IVA (Imposto sobre Valor Acrescentado), or value-added tax (VAT), is the sales tax in Portugal, set at a rate of 23%.
For importing cars to Portugal, here are key points to know:
- VAT is not charged on used cars imported from within the EU.
- VAT is not charged for tax-free imports done as part of an immigration process.
- VAT is based on the current resale value of the vehicle in Portugal.
How do you know if your vehicle is considered ‘used’? The general rules are as follows:
- The first registration (in the country you are importing from) of the car needs to be at least 6 months old.
- The car needs to have at least 6000 km.
Both of these rules need to apply, otherwise the car will be considered new.
To find the estimated resale value, you can check OLX.pt. Search for your car type and year to determine the average prices. Calculating 23% of this price will give you an idea of the VAT to pay.
UK customers need to be especially careful. Since Brexit, VAT is now applied to cars from the UK unless they are imported as part of an immigration.
