Register for VAT in Portugal

Are you supplying, or looking to supply goods to Portugal? If your business was not established in the country, you will likely be affected by the EU VAT (Value Added Tax) directive. Whether you are inside or outside the EU, you are likely to have to register for non-resident VAT.

Do I need to register for VAT in Portugal?

The circumstances in which you will have to register for Portuguese VAT include:

  • Buying and selling goods or services in Portugal
  • Selling and shipping goods contained in Portugal to buyers outside of Portugal
  • Importing goods to Portugal from inside the EU
  • Storing goods or other physical property in Portugal
  • Selling online goods or services to buyers in Portugal*
  • Holding events in Portugal with paid admission

* when exceeding Distance Selling thresholds

If your business is currently or potentially affected by any of these factors, you are legally required to appoint a tax representative to register for VAT on your behalf. Contact us for a free consultation on your business’s unique VAT requirements.

What are the VAT rates in Portugal?

The standard rate of VAT in Portugal is 23%. A 6% or 13% rate of reduced VAT applies to certain products based on specific criteria.

What are the VAT return periods in Portugal?

VAT returns must be submitted either monthly or quarterly, depending on your company’s turnover. Returns must be submitted before the 10th or 15th day of the second month following the tax period, respectively.

Portugal does require that you submit an annual summarising return, prior to July 15th of the following year.

What is the Distance Selling threshold in Portugal?

The distance selling threshold, which determines whether you need to pay VAT for sales to Portuguese customers, is €35,000.

What is the Intrastat threshold in Portugal?

The Intrastat threshold, which affects the movement of goods between Portugal and another EU state, is €350,000 for arrivals and €250,000 for dispatches.

What if I sell goods on Amazon?

Many online sellers who are trading via Amazon make use of their Fulilment By Amazon (FBA) service. In order to trade faster and easier across Europe, companies use Amazon to store, pick, pack and deliver your products to the buyer’s local address.

Even though you may think that you’re making sales from you’re home country, Amazon holds the goods locally and the product would therefore be considered as a local sale, and subsequently liable for VAT.

VAT is the responsibility of the seller, not Amazon, and you can face heavy fines for not registering and/or paying VAT.