Taxes
Portugal — Tax: VAT (IVA)
Value Added Tax (Imposto sobre o Valor Acrescentado - IVA) is charged at a standard rate of 23% in mainland Portugal. The autonomous regions of Madeira and the Azores maintain separate, lower regional VAT scales. VAT-registered businesses must comply with electronic invoicing and reporting obligations through the tax authority's e-fatura system.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — PortugalLast reviewed: 2026-10-18
Key facts
- The standard VAT (IVA) rate in mainland Portugal is 23%.
- The autonomous regions of Madeira and the Azores apply separate, lower regional VAT rates.
- Businesses must register invoices electronically through the 'e-fatura' portal.
- Reduced VAT rates apply to specific categories of goods and services (e.g. food, transport).