Portugal VAT Calculator 2026
23% standard, with reduced rates of 13% and 6% on specified categories.
Figures last reviewed
Portugal VAT at a glance
- Standard VAT rate
- 23% — ranked 9 of 36 covered here
- Reduced rates
- 13%, 6% — applies to specified categories only
- Compared with the average
- +6.01 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 13,500 EUR — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in Portugal
Standard 23%, Reduced 13% (food, wine), 6% (food basics, books, newspapers)
Calculating Portugal VAT
Start from the price excluding tax
VAT is charged on the net price. At 23%, a net EUR 100 becomes EUR 123.00 once VAT of EUR 23.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.2300, not subtracting 23%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Portugal applies reduced rates of 13% and 6% to specified categories. Standard 23%, Reduced 13% (food, wine), 6% (food basics, books, newspapers) Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above EUR 13,500 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 23%
Adding and removing VAT at 23%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | EUR 100.00 | EUR 1,000.00 |
| VAT at 23% | (EUR 23.00) | (EUR 186.99) |
| Result | EUR 123.00 | EUR 813.01 |
So a net price of EUR 100.00 in Portugal costs EUR 123.00 once VAT is added. Working the other way, a gross price of EUR 1,000.00 contains EUR 186.99 of VAT, leaving EUR 813.01 net.
Computed from the same 23% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Portugal VAT questions
What is the VAT rate in Portugal?
The standard rate is 23%. Reduced rates of 13% and 6% apply to specified categories. That places Portugal 9 of 36 of the countries covered here, 6.01 points above the 16.99% average.
How do I remove VAT from a price in Portugal?
Divide the gross amount by 1.2300. At 23%, a gross EUR 1,000 works back to EUR 813.01 net with EUR 186.99 of VAT. Subtracting 23% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in Portugal?
Once taxable turnover passes EUR 13,500 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than Portugal?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Portugal sits at 23%.