Consumption/VAT/Sales Tax in Portugal

Overview by
Nature of the Tax
Imposto Sobre o Valor Acrescentado (I.V.A.) = Value Added Tax (VAT).
Standard Rate
Reduced Tax Rate
Reduced VAT rates vary between 6% and 13%. They are 13% for catering, petrol and some foodstuffs. The 6% rate applies to most foodstuffs, water, publications, electricity, transport, hotels and leisure.
Exclusion From Taxation
Financial services and insurance, stocks of medicines, education and training are exempt from VAT.
Method of Calculation, Declaration and Settlement
The rate of VAT is applied to the sales price.
Settling VAT is done through declarations which vary according to the tax regime
Other Consumption Taxes
 A vehicle tax named IUC also apply in Portugal

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Experts Views (1)
  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in Portugal

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  • Accordance

    International VAT Compliance,