Portugal VAT Calculator
How Much Is VAT in Portugal?
The standard VAT rate in Portugal is 23% in 2026. Other rates: 13% — Restaurant and catering services, wine, certain processed foods and agricultural inputs (12% Madeira, 9% Azores); 6% — Basic foods, books and newspapers, medicines, passenger transport, hotel accommodation, water (4% in Madeira and the Azores); 0% — Exports and intra-EU B2B supplies. Locally the tax is called Imposto sobre o Valor Acrescentado (IVA). Among the 27 EU member states, standard VAT ranges from 17% in Luxembourg to 27% in Hungary.
How to calculate Portugal VAT
To add 23% VAT to a net (tax-exclusive) price, multiply it by 1.23. To remove VAT from a gross (tax-inclusive) price, divide it by 1.23.
- Add VAT: EUR 100 net × 1.23 = EUR 123 gross (that is EUR 23 of VAT)
- Remove VAT: EUR 123 gross ÷ 1.23 = EUR 100 net (that is EUR 23 of VAT)
Use the Portugal VAT calculator above for any amount, or compare Portugal with every other country in our VAT rates by country table.
Portugal VAT Rates Overview
Every VAT rate currently in force in Portugal
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 23% | Most goods and services on the mainland (22% in Madeira, 16% in the Azores) |
| Intermediate rate | 13% | Restaurant and catering services, wine, certain processed foods and agricultural inputs (12% Madeira, 9% Azores) |
| Reduced rate | 6% | Basic foods, books and newspapers, medicines, passenger transport, hotel accommodation, water (4% in Madeira and the Azores) |
| Zero rate | 0% | Exports and intra-EU B2B supplies |
VAT History and Local Rules in Portugal
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2025: Article 53 small-business exemption threshold set at EUR 15,000
- 2023: Temporary 0% rate on a basket of essential foods (April 2023 to January 2024)
- 2016: Restaurant services returned to the 13% intermediate rate
- 2011: Standard rate raised to 23%
- 1986: IVA introduced on joining the EEC
Is the VAT rate the same everywhere in Portugal?
Rates are lower in the autonomous regions: Madeira applies 22%, 12% and 4%, and the Azores 16%, 9% and 4%, versus 23%, 13% and 6% on the mainland.
Good to know
The rate depends on where the supply takes place, so businesses selling to the Azores or Madeira must apply the regional rates.
Restaurant food is taxed at 13%, but alcoholic drinks, soft drinks and juices served with it are taxed at the standard rate.
Portugal requires tax-authority-certified invoicing software and a unique ATCUD code on every invoice.
Zero-Rated and Exempt Supplies in Portugal
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods outside the EU
- Intra-EU B2B supplies of goods to VAT-registered customers
- International transport of goods
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Financial and insurance services
- Medical and healthcare services
- Education and vocational training
- Residential letting
- Supplies by small businesses under the Article 53 regime
Portugal VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Portugal.
| Local name | Imposto sobre o Valor Acrescentado (IVA) |
|---|---|
| VAT number format | PT + 9 digits (e.g. PT123456789) |
| Registration threshold | EUR 15,000 annual turnover (Article 53 exemption regime) |
| Non-resident businesses | Non-established businesses must register from their first taxable supply in Portugal; non-EU businesses generally need a fiscal representative |
| Filing frequency | Monthly if prior-year turnover was EUR 650,000 or more, otherwise quarterly |
| Filing and payment deadline | Return by the 20th of the second month after the period; payment by the 25th of that month |
| E-invoicing / reporting | Invoices must be issued with certified software, ATCUD codes and QR codes and reported via SAF-T; B2G e-invoicing is mandatory |
| Tax authority | Autoridade Tributária e Aduaneira (AT) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Autoridade Tributária e Aduaneira (AT) before relying on them.
Cross-Border Sales and Refunds in Portugal
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign sellers of digital services to consumers in Portugal charge Portugal's VAT rate. EU businesses can declare it through the One-Stop Shop (OSS) once their EU-wide cross-border B2C sales exceed EUR 10,000; non-EU businesses use the non-Union OSS from the first sale.
Tourist VAT refunds: Non-EU visitors can reclaim IVA on purchases of at least about EUR 61.35 (EUR 50 excluding VAT) per shop.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Frequently Asked Questions
Common questions about VAT in Portugal
What is the current VAT rate in Portugal?
The standard VAT rate in Portugal is 23% in 2026. Other rates in force: 13% (intermediate rate), 6% (reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Portugal?
To add 23% VAT, multiply the net price by 1.23. To remove it from a VAT-inclusive price, divide by 1.23; the difference is the VAT. The calculator at the top of this page does both.
Is the VAT rate the same in Madeira and the Azores?
No. Madeira applies 22%, 12% and 4%, and the Azores 16%, 9% and 4%. Mainland Portugal applies 23%, 13% and 6%.
What is the IVA rate on restaurant meals in Portugal?
Restaurant and catering food is taxed at the 13% intermediate rate on the mainland. Alcoholic and soft drinks are taxed at 23%.
What is the IVA exemption threshold in Portugal?
Small businesses with annual turnover up to EUR 15,000 can use the Article 53 exemption and not charge IVA. Above that they must charge IVA and file periodic returns.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.