Latest news and stories about vat in Portugal for expats and residents.
Available evidence suggests that the most effective social protection policies in the food sector are those that increase food supply or directly support the most vulnerable groups.
Fuel prices are rising, putting pressure on the entire supply chain. Members of Parliament Rui Afonso (Chega), Miguel Costa Matos (PS) and Inês Sousa Real (PAN) advocate for the return of 0% VAT.
The introduction of the Value Added Tax, commonly known as VAT, was an essential condition for integration into the common market, implying the replacement of the existing transaction tax with a general consumption tax harmonised according to the European model. Directive 77/388/EEC (Sixth VAT Directive) was transposed into Portuguese law through Decree-Law...
Chega plans to propose the reinstatement of zero VAT on essential goods, a measure they aim to limit until the end of the year. Additionally, the party is advocating for further government action to reduce fuel taxes.
On 1 January 2026, VAT celebrated 40 years of application in Portugal. When I began studying taxation, sometime in 1993, VAT was the most fascinating to me (if taxes can be fascinating...) because of its novelty, simplicity and the technique of its application. I was also fortunate to have as a professor, ...
The only texts approved were two draft resolutions — non‑binding — from PSD and PAN.
From 1 January 2026 the amendment to the VAT periodicity regime shifts the onus from the Tax and Customs Authority to the taxpayer: rather than receiving an official reclassification, taxpayers must now submit a formal declaration to request a change of periodicity. The declaration should identify the taxpayer (tax identification number and contact details), state the current and requested VAT periodicity classification, give the intended effective date and the legal or factual reasons for the change (for example a change in turnover, accounting regime or business structure), and attach any supporting documents required by the Authority.
In practice the declaration is normally submitted electronically via the Authority’s online portal and must be signed with the appropriate digital signature or authentication method. Before filing, reconcile turnover figures and previous VAT returns so the requested periodicity is consistent with statutory thresholds; indicate whether the change is temporary or permanent; and keep a copy of the submission receipt. Late, incomplete or absent declarations can lead to the Authority maintaining the previous classification, administrative penalties or cash‑flow disruption from an unexpected reporting frequency. For most taxpayers — and especially for expats or businesses undergoing structural change — it is advisable to consult an accountant or tax adviser to check eligibility, prepare supporting evidence and confirm the correct form fields and deadlines on the Authority’s website.
Home Property Building Portugal at 6 (%) VAT rate – The Three King’s Gift? Building Portugal at 6 (%) VAT rate – The Three King’s Gift? Embracing the Christmas season’s spirit of giving, the Portuguese Government submitted, on 2nd December the, Proposal No.
Pro.Var and AHRESP are calling for “urgent support measures” for the restaurant sector. The package of proposals includes VAT measures and various incentives.
EContas outlines the key tax and reporting obligations due in January so businesses and households stay compliant with the Tax and Customs Authority (AT) and Social Security (SS). Important January items include the Day 9 electronic communications for IRS (personal income tax), IRC (corporation tax) and VAT, SAF‑T invoicing requirements, VAT returns and payments, and related Social Security filings — all with strict deadlines and penalties for late or incorrect submissions. Use the EContas checklist to prioritise filings, confirm filing channels (electronic transmission), and avoid sanctions.
Home News Which products will have a VAT reduction? Which products will have a VAT reduction? With the entry into force of the State Budget for 2026 (OE2026), a reduced VAT will be applied, lowering to 6%, in some cases.
The reduction of VAT to 6% in construction and the decrease of income tax from 25% to 10% on rents are “positive measures that will make a huge difference” in the housing sector, believes the Aprop leader.
