PORTUGAL

PORTUGAL (IVA)

Portugal  being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 23%

Reduced VAT Rate: 6%, 13%

Registration Threshold Distance Selling: 35,000 €

EU VAT number format: PT999999999

Registration Threshold

Resident - There is no registration threshold          
Non resident - There is no registration threshold                  
IC Acquisitions - EUR 10,000

VAT Registration

There is no registration threshold. Unless they opt otherwise, businesses with an annual turnover below EUR 10.000,00 do need to register but will be covered by a special exemption regime, on condition that they do not import or export goods.

VAT Compliance

Detailed rules regulate reporting requirements of Portuguese transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.

VAT Returns

If the annual turnover of the taxable person amounts to or is higher than EUR 650,000.00, monthly VAT returns should be filed.

• If the annual turnover of the taxable person is less than EUR 650,000.00, quarterly VAT returns should be filed. Additionally, an annual VAT return must be submitted containing the compiled data (global amounts) in respect of acquisitions and supplies of goods and services carried out in the preceding year.

• Monthly returns must be filed by the 10th day of the second month following the month to which the transactions relate.

• Quarterly returns must be filed by the 15th day of the second month following the quarter to which the transactions relate.

Additionally, the annual VAT return is due by 15 July of the following year.

Intrastat and EC Sales Lists

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of Portugal from other Member States or leave it to other Member States.

Declaration must be filed monthly once the annual threshold is exceeded.
Intrastat declarations can be submitted in paper or electronic format. The due date for submission is the 10th working day of the month following the reference period.