# VAT in Portugal for expats and freelancers

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Guide Law as at 19 June 2026 2 min read

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Before invoicing from Portugal, check whether VAT applies, which country’s rules govern the supply and what the invoice must show. On the mainland the standard rate is 23%; the intermediate (13%) and reduced (6%) rates apply to the goods and services listed in the VAT Code.

## VAT terms and two service examples

IVA is Portugal’s value-added tax.

| Term or example | How it works |
| --- | --- |
| Reverse charge | Where the applicable rule requires it, the customer accounts for VAT instead of the supplier charging it. |
| VIES | The EU system used to check an EU VAT number; a valid number supports the business-customer check but does not settle every VAT condition. |
| Business service example | Assume a Portuguese consultant supplies an ordinary business consultancy service to a taxable German business, with no special exception or fixed-establishment issue. Under the general business-to-business rule, the service is taxed where the customer is: the German customer accounts for the VAT under the reverse charge, and the Portuguese invoicing and reporting requirements still apply. |
| Consumer service example | The same ordinary service to a private German consumer generally follows the supplier-location rule, so Portuguese VAT can apply unless a relevant exemption or special rule changes the result. |

Property-related, event, digital and other specified services can follow exceptions. Goods have their own rules. See the VAT place-of-supply rules and [VIES](https://ec.europa.eu/taxation_customs/vies/).

Next step

We set out the tax regime to choose, how to register your activity and what you owe and file in your first year as a freelancer in Portugal.

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## The checks before invoicing

Before relying on a VAT treatment, check the activity start date, whether the customer is a business or consumer, where the service is treated as supplied, whether the small-business VAT exemption can apply for the relevant year, whether reverse charge wording is correct, whether VIES is needed, and whether recurring returns or invoice communication obligations follow.

## Frequently asked questions

### Do expats in Portugal always need a VAT number?

No. It depends on whether they carry out an economic activity, how the activity is registered, who the customers are, and whether an exemption or reverse-charge treatment applies.

### Can I use the small-business VAT exemption?

Possibly. Under the small-business VAT exemption, a taxable person with its seat or domicile in Portugal can use the exemption if its turnover in Portugal in the previous year was no more than €15,000, subject to conditions and exclusions, including exports and related activities. When an activity starts, the estimate for the current year counts.

The exemption ends as soon as current-year turnover exceeds €18,750 (the threshold plus 25%) or, if turnover for the whole year exceeds €15,000, from 1 January of the following year.

### Do foreign clients mean I do not charge Portuguese VAT?

Not automatically. The answer depends on whether the customer is a business or consumer, where the service is supplied for VAT purposes, and whether reverse-charge wording or VIES registration is required.

This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas.

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Source: https://taxbordr.com/guides/vat-tax-portugal/

General information only. Advice depends on your circumstances.