Portugal's draft Budget Law for 2024 was submitted to parliament in previous days. Portugal’s draft budget law for 2024 includes various tax measures. There are a large number of changes that are currently under discussion, and they are subject to change. The budget law must be approved by the parliament before it can be officially enacted. If the law is approved, it will enter into force on January 1, 2024, and, unless otherwise noted, its measures are generally expected to apply as of the same date.
More on VAT changes, as follows.
Proposed VAT measures in Portugal’s Budget in 2024
Public
Portugal
Author: Kristina Dosen
Category:
Fiscal subject related
General information
Views:
1574
Content accuracy validation date:
08.11.2023
Content accuracy validation time:
08:59h
Some of the VAT-relevant changes refer to:
- VAT exemption for essential food items will not be extended until the end of 2023.
- VAT exemption for compost, fertilizers, and other products suitable for feeding livestock was extended until December 2024.
- VAT exemption on tickets for people accompanying those with a disability
- Reduced VAT rate of 13% on certain beverages when supplied with food and beverage services
- Simplified VAT refund regime for travel agencies organizing events and procedures for refunds
- Progressive taxation of certain petroleum and energy products
- The IABA rates applicable to alcoholic beverages and to drinks containing added sugar or other sweeteners would increase, in general, by 10%.
Importantly, Law No. 56/2023 was published on October 6, 2023, and provides for changes to the Portuguese VAT Code to apply the reduced VAT rate (currently, 6% in mainland Portugal, 5% in Madeira, and 4% in the Azores) to services relating to the construction or rehabilitation of certain immovable property. The law entered into force on October 7, 2023, and the reduced VAT rate is applicable as of the same date.
Other news from Portugal
The Portuguese Finance portal launches a new "Tax Information" page in English.
Public
Portugal
Author: Nikolina Basić
Portugal
Author: Nikolina Basić
Portugal’s Finance Portal has launched a new English-language “Tax Information” section, replacing the former “Portuguese Tax System” page to improve transparency, accessibility, and usability for foreign citizens. The updated section offers clearer navigation and dynamic content covering key tax topics for individuals and businesses, with additional information to be added progressively as user n... Read more
New document was uploaded: S4FiscalBackoffice Patch
Author: Dejan Šijačić
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Portuguese Tax Authority Announces January 2026 Brief E-Invoicing Tolerance Period
Portugal
Author: Tara Nedeljković
Portugal’s Tax Authority has granted a brief tolerance period by extending the deadline for reporting December 2025 invoice data to 9 January 2026, allowing all compliant submissions by that date to be treated as on time and penalty-free. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Portugal extends deadline for December 2025 invoice reporting
Public
Portugal
Author: Nikolina Basić
Portugal
Author: Nikolina Basić
Portugal has granted an exceptional extension allowing December 2025 invoices to be reported without penalties until 9 January 2026, instead of 5 January, for all taxable persons submitting data via certified invoicing software or SAF-T (PT). The Portuguese Secretary of State for Tax Affairs has issued Despacho No. 166/2025-XXV, granting an exceptional extension for the communication of invoices r... Read more
Portugal's deposit and refund system in 2026 and its impact on fiscalization
Portugal
Author: Nikolina Basić
Portugal will launch a nationwide Deposit and Refund System (DRS) on 10 April 2026, introducing a 10-cent refundable deposit on certain non-reusable beverage containers to boost recycling and support the circular economy. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Portugal's 2026 Budget brings VAT cuts for agriculture, art, and game meat.
Public
Portugal
Author: Nikolina Basić
Portugal
Author: Nikolina Basić
Portugal’s 2026 Budget introduces multiple VAT reductions effective 1 January 2026, expanding the application of the reduced 6% rate across agriculture, art, and specific food products. Key measures include cutting VAT to 6% for olive oil production, art gallery sales, and game meat, while extending existing VAT exemptions for agricultural inputs and pet food for animal welfare associations until... Read more
Portugal Extends PDF e-Invoice Validity and Delays QES & SAF-T Requirements to 2027–2028
Public
Portugal
Author: Nikolina Basić
Portugal
Author: Nikolina Basić
Portugal has extended the validity of PDF e-invoices and postponed the mandatory use of Qualified Electronic Signatures until 2027, giving businesses an extra year to adjust to new digital invoicing rules. The first mandatory annual SAF-T accounting file submission has also been delayed, with the 2026 report now due in 2028 instead of 2027. Last week, the Portuguese Parliament approved a delay to... Read more