Portuguese VAT Changes 2023
Discover the latest changes to Portuguese VAT in 2023, including an expansion of the 6% reduced rate.
There have been a number of significant changes made to the Portuguese VAT regime in 2023. Here is a closer look at the key updates to VAT in Portugal this year.
Expansion of the 6% reduced rate
Portugal has implemented a reduction in VAT rates for certain goods and services. As of 2023, the following categories are now eligible for the 6% reduced Portuguese VAT rate:
- Canned fish and mollusks, provided that the fish content comprises at least 50% of the product.
- Vegetal butter, beverages, and yogurts that have been manufactured using ingredients such as fruits, dried fruits, cereals, and vegetables.
- Access to live broadcasts of concerts, theaters, amusement parks, cinemas, museums, and similar cultural/entertainment events.
- The sale and installation of specific heaters and boilers that operate using biomass as their energy source.
- Services related to the sale or repair of bicycles, with the exception of spare parts for bicycles, which will remain subject to the standard VAT rate of 23%.
- Pellets and briquettes derived from biomass materials.
New invoicing rules for non-resident taxpayers
Starting from January 1, 2023, foreign businesses that are VAT-registered in Portugal are now subject to three additional VAT invoice requirements (which are already applicable to resident taxpayers):
- All invoices must be generated using certified invoicing software capable of assigning a unique ATCUD code.
- A QR Code must be included on paper or PDF invoices.
- Foreign companies are also required to adhere to monthly invoice reporting through the SAF-T billing file.
New VAT return deadline
The deadline for filing VAT returns and making payments for June and the second quarter has been altered for taxpayers with both monthly and quarterly VAT reporting periods. Starting with the current year, the filing deadline for these two periods has been shifted to September 20, while the payment deadline has been moved to September 25.