Portugal VAT Rates 2026 (IVA)

VAT rates in Portugal (2026)

Rate	Percentage	Applies to
Standard	23%	Most goods and services
Intermediate	13%	Restaurants, some food products, agricultural supplies
Reduced	6%	Essential food, books, newspapers, medicines, passenger transport

Azores and Madeira have lower rates: Açores is 16%/9%/4%, Madeira is 22%/12%/4% (Madeira's reduced rate dropped from 4% to 4% on 1 October 2024).

VAT for solo entrepreneurs

As a trabalhador independente, your VAT treatment depends on your regime and your clients:

VAT exemption (Article 53)

If your annual revenue is below the Article 53 exemption threshold (€15,000.00 for 2026), you can be VAT-exempt. You don't charge VAT on your invoices and don't file quarterly VAT returns. Your invoices must state the exemption: "IVA, regime de isenção, artigo 53.º do CIVA."

Standard VAT regime

Above the threshold (or by choice), you charge VAT on invoices and file quarterly returns (Declaração Periódica de IVA).

Cross-border services

Client	Location	VAT treatment
Business (B2B)	EU with valid VAT number	0%, reverse charge, buyer accounts for VAT
Business (B2B)	Non-EU	0%, out of scope, no VAT
Consumer (B2C)	Portugal	23% standard rate
Consumer (B2C)	EU	Complex, depends on service type, may require OSS registration

Use the VAT guide to find the correct rate and exemption code for your specific situation.

Quarterly VAT returns

If you're on the standard VAT regime, you file quarterly:

Quarter	Period	Filing deadline
Q1	Jan–Mar	May 20
Q2	Apr–Jun	Aug 20
Q3	Jul–Sep	Nov 20
Q4	Oct–Dec	Feb 20 (following year)

Recapitulative statement

If you provide services to businesses in other EU countries and you are in the normal VAT regime, you must also file a recapitulative statement (declaração recapitulativa) for any quarter in which you invoiced EU B2B clients. This is separate from the VAT return and easy to miss. Under the Article 53 exemption you no longer file it, for operations carried out from 1 July 2025 onward.