VAT in Portugal
VAT in Portugal (IVA) is levied on all goods at one of three rates:
- 21% - standard rate for most items;
- 12% - medium rate for items such as food, drink, heating oil, etc;
- 5% - reduced rate for essential foods, books, newspapers and many others.
IVA is not deductible in respect of property investment or construction unless the purchaser is IVA registered and asks for the IVA to be deducted in which case IVA will be charged on the sale or resale of the property.
