Tax Solutions
Klisiaris & Klissiaris Lda. trading as Tax Solutions, is a personalised Tax and Accounting service company advising and looking after expatriates living or working in Portugal. As professional advisers, we offer expertise and support in all aspects of corporate and personal tax and accounting.
| Name of the tax | Value Added Tax |
| Local name | Imposto sobre Valor Acrescentado (IVA) |
| Date introduced | 1 January 1986 |
| Date of membership in EU | 1 January 1986 |
| Administered by | Autoridade Tributária e Aduaneira |
| Rate | Mainland | Medeira | Azores |
| Standard | 23% | 22% | 18% |
| Intermediate | 13% | 12% | 9% |
| Reduced | 6% | 5% | 45 |
| Other | VAT exemptions – either non-liability to VAT on supply of goods or services (such as financial transactions, cultural activities, education and health) or zero-rate” transactions allowing deduction or refund of VAT borne (such as exports or intra-EU dispatches). |
| VAT Number format | Does not exist. The number used as a VAT number is the company/sole trader’s fiscal number. |
| VAT return periods | – Monthly when turnover in preceding VAT year exceeds €650,000 or
– Quarterly when turnover in preceding VAT year is lower than €650,000. 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. |
| Thresholds registration | For a business registered entity on an individual or company format, to carry out Business transactions in Portugal, it is required to register for VAT. If the turnover exceeds €10,000 it is also required to account for Portuguese VAT. Businesses which are not established in the European Union, must appoint a VAT representative with joint and several liability for the delivery of VAT obligations.
If a business is not registered for VAT in Portugal, but sells and delivers goods from another Member State to customers (distance sales B2C), where the value of those sales exceeds a threshold of €35,000 it is required to register and account for VAT in Portugal. |
| Recovery of VAT by non-established businesses | Yes |
