VATLive > Blog > VAT > Portugal's Azores raises VAT to 18% - Avalara

Portugal's Azores raises VAT to 18%

  • VAT
  • 01 January 2014 | Richard Asquith

Portugal's Azores raises VAT to 18%

The Portuguese independent region of the Azores islands has raised its standard Portuguese Value Added Tax (Imposto sobre o Valor Acrescentado) rate from 16% to 18%.  The rise was passed into law on 1 January 2014.

The reduced VAT rate of 9% (IVA intermedio) on water, fuel, entertainment etc will rise to 10%.  The other reduced rate of 4% (IVA reduzido) on basic foodstuffs and hotels also increased to 5%.

Azores follows Portuguese VAT increases

Portugal has been forced into two VAT rises since the start of the global financial crisis.  The first 1% Portuguese VAT rise to 20% came in July 2010.  A second, 2% Portugal VAT rise to 22% followed at the start of 2011.  The average EU VAT rate is now over 20%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.