Business
Portugal — Business: Accounting and VAT Compliance
Mainland Portugal applies three VAT (IVA) rates: a reduced 6%, an intermediate 13% and a standard 23%. The autonomous regions have lower rates, and the official sources differ on the Azores rates: gov.pt gives 4%, 9% and 16%, while the ACM page gives 5%, 10% and 18%; both give Madeira as 5%, 12% and 22%. Check the Autoridade Tributária for the rate that applies to your supply and your region. Rules on bookkeeping and reporting frequency are set by the tax authority, not covered here.
VerifiedGovernment / official sourcegov.pt — Value Added Tax (IVA) in PortugalLast reviewed: 2026-10-23
Key facts
- Mainland Portugal's VAT rates are 6% (reduced), 13% (intermediate) and 23% (standard).
- Madeira's rates are 5%, 12% and 22%.
- The Azores rates are given as 4%, 9% and 16% by gov.pt and 5%, 10% and 18% by ACM; check the Autoridade Tributária.
- Bookkeeping and reporting frequency rules are not covered here.
Costs
- Standard VAT, mainland Portugal: 23%
Common mistakes
- Using the mainland rate for Madeira or the Azores — the regions have their own lower rates.