Currency Converter
Town Square
Praça Dom Pedro IV at night
Value Added Tax (VAT)
Understand more about the VAT rates in Portugal…
Value added tax (Imposto sobre o Valor Acrescentado - IVA) is paid at the time of purchase of a product or service. It is paid by everyone and there is no distinction between residents and non-residents. There are three levels of VAT for mainland Portugal, Madeira and Azores.
VAT rates
There are different rates of VAT due for different goods and services. These rates are:
- IVA geral (general): Charged on prepared food, non-essential products and services. Also on solar/alternative energy equipment, agriculture machines, electricity and natural gas, fire prevention and fire fighting equipment, lawyers, solicitors and legal representatives at a rate of 23 percent; in Madeira the rate is 22 percent, in Azores 16 percent.
- IVA intermedio (intermediate): Charged on bottled spring and mineral water. Theatre, cinema and tickets for entertainment. Fuel and oils used for heating, fishing, agricultural machines. Household services by a third party (electricians, plumbers, housekeepers, etc. ) at a rate of 13 percent; in Madeira the intermediate VAT rate is 12 percent, in Azores 9 percent. For a list of items subject to intermediate VAT: Click here (in Portuguese)
- IVA reduzido (reduced): Charged on non-processed food (fresh meats, fresh fish, bird eggs, etc.) and non-processed packaged foods, lodgings and at 6 percent; in Madeira at 5 percent and Azores at 4 percent. For a list of items subject to reduced VAT: Click here (in Portuguese)
Do you have a suggestion to improve this page? click here...
Looking for an international business opportunity? Why not run an AngloINFO site?
AngloINFO is growing fast and is looking for the right people to take on regional AngloINFO franchises around the world - click here to find out more!
AngloINFO Franchising: Be your own boss - where you want to be!
