VAT Guide for SaaS & Software in Portugal

    SaaS & Software operating in Portugal charge the standard VAT rate of 23% (reduced rates: 6%, 13%). Registration becomes mandatory at €14,500 annual turnover, returns are filed monthly or quarterly, and cross-border B2C sales are reported through the EU One-Stop Shop.

    Standard rate23%
    Reduced rates6%, 13%
    Registration threshold€14,500 annual turnover
    Filing frequencyMonthly or quarterly
    CurrencyEUR
    In force since01 Jan 2011
    Last verified01 Sept 2026

    Official source

    Autoridade Tributária e Aduaneira

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in Portugal

    You invoice a customer based in Portugal for €1,000.00 of saas & software work.

    Add 23% VAT: €230.00. Total invoiced €1,230.00, declared in your monthly or quarterly return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same €1,000.00 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    B2C digital sales to other EU countries

    Consumers across the EU subscribe to your platform for a total of €10,000.00 per year.

    Above the €10,000 EU-wide threshold you charge the customer's local rate and file a single OSS return instead of registering in each country.

    Late filing exposure

    Your monthly or quarterly return is filed after the deadline.

    Fines from €150 to €3,750 for filing breaches. Interest on late payments.

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    Compliance checklist

    • Confirm whether you are above €14,500 annual turnover
    • Register with Autoridade Tributária e Aduaneira before your first taxable supply
    • Apply 23% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly or quarterly and archive invoices for the statutory period
    • Mandatory certified billing software
    • SAF-T reporting required

    FAQ — SaaS & Software in Portugal

    When must saas & software register for VAT in Portugal?

    Registration is required at €14,500 annual turnover. Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to saas & software in Portugal?

    The standard rate is 23%, with reduced rates of 6% and 13% for specific categories. Applied since 2011-01-01, last verified against Autoridade Tributária e Aduaneira on 2026-09-01.

    How often do I file VAT returns in Portugal?

    Monthly or quarterly. Fines from €150 to €3,750 for filing breaches. Interest on late payments.

    What must appear on an invoice in Portugal?

    SAF-T reporting mandatory. All invoices must be generated through certified billing software.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to Portugal for my sector?

    Mandatory certified billing software · SAF-T reporting required · Simplified regime for small businesses

    Go further

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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