Foreign investors looking to establish a business in one of Portugal’s major cities can benefit from our services, along with support from our tax experts. We assist with VAT registration in Portugal as part of the company incorporation process, ensuring a smooth and compliant setup.
Here’s a well-structured table summarizing VAT registration in Portugal:
Quick Facts | Details |
VAT Registration Services | Yes |
Standard VAT Rate | 23% |
Lower VAT Rates | - 13% (certain foodstuffs, restaurants) - 6% (pharmaceutical products, newspapers) |
Who Needs VAT Registration | Companies with turnover exceeding EUR 10,000 |
Time Frame for Registration | Around 2 weeks |
VAT for Real Estate Transactions | No |
Exemptions Available | - Trade and supply of specific goods - Non-profit organizations - Professional services - Cultural activities |
Period for Filing | Monthly or quarterly |
VAT Returns Support | Yes |
VAT Refund Eligibility | Available for both individuals and companies |
Local Tax Agent Required | Yes, for foreign companies in Portugal |
Who Collects 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 ceases operations |
Activities Requiring VAT Registration | - Selling products to EU countries from Portugal - Importing products into Portugal - Internet retailing - Organizing conferences/events - Providing supply and install services for more than a year |
VAT Rate in Azores | - 16% (standard) - 9% or 4% (reduced rates) |
VAT Rate in Madeira | - 22% (standard) - 12% or 5% (reduced rates) |
VAT Registration for Cross-Border Sales | Required if annual sales exceed EUR 35,000 |
VAT Registration for Sole Traders | Required when annual turnover exceeds EUR 25,000 |
Record-Keeping Requirement | Records must be kept for 10 years |
Quarterly Filing | If total sales in the previous VAT year are below EUR 650,000 |
Monthly Filing | If total sales in the previous VAT year exceed EUR 650,000 |
Delayed VAT Payments | Fine of 30% to 100% of the tax due |
Not Submitting VAT Returns | Fine between EUR 300 – 3,750 |
Invoice Content | - Company name & business address - Company ID number & VAT ID - Details of services/products purchased - Price with and without VAT - Total due amount |
Invoice Issue Time Limit | 5 working days |
VAT on Vouchers | Depends on whether they are single-purpose (SPV) or multi-purpose (MPV) |
Special VAT Schemes | - Special exemption scheme - Small retailers scheme - Farmers scheme - Taxation scheme for liquid fuels |
Other Taxes in Portugal | - Corporate income tax - Withholding tax - Social security contributions - Stamp duty, etc. |
Portuguese VAT Registration for Foreign Companies: A Complete Guide
Foreign investors looking to establish a business in Portugal must comply with the country's VAT registration requirements. If your company imports goods into Portugal, sells products online to Portuguese customers, or engages in buying and selling goods and services within the country, Portuguese VAT registration is mandatory.
Below are the key formalities and requirements for foreign companies seeking VAT registration in Portugal:
Certificate of Incorporation: A copy of your company’s Certificate of Incorporation must be submitted during the registration process.
VAT Certificates: Companies must provide VAT certificates from their home country as part of the registration.
Registration with Portuguese Tax Authority: VAT registration must be completed with the Portuguese Tax Authority (Autoridade Tributária).
Fiscal Representative: Foreign companies are required to have a fiscal representative in Portugal to liaise with the tax authorities. Our Portuguese legal team can act as your fiscal representative with a power of attorney, ensuring seamless communication and compliance.
Navigating the VAT registration process in Portugal can be complex, but our Portuguese tax experts are here to simplify the process for you. With our professional assistance, you can ensure a smooth and timely registration, avoiding unnecessary delays or penalties.
For a hassle-free VAT registration and to meet all tax obligations, contact our specialists today!
We’re ready to guide you through the entire process.
VAT Registration for Local Companies in Portugal (2025)
In 2025, VAT registration for local companies in Portugal is required regardless of a specific threshold. It is mandatory for companies engaged in activities such as import/export, supplying and installing services, organizing live events, internet retailing, selling goods to EU countries, and more.
Below are the key requirements and processes for VAT registration in Portugal:
Key Requirements for VAT Registration
Mandatory VAT Registration: Companies must register for VAT if they are involved in:
Importing products into Portugal.
Selling goods to EU countries from Portugal.
Internet retailing or online sales with a business presence in Portugal.
Organizing events or conferences.
Providing supply and install services for more than one year.
Company Documentation: To complete the VAT registration process, your company must submit necessary documents (e.g., company registration, tax documents). The entire process usually takes around 14 days, depending on the efficiency of the authorities and the completeness of the documents submitted.
Threshold for Registration: If a company sells and delivers products from another EU member state, and the total value exceeds EUR 35,000, VAT registration in Portugal is compulsory.
VAT Registration Process and Timeframe
Standard VAT Registration Process: The company’s legal documentation is required, and the process is typically completed within 14 days if the documents are properly drafted.
VAT Registration for Non-Residents: Non-resident companies providing services in Portugal may still be required to register for VAT, even if they cannot directly obtain a VAT number.
VAT Rates in Portugal (2025)
Standard VAT Rate: 23%
Reduced Rates:
13% (for certain goods and services).
6% (for basic necessities).
Special Rates for Autonomous Regions:
Madeira: 22%, 12%, and 5%.
Azores: 18%, 9%, and 4%.
VAT Filing and Returns
Monthly or Quarterly VAT Returns: Companies must file VAT returns monthly or quarterly, depending on their annual turnover.
Filing Deadlines: VAT returns have specific filing deadlines, and companies must adhere to them to avoid penalties.
VAT Refunds for Non-Residents
Non-resident companies offering services in Portugal but unable to register for VAT may be eligible for VAT refunds. Consulting with a tax expert or Portuguese lawyer is recommended to understand the specific VAT refund requirements and process.
Legal Support for VAT Registration in Portugal
Our Portuguese lawyers specialize in VAT registration, guiding both local and foreign companies through the process. We ensure all legal and tax obligations are met efficiently, helping businesses navigate Portugal’s VAT laws.
For professional assistance and a smooth VAT registration process in Portugal, Contact our experts today!
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