How to Calculate Duties and Taxes on Imports to Portugal is a critical step for international trade compliance. Import duties and taxes are mandatory fees based on the product's classification (HS Code), customs value, and country of origin. In Portugal, the process is managed by the Autoridade Tributária e Aduaneira (AT). Customs duties are waived for shipments valued at €150 or less, but Value Added Tax (VAT) is due from the first cent (€0 de minimis) for commercial goods. Understanding these rules is key to accurately estimating your landed cost.
Import duties in Portugal are governed by the European Union's (EU) Common Customs Tariff (CCT), which applies to goods imported from outside the EU. The duty rate is determined by the product's classification under the EU's integrated tariff, known as TARIC (Integrated Tariff of the European Union). This system extends the international 6-digit Harmonized System (HS) code to a 10-digit import tariff code, which must be accurately declared to the AT. The duty rate can be reduced to 0% or a preferential rate if the goods originate from a country with which the EU has a Free Trade Agreement (FTA) and the correct proof of origin is provided.
To accurately calculate import tax in Portugal, you must first establish the customs value of the goods. Portugal, following EU regulations, uses the CIF (Cost, Insurance, and Freight) method as the basis for calculating both Customs Duties and VAT. This means the dutiable value includes the cost of the goods, plus the cost of transport (freight) and insurance up to the point of entry into the EU/Portugal. This is a crucial factor when using an 'import tax calculator Portugal' to estimate your total landed cost.
For commercial shipments, the calculation of duties and taxes is a two-step process. First, the Customs Duty is calculated on the CIF value. Second, the Portuguese VAT is calculated on the sum of the CIF value plus the Customs Duty. The standard VAT rate in mainland Portugal is 23%, though reduced rates (13% and 6%) apply to specific goods, and lower rates apply in the autonomous regions of Madeira and the Azores.
For low-value shipments, the rule for 'how import duty is calculated in Portugal' is simplified: shipments with a value of €150 or less are exempt from Customs Duty. However, VAT is still applicable from the first cent (€0 de minimis for tax). To streamline this, the EU’s Import One Stop Shop (IOSS) scheme allows sellers to collect and remit the VAT at the point of sale for B2C goods valued at €150 or less, ensuring a smoother customs clearance process and avoiding unexpected charges for the buyer upon delivery. Importers must also be aware of additional charges, such as Excise Duties on alcohol and tobacco, and the new Carbon Border Adjustment Mechanism (CBAM) for certain carbon-intensive goods.
Determine the Customs Value (CIF): Add the cost of the goods, the cost of freight, and the cost of insurance to the first port of entry in Portugal. This is the basis for all calculations.
Determine the Customs Duty: Apply the 10-digit TARIC code to find the duty rate (0% to 17%+) and multiply it by the Customs Value. If the value is €150 or less, the duty is 0%.
Calculate the VAT Base: Add the Customs Value (CIF) and the calculated Customs Duty. This sum is the VAT Taxable Base.
Calculate the Import VAT: Multiply the VAT Taxable Base by the applicable Portuguese VAT rate (Standard 23% in mainland Portugal). This final figure is the total import tax in Portugal.
Low-Value Shipment (B2C): A book valued at €50 (CIF) is imported. Customs Duty is €0 (below €150 de minimis). VAT is calculated on €50 at the reduced rate (e.g., 6%): €50 * 0.06 = €3.00. Total duties and taxes: €3.00.
High-Value Shipment (B2B): Machinery valued at €10,000 (CIF) with a 2.2% duty rate. Duty: €10,000 * 0.022 = €220. VAT Base: €10,000 + €220 = €10,220. VAT (23%): €10,220 * 0.23 = €2,350.60. Total duties and taxes: €2,570.60.
Failing to use the 10-digit TARIC code: Using only the 6-digit HS code will lead to incorrect duty rates and potential customs delays or fines.
Ignoring the €0 VAT de minimis: Assuming a low-value shipment is tax-free. All commercial goods, regardless of value, are subject to VAT unless the IOSS scheme is used.
Incorrectly calculating the Customs Value: The dutiable value must be CIF (Cost, Insurance, and Freight), not just the FOB (Free On Board) value.
Portugal's customs procedures are highly integrated with the EU's digital environment. The Portuguese Tax and Customs Authority (AT) is actively modernising its systems, which are fed by the EU's TARIC database. Key special rules include the Import One Stop Shop (IOSS) for B2C imports up to €150, which simplifies the 'calculate import tax in Portugal' process for e-commerce sellers. Additionally, the Carbon Border Adjustment Mechanism (CBAM) is being phased in for imports of specific carbon-intensive goods, requiring importers to register and report on the embedded emissions of their products.
The standard import VAT rate in mainland Portugal is 23%. Reduced rates of 13% and 6% apply to specific goods, and lower rates apply in the autonomous regions of Madeira and the Azores.
Yes, the duty de minimis threshold is €150. Shipments valued at €150 or less are exempt from Customs Duties, but VAT is still applicable.
Portugal uses the CIF (Cost, Insurance, and Freight) method to determine the customs value for both duties and taxes, in line with the EU's Union Customs Code.
TARIC is the Integrated Tariff of the European Union. It is the 10-digit classification code used in Portugal to determine the exact duty rate for imported goods.