Should you register for Portuguese VAT?

Portugal requires non-residents to register if they are performing any of the following trading (note – this is not an exhaustive list):

• Importing goods into Portugal from outside of the European Union

• Buying and selling goods within Portugal

• Selling goods over the internet to Portuguese consumers. This is subject to a local VAT registration threshold

• Holding goods in a consignment stock warehouse for sale to local customers

• Charging admission to events or exhibitions

• If a company is otherwise a non-VAT trader, but is receiving services in the Poland under the reverse charge rule.

The self supply of goods.

Portugal changed the rules on VAT registering foreign service providers in 2010. This was brought on by the EU VAT Package, which reduced the number of situations that required a foreign services trader to register for Portuguese VAT.

Note that providers of electronic, broadcast or telecoms services to consumers in Portugal only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 27 member states.

You can know more about Portuguese VAT by contacting us.