PortugalManual

VAT Returns in Portugal

Frequency of VAT returns in Portugal

The frequency of filing of the periodic VAT returns depends on the annual turnover of the previous year in Portugal.

Monthly VAT returns are due when the taxpayer reached or exceed the turnover threshold of EUR 650,000 in the previous calendar year. If the annual turnover in the previous calendar year is below EUR 650,000, then the VAT returns are due on a quarterly basis.

Additionally, businesses VAT registered in Portugal must submit an annual VAT return, a recapitulative statement.

The following reporting periods apply under the normal regime:

  • Monthly 
    Turnover of EUR 650,000 or more in the previous calendar year
  • Quarterly 
    Turnover of less EUR 650,000 or more in the previous calendar year

Due date of Portuguese VAT returns

Deadlines are different for VAT return submissions and VAT payments linked to these returns.

  • Monthly 
    VATR submission: the 20th day of the second following month.

    VAT payment: the 25th day of the second following month.

  • Quarterly 
    VATR submission: the 20th day of the second following month.

    VAT payment: the 25th day of the second following month.

  • Annual
    15th July of the following year.

More information about due dates for making VAT payments and submitting the periodic VAT returns is available in the tax calendar published at the website of the tax authorities.

Deadlines and frequency of filing are regulated in Article 41 CIVA.

VAT payments in Portugal

Non-established companies will often make payments from an overseas bank account. The following details are used for paying taxes from abroad when you choose the method of paying via bank transfer:

  • Name of the recipient: Autoridade Tributária e Aduaneira
  • IBAN code: PT50 0781 0019 00000008369 27
  • SWIFT code: IGCPPTPL
  • Name of the bank: Agência de Gestão da Tesouraria e da Dívida Pública – IGCP, E.P.E
  • Reference: Each reference corresponds to a specific number for payment, which is set out in the document generated after the submission of the VAT return.

Have a look here at the information leaflet of the PTA about how to pay taxes from abroad in Portugal. Also, here you will find more information about VAT payments.

VAT refunds in Portugal

In principle, the excess of input VAT is carried forward to the next reporting period. This is, when a taxable person declares more VAT deductible – eg., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be carried forward to the following period to compensate with future output VAT.

However, you can apply for a VAT refund of the VAT credit reported in your VAT return in the following scenarios:

  • The VAT refund amount exceeds EUR 3,000;
  • After 12 months, the VAT credit exceeds EUR 250;
  • In case the business will cease activities and the value of the refund is higher than EUR 25.

When the amount of VAT credit exceeds EUR 30,000, the tax authorities may require the taxpayer to setup a bank guarantee for a period of six months.

This is regulated in article 22 CIVA.

Nil and corrective VAT returns in Portugal

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period.

Errors or omissions in a VAT return (periodic or annual) must be corrected. You will need to submit a substitutive VAT return, i.e., a VAT return including all the amounts corresponding to the transactions performed during the period, not only those related to the amendment. When preparing the corrective VAT return, you will need to indicate that the return is “out of date”, as well as the reporting period to which the correction refers to.

Also, when the mistake that you are correcting is due to the overpayment of VAT, the correction is optional and must be made within a period of two years.

Have a look at Article 78 CIVA.

Additionally, you will find more information about corrective VAT returns under the following link. The corresponding question about VAT corrections includes the following feedback: “Deverá submeter uma nova declaração do IVA para o período pretendido, através do endereço www.portaldasfinancas.gov.pt, preenchendo todos os campos em que tenha havido movimento no período (e não só os que pretende corrigir)”.

VAT penalties in Portugal

  • Cause 
    Penalty
  • Late filing
    The penalty ranges from EUR 300 to EUR 3,750. This applies both to the late filing of the periodic and the annual VAT returns. If the non-compliance was intentional, the penalties are higher.
  • Late payment 
    The penalty can be between 30% to 100% of the VAT due, with a maximum of EUR 45,000. If the late VAT payment was intentional, the penalties are higher.
  • Late registration
    When registering a company backdate, taxpayer will need to pay a small penalty which usually is around EUR 150.

The above penalties are regulated in Article 114 and 116 RGIT (REGIME GERAL DAS INFRAÇÕES TRIBUTÁRIAS).

Portuguese Tax Authorities Contact

Autoridade Tributária e Aduaneira (AT)

Useful links:

Intrastat Contact

Customs Contact

Direção de Serviços de Regulação Aduaneira (DSRA)

Rua da Alfândega, n.º 5 r/c

1149-006 Lisboa

Telefone 217 206 707 (Opção 2 – 1 – 1)

Horário: das 09h00 às 13h00 e das 14h00 às 17h00

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