VAT Guide for Businesses with Customers in Portugal

This is a guide for businesses with customers in Portugal regarding VAT regulations.
There are different VAT rates for mainland Portugal, the Madeira archipelago, and the Azores.
The standard rate is 23% in mainland Portugal, 22% in Madeira, and 16% in the Azores. There are also intermediate and reduced rates for certain goods and services.
Some services are exempt from VAT.
The VAT registration threshold for domestic established sellers is EUR 13,500 (net), with no threshold for non-established sellers.
The VAT number format for individuals and businesses is nine digits. Portugal applies the harmonized EU VAT rules for electronically supplied services (ESS).
For B2C supplies of ESS, until the sales value reaches EUR 10,000, the seller can charge VAT where it is resident.
Once the sales exceed the threshold, the seller should register for VAT in Portugal or account for the VAT under the EU’s One Stop Shop (OSS) regime.
There are examples of taxable ESS in Portugal, including website supply, software supply, and distance teaching.

Source Fonoa

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