Digital Tax-Free Solutions to Be Implemented for Shopping in Portugal

VAT refunds for exported goods purchased by non-EU citizens in Portugal have now a technological face as it should have considering the latest efforts in this direction. Since July 2018, the authorities in Portugal implemented the Digital Tax-Free Shopping as an encouragement to both retailers and customers. Having an idea about how VAT refunds are made in Portugal from a legal point of view can help tourists smooth the process even more with the new system. Our lawyers in Portugal are at your disposal with legal advice in this sense and can also help you when starting a business in this country.

The new tax system will ease the refund process

Non-EU citizens visiting Portugal have special rights when it comes to VAT, sales tax, or consumption tax refunds. This year, the refund process has been improved with the new tax-free solutions implemented by the authorities, meaning that the information of the tourists is stored online for an easy verification and refund. The risk of fraud has been diminished with the new tax-free solutions and the smart techs implemented. More than that, the refund service at the airports in Portugal is faster than before.

The new rule is part of the digitalization process which will definitely contribute to the shopping tourism development in Portugal, as the authorities expect. The legal aspects of taxes in Portugal for foreign investors can be clarified by our attorneys in Portugal who are at your disposal with tax advice.

Tax refunds in simple steps

The VAT or other taxes imposed on the purchased goods in Portugal can be easily refunded to non-EU travelers through a series of stages. The travel documents, the passport, and the receipts are mandatory when applying for tax refunds before departing to the home country. Likewise, the online registration is now applicable to all retailers, cutting the time for completing the forms at the airport, and the tourists can be refunded in cash or credit in a fast manner. Thanks to the digital tax-free solutions for shopping in Portugal and the investments made in this field, the reduced risk of fraud comes in addition to the improvements for tax refunds.

We remind that the standard VAT in Portugal is set at 23% rate, with a low rate of 13% for foods, newspapers, and magazines.

We invite you to contact our law firm in Portugal and benefit from tax advice and customized legal services if you are a foreign investor who wants to do business in this country.