VAT rates in Portugal (2026)
Current VAT rates, registration thresholds, and e-invoicing requirements for Portugal.
Standard rate
23%
Reduced rates
Registration threshold
β¬14,500
E-invoicing
Last updated: January 1, 2026
VAT rates in neighboring countries
| Standard rate | Reduced rates | E-invoicing | |
|---|---|---|---|
| Spain | 21% | 10% | Planned |
Frequently asked questions about VAT in Portugal
When was the VAT rate last changed in Portugal?
VAT rates in Portugal are reviewed regularly by the national government. The current standard rate of 23% has been in effect since the last official update. Check the European Commission VAT database for historical rate changes.
Do I need to register for VAT in Portugal?
If you exceed the VAT registration threshold in Portugal, you must register for VAT. For cross-border B2B services, you may need to register depending on the type of supply and whether the reverse charge mechanism applies.
What about reverse charge for cross-border sales to Portugal?
If you sell services to a VAT-registered business in Portugal, you typically apply the reverse charge mechanism. The buyer accounts for VAT instead of you. This applies to most B2B services within the EU.
Billstride applies the correct VAT rate automatically
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