VAT Reporting for International Transactions in Portugal

Applying for Portuguese VAT involves a straightforward process, but it’s important to follow each step carefully to avoid mistakes. The first step is to check if your business qualifies for VAT registration. This usually depends on your annual revenue and the nature of your activities. If your revenue exceeds the VAT registration threshold, it’s time to begin the registration process.

Next, businesses must gather all the required documentation for VAT registration. This includes business details such as the company’s name, legal structure, business address, and the type of services or goods offered. For foreign businesses, additional documentation like proof of a local establishment or an authorized representative in Portugal may be required.

After gathering all the documentation, you can submit your VAT registration application via the Portuguese Tax Authority’s online portal. This application will require you to enter detailed business information, including your estimated annual turnover, which will determine your VAT rate category. The tax authority will process your application, which may take a few weeks, and once approved, you will receive your VAT number.

Having your Portuguese VAT number allows you to conduct business legally in Portugal, issue invoices with VAT included, and reclaim VAT paid on business expenses. As your business grows, you will need to stay compliant with Portuguese VAT regulations by submitting regular VAT returns.

Apply for Portuguese VAT