Quick Answer: Do you charge VAT to Portugal?

Value-Added Tax is the consumption tax throughout the European Union, levied on almost everything sold in the EU. … So if you sell digital products to a customer in Portugal, you must charge the VAT rate.

Does UK charge VAT to Portugal?

Now Brexit is in place, UK travellers can reclaim any VAT they pay on retail purchases in Portugal | Portuguese Chamber of Commerce in the UK. UK residents from England, Scotland and Wales can now claim a VAT refund on retail purchases (over €50+VAT)they make in Portugal, effective from 1st January 2021.

Do I have to pay VAT in Portugal?

Portuguese VAT rates

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%.

Do I charge VAT to European customers?

At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.

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Is VAT charged on services outside the UK?

If the place of supply of your services is outside the UK you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply.

How do I get my VAT refund in Portugal?

When Purchasing an Item in Portugal

If your purchase is eligible for a VAT refund, let the retailer know that you want to benefit from the VAT refund scheme. They will ask you for your passport, so have it with you, and they will give you a normal receipt together with a special tax-free form with a registration code.

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 €

Do I have to charge VAT on goods to overseas customers?

VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK. Northern Ireland to a destination outside the UK and EU .

Do you charge VAT on services?

VAT is short for ‘Value Added Tax’, and is charged on most sales of goods and services in the UK. When your business makes sales, you don’t charge VAT to your customers unless you’re registered with HMRC to do so.

Do you pay VAT on foreign invoices?

If you import goods into Great Britain from outside the UK or from outside the EU to Northern Ireland you may have to pay import VAT on goods. For supplies of services from outside the UK you must account for VAT under the reverse charge procedure.

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