VAT in Portugal – a complete guide. Rates and registration thresholds | VAT in Europe #14

Are you shipping goods to customers in Portugal? Check if you need to register for Portuguese VAT and what the applicable VAT rates are in Portugal. Read on to find out more.

Foreign companies importing or trading goods or services in Portugal may be required to register as non-resident traders in Portugal. They will then also be obliged to comply with local regulations, including invoicing rules and tax deadlines.

Should you register for VAT in Portugal?

Portugal requires non-residents to register if they engage in any of the following activities:

• import of goods into Portugal from outside the European Union,
• purchase and sale of goods within Portugal,
• selling goods online to Portuguese consumers via the Internet, when turnover exceeds 10,000 euros,
• warehousing goods in a consignment warehouse for sale to local customers.

Invoicing rules

For Portuguese B2B e-invoices, as of 2021, taxpayers must apply for a unique series of invoice numbers from the government before issuing invoices. They must then use certified software to add a QR code to each invoice with this unique document code.

Portuguese taxpayers must notify the tax authorities in advance of the planned invoice numbers for sales. To do this, they must submit:

• the invoice number and series to be used,
• the classification of this type of document, based on SAF-T,
• the date of issuance of the first invoice in the series.

After the notification, you receive an 8-digit validation code for the series, which must be included on the invoice as a unique document code (ATCUD).

The traditional invoice should include the following elements:

• date of issue,
• supplier’s details and VAT identifier,
• government contractor’s details,
• contract and delivery schedule details,
• payment information,
• details of supplied goods or services,
• net value,
• VAT,
• gross value.

Enterprises, being Portuguese residents, whose annual sales exceed 50,000 euros, must use government-approved invoicing software. This software should be capable of generating a unique invoice code (UUID). These codes should be reported to the tax authorities before issuing the invoice and should be included on the invoice.

From July 2021, non-resident companies should issue invoices using approved software packages. This will allow stamping invoices with a new QR code containing detailed information about the invoices for electronic scanning.

Invoices must be kept for 10 years by both the issuer and the recipient.

The deadlines for filing VAT returns in Portugal

In Portugal, VAT returns are submitted:

• on a monthly basis – by the 10th day of the second month following the end of the taxable period, or
• on a quarterly basis – by the 15th day of the second month following the end of the taxable period.

EU VAT returns are submitted by the 20th of the following month for the month in which the EU transaction took place. Additionally, the annual VAT return is due by 15 July of the following year.

The tax must be paid to the Portuguese tax office within 7 days after the end of the VAT reporting period (monthly or quarterly).

Portuguese SAF-T

Zasadniczo istnieje pięć wymogów sprawozdawczych SAF-T:

• general ledger and entries
• liabilities, including basic supplier data and invoices,
• receivables, with basic customer data and invoices,
• inventory and basic data,
• fixed assets register with depreciation.

Taxpayers who are Portuguese residents are required to submit invoices monthly in SAF-T format.

The declarations must be submitted together with the regular VAT declaration by the 20th day of the following month.

Non-resident entrepreneurs registered for Portuguese VAT (e.g., due to exceeding the distance selling threshold) are exempt from SAF-T requirements.

Rates VAT in Portugal

PVAT in Portugal is due within 7 days after the end of the monthly or quarterly reporting period.

 

RATE	TYPE	TYPE OF GOODS OR SERVICES
23%	standard	all goods and services not covered by the reduced VAT rate,
13%	reduced	some food items, admission to some cultural events, meals in restaurants and cafes, some agricultural products, diesel fuel for agriculture, some goods and services for consumption in onboard transportation,
6%	reduced	some food products, some pharmaceutical products, medical equipment for the disabled, car seats for children, diapers for children, some books (including e-books), some newspapers and magazines, TV licence, social housing, repairs and renovations of private residential buildings, some agricultural products, accommodation in hotels, some social services, some medical and dental services, household waste collection, minor bicycle repairs, housekeeping services, fruit juices, firewood, cut flowers and cut plants for decorative purposes and food production, construction work related to new buildings, some legal services, some consumer goods in onboard transportation, sewage treatment, some works of art, collectibles, and antiques,
0%	zero	intra-Community and international air and sea transportation.

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VAT in EU:

1. VAT in Estonia - a complete guide
2. VAT in Denmark - a complete guide
3. VAT in Germany - a complete guide
4. VAT in the Netherlands - a complete guide
5. VAT in the Czech Republic - a complete guide
6. VAT in Italy – a complete guide. Rates and registration thresholds
7. VAT in Ireland – a complete guide. Rates and registration thresholds
8. VAT in Cyprus – a complete guide
9. VAT in Spain – a complete guide. Rates and registration thresholds
10. VAT in France - a complete guide
11. VAT in Lithuania - a complete guide
12. VAT in Latvia - a complete guide
13. VAT in Slovakia - a complete guide
14. VAT in Portugal - a complete guide
15. VAT in Romania - a complete guide
16. VAT in Belgium - a complete guide
17. VAT in Sweden - a complete guide