Portugal VAT Refund 2024: Essential Guide | Finance Portugal

Portugal has a rich and turbulent past, demonstrated by the stately castles, churches, and other historical buildings. Portugal is a very affordable alternative to other European tourist locations, which attracts travelers on a tight budget. Shopping in Portugal also offers the chance to get a refund for the value-added tax (VAT) applied to your purchases.

When you shop in Lisbon or other regions of Portugal as a non-resident of the European Union (EU), you might notice that your receipts have an additional charge called VAT (Value Added Tax). VAT is a consumption tax added to every product you purchase, charging customers more.

Today, in this article, I will cover all the information regarding Portugal’s VAT Refund, starting from who can get the VAT refund, how you can get it, and much more. So, let’s dig deep into all the details without wasting any minutes here.

Who can Claim a VAT Refund?

If you fulfill the following, you are eligible for a VAT refund in Portugal:

You must show identification documents attesting that your primary residence is outside the European Union. You are also eligible if you are a UK citizen.

The total cost of your purchase, including VAT, must exceed 50 EUR. Most importantly, an item or collection purchased from the same retailer on the same day is called a “purchase.” You may also like to read Taxes In Portugal for Expats in 2024.

VAT Refunds to EU Businesses

According to Articles 170–171a of the VAT Directive, if your firm is registered for VAT in one EU member state and you have carried out cross-border transactions in a different member state where you are not registered for VAT, you are entitled to reclaim the VAT.

How do you get a VAT refund in Portugal?

Purchase requirements for VAT

Things you plan to take with you when you depart the country must be purchased.
The receipt’s total amount VAT excluded must equal €50 or higher.
These products must be purchased from merchants involved in the tax-free program.
Notably, specific purchases, such as lodging bills and dining out expenses, are not eligible for a VAT refund.
Each receipt must also meet minimum purchase criteria to be qualified for a return.

A Step-by-Step Guide for VAT Refund

Make an Early Arrival at the Airport

When you arrive at the airport customs station, a minimum of 30 minutes should be allotted for the VAT refund procedure. But be aware that the procedure could take longer if you wait in line behind a tour group or at busy times.

Get your Documentation of the Transaction

Approach a salesperson at a mall and ask for a document containing the registration code and evidence of the transaction (invoices and receipts). You may be asked to show the shop your passport or proof of legally recognized identity. Thus, don’t forget to bring a personal identifying document when shopping.

Visit an e-Tax Free Portugal Kiosk

Arriving at the airport early will help you avoid the crowd throughout the process. Inform the person at the check-in counter that you have certain things ready for a VAT tax refund. Then, proceed to the customs area and the computerized e-Tax Free location.

How to Apply Portugal Job Seeker Visa

Get a Refund of VAT

It’s time to receive your satisfying VAT reimbursement! The refund operators are located at the airport and will assist you in getting your money back.

Pick a Method to Receive your Refund

The returned VAT can be obtained in two ways: in submission boxes or at the counter. After the operator approves your form, you will receive your refund instantly in cash, credit card, or foreign checks at the counter.

Tips When Shopping in Portugal – VAT Refund!

Ask for the VAT

Tell the store you want to use the VAT refund system if your purchase qualifies for a VAT return. They will request your passport and provide you with a standard receipt, a unique tax-free form with your personal information, and a registration code. You will want the tax-free form and the receipt to claim the VAT refund at the airport, so please save both. In addition, the e-Taxfree Portugal System has made it possible to submit an electronic claim for a VAT refund in Portugal.

Check for “Tax-Free Shopping” Advertising

In Portugal, retailers participating in the tax-free shopping initiative usually indicate this by hanging signs that read “Tax-Free Shopping.” These could be seen as stickers on the doors or windows of the store. Additionally, some of these establishments may have little signs or displays on the counters advertising that they are a part of the tax-free program.

Hold onto Your Receipts

Keep your receipts handy, just in case. You can not get a Customs stamp if you don’t have the receipt.

Refund Date Expiration

Items must be exported from the EU three months after they are purchased. During this period, travelers have plenty of time to finish their purchases.

Non-EU Citizens

Non-EU citizens can shop in Portugal without paying any taxes. This program aims to boost foreign visitor purchasing, increasing the allure of product purchases for travelers.

Pack Wisely

You might need to show the items you bought in Portugal to get the Customs stamp for export verification. For this reason, it’s crucial to stop by Customs before checking in your luggage.

Get your NIF and Bank Account – VAT in Portuguese

The Fiscal Identification Number, or NIF, is a special identification number given to people and organizations for tax-related reasons. Whether you are an employee, a self-employed professional, or the owner of a firm, it is necessary to submit tax returns. On the other hand, the Social Security Identification Number, is mostly connected to social security and benefits. NIF is a crucial component for a smooth transition into Portuguese culture. On top of everything, I must say that they are more than just statistics.

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Frequently Asked Questions

Portugal reimburses non-EU visitors, including Britons, for the taxes they paid on purchases made while they were there!

You can pick up your VAT refund immediately in bigger airports; if not, mail the refund form to the shop’s address.

If you’re carrying luggage at the airport, go to the check-in counter for your trip and let the employees know you have items to declare. You will receive paperwork from them to present to Customs. Proceed to the Customs counter and show the tax-free paperwork thereafter.