A GUIDE TO VAT REFUNDS
FROM PORTUGAL

Lisbon, Portugal

How to Get a VAT Refund from Portugal

This page deals with refunds for cross-border transactions, it does not address VAT refunds where both vendor and customer are based in the same country. If you are travelling to or conducting business with companies in Portugal, you may be eligible to claim back the Portuguese VAT. We have compiled everything you need to know on this page about VAT refund eligibility, the VAT rates, the deadlines for claiming back the VAT, the common services with refundable VAT and the processes to recover Portuguese VAT.

Who can Claim VAT Refunds?

 

VAT Refunds for EU Claimants

If you are a VAT registered company in an EU Member State and have conducted cross border transactions in another Member State where you are not VAT registered then you are eligible to recover the VAT according to Articles 170-171a VAT Directive and following the full rules laid out in Directive 2008/9/EC . Here you will find a simplified summary of the vat refund procedures.

VAT Refunds for Non-EU Claimants

If you are a VAT registered company established outside of the EU and you are charged VAT on business activities conducted in an EU Member State where you are not VAT registered, then you are entitled to deduct the VAT through means of a refund from the country where the VAT was paid according to the 13th Directive (69/59/EEC).

Free VAT Refund Guide

Everything you need to know about recovering taxes from cross-border business activity and travel.

Portuguese VAT: TVA

Standard rate         23%

Intermediate rate   13%

Reduced rate           6% 

Deadlines for Claims Submission

For companies in another EU Member State:
September 30 (Year n + 1)

For companies outside the European Union:
September 30 (Year n + 1)

Portuguese VAT: TVA

Standard rate         23%

Intermediate rate   13%

Reduced rate           6% 

Deadlines for Claims Submission

For companies in another EU Member State:
September 30 (Year n + 1)

For companies outside the European Union:
September 30 (Year n + 1)

VAT Refund Information

 

Retrospective Claims

A company can claim back VAT from the previous VAT year, no extended deadline is available.

 

Rule of Reciprocity

An EU claimant can claim VAT from any other EU Member State and recover the VAT according to the Member State of Refund’s local VAT legislation.

For non-EU claimants and/or for refunds from a non-EU Member State, some countries will only grant a VAT refund if the country where your company is registered offers similar refund arrangements, the so-called rule of reciprocity.

Portugal have a reciprocal agreement with all EU countries plus Gibraltar, Japan, Korea, Norway, Liechtenstein, Switzerland and the USA.

 

Services where VAT Refund is Available

The common services with refundable VAT are:

  • Hotel Restaurant Meals Transportation Travel
    1. 25% refundable to participants if expenses are directly connected to participation in a conference, trade fair or similar event
    2. 50% refundable for the organiser of the event. Otherwise the VAT is not refundable (VAT can only be deducted if expenses are re-charged to a third party)
    3. Travel expenses not linked to a conference are only refundable if respective costs are recharged to a client
  • Diesel
    1. VAT rate of 23%:
      50% recoverable for non-transport companies
      100% recoverable for transport companies
  • Conferences
    1. Only admission fees and related services are liable to PT VAT
  • Exhibitions/ Trade Fairs
    1. Only admission fees and related services are liable to PT VAT
  • Car Rental
    1. Not VAT deductible for 5-seater cars
  • Hotel Restaurant Meals Transportation Travel
    1. 25% refundable to participants if expenses are directly connected to participation in a conference, trade fair or similar event
    2. 50% refundable for the organiser of the event. Otherwise the VAT is not refundable (VAT can only be deducted if expenses are re-charged to a third party)
    3. Travel expenses not linked to a conference are only refundable if respective costs are recharged to a client
  • Diesel
    1. VAT rate of 23%:
      50% recoverable for non-transport companies
      100% recoverable for transport companies
  • Conferences
    1. Only admission fees and related services are liable to PT VAT
  • Exhibitions/ Trade Fairs
    1. Only admission fees and related services are liable to PT VAT
  • Car Rental
    1. Not VAT deductible for 5-seater cars

Latest VAT Chart

Each countries rules and regulations vary. Our VAT chart gives you details about the recoverable VAT in the different countries.

VAT Refund Process

 

VAT Refund Process for EU Claimants

An electronic refund claim is submitted to the claimant’s national tax authority portal providing the following.

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application.

 

VAT Refund Process for Non-EU Claimants

An application to the tax authority where the VAT was incurred shall be sent in original providing the following.

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application
  4. All original invoices related to the VAT refund must be included with the application

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

VAT Refund Process

 

VAT Refund Process for EU Claimants

An electronic refund claim is submitted to the claimant’s national tax authority portal providing the following.

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application.

 

VAT Refund Process for Non-EU Claimants

An application to the tax authority where the VAT was incurred shall be sent in original providing the following.

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application
  4. All original invoices related to the VAT refund must be included with the application

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

Request a Call

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