Selling to Portugal 2026 — VAT Rates, Rules & Compliance

This guide covers the Portugal-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Portuguese customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Portugal (IVA)

In Portugal, VAT is known as IVA (Imposto sobre o Valor Acrescentado). Portugal has three distinct VAT rate zones corresponding to the mainland and two autonomous regions (Madeira and the Azores). When you sell to a Portuguese consumer under the IOSS scheme, you must apply the rate for the correct zone based on the delivery postcode.

Mainland Portugal

Rate	Category
23% (Standard)	Electronics, clothing, cosmetics, most digital services, most physical goods
13% (Intermediate)	Wines and spirits, some food products (canned goods, preserved foods), petroleum for agricultural use, some medical devices
6% (Reduced)	Basic food items (fresh meat, fish, vegetables, fruit, dairy), pharmaceutical products, books and e-books, newspapers, passenger transport

Madeira Autonomous Region (Ilha da Madeira)

Madeira has reduced VAT rates relative to mainland Portugal. Parcels delivered to Madeira postcodes (9000–9399 range) should use Madeira rates:

• Standard: 22%
• Intermediate: 12%
• Reduced: 5%

Azores Autonomous Region (Região Autónoma dos Açores)

The Azores have the lowest VAT rates in Portugal. Parcels delivered to Azores postcodes (9400–9980 range) should use Azores rates:

• Standard: 18%
• Intermediate: 9%
• Reduced: 4%

Practical implication: If you sell consumer goods to customers across Portugal, your checkout logic must apply different VAT rates based on the delivery postcode. Most IOSS-enabled platforms support postcode-level rate overrides, but you must configure the regional thresholds correctly. Delivering mainland Portugal rates to an Azores address means you are overcollecting VAT, which creates refund liabilities.

Currency: Euro (EUR)

Portugal uses the Euro and has done so since 1 January 2002. All invoices and VAT amounts are denominated in EUR.

Selling to Portuguese Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Portuguese consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a Portuguese consumer, you must comply with Portuguese IVA rules.

IOSS vs non-IOSS in Portugal

If you sell physical goods under €150 to Portuguese consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by Portuguese customs (Autoridade Tributária e Aduaneira — AT)
2. CTT (Correios de Portugal) contacts the customer to collect outstanding IVA
3. The hidden cost: CTT charges a customs handling fee — typically €5–€10 per parcel. Private couriers (DPD, DHL, GLS) charge comparable amounts.
4. Portuguese consumers are experienced with both domestic and cross-border e-commerce. Unexpected fees cause high return rates.

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

Madeira and Azores shipping considerations

Parcels to Madeira and the Azores are air-freighted by all carriers (no road connections). Transit times to these islands are typically 3–7 working days longer than mainland Portugal delivery. Some carriers apply a surcharge for island delivery — verify your carrier’s price list.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure shipping labels include accurate HS codes and product descriptions.

Selling to Portuguese Businesses (B2B)

For sales to a VAT-registered Portuguese business, the standard EU B2B rules apply.

1. Validate the NIF/IVA number. Portuguese VAT numbers start with ‘PT’ followed by 9 digits (e.g., PT123456789). Always validate on VIES before zero-rating the invoice.
2. Reverse charge. Do not charge VAT. The Portuguese business accounts for IVA on their own Portuguese return.
3. Invoice statement. Your invoice must clearly state “Reverse Charge” or in Portuguese: “Autoliquidação” (self-assessment, the Portuguese term for reverse charge).

Key Compliance Requirements for Portugal

Invoice retention — 10 years

Portuguese tax law requires retention of all VAT invoices and accounting documents for 10 years from the end of the relevant year.

Invoice requirements

Portuguese invoices must include your VAT number, the customer’s address (including postcode), a unique sequential invoice number, the IVA rate applied per line item, and the supply date. Invoices must be issued on the day of supply or within the same calendar month.

ATCUD — Invoice Unique Code

Portugal requires all invoices to include an ATCUD (Código Único do Documento) — a unique document code combining a software validation series code and a sequential document number. This requirement applies to Portuguese-registered businesses. As a non-Portuguese seller without Portuguese VAT registration, ATCUD does not apply to your invoices. However, if you establish a Portuguese VAT registration (unusual for pure IOSS sellers), ATCUD compliance becomes mandatory.

SAF-T Reporting

Portugal requires all VAT-registered Portuguese entities to submit SAF-T (Standard Audit File for Tax) data to the tax authority. This applies to Portuguese-registered businesses, not to non-EU sellers using IOSS only.

Postcode precision for regional VAT

Ensure your checkout collects the full Portuguese postcode (formato NNNN-NNN) and correctly identifies Madeira (9000–9399) and Azores (9400–9980) postcodes to apply the correct regional IVA rate.

Shipping to Portugal: Documentation

• Electronic customs data: ensure your carrier transmits customs data electronically to AT customs.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes.
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted — manual notation is not sufficient.
• Regional rates: configure your checkout for mainland, Madeira, and Azores VAT rates.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Portugal-specific rules above apply to any international seller.

• United Kingdom — Post-Brexit, GB sellers shipping to Portugal face standard non-EU customs requirements. Portugal’s large British expat community creates demand for UK brands.
• United States — guide coming soon
• Australia — guide coming soon