VAT in Portugal: Rates, Rules & How to Calculate IVA
Portugal applies three VAT (IVA) rates on the mainland. The standard rate is 23%, one of the highest in Europe. The intermediate rate of 13% applies to certain food products (canned goods, margarine), wine, agricultural inputs, and admission to cultural events. The reduced rate of 6% covers essential food products (milk, bread, fruit, vegetables, cereals, meat, fish), water, pharmaceuticals, books, newspapers, hotel accommodation, passenger transport, and energy supplies for domestic use.
The Portuguese Tax Authority (Autoridade Tributaria e Aduaneira, AT) administers VAT. The Azores and Madeira autonomous regions have lower rates: the Azores applies 16%, 9%, and 4%, while Madeira applies 22%, 12%, and 5%. VAT returns are filed monthly for businesses with annual turnover above 650,000 euros, and quarterly for smaller businesses. Portugal uses the e-fatura electronic invoicing system for tax compliance.
Use our calculator to compute Portuguese IVA instantly. For invoicing, try our invoice calculator or use our percentage calculator.