VAT in Portugal

The Value Added Tax (VAT) in Portugal is known as Imposto sobre o valor acrescentado (IVA) in their local language.

What are the VAT rates in Portugal?

The Portuguese VAT rates are the following:

• Standard rate: 23%
• Reduced rates: 6% and 13%

Portugal has opted for the reduced VAT rates on a number of items allowed by the VAT Directive.

VAT Rates by goods and services in Portugal

The standard VAT rate is 23%. The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.

The first reduced VAT rate is 13%. This reduced rate applies to certain food products and wine, certain types of fossil fuels, as well as musical instruments, among others.

In addition, there is a reduced VAT rate of 6%. This reduced rate applies to basic food products, certain books, and newspapers, some pharmaceutical products, medical equipment, passenger transport, and hotel accommodation, among others.

Supplies and services at 0% are the standard supplies, such as exports or intra-Community supplies.

Finally, some supplies are VAT exempt, such as health services, public education, and financial services, among others.

To confirm the VAT rate applicable to your product or service in Portugal, we recommend that you contact us. 

• Foodstuff
  6% and 13%
• Water supplies
  13%
• Pharmaceutical products
  6%
• Medical equipment for disabled persons
  6%
• Children´s car seats
  23%
• Passenger transport
  6%
• Books
  6%
• Books on other physical means of support
  6%
• Newspapers
  6%
• Periodicals
  6%
• Admission to cultural services (theatre, etc)
  23%
• Admission to amusement parks
  23%
• Pay TV / cable
  23%
• TV licenses
  23%
• Writers / composers
  23%
• Hotel Accommodation
  6%   
• Restaurant and catering services
  13%   
• Restaurants
  13%   
• Medical and dental care
  Exempt and 6%
• Repair of shoes and leather goods
  23%
• Repair of clothing and household linen
  23%
• Hairdressing
  23%