Portugal IVA / VAT calculator
Portuguese IVA has three mainland rates: 23% standard, 13% intermediate and 6% reduced. The Azores and Madeira run their own lower rates as autonomous regions.
Calculate IVA for Portugal
Pick a rate, choose direction (add or remove tax), type the amount. The math updates as you type.
The Portuguese IVA rates in 2026 (mainland)
- Taxa normal — 23%: most goods and services, including electronics, alcohol, professional services and most retail.
- Taxa intermédia — 13%: restaurant and catering services, some foodstuffs, wine, and certain agricultural inputs.
- Taxa reduzida — 6%: essential foods, books and newspapers, medicines, public transport, hotel accommodation, and electricity/gas (a reduced portion).
The standard rate has been 23% since 2011, when it rose from 21% as part of the bailout-era fiscal consolidation.
The Azores and Madeira: lower regional rates
As autonomous regions, the Azores and Madeira set their own lower IVA rates. In 2026, the Azores apply roughly 4% / 9% / 16% and Madeira 5% / 12% / 22% (reduced / intermediate / standard). A laptop priced at €1,000 net carries €230 of IVA on the mainland but less in the islands — a long-standing regional differential. This calculator uses the mainland rates; for island pricing, substitute the regional standard rate.
The math: add or remove IVA
- Add 23% IVA: gross = net × 1.23
- Remove 23% IVA: net = gross ÷ 1.23
- Add 13% IVA: gross = net × 1.13
- Add 6% IVA: gross = net × 1.06
Worked example: a Lisbon e-commerce site shows €123 IVA included at 23%. The net price is 123 ÷ 1.23 = €100, and the IVA is €23, which a registered business reclaims on the next periodic return.
Regime de isenção — the small-business exemption
Portugal's "regime de isenção" (article 53 of the IVA Code) exempts small businesses from charging IVA if annual turnover stays below a threshold raised to €15,000 in 2025. Businesses under the regime do not charge IVA and cannot deduct input IVA. It suits freelancers and micro-businesses selling mainly to consumers; those selling to VAT-registered customers usually prefer to register and reclaim input IVA.
Common Portuguese IVA notes
- Restaurants: food and non-alcoholic drinks at 13% (intermediate); alcohol at 23%. A meal with wine mixes rates.
- Books and e-books: both at 6% reduced.
- Electricity: a portion of domestic electricity moved to the 6% reduced rate to ease energy costs.
- Fatura with NIF: Portuguese consumers routinely ask for an invoice with their tax number (NIF) — part of the "e-fatura" system that feeds deductions and a consumer lottery.
How to use the calculator
Pick the rate (23%, 13% or 6%), enter the amount and choose add-or-remove direction. The calculator returns net, IVA and gross. For Azores or Madeira pricing, use the regional rate. For mixed-rate baskets, run each line separately and sum.
Frequently asked questions
What is the VAT rate in Portugal in 2026?
The standard Portuguese VAT (IVA) rate is 23% on the mainland. A 13% intermediate rate applies to restaurants and some foods, and a 6% reduced rate to essential foods, books, medicines and public transport. The Azores and Madeira use lower regional rates.
Why are VAT rates lower in the Azores and Madeira?
As autonomous regions, the Azores and Madeira set their own IVA rates, which are lower than the mainland — roughly 16% and 22% standard respectively in 2026. The differential is a long-standing measure reflecting their island economies.
Is restaurant IVA in Portugal 13% or 23%?
Food and non-alcoholic drinks served in restaurants are at the 13% intermediate rate. Alcohol is at the 23% standard rate, so a restaurant bill with wine mixes the two.
What is the small-business VAT exemption in Portugal?
The regime de isenção (article 53) exempts businesses with annual turnover below €15,000 (2025 threshold) from charging IVA. They cannot deduct input IVA either. It suits micro-businesses selling mainly to consumers.
What is the e-fatura / NIF on receipts?
Portuguese consumers ask for invoices showing their tax number (NIF) so purchases feed the e-fatura system, which supports certain income-tax deductions and a national receipt lottery. It is a deliberate anti-evasion design, not a tax on the consumer.