The VAT in Portugal (IVA)
is imposed on all goods and services and it is paid by everyone, including non-residents. There are different VAT rates
for certain categories of products and services which need to be considered once you open a company in Portugal
. We remind that any information related to company incorporation can be offered by our company formation agents in Portugal
The reduced VAT rates in Portugal
The fresh food category (fish, meat, eggs) in which the processed category of products do not enter are levied at a 6% VAT rate in Portugal, with the difference that the same tax is set at 5% in Madeira and 4% in the Azores. The packaged foods, the hotel accommodation, the restaurant services, the collection of domestic waste, particular health services, and newspapers are also subject to the taxes mentioned above.
The intermediate VAT rates in Portugal
The household services, the entertainment tickets, the fuel for home heating purposes, the agricultural machinery and the fishing products among many others are taxed
at a 13% rate in Portugal
. The VAT
for the same goods and services in Madeira is set at 12% and at 9% rate in the Autonomous Region of Azores. The Tax and Customs Authority in Portugal is in charge with the VAT
on goods and services in the country.
The general VAT in Portugal
One of the most important VAT rates is the one imposed on gas, electricity, alternative energy, non-essential goods and prepared food and it is settled at a 23% rate in Portugal. The legal services are also levied with the same tax rate, but with the mention that in Madeira the VAT for the goods and services mentioned above is set at 22%, respectively 16% in the Azores.
If you want to register a company in Portugal
, it is recommended to solicit guidance and comprehensive information in this matter. Our company formation specialists in Portugal
are ready to provide you with the necessary guidance.
Who needs to register for VAT in Portugal?
Businessmen who are interested in opening a company in Portugal
should consider the VAT registration process
, in order to legally perform the activities. It is good to know that firms which deal with importing and selling of products, supply, and install, events planning or owning storage houses are entitled to pay the VAT in Portugal
In general, the VAT registration is done within 14 days, but considering the particularity of your goods or services you want to enter the Portuguese market, the procedures may vary and prolong. As for the company formation procedure in Portugal, it is good to know that our advisors can help with complete guidance.
If you want to know more details about the VAT in Portugal
, we invite you to contact
our team of company incorporation agents in Portugal