Indirect tax ebook - Portugal

Sales Tax Rates

• Standard rate of 20% (14% in the Autonomous Regions of the Madeira and Azores Islands) - all goods and services rated unless specifically defined.
• Intermediate rate of 12% (8% in the Autonomous Regions of the Madeira and Azores Islands) - applies to a specific list which includes for example restaurant services, preserved produce, meat, cooking oil, coffee, ornamental flowers and plants, soft drinks, etc. 
• Reduced rate of 5% (4% in the Autonomous Regions of the Madeira and Azores Islands) – applies to agriculture or farm produce, newspapers and magazines, medication, products for agricultural use, passenger transport, hotel accommodation and certain entertainment forms, electricity, primary fuel, public works contracts, etc. 
• Exempt supplies – an extensive list including the following broad categories: insurance and financial activities, renting and sale of real estate, medical and veterinary services, education, health and welfare, etc. 
• Option to waive tax exemption in certain categories: renting and sale of real estate, education, health and welfare. Some conditions needs to be met for some categories.
  

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