- Portugal continues to rank among the EU’s highest VAT jurisdictions, maintaining a 23% standard rate (with 22% in Madeira and 16% in the Azores). Per the European Commission’s 2026 Annual Tax Report, VAT generated 18.1% of Portugal’s total tax receipts—matching the EU average. [theportugalnews.com], [vatupdate.com]
- Portugal shares its 23% rate with Ireland, Poland, and Slovakia. Higher rates apply in Hungary (27%, the EU’s highest), Finland (25.5%), and Denmark, Croatia, and Sweden (25% each). Across the bloc, VAT reached 7.1% of GDP in 2024—the fourth-highest share since records began in 1995. [theportugalnews.com], [taxfoundation.org]
- The Commission noted VAT remains a principal source of public revenue despite a slight dip (from 18.3% to 18.1% of total EU tax revenue year-on-year). Longer term, consumption taxes fell to 26.8% of EU tax revenue in 2024, down from 28.3% a decade earlier. [theportugalnews.com]
Sources: The Portugal News · Tax Foundation
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