Reference
Portugal VAT Rates 2026 (IVA)
Last updated: 2026-05-03
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 (18%/9%/4% and 22%/12%/5% respectively).
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 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 15 |
| Q2 | Apr–Jun | Aug 15 |
| Q3 | Jul–Sep | Nov 15 |
| Q4 | Oct–Dec | Feb 15 (following year) |
Recapitulative statement
If you provide services to businesses in other EU countries, 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.