Understanding VAT (IVA) Rates

Portugal has three VAT rates. The standard rate is 23% for most goods and services. An intermediate rate of 13% applies to restaurant meals and wine. A reduced rate of 6% applies to essential foods, medicine, and hotel stays.

Prices displayed in shops always include IVA. However, if you are a freelancer invoicing foreign clients, you need to know exactly which rate applies to your specific service to avoid fines.