VAT Registration in Portugal - Rules and Procedure

Would you like to start a business and register for VAT in Portugal? This article is for you! We present to you the main aspects of this tax and the way registration is done, helped by one of our Portuguese lawyers.

Quick Facts
We offer VAT registration services	Yes
Standard rate	23%
Lower rates	– 13% for certain foodstuff, restaurants; – 6% for pharmaceutical products, newspapers
Who needs VAT registration	Taxable persons with turnover exceeding EUR 15,000 (threshold in force since 2025)
Time frame for registration	Around 2 weeks
VAT for real estate transactions	No
Exemptions available	– trade and supply of specific goods, – non-profit organisations, – professional services, – cultural activities
Period for filing	Monthly or quarterly
VAT returns support	Yes
VAT refund	Both natural persons and companies can claim VAT refund
Local tax agent required	For companies from outside the EU without an establishment in Portugal
Who collects the VAT	– retailers, – manufacturers, – wholesalers
Documents for VAT registration	– certificate of incorporation, – identification documents, – standard forms
VAT number format	PT country code followed by 9 digits
VAT de-registration situations	When the company closes its activities
Activities required for VAT registration in Portugal	– selling products to EU countries from Portugal; – importing products into Portugal; – internet retailing; – organizing conferences, events, or related activities; – providing supply and install services for more than just a year etc.
VAT rate in Azores	– 16% (standard), – 9% or 4% (reduced rates)
VAT rate in Madeira	– 22% (standard), – 12% or 4% (reduced rates)
VAT registration in Portugal for cross-border sales	If a company sells and delivers products from another EU member state to clients or firms in Portugal, they are required to register for VAT in Portugal if their total intra-EU distance sales exceed EUR 10,000 per year (EU-wide threshold since July 2021; the One-Stop Shop can be used instead).
VAT registration for sole traders	Sole traders need to register for VAT in Portugal when their annual turnover exceeds EUR 15,000. Our law firm in Portugal can help individuals looking to become sole traders.
Keeping records	Records must be kept for 10 years.
Quarterly filing	If the total sales in the previous VAT year are less than 650,000 euros
Monthly filing	If the total sales in the previous VAT year exceed 650,000 euros
Delayed VAT payments	Fine consisting of 30% to 100% of the tax due
Not submitting VAT returns	Fine between 150 – 3,750 euros
Invoice content	– company name and business address, – company identification number and VAT ID, – details of services/products purchased, – price of products/services with and without VAT, – the total due amount of products/services
Invoice issue time limit	5 working days
VAT applied on vouchers	Depends on whether they are single-purpose vouchers (SPV) or multi-purpose vouchers (MPV)
Special VAT schemes	– special exemption scheme, – special scheme for small retailers, – special scheme for farmers, – taxation scheme for liquid fuels applicable to dealers
Other taxes in Portugal	– corporate income tax, – withholding tax, – social security contributions, – stamp duty, etc.

What are the VAT rates in Portugal?

23% standard VAT rate – for most goods and products for sale, including professional services.
13% intermediate VAT rate – for restaurants & catering services, agricultural equipment, specific food items, etc.
6% reduced VAT rate – for basic foodstuffs, pharmaceuticals, passenger transport, essential medical equipment, newspapers, hotel accommodation, etc.

Who pays VAT in Portugal?

The final consumer – entity or individual.

Who needs to register for VAT in Portugal?

companies selling products to EU countries from Portugal must register for VAT;
the import of products into Portugal is subject to VAT;
internet retailing or online product sales of companies with establishments in Portugal must register for VAT;
companies that organize conferences, events, or anything related have the obligation to register the firm for VAT;
companies that deal with supply and installation services for more than just a year are subject to VAT.

Below you can discover an infographic with information on this subject:

What is the VAT threshold in Portugal in 2026?

EUR 15,000 as annual taxable turnover,
EUR 10,000 as annual taxable turnover for distance selling.

Who collects VAT in Portugal?

Sellers/companies/providers in Portugal, and then remitted to the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira).

How do I register for VAT in Portugal as a foreign business owner in 2026?

You must prepare & present:

the Certificate of Incorporation of the company is required.
VAT certificates from the country of origin of the company are also needed.
the VAT registration is made with the Portuguese tax authority.

NOTE! Portuguese VAT registration for a non-EU company without an establishment in Portugal requires a fiscal representative in charge of collaborating with the authorities.

How do I register for VAT in Portugal as a local entrepreneur?

You will need to prepare:

NIF – the Tax Identification Number,
business activity code or CAE code,
proof of an existing bank account in Portugal,
a completed standard form/declaration from the tax office.

IMPORTANT! VAT registration for local entrepreneurs can be done online or in person at the local tax office/citizen bureau.

We invite you to watch a video presentation on this topic:

How do I register for VAT as a sole trader in Portugal?

you will have to obtain the NIF,
must be registered as “Empresario em Nome Individual” (ENI) and declare the business activities,
if not resident in the EU, must appoint a fiscal agent/representative in Portugal.

NOTE! Sole traders in Portugal can qualify for “Regime de Isenção” if they do not reach the annual taxable turnover of EUR 15,000, and therefore, are exempt from charging VAT.

Is the reverse charge mechanism available in Portugal?

Yes, for specific B2B transactions, especially in cross-border contacts.

What is the VAT invoice content?

company name and business address in Portugal.
the company’s unique identification number and VAT ID.
information about the services and/or products purchased.
the price of the products without VAT.
the price of products/services with VAT included.
total amount due for products bought.

How is the VAT return done in Portugal?

Monthly or quarterly.

What is the time frame to register for VAT in Portugal in 2026?

About 15 days.

Is VAT registration possible for companies without establishments in Portugal?

Yes. Sole traders or companies without an establishment in Portugal but with an address in another EU member country must prepare a declaration of commencement of the activity (through a fiscal representative only if established outside the EU) at the time of VAT registration.

For more information about tax laws and VAT registration in 2026, please contact our law firm in Portugal.