What are the VAT rates in Portugal?

What are the VAT rates in Portugal? 

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VAT is a general consumption tax levied on transfers of goods, provision of services, intra-community acquisitions and imports. Find out about the three VAT rates in Portugal, applied depending on the geographic location and the type of product sold or service provided.

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VAT rates

In Portugal, VAT rates are stipulated by the Government and, at the moment, are mentioned below.

Portugal Continental - 23% standard VAT rate, 13% intermediate VAT rate and 6% reduced VAT rate;

Autonomous Region of Madeira - 22% standard VAT rate, 12% intermediate VAT rate and 5% reduced VAT rate;

Azores Archipelago - 16% standard VAT rate, 9% intermediate VAT rate and 4% reduced VAT rate.

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VAT (Reduced Rate)

The reduced rate - 6% on the mainland, 5% on Madeira and 4% on the Azores - applies to the following products and services.

Essential goods (such as bread, milk and derivatives, meat and vegetables);

Periodical publications (newspapers, magazines);

Pharmaceutical products (medicines, orthopedic devices);

Accommodation in hotels;

Passenger transport.

VAT (Intermediate Rate)

The following products and services are taxed at an intermediate rate - 13% on the mainland, 12% on Madeira and 9% on the Azores:

Ready meals;

Preserve;

Wine and other food products;

Tickets to music, theater, dance, singing, cinema and circus shows;

Collection and use of solar, wind and geothermal energy.

VAT (Normal Rate)

The remaining products and services not covered by the reduced and intermediate rates. Instead, they are taxed at the normal VAT rate: 23% on the Mainland, 22% on the Madeira and 16% on the Azores. You can consult all the products and activities covered by each fee in the CIVA Lists.

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Congratulations!

         

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(Author)

Raj Don