VAT in Portugal in 2026

Consultoria EHERO

6 minutos de lectura

In Portugal, the tax is also called VAT —Imposto sobre o Valor Acrescentado— and it has three rates: the standard 23%, the intermediate 13%, and the reduced 6%. They are set by article 18 of the Código do IVA, with two annexed lists: List I says what goes at 6%, List II what goes at 13%, and everything else pays 23%. That is the mainland. Madeira and Azores have their own lower rates: 22%, 12% and 4% in Madeira; 16%, 9% and 4% in Azores.

Rate	Percentage	Applies to
Standard (taxa normal)	23%	Everything not on Lists I and II: clothing, footwear, electronics, cosmetics, coffee, chocolate, soft drinks and alcoholic beverages except ordinary wine
Intermediate (taxa intermédia)	13%	List II: ordinary wine, mineral and sparkling water, edible vegetable oils (olive oil goes at 6%), prepared food for takeaway or delivery, catering except alcoholic drinks and soft drinks, and musical instruments
Reduced (taxa reduzida)	6%	List I: bread, cereals, rice and unfilled pasta; fresh or frozen meat and fish; milk, cheese, yogurt and eggs; fruit, vegetables, olive oil, honey and juices; books, newspapers and magazines, including digital; medicines, nappies and menstrual hygiene products; child car seats and bicycles
Madeira (Região Autónoma da Madeira)	22 / 12 / 4%	They replace 23%, 13% and 6% on orders delivered in Madeira. The 4% rate has applied since 1 October 2024; before that it was 5%
Azores (Região Autónoma dos Açores)	16 / 9 / 4%	They replace 23%, 13% and 6% on orders delivered in Azores. The 16% rate has applied since 1 July 2021; before that it was 18%

Rates verified on 11 September 2026 against article 18 of the Código do IVA on the Portal das Finanças and Circular Letter 25045/2024 from the Tax and Customs Authority, which publishes the Madeira and Azores rates (info.portaldasfinancas.gov.pt).

Madeira and Azores: another VAT rate, but still within the EU

Madeira and Azores are not the Canary Islands. The two Portuguese autonomous regions are within the European Union VAT territory, so an order from Spain to Madeira or Azores is an intra-EU distance sale like any other. What changes is the rate.

Portuguese law splits transactions between the mainland and the islands using the same criteria it uses to locate them in Portugal, and in distance sales the destination of the shipment is what matters. Above the threshold, an order to Madeira is charged at 22% and one to Azores at 16%, not 23%. The same applies to the lower rates: 12% and 4% in Madeira, 9% and 4% in Azores. Portugal is no longer a single tax destination: the rate depends on the delivery address, not just the country, and it has to be handled by region.

Also check the old tables: Madeira’s reduced rate dropped from 5% to 4% on 1 October 2024. A setup made before that date and not reviewed will overcharge those products by one point.

Which VAT you charge customers in Portugal if you sell from another EU country

This is the part no rate table covers, and usually the real question. The rate you charge does not depend only on the destination: it depends on how much you sell to consumers in other EU countries.

Below €10,000 a year in distance sales to the rest of the EU — added up across all countries, not country by country — you charge your own country’s VAT.
Above that €10,000 you charge the destination VAT: 23% as the standard rate in Portugal, or the reduced rate that applies to the product. You declare it through the One Stop Shop (OSS) in your own country, with no need to register in the destination country.

The threshold adds up all your B2C sales to other EU countries plus digital services, and the switch does not wait for next year: the very sale that crosses the threshold already carries the destination rate.

Selling to a business with a valid EU VAT number is a different story: the sale goes without VAT because the customer accounts for it in their own country, but you have to check that number in VIES and keep proof of the check.

How to set this up in WooCommerce

WooCommerce includes country-based rates, but it does not distinguish rates within a country by product class or monitor the threshold for you. There are three things you need to set up:

A tax class for each rate you use, assigned product by product rather than at store level.
VAT number validation at checkout against VIES for business customers, so VAT is not charged when the transaction is under reverse charge.
Tracking of the €10,000 threshold, because the day it is exceeded the rates change immediately across all countries at once.

All three are covered by EHERO Woo VAT, which we built precisely because these are the three points where stores selling to the rest of the European Union break.

Selling to other EU countries from WooCommerce?

EHERO Woo VAT applies each country’s rate product by product, checks VAT numbers against VIES at checkout and keeps an eye on the €10,000 threshold for you.

See EHERO Woo VAT →

Frequently asked questions

What is the standard VAT in Portugal in 2026?

23% on the mainland. Below that there is an intermediate rate of 13% and a reduced rate of 6%, reserved for what is listed in Lists II and I of the Código do IVA. In Madeira the standard rate is 22%, and in Azores it is 16%.

What VAT applies in Madeira and Azores?

Own rates, lower than on the mainland: in Madeira, 22%, 12% and 4%; in Azores, 16%, 9% and 4%. Unlike the Canary Islands, both regions are within the European Union VAT system: a shipment from Spain follows the rules of any sale to Portugal and, when you apply destination VAT, it carries the region’s rate.

I sell to Portugal from another EU country — which VAT do I charge?

Your own country’s VAT while your distance sales to the whole EU stay below €10,000 a year. Once you cross that threshold, the destination VAT (23% standard rate), declared through the One Stop Shop.

Do I have to register for VAT in Portugal?

Not if you only ship from your own country: that is what the One Stop Shop is for. You do if you store goods there — for example with Amazon’s fulfilment network — because stock held in the country creates a registration obligation regardless of how much you sell.