Portuguese VAT (IVA) Guide & Calculator
Calculate Portuguese VAT with our easy-to-use calculator. In Portugal, VAT is known as Imposto sobre o Valor Acrescentado (IVA). This tool helps you find the gross or net prices for any of Portugal's current VAT rates.
Current VAT Rates in Portugal
Mainland Portugal applies three VAT rates:
- Standard Rate (23%): This is the default rate for most goods and services.
- Reduced Rate (13%): This intermediate rate applies to certain foodstuffs, wine, and restaurant services.
- Super Reduced Rate (6%): The lowest rate applies to essential goods like basic foods (meat, vegetables, fruit), pharmaceuticals, books, and hotel accommodation.
The autonomous regions of Madeira and the Azores apply lower VAT rates. In Madeira, the rates are 22%, 12%, and 5%. In the Azores, the rates are 18%, 9%, and 4%.
History of VAT in Portugal
Portugal introduced its VAT system on January 1, 1986, as part of its accession to the European Economic Community. The initial standard rate was 16%. The rates have been adjusted over the years to manage the country's economy, with notable increases following the 2008 financial crisis. The current standard rate of 23% was set in 2011.
| Period | Standard Rate | Reduced Rate(s) |
|---|---|---|
| From 01/01/2011 | 23% | 13% / 6% |
| From 01/07/2010 | 21% | 13% / 6% |
| From 01/01/2010 | 20% | 12% / 5% |
| From 01/07/2008 | 20% | 12% / 5% |
| From 01/07/2005 | 21% | 12% / 5% |
| From 01/06/2002 | 19% | 12% / 5% |
| From 05/04/1995 | 17% | 5% |
| From 24/03/1992 | 16% | 5% |
| From 01/01/1986 | 16% | 8% |