Is fiscal representative compulsory in Portugal ?
Portugal is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
Portugal yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Portugal is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) () provided by in Portugal like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Portugal and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Portugal to another State, being third country or Member state.
In most cases your VAT number in Portugal will be similar to PT012345678.
What is the threshold for deliveries to particulars individuals in Portugal ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 35,000
EUR 10,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Portugal ?
Standard VAT rate in Portugal is 23% (Madeira 22% – Azores18%), while intermediate rate is 13% (Madeira 12% – Azores 9%). On the other hand, reduced rate is 6% (Madeira 5% – Azores 4%).
Application of Article 37 and 109 to 122 of the VAT Directive in Portugal : exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Portugal :
See our section https://becompliant.tax/vat-rates-portugal
What is the scope of a fiscal representative in Portugal?
Fiscal representative should always diagnose your operations in Portugal and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Portugal ?
Your fiscal representative in Portugal will have to submit periodically on your behalf.
The VAT form you are expected to submit in Portugal :
In Portugal, the periodicity of VAT (locally called Imposto sobre o valor acrescentado (IVA)) is as follows :
Monthly VAT returns in Portugal are due 10th of 2nd following month, always that If the turnover in the preceding VAT year was equal or exceeded EUR 650,000
Your VAT payment is due : Same as return.
Quarterly VAT returns in Portugal are due 15th of the 2nd following month, always that If the turnover in the preceding VAT year did not exceed EUR650,000
Your VAT payment is due : Same as return.
Yearly VAT returns in Portugal are due 10th of 2nd following month, for all taxable persons with right to deduct, that performed any taxable operations
What are the E/ICSL a fiscal representative submits in Portugal ?
The ECSL you are expected to submit in Portugal : 20th day of following day
Your statistical declarations (Intrastat) in Portugal :
What are the late registration penalties in Portugal ?
The following penalties apply to the late submission of periodic and annual VAT returns:
A penalty ranging from EUR300 to EUR3,750 if the taxpayer’s actions were not intentional
A penalty ranging from EUR300 to EUR7,500 if the taxpayer’s actions were intentional
The following penalties apply to the late payment of VAT:
A penalty ranging from 30% to 100% of the VAT due, up to a maximum of EUR45,000, if the taxpayer’s actions were not intentional
A penalty ranging from 200% to 400% of the VAT due, up to a maximum of EUR165,000, if the taxpayer’s actions were intentional
In addition, interest applies (currently at a 4% annual rate).
Where to find official information about VAT in Portugal
Portugal transposed the European Directive into national regulation AT Code, enacted by Decree Law 394-B/84 of 26 December, as amended; Decree Law 221/85 of 3 July; Decree Law 346/85 of 23 August; Decree Law 347/85 of 23 August; Law 9/86 of 30 April; Decree Law 143/86 of 16 June; Decree Law 185/86 of 14 July; Decree Law 2.
The Revenue administration responsible for VAT in Portugal is :
Autoridade Tributária e Aduaneira (Tax and Customs Authority) (http://www.portaldasfinancas.gov.pt).
VAT and INTRASTAT compliance in Portugal
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