Portugal IVA rates 2026

Portugal's IVA (VAT) rates for 2026 are 23% (normal), 13% (intermediate) and 6% (reduced) on the mainland. Madeira charges 22% / 12% / 4% and the Açores 16% / 9% / 4%. The goods and services in each tier are the same everywhere — only the percentages differ.

In Portuguese: taxas de IVA 2026 — taxa normal, taxa intermédia (Lista II) and taxa reduzida (Lista I), set by artigo 18.º of the Código do IVA. No headline rate changed for 2026; Lista I gained a few items, such as game meat (verba 1.2.7).

IVA rate	Applies to	Mainland	Madeira	Açores
Normal	everything not in Lista I or II	23%	22%	16%
Intermediate	Lista II	13%	12%	9%
Reduced	Lista I	6%	4%	4%

Which region's rate goes on an invoice depends on the place-of-supply rules, not just where you live — see Madeira and Açores vs mainland taxes.

What is taxed at 6% (Lista I)?

The reduced rate covers essentials. The main items, with their number (verba) in Lista I:

1.1–1.6Basic food: bread, rice, pasta, flour, fresh meat and fish, milk, cheese, yoghurt, eggs, fruit, vegetables, olive oil
1.7Water supply (not spring, mineral, table or sparkling water, which are 13%)
2.1Books, newspapers and general-interest periodicals, in print or electronic (not publications that are mainly video or music)
2.5Medicines and pharmaceutical products, including menstrual hygiene products
2.14Passenger transport, including taxis and other hire with a driver
2.17Hotel-type accommodation (including breakfast if not invoiced separately)
2.27Contracted renovation, repair and conservation work on homes — not cleaning, gardens or pools (materials at 6% only if they are at most 20% of the job)
2.31Bicycles, bought or repaired
2.32Tickets to concerts, theatre, cinema, dance, circus, exhibitions, zoos and botanical gardens
2.36Repairs of household appliances
2.38Electricity consumption up to 200 kWh per 30 days (300 kWh for households of 5+), contracted power up to 6.90 kVA — fixed charges and consumption above the cap are 23%

What is taxed at 13% (Lista II)?

3.1Restaurant and café food and drinks, except alcoholic drinks and soft drinks (those are 23%)
1.8Ready meals for takeaway or home delivery
1.10Common wine (vinhos comuns) bought as goods — wine served in a restaurant is 23%
1.11Spring, mineral and sparkling water
1.5.3Edible vegetable oils (olive oil is 6%)
2.7Musical instruments
2.5Agricultural tools and machinery

A restaurant bill is often split: the meal and water at 13%, a beer or a soft drink at 23%.

What is taxed at 23%?

Everything not listed in Lista I or II, when the supply is taxed in Portugal — including most professional services a freelancer invoices (consulting, IT, design, translation), clothing, electronics, alcoholic and soft drinks, and electronically supplied services such as streaming (CIVA art. 18.º n.º 7; e-books and digital newspapers are the exception, at 6%). Invoicing a business or a consumer abroad follows separate place-of-supply rules.

Do I have to charge IVA? The €15,000 exemption

Not if you are based in Portugal, make no exports, and your turnover in Portugal was €15,000 or less in the previous year (CIVA art. 53.º). In your first year the test is your own estimate for the year. While exempt you charge no IVA, file no periodic IVA returns and can't deduct IVA on your costs; your invoices must carry the wording "IVA - regime de isenção" (art. 57.º).

You lose the exemption (art. 58.º) from 1 January of the following year if the year ends above €15,000, or immediately once you pass €18,750 (the threshold plus 25%) during the year — or as soon as you stop meeting the other conditions, such as starting to export. Either way you must file a declaração de alterações within 15 working days. The online sales VAT guide walks through the switch.

To add IVA to a price or take it out of one at any of these rates, use the IVA calculator.

Monthly or quarterly IVA returns?

Quarterly if your turnover in the previous year was below €650,000, monthly at or above it (CIVA art. 41.º); quarterly filers may opt into monthly. The quarterly return is due by the 20th of the second month after the quarter, with payment by the 25th — except the April–June quarter, which is due in September. Every 2026 date is on the deadlines page, and the quarterly IVA return guide covers how to fill it in.

Sources

Last verified against official sources (Portal das Finanças, Segurança Social, Diário da República):

IVA rates for the mainland, Madeira and the Açores — 1 November 2026
IVA rates, Listas I/II and the art. 53 exemption — 14 October 2026