TAX FREE
1. What is Tax-Free?
Tax-Free is the exemption from Value Added Tax (VAT) in the regime of travelers residing outside the European Union (EU).
As a foreign resident, you can claim a refund of this tax and therefore buy without VAT.
2. Can anyone buy via Tax-Free in Portugal?
No. Only citizens residing outside the European Union can claim a VAT refund in Portugal.
Therefore, residents of the following countries are not eligible for Tax-Free:
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3. What is the VAT rate in Portugal?
All retail prices include a VAT rate on the base price, before tax. In Portugal, this rate is 23% and corresponds to 18.7% of the retail price (RRP).
Calculation of the percentage of VAT incorporated in the RRP:
- VAT : (1 + VAT) i.e. 23% : (1 + 23%) = 18.7%
Example:
- The price of the product, VAT included, is €250
- The VAT amount is calculated as follows:
250 x 18.7% = €46.75
There is an intermediate rate of 13% applicable primarily to wines and some processed food products.
Finally, there is also a reduced VAT rate of 6%, which basically applies to fresh foodstuffs, books, newspapers and magazines, medical services and medicines.
4. Is there a minimum amount to buy via Tax-Free in Portugal?
Yes. The minimum amount in Portugal is €61.35 per purchase.
5. Can I use Tax-Free for all my expenses?
No. You can only claim Fax-Free on the items you carry with you on the return journey to your home country.
Services (such as hotels, restaurants or rentals) or products that you consume during your stay in Portugal are not included in this exemption.
6. Three Golden Rules for Tax-Free Shopping:
- Tax-Free forms must be completed in the shop (essential personal data: Name, Passport number and Country of Residence).
- The traveler must leave the European Union within 3 months of the date of purchase.
- The traveler must stamp the forms at Customs and be prepared to present the items.
