Value Added Tax (VAT) refunds in Portugal

Who can claim a Value Added Tax (VAT) refund

A value added tax (VAT) refund may be claimed by any self-employed person or company which has:

  • a claim for 12 consecutive months exceeding EUR 250
  • a claim exceeding EUR 3 000
  • a claim exceeding EUR 25 in the event of termination or change of scheme.

In order for a VAT refund to be granted, a self-employed person or company:

  • must have reported all invoices issued in the previous periods
  • must have provided details of a valid bank account held by the person or company
  • cannot be in default with respect to VAT returns or payment
  • must ensure that there is no difference between reported values and the declared values of the tax which has been paid and is deductible
  • may not include customers or suppliers with an invalid Tax Identification Number (TIN) or which have ceased trading in the tax period.

More information can be found on the Tax and Customs Authority website.

Refund of tax paid in another Member State for workers or companies established in Portugal

Refund claims should be submitted to the Tax and Customs Authority (AT) via the website when submitting the periodic declaration.

AT will forward claims to the Member State issuing the refund within 15 days of receipt.

AT will not forward claims to the Member State issuing the refund if the self-employed person or company:

Should any of these conditions apply, applicants will be notified by email that the claim has not been forwarded to the Member State.

For further information, see Article 6 of Decree Law No 186/2009.

Refund of tax paid in Portugal for workers or companies not established in Portugal

VAT paid in Portugal may be refunded to workers or companies who:

  • have no registered office or fixed establishment in Portugal from where they have carried out taxable transactions
  • have supplied only transport and related services or sales or services for which tax is payable by the purchaser.

Sums paid which have been improperly invoiced, including those which could be exempt from payment, will not be refunded.

For further information, see Article 6 of Decree Law No 186/2009.

Refund claim for workers or companies established in another Member State

Claim details

Refund claims should be submitted in the member state in which the worker or company is established and contain the following information:

  • identification of the claimant, including tax identification number (TIN)
  • address and email
  • description of professional activity using the harmonised codes of the statistical classification of economic activities (NACE)
  • bank account identification, including International Bank Account Number (IBAN) and Bank Identifier Code (BIC)
  • the refund period to which the claim relates
  • a declaration from the claimant confirming that it qualifies for the refund.

For each import document or invoice issued in Portugal, the refund claim must contain:

  • the name, address and tax identification number of the supplier or service provider with the prefix PT
  • the date and number of the invoice or import document
  • the taxable amount and the amount of VAT in euros
  • the amount of deductible VAT and, where applicable, the percentage of deduction
  • the nature of the goods and services purchased, defined by identification codes.

The refund claim must be submitted in Portuguese or English and, if you wish to use a tax representative, the name, address, email and tax identification number (TIN) of the representative must be included.

The member state in which the worker or company is established will not send the claim to the member state issuing the refund if:

  • all of the data has not been provided
  • the claimant was not registered as an ongoing concern during the refund period
  • during the refund period, the claimant only carried out activities that are exempt
  • the claimant is exempt from VAT.

Time limit for submitting claim

The refund claim must be submitted in the member state in which the claimant is established by 30 September of the year following the period to be refunded.

Time allowed for refund

Claimants will receive notification of whether the refund has been granted or a request for additional information within 4 months. If additional information is requested, the deadline will be increased by 2 or 4 months.

Should there be several requests for additional information, claimants will still be notified of the refund decision within a maximum of 8 months.

If the claim is accepted, the sum in question will be refunded within 10 working days.

Communication with the claimant will be by email and the claim decision will also be sent by post.

Claim correction

Claimants may modify or correct any refund claim up to 30 September of the year following the period to be refunded. If the change is to correct the details of the invoice(s) supporting the claim, claimants may submit any change up to the end of the year following the period to be refunded.

Incorrect claims

If an incorrect claim has led to an undue refund, the Tax and Customs Authority (AT) will collect the amount unduly refunded plus interest and open a procedure which may lead to the payment of a fine.

More information can be found in the explanatory document of the Tax and Customs Authority (AT).

Refund claim for workers or companies established outside the European Union

Claim details

Workers or companies established in a country outside the European Union may claim refunds for VAT paid in Portugal if, in the country where they are established, they are covered by a general turnover tax and there is a reciprocity agreement between Portugal and that country.

In order to claim a refund, workers or companies are required to appoint a tax representative, resident in Portugal.

Claims must be submitted in hard copy to the Tax and Customs Authority (AT) by the tax representative with the following documents:

  • original invoices and import documents
  • proof of payment of value added tax (VAT)
  • a certificate, issued by the country where the claimant is established, showing that the worker or company is subject to a general turnover tax and that workers or companies established in Portugal are entitled to a refund of that tax.

The certificate referred to in the previous point is valid for one year and is not required if there is a reciprocal agreement between Portugal and the country where the worker or company is established.

Time limit for submitting claim

Refund claims must be submitted by 30 September of the year following the period to be refunded.

Time allowed for refund

Where appropriate, claims will be refunded by the end of the sixth month following the month in which the claim is submitted.

Refunds will be paid by bank transfer to the account indicated in the refund claim.

For further information, see Article 6 of Decree Law No 186/2009.

Activities not entitled to Value Added Tax (VAT) refunds

VAT will not be refunded:

  • for activities which are VAT exempt
  • where there are restrictions in the country of refund
  • for the purchase, use, import or repair of tourism vehicles, boats, aircraft and motorbikes, except where the sale or operation of such equipment forms the economic activity of the claimant
  • for business travel, including tolls
  • for all expenses other than normal operating expenses
  • for food, accommodation, beverages and tobacco, except where expenditure is incurred in connection with conferences, fairs, exhibitions or congresses, in which case, refunds may be limited to 50% or 25%
  • for petrol (except as indicated below).

Normally, only 50% of the sums paid for diesel, LPG, natural gas or biofuels may be refunded.

VAT on petrol, diesel, LPG, natural gas and biofuels may be fully refunded when consumed by:

  • heavy-duty passenger vehicles
  • vehicles licensed for public transport other than hire cars
  • unregistered machinery
  • tractors intended exclusively or predominantly for agricultural use
  • vehicles and goods transport with a weight exceeding 3 500 kg.

For more information, please refer to Article 21 of the Value Added Tax (VAT) Code.

Refund ceiling

To qualify for a refund, the amount to be refunded must be at least:

  • EUR 400 if the refund period is greater than 3 months and less than one year
  • EUR 50 if the refund period is one year.

There is no maximum amount for VAT refunds.

More information can be found in the explanatory document of the Tax and Customs Authority (AT).

Proportional deduction for companies established in another country

If, according to the legislation of the respective country of establishment, a worker or company may only deduct a percentage of the tax, the value added tax (VAT) paid in Portugal will be refunded in accordance with the rules of that country.

More information can be found in the explanatory document of the Tax and Customs Authority (AT).

Challenging a decision

Should claimants not agree with a decision, they may:

  • complain to the Director of the VAT Refund Services
  • initiate legal proceedings.

Complaints must be submitted within 120 days:

  • by letter to Avenida João XXI, No 76, 5º Andar, 1049-065 Lisbon – Portugal
  • online, via the Tax and Customs Authority website, following this link: Serviços Tributários / Cidadãos ou Empresas / Entregar / Reclamações-Graciosas / IVA.

A legal action must be filed within 3 months at the 3.º Serviço de Finanças de Lisboa, Rua dos Correeiros, No 70, 1100-167 Lisbon.

More information can be found in the explanatory document of the Tax and Customs Authority (AT).

Assistance services

For more information or if you need help, please contact Autoridade Tributária e Aduaneira (AT):