VAT Rates in Portugal
Updated Portuguese VAT rate tables
According to the VAT Code in Portugal, the standard rate of VAT in mainland Portugal is 23% as specified in Article 18.
However, there are different standard VAT rates in Madeira and Azores. In Madeira, the standard rate of VAT is 22%, while in Azores, the standard rate was 18% before July 1, 2021, and was later reduced to 16% on or after this date.
VAT rates in Portugal
Standard VAT rate |
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| The standard VAT (Value-Added Tax) rate is the most common VAT rate a country applies to goods and services. This rate is used for most goods and services, though there are exceptions like essential items and other specific goods or services, which may be subject to a reduced rate, as detailed below. | |
| Rate | Good or Services |
| 23% | All goods or services not included in the reduced rates table below |
Reduced VAT rates |
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| The Portuguese VAT Code has established two different reduced rates for Value Added Tax, which are applicable in specific regions. The first reduced rate of 6% is valid throughout Portugal, except for the autonomous regions of Madeira where it is 5%, and the Azores where it is 4%. The second reduced rate of 13% is also applicable throughout Portugal, but with variations in the autonomous regions of Madeira and the Azores, where it is 12% and 9%, respectively. | |
| Rate | Good or Services |
| 6% | The reduced rate is applicable to various supplies, including but not limited to the following: |
| Basic food items | |
| Books, newspapers, and certain periodicals, whether in physical or electronic format, excluding publications that consist mainly of video or music content, publications or books considered obscene or pornographic, and items bound in materials like fur or silk | |
| Medicinal and pharmaceutical products | |
| Medical and health services offered by private businesses (excluding those provided under the National Health Service) that have waived the VAT exemption under Article 12(1)(b) of the Portuguese VAT Code | |
| Products specifically designed for use by people with disabilities | |
| Orthopedic products; | |
| Equipment intended exclusively or mainly for rescue services, humanitarian organizations, and fire brigades | |
| Passenger transport, including car rental with a driver | |
| Admission to certain performances, like singing, dance, music, theater, cinema, and circus shows, as well as entries to exhibitions, zoos, public botanical gardens, and aquariums, provided they don’t qualify for the VAT exemption under article 9(13) of the Portuguese VAT Code, except for entries to pornographic or obscene shows | |
| Various types of hotel accommodation. | |
| The reduced rate is also applicable to construction activities related to immovable property, subject to meeting certain conditions | |
| Some cleaning services | |
| Intermediate Rate | The intermediate rate is applicable to several supplies, including but not limited to the following: |
| 13% | Certain types of food products |
| Certain oil products | |
| Common wines | |
| Agricultural tools and equipment, such as mobile silos, motor cultivators, motor pumps, electric pumps, agricultural tractors, and other machines and devices intended exclusively or mainly for agriculture, livestock, or forestry | |
| Musical instruments | |
| Restaurant and catering services that exclude alcoholic beverages, soft drinks, juices, and similar drinks. | |
| 0% | Zero rated products |
| Goods and services that are exported out of the country | |
| Intra-Community supplies of goods, where the seller dispatches or transports the goods to another EU Member State to a customer who is registered for VAT and has provided their VAT identification number to the seller | |
| Services related to movable property that is imported to be worked on in Portugal and then dispatched or transported out of the country by the supplier, a non-established customer, or a third party acting on their behalf | |
| Supplies of goods and services on board vessels used for shipping, transportation of passengers, commercial, industrial or fishing activities, rescue or maritime assistance, or inshore fishing. The transformation, repair, maintenance, construction, shipping, and rental of vessels used for these purposes are also exempt with credit | |
| Supplies of various goods and services to aircraft and vessels engaged in international transportation, including war vessels | |
| Supplies of aircraft and certain fixed aircraft equipment used by airlines mainly on international routes, including their modification, repair and maintenance, and chartering and hiring | |
| Goods and services supplied under diplomatic and consular agreements entered into by Portugal | |
| Goods and services provided to international organizations recognized by Portugal or any other EU Member State under relevant international conventions or headquarters agreements | |
| Certain supplies of goods and services destined for the armed forces of other states that are parties to NATO for the use of those forces or their accompanying civilian staff, or for supplying their messes or canteens when taking part in the common defence effort | |
| Gratuitous supplies of goods to disadvantaged persons by the state, recognized institutions, or non-profit bodies, and certain supplies of books to government departments, and educational, cultural, and social institutions | |
| Services related to external and internal Community transit procedure, exports from the European Union, temporary importation arrangements with full exemption from import duty or import warehousing arrangements | |
| Services related to the dispatch or transportation of goods to other EU Member States, provided the customer is a taxable person registered for VAT and has used their identification number to make the acquisition | |
| Certain financial services to persons established outside the EU, as well as financial services directly related to exportation | |
| Transport of persons to and from abroad, as well as to or from the Autonomous Regions of Portugal, and transportation of passengers between the islands in those regions | |
| Services provided by intermediaries acting on behalf of a third party, when they participate in exempt transactions with credit or that occur outside the European Union | |
| Transportation of goods between the islands making up the Autonomous Regions of the Azores and Madeira, and between those regions and the mainland or any other Member State and vice versa | |
| Supplies of gold to the Bank of Portugal, in bars or other unworked forms | |
| Supplies of goods and services to any state that is a party to NATO, other than Portugal or the EU Member State for which the goods are shipped, or services provided, for the use of those forces or the civilian staff accompanying them, or for supplying their messes or canteens when taking part in the common defense effort. | |
Exempt From VAT |
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| Services provided by healthcare professionals such as doctors, dentists, psychologists, midwives, and nurses, in their professional capacity, as well as ambulance transportation services | |
| Services provided by other paramedical professionals, including practitioners of non-conventional therapies; | |
| Medical, health, and related services provided by hospitals, clinics, dispensaries, and similar establishments | |
| Supplies of dental prostheses provided by dentists and dental technicians. | |
| Services rendered by qualified dental technicians; | |
| Transfers of organs, blood and human milk; | |
| Services provided by public or non-profit organizations related to congresses, conferences, and fairs in science, culture, education, and technology | |
| Services provided by public or recognized organizations promoting education for children or young people, welfare and social services, including homes for the elderly | |
| Certain financial services, including loans, guarantees, currency transactions, investment fund administration and management, insurance, and reinsurance transactions | |
| Transactions in immovable property | |
| Food and beverage services provided by employers to their employees; | |
| Services rendered by a Portuguese sign language interpreter | |
Last Updated: 29/11/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
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