Portugal VAT / Sales Tax
Detailed vat / sales tax rates and rules for Portugal in 2026.
Portugal's value-added tax (IVA - Imposto sobre o Valor Acrescentado) applies at a standard rate of 23% on most goods and services. An intermediate rate of 13% applies to certain food and beverage products, agricultural inputs, and restaurant and catering services. A reduced rate of 6% applies to essential goods and services including basic foodstuffs, pharmaceutical products, books, newspapers, passenger transport, hotel accommodation, and certain cultural events. The Autonomous Regions of Madeira and Azores benefit from lower IVA rates: Madeira applies rates of 22%, 12%, and 5%, while the Azores applies 16%, 9%, and 4% respectively.
Standard Rate
23%
Registration Threshold
€14,500 annual turnover (businesses below this threshold may opt for the simplified VAT exemption regime)
Reduced Rates
How Portugal VAT / Sales Tax compares
Portugal’s standard VAT / sales tax rate of 23% is the 10th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.
