information of how the extended reverse charge applies in Portugal.

‘Fiscal Representation’
A business established in a country out with the EU must retain a tax representative to register for VAT in Portugal.