Portugal VAT Calculator

The three rates, and what each covers

Portugal has three VAT rates, different by region: on the mainland, 23% (standard), 13% (intermediate) and 6% (reduced). In the Açores, 16%, 9% and 4%. In Madeira, 22%, 12% and 4%. The reduced rate covers essential goods -- basic groceries, medicine, hotel accommodation. The intermediate rate covers a narrower, specific list. The standard rate applies to everything not on the other two lists.

The small-taxpayer exemption

Anyone self-employed on recibos verdes billing up to €15,000 a year can choose not to charge VAT on their invoices, under Article 53 of the VAT Code -- but in exchange, they also don't deduct VAT on their own purchases and expenses. Going over €18,750 (€15,000 plus a 25% tolerance margin) partway through the year forces an immediate exit from the exemption regime; going over just €15,000 without reaching €18,750 keeps the exemption until the end of the current year, switching to the standard regime the following January.

How quarterly VAT works

For those charging VAT under the standard regime, the periodic return is filed quarterly (by the 20th of the 2nd month after the quarter ends), unless turnover requires the monthly regime. This doesn't apply to those exempt under Article 53 -- those entities don't file periodic VAT returns at all.

What this calculator doesn't do

It doesn't determine which rate applies to a specific good or service -- that depends on the VAT Code's Lists I and II, which this calculator doesn't reproduce. It also doesn't model the Article 53 exemption regime in detail, only the direct calculation of adding or extracting VAT from a rate you already know.