VAT: Subjection and Rates
View this page in: PortugueseVAT is due on sales of goods and on rendering of services.
VAT applies at each stage of the economic circuit, from production to final consumer. In this circuit, each company delivers to the State the difference between the VAT on the inputs and the VAT of its outputs.
| Main Land | Azores and Madeira | |
| Normal rate | ||
| Generality of goods and services | 20% | 14% |
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Reduced rate |
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Includes food and other essential goods – eg. cereals, medication, diapers, dairy products, bread, fresh fruit, vegetables, meat, fish, books, participation in sports and practice of physical and sporting activities. Supply of services related to street cleaning, and the collection, storage, transport, recovery and disposal of waste. Natural gas, electricity, water and hotel accommodation. Construction contract work, reconstruction, improvement or maintenance of buildings performed in the scope of special regimes of tax or financial support, the rehabilitation of buildings under programmes supported financially by the Office of Housing and Rehabilitation Urban, IP
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5% | 4% |
| Intermediate Rate | ||
| Includes coloured and marked diesel, restaurants and some foods, such as canned beef, coffee, dry fruits, cooking oils, wines. Products preparations of meat, fish, vegetables, stuffed pasta, pizzas, sandwiches and soups even if presented in the state to freeze or pre-freezing, cut flowers; machinery linked to the capture and use of alternative energy sources or for prospecting and search for oil and natural gas; machines related to agriculture, services, food and beverages. | 12% | 8% |
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Last Updated :
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/09/10
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