Donations raised within the scope of a public petition are not subject to VAT, provided there is no associated consideration and they do not fall under an economic activity of the beneficiary. This position is stated in a binding information issued by the Tax and Customs Authority (AT) on March 31, 2026, and published on the Finance portal this Monday.
Donations for public petitions are exempt from VAT when there is no consideration
Monday, 6 April 2026RSS
Context & Explainers
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
