Flash News NA 2025/10/28
VAT Refund in Portugal: How It Works and Why Professional Fiscal Support Is Essential
The VAT refund process in Portugal allows businesses to recover excess deductible VAT. This article outlines the minimum refund amounts, applicable timeframes under Article 22 of the Portuguese VAT Code (CIVA), and the importance of professional fiscal assistance to ensure compliance and financial optimisation.
What is a VAT refund
A VAT refund is available when input VAT (deductible) exceeds output VAT (collected). In such cases, the taxpayer may request reimbursement from the Portuguese Tax and Customs Authority (AT) through the periodic VAT return, by selecting the “refund request” option.
Eligibility requires all tax and social security obligations to be fulfilled.
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Minimum amounts and refund types
1. Annual refund (for the previous calendar year). Can be requested until 30 September of the following year.
➤ Minimum credit amount: € 50.
2. Intra-year refund (covering at least 3 consecutive months). Applicable when the taxpayer has accumulated input VAT over three or more consecutive months.
➤ Minimum credit amount: € 400.
3. Persistent credit refund (after 12 months). If a credit balance remains for over 12 months, the taxpayer may claim reimbursement when it exceeds € 250, under Article 22(5) CIVA.
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Processing and payment deadlines
The Tax Authority generally has up to two months after submission of the VAT return to process the refund.
Where further verification or inspection is required, the period may extend up to 11 months.
Approved amounts are paid to the bank account registered in the company’s tax record, so maintaining current information is essential.
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Documentation and professional follow-up
Taxpayers must retain supporting documents — invoices, import declarations, proof of payment — for at least 10 years.
In case of delay or disagreement, taxpayers may submit an administrative claim (Article 70 CPPT) or judicial appeal (Article 102 CPPT).
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Conclusion
Efficient VAT refund management strengthens cash-flow and compliance.
Nominaurea provides expert tax and accounting advisory services, ensuring your business recovers VAT credits effectively and remains fully compliant.
