Once you’ve successfully applied for Portuguese VAT and received your VAT number, it’s important to manage VAT properly to ensure ongoing compliance. As a VAT-registered business, you must issue VAT invoices to customers, detailing the VAT amount charged. Similarly, you can reclaim VAT on business-related expenses, including supplies, equipment, and services directly related to your business activities.

Managing VAT also involves submitting regular VAT returns to the Portuguese Tax Authority. These returns summarize the VAT you’ve collected from sales and the VAT you’ve paid on purchases. The frequency of VAT returns depends on your business’s size and turnover. Generally, businesses with an annual turnover of over €650,000 are required to file quarterly returns, while smaller businesses may file annually.

Maintaining accurate records of all transactions is crucial to managing VAT efficiently. This includes keeping copies of invoices, receipts, and proof of payment for VAT claims. Regularly reviewing your VAT position ensures that your business stays in good standing with the Portuguese Tax Authority and helps avoid issues related to underpayment or non-compliance.

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