A VAT refund guide to Portugal

How to get VAT Refunds from Portugal for your business
Are you looking for more information of VAT in Portugal? Read on to learn everything there is to know about VAT regulations in Portugal.
The below information details the requirements needed to be eligible for a VAT refund. This includes claimable expense types, Portugal VAT rates, deadlines and claiming periods.

Which countries have reciprocity with Portugal?

All EU countries Canary Islands, Iceland, Monaco , North Macedonia, Norway, Switzerland, the United Kingdom. Non-EU claimants can obtain a refund in the event they present evidence from their local tax authority confirming that Portuguese taxable persons have in that country the right to obtain a refund of the turnover tax.

Learn more about how reciprocity works within VAT by clicking below.

What expenses are claimable in Portugal?

Entertainment

Events

Entertainment
0%
Admission to Fairs & Exhibitions
23%
Accommodation
6%
Training Courses & Seminars
23%
Food, Drink & Restaurant Services
13%

Travel Related

General Expenses

Hiring of Means of Transport
23%
Goods
23%
Fuel
23%
Inter-company Charges
23%
Public Transport
6%
Office Expenses
23%
Taxis
6%
Marketing Costs
23%
Professional Fees & AP Invoices
23%

Additional Information

Current VAT Rate  23%
Categories Entertainment, Events, Travel Related, General expenses
VAT in local language Imposto sobre o Valor Acrescentado (IVA)
VAT number format PT 123456789 (Prefix (PT) followed by 9 digits)
Exemptions Entertainment
Key Deadlines 30th September 2025 (8th directive) and 30th June 2025 (13th Directive)
Threshold

Non-Simplified: More than EUR 100 (including VAT)

Simplified: EUR 100 or less (including VAT)

Super Simplified: Not applicable to this VAT scheme

Electronic Invoicing Electronic invoicing is mandated for business-to-business (B2B), business-to-government  (B2G), and business-to-consumer (B2C) transactions

Frequently Asked Questions

1. What types of business expenses qualify for VAT reclaim in Portugal?

Eligible expenses include accommodation, meals, transport, trade show participation, and conference fees. The amount reclaimable depends on the Portugal VAT rate and specific regulations governing Portugal VAT tax for businesses.

2. How long does it take to receive a VAT refund in Portugal?

Processing times for a Portugal VAT refund varies, but businesses reclaiming VAT in Portugal can expect it to take anywhere from a few months to a year, depending on the claim complexity, submission accuracy and Portugal VAT regulations.

3. Do I need original receipts and invoices for VAT reclaim in Portugal?

Tax authorities may request original invoices however due to digital submission method, scans of invoices are allowed in most cases. Using a Germany VAT refund calculator can help ensure your documents meet compliance standards.

4. Can I reclaim VAT in Portugal on business travel expenses like flights and taxis?

Flights are generally not VAT-taxable, but local transport costs such as car rentals, taxis, and train tickets may be eligible for a Portugal VAT refund, depending on the Portugal VAT rate and specific regulations.

5. Is VAT reclaim available for trade shows, conferences, and business events in Portugal?.

Yes, businesses can reclaim Portugal VAT on event fees, exhibition costs, and booth rentals. The refundable amount is determined by the Portugal VAT rate for these expenses.

6. Can VAT be reclaimed on meals and entertainment in Portugal?

VAT on meals is often partially reclaimable (provided the expense relates to a conference, trade show, or similar event), while entertainment costs are usually non-reclaimable under Portugal VAT laws. Businesses should review the applicable Portugal VAT rate rules to determine which expenses are eligible for VAT recovery.

7. What is the deadline for submitting a VAT reclaim application in Portugal?

Deadlines vary, but claims for a Portugal VAT refund typically need to be submitted within 6 months to 1 year, depending on compliance with Portugal VAT rules.

8. What happens if a supplier incorrectly charges VAT on an invoice in Portugal?

If VAT is applied incorrectly, businesses may need to request a corrected invoice from the supplier before claiming a Portugal VAT refund. VAT IT can assist with this service.

9. Are there any minimum spend thresholds for VAT reclaims in Portugal?

Yes, some countries require a minimum VAT amount before processing a claim. The threshold varies by jurisdiction.

10. What are the VAT registration requirements for businesses in Portugal?

Businesses that supply taxable goods or services in Portugal must register for VAT with the Portuguese Tax Authority. VAT registration is mandatory if the business exceeds the applicable annual turnover threshold. The specific VAT rate depends on the nature of the goods or services provided. Once registered, businesses are required to submit regular VAT returns.

11. Can foreign businesses get a VAT refund in Portugal?

Yes, foreign businesses without a tax presence in Portugal can apply for a Portugal VAT refund on eligible business expenses, such as accommodation, transport, and event costs. Refunds are subject to compliance with Portugal VAT rules and depend on the VAT treatment for each expense type.

Explore VAT reclaim opportunities in

Nearby Countries

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Need help with your VAT refund from Portugal?

You don’t have to do this alone. We’ve been helping companies reclaim foreign VAT refunds for over 20 years. We have the knowledge and technology to process your refunds quicker as well as attend to any unforeseen VAT authority queries that may arise.

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