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Invoicing from Portugal

Portuguese VAT (Imposto sobre o Valor Acrescentado) guide for service businesses

23%

Standard Rate

13%

Intermediate Rate

PT

VAT Prefix

IVA

Local Name

VAT Registration in Portugal

In Portugal, VAT is called IVA (Imposto sobre o Valor Acrescentado). Registration is handled through the AT (Autoridade Tributaria e Aduaneira), Portugal's tax and customs authority. You receive a NIF (Numero de Identificacao Fiscal) which also serves as your VAT number with the PT prefix.

Portugal has a unique requirement in the EU: all invoicing software used by businesses must be certified by AT (software certificado). This applies to any software that issues invoices, including cloud-based solutions.

Small Business Exemption (Regime de isencao)

Portugal offers a VAT exemption under Article 53 of the CIVA for businesses with annual turnover below €13,500. Under this regime, you do not charge IVA but must include the exemption note on invoices.

Exempt businesses must include the note: "IVA – regime de isencao, artigo 53.º do CIVA" on every invoice they issue.

Certified Invoicing Software (Software certificado)

Portugal requires all invoicing software to be certified by AT. Software must generate a digital signature for each document and communicate invoicing data to AT. The optional ATCUD (unique document identifier) can also be included on invoices. Businesses using non-certified software risk fines. This applies to both domestic and international software providers operating in Portugal.

VAT Rates

Portugal applies different VAT rates on the mainland and in its autonomous regions (Azores and Madeira):

Rate type	Percentage
Standard	23%
Reduced	13%
Second reduced	6%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

The reduced rate of 6% applies to essential goods and services such as basic foodstuffs, water supply, books, and pharmaceutical products. The intermediate rate of 13% applies to restaurant services, wine, and some food products.

Invoice Requirements (Fatura)

Portuguese invoices (faturas) must contain the following mandatory elements under the CIVA:

Your details

1 Full business name and registered address

2 NIF (PT VAT number)

Client details

3 Client's full name and address

4 Client NIF or VAT number (if EU B2B)

Invoice details

5 Invoice date (data da fatura)

6 Sequential invoice number

7 ATCUD (unique document identifier, optional)

8 Description of services or goods

Amounts

9 Net amount (base tributavel)

10 IVA rate and IVA amount

11 Total amount including IVA

SAF-T(PT) Monthly Reporting

Portuguese businesses must submit a SAF-T(PT) file to AT on a monthly basis. This XML file contains your invoicing data. It must be submitted by the 5th of the month following the reporting period. Your invoicing software must be capable of generating SAF-T(PT) files in the format prescribed by AT.

B2G E-Invoicing

Invoices to Portuguese public sector entities (B2G) must be submitted electronically in structured format. Common platforms include FE-AP, third-party portals, and direct electronic connections. This requirement has been mandatory since January 2021 for large businesses, and was extended to SMEs from January 2025.

Cross-Border Invoicing

To EU Businesses (B2B)

When invoicing a VAT-registered business in another EU country, apply the reverse charge. Invoice at 0% IVA with both your PT VAT number and the client's VAT number.

Required invoice note

"IVA – autoliquidacao" (Reverse charge – Art. 196, Directive 2006/112/EC)

Report these transactions in your declaracao recapitulativa (VIES return).

To EU Consumers (B2C)

For most services to EU consumers, charge Portuguese IVA (23%). For digital services, OSS rules may apply — you would charge the destination country's VAT rate and report through the OSS scheme.

Outside the EU

Services to clients outside the EU are outside the scope of Portuguese IVA. Invoice without VAT.

Required invoice note

"Prestacao de servicos nao sujeita a IVA" (Services not subject to IVA)

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. Based on the result, it applies the correct treatment — reverse charge for valid EU business clients, standard Portuguese IVA for domestic sales. The correct invoice notes, including "IVA – autoliquidacao", are added automatically.

Learn more about reverse charge →

Portuguese VAT Number Format

Portuguese VAT numbers follow the format: PT + 9 digits.

Example

PT123456789

Note: The 9-digit number is your NIF (Numero de Identificacao Fiscal). The PT prefix is added for EU VAT purposes. The last digit is a check digit.

Common questions

What is certified invoicing software and do I need it? ⌄

Portugal requires all invoicing software to be certified by AT (Autoridade Tributaria). Certified software must generate digital signatures for each document and communicate data to AT. The ATCUD (unique document identifier) is optional but recommended. If you issue invoices in Portugal, your software must be certified or you risk fines.

What is SAF-T(PT) and when do I submit it? ⌄

SAF-T(PT) is a standardised XML file containing your invoicing data. It must be submitted to AT monthly by the 5th of the following month. SAF-T accounting files become mandatory separately from 2027. Your invoicing software must generate this file in the format prescribed by AT.

Do the Azores and Madeira have different VAT rates? ⌄

Yes. Both the Azores and Madeira apply lower VAT rates than the mainland. The specific rates are set by the regional governments and may change — check with the regional tax authority for current rates. If your business is based in these regions, the local rates apply.

What is the small business exemption threshold in Portugal? ⌄

Businesses with annual turnover below EUR 13,500 can benefit from the VAT exemption under Article 53 of the CIVA. Under this regime, you do not charge IVA but must include the exemption note on all invoices. You also cannot deduct input IVA.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Portugal. For complex situations, confirm requirements with a Portuguese tax adviser (contabilista certificado).