The Benefits of a Portugal Virtual Office for International Businesses

In some cases, businesses in Portugal may be exempt from VAT registration. This typically applies to businesses whose annual turnover falls below a certain threshold, which is currently set at €12,500 for certain types of small businesses. If your business is not required to apply for Portuguese VAT, you may still be able to operate legally, but you will not be able to charge VAT on your sales or reclaim VAT on your purchases.

If your business qualifies for an exemption, it’s essential to keep track of your annual revenue and ensure that you don’t exceed the threshold. Should your turnover increase above the exemption limit, you will need to apply for VAT registration.

Additionally, some specific sectors may benefit from a VAT exemption regardless of turnover, such as healthcare providers, educational institutions, and certain financial services. However, even if exempt from VAT, it’s important to stay informed about changes to local tax laws to ensure compliance.

If in doubt about your VAT obligations, seeking advice from a tax professional can help clarify your situation and ensure your business operates within the boundaries of Portuguese tax laws.

Portugal Virtual office