EU VAT REGISTRATION
VAT in the PORTUGAL
EU VAT registration in Portugal
As part of Portugal’s accession to the European Union, value added tax was introduced in 1986. It is called Imposto sobre o valor acrescentado (IVA). There was a transition period and the full system entered into force in 1989. As with all other Member States, Portugal is committed to complying with EU rules on VAT registration, compliance, returns, Intrastat and EC sales lists. Portuguese VAT legislation is included in the VAT Code. It is supervised by the VAT Service Department, part of the Directorate General for Taxation in the Ministry of Finance. Foreign companies importing or trading goods or services in Portugal may be required to register as a trader who is not resident in Portugal. It would then also be required to follow local compliance, reporting and payment processes.
VAT registration in Portugal for companies:
Foreign companies can register for VAT in Portugal without having to set up a local company, i.e. you can register as a non-resident. In Portugal, there is no VAT threshold for the registration of foreign entrepreneurs. However, the application for a VAT number must be submitted to the appropriate department. This also applies to situations where foreign companies make intra-Community supplies of goods. If you know that you need to register VAT in Portugal, do not hesitate and contact us and we will help you.
When is VAT registration in Portugal required?
⇒ sending goods between and to another EU member state (intra-Community supplies)
⇒ organization of live events (conferences related to art or education) in Portugal;
⇒ own delivery of goods.
⇒ if the company is not a VAT payer but uses services in Portugal on a reverse charge basis.
How can I register VAT in Portugal?
The application for VAT registration must be completed via the website of the public administration in Portugal (Eportugal gov). Foreign taxpayers who do not have their permanent residence or permanent establishment in Portugal receive a Portuguese VAT number only if they apply for it separately and if they supply goods or services to Portugal. The VAT application form must contain the reasons and a detailed description of the transactions liable to tax in Portugal.
What documents do we need for VAT registration?
In order to register a foreign company for VAT purposes in Portugal, we need the necessary documents to do this. These are usually such documents as:
⇒ VAT registration questionnaire;
⇒ a copy of an extract from the commercial register;
If you need help with the registration, please do not hesitate and contact us.
Do you have any questions about VAT registration in Portugal?
Do you have any questions about the Portugese VAT registration for your company? Not sure if your company must be registered for VAT in Portugal? If so, contact us via our contact form.
|Local VAT no.||PT + 9 characters|
|Mail order threshold||35 000 € netto yearly|
|Submission of VAT returns|
|Waiting time for registrations||Up to 2 months|
|Standard VAT rate||23%|
|Reduced VAT rate||13% 6%|
|European Union Member State||yes, since 1986|