How much is VAT tax in Portugal?

a standard rate of 23% in mainland Portugal, 18% in the Autonomous Region of the Azores and 22% in the Autonomous Region of Madeira for all remaining goods and services.

What is the VAT tax rate in Portugal?

The standard VAT rate in Portugal is 23%; with a reduced rate of 6% and intermediate rate of 13%. There are also different VAT rates applicable in the Portuguese Islands (Azores and Madeira). In Azores the standard VAT rate in Portugal is 18%, with reduced rate of 5% and intermediate rate of 10%.

How is VAT calculated in Portugal?


  1. Solution : GST % = 23. Amount = 25000.
  2. Step 1 : GST Price = (25000 * 23 ) / 100. = 5750 €
  3. Step 2 : Net Price = 25000 + 5750. = 30750 € Hence the VAT Price is 5750 € and Net Price is 30750 €

How much tax do you pay in Portugal?

Income tax rates in Portugal

Annual taxable income Portugal income tax rate
up to €7,112 14.5%
€7,113–€10,732 23%
€10,733–€20,322 28.5%
€20,323–€25,075 35%

Do I have to pay VAT in Portugal?

Value Added Tax (VAT) is a tax levied on sales or supplies of services in Portugal. VAT is paid by consumers when paying for goods or services supplied. The seller or service provider receives the VAT and then pays it to the Tax and Customs Authority (AT).

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What is VAT called in Portugal?

Value Added Tax in Portuguese is called Imposto sobre o Valor Acrescentado and abbreviation is IVA. Check this Portuguese VAT calculator.

Is Iva and VAT the same?

The IVA or VAT can be thought of as a single, standardized tax rate that is applied nearly equally across the country and at each point along the supply chain. If a good is sold in Mexico, the VAT tax is baked into the sale price.

Do I have to pay VAT as a company?

In the UK VAT, or Value Added Tax, is a business tax levied by the government on sales of goods and services. All businesses which have an annual turnover of more than the current VAT threshold (£85,000 in 20/21) must register for VAT and complete a VAT return.

What is VAT paid on?

The standard rate of VAT in the UK is currently 20% and this is the rate charged on most purchases. However, there are other VAT rates which you need to be aware of as a business. Reduced rate VAT is charged on sanitary products, energy saving measures and children’s car seats and is charged at 5%.

How is VAT calculated?

Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it by 117.5, if the VAT rate is 17.5 per cent. (If the rate is different, add 100 to the VAT percentage rate and divide by that number.)

Is food VAT exempt?

Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

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Is healthcare free in Portugal?

State healthcare in Portugal is not completely free. Healthcare costs are covered by the state, and patients pay standard user fees, known as ‘taxas moderadoras’.

What are the tax advantages of moving to Portugal?

Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.

Are taxes high in Portugal?

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2021.

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