SIGN PT - VAT rates

Portugal has three tax regions, each with its own set of VAT rates. In the SIGN PT API, each rate is mapped to a generic enum value (STANDARD, REDUCED_1, REDUCED_2, REDUCED_3) that resolves to a different percentage depending on the taxpayer's fiscal_location. For more details on regions, see VAT regions in Portugal.

Rate table

The applicable rate is determined by the fiscal_location field. When omitted, the taxpayer's registered region is used as default.

What each rate covers

• Standard — STANDARD: everything not covered by the reduced or intermediate rates — electronics, clothing, professional services, construction, telecom, software licences, etc.
• Intermediate — REDUCED_1: restaurant meals, wine (non-sparkling), processed food, musical instruments, tickets to concerts and cinema, certain agricultural inputs.
• Reduced — REDUCED_2: essential goods and services — bread, milk, fruit, vegetables, meat, fish, water supply, medicines, books and periodicals, urban passenger transport, hotel accommodation.
• Exempt — REDUCED_3: operations zero-rated or outside the scope of VAT. A TaxExemptionCode is mandatory whenever the rate is 0%. See VAT exemption codes.

Request example

A standard-rate sale in the Azores:

"vat": {
  "type": "VAT_RATE",
  "code": "STANDARD",
  "percentage": 16,
  "amount": 8.00,
  "exclusive": 50.00,
  "inclusive": 58.00,
  "fiscal_location": {
    "country": "PT",
    "region": "AC"
  }
}

Validation rules

A rate is only valid in combination with the correct region. A rate that doesn't match the region (e.g. 4% on PT) will be rejected.

When the seller and buyer are in different regions, the seller's region generally applies (Art. 6 CIVA), with exceptions for immovable property, events, and B2B EU services. See VAT regions in Portugal.

Recent rate changes

Corrective documents (NC/ND) must reference the rate that was in force on the original invoice date — these dates matter when issuing corrections against older invoices.

• Madeira reduced rate: 5% → 4% on 1 October 2024 (DLR n.º 6/2024/M, Art. 21).
• Azores standard rate: 18% → 16% on 1 July 2022 (DLR n.º 2/2022/A).

⚠️ Warning: The official gov.pt page on IVA still lists the Madeira reduced rate as 5%. The 4% figure is correct as of 1 Oct 2024 — confirmed by AT Ofício-Circulado 25045/2024 (6 Dec 2024).