Who is required to register VAT?
- import goods to Portugal from outside the EU,
- buy or sell goods in Portugal,
- buy goods in Portugal from other EU member states,
- store goods in Portugal with the purpose of further resale,
- sell goods online directly to Portuguese customers (registration is required when the annual sales value exceeds EUR 35,000).
A company may opt for:
- monthly declarations – to be submitted by the 10th day of the second month following the closing of the reporting period, or
- quarterly declarations – to be submitted by the 15th day of the second month following the closing of the reporting period (in this case, a given quarter)
Additionally, obligatory annual declarations are to be submitted by the 15th of July of the following year.
Foreign entities conducting business activity in Portugal must also abide by the local regulations concerning, among others, invoicing and archiving of accounts and registries for 10 years.
Distance selling threshold: EUR 35,000
Currently, VAT rates in Portugal are::
- 23% – base rate (Azores – 18%, Madeira – 22%)
- 13% – (Azores – 9%, Madeira – 12%)
- 6% – reduced rate (Azores – 4%, Madeira – 5%)
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting