Indirect tax ebook - Portugal

Registration

Thresholds
There is no threshold in Portugal so a person/entity that makes a taxable supply has to file a tax return. You have to register for VAT prior to commencing business or professional activities in Portugal.

Penalties arise for late registration.

Distance selling
A supplier in another member state can supply goods to non-VAT registered persons in Portugal without registering for Portuguese VAT. However, if the value of the supplies exceeds €35,000 in a calendar year they will be required to register for Portuguese VAT. 

Electronic services
Non-EU businesses supplying electronic services to consumers in Portugal could register if they are not registered in another EU member state. They have to file periodical VAT returns within 20 days of the period end of a quarter year. Before starting the business you have to notify your choice to the VAT Service and any change on it.

Group registration
The concept of VAT group has not been implemented in the Portuguese VAT law. Transactions between group members are subject to VAT.

• Introduction
• Scope
• Registration
• Tax rates
• Reporting & filing
• General tax application/Time of supply
• Other local requirements