DISCLAIMER: Please note, this is not a legally approved document. We are outlining what our customers are doing in Portugal when it comes to the statutory requirements. They may be using Mews to achieve some of it and some third-party services to get to some of the remaining requirements.
1- What are the VAT levels in the Portugal?
There are 4 levels of VAT, 0%, 6%, 13% and 23%.
2- What type products should each VAT level apply?
0% is for products and services which are tax exempt, cancellation fees and no-show fees are at 0% VAT
6% Some food products, periodicals, books, pharmaceuticals, hotel accommodation, agricultural production goods and passenger transport benefit from the reduced rate.
13% Some food products, certain catering services and entrance fees for singing, dancing, music, theater, cinema, circus, entrance fees to exhibitions, entrance fees to zoos, botanical and public aquariums benefit from the intermediate rate, provided they do not benefit from the exemption provided in paragraph 9 of article 9 of the VAT Code.
23% applies to all other go goods and services that are not in 6% VAT (reduced rate) or 13% VAT (intermediate rate).
3- Is there upcoming change of VAT levels?
No changes planned so far.
4- Should deposits be used for VAT payments (in case of advance deposit payments) or not (or both are allowed)
Yes. The VAT is payable at the moment the service is Charged. If you book a stay for next year which you pay now, the VAT is payable by the hotel at the moment the Payment is taken.
5- What City taxes apply in your country?
City Taxes are determined on city level. Each city can apply their own city tax. Also often referred to as tourist tax.
6- How is City Tax calculated?
Depends on the city / municipality.
7- What regions and type of properties do they apply to?
Depends on the city / municipality.
The following cities have city tax hard coded in the Portugal. For all cities the rule applies that if you are a resident of that city, which means registered as an inhabitant of that municipality, you are exempt of paying city tax. It is up to the hotel to provide a register to the city proofing that you had exempted guests.
Lisbon– Lisbon was the first Portuguese municipality to adopt this tax. All guests over the age of 13 are subject to payment, which is made per guest and per night, with a limit of seven nights. The value is 2 euros.
If you stay more than seven nights, you only have to pay the first seven. In terms of exemptions, children under 13 do not pay, as well as all those who travel to the capital for health reasons, to carry out any medical procedure or consultation. In this case, the companion is also entitled to the exemption and, to request it, it is necessary to present proof of that medical act.
Porto– The municipality of Porto started to charge the tourist tax in March 2018 and currently the value is equal to that of Lisbon, that is, 2 euros. The same goes for the other conditions: the exemptions are the same as in Lisbon and the maximum limit for charging the tax is also seven nights.
In addition, all those with a disability of 60% or higher are also not subject to payment, provided that they present a document proving that disability.
Algarve Portimao– Still in the Algarve, in the southernmost region of our country, in Portimão, the overnight rate has already been approved but will only come into effect, in principle, in March 2020. Anyway, the tax will only be charged in high season, that is, between March and October and the value is 1.5 euros. The tourist tax is applied up to a maximum of seven nights, per guest over the age of 13.
Cascais– In Cascais, similarly to Lisbon, minors under 13 do not pay the fee, but all the others do. The value is 1 euro up to a limit of seven nights in a row in tourist accommodation. This tax has existed in Cascais since April 2017.
Sintra- The third municipality in the district of Lisbon where the tourist tax exists is Sintra, which started to be charged more recently, in March 2019. Here the value is 1 euro per person for all over 13 years old and the maximum amount is three nights, less than Lisbon and Cascais.
Regarding exemptions, the same as in Lisbon: people who travel to Sintra for medical reasons and their companions are exempt from payment.
Mafra – In Mafra, payment is made up to a maximum limit of seven nights, as in most municipalities. As for the value:
- 1 euro: between 1 November to 30 April;
- 2 euros: between May 1 and October 31.
All over 12 years old are required to pay this fee in any type of tourist accommodation or in local accommodations located in the municipality of Mafra.
All disabled persons with a disability of 60% or more, duly proven and those under 12 years of age are exempt from payment.
Vila nova de Gaia– On the other side of Porto, in Vila Nova de Gaia, this payment has been mandatory since December 2018. Here there are some differences:
- between April 1 and September 30: the value is 2 euros;
- between October 1 and March 31: the fee is 1 euro;
- only those over 16 are subject to payment with a maximum limit of seven nights
As for exemptions, in this municipality are the following:
- minors under 15 (inclusive) are exempt;
- guests who are staying for health reasons and their companions;
- disabled people with a disability equal to or greater than 60% who present supporting documentation;
- tour guides or drivers accompanying a group of guests.
In addition, there is a 50% discount for all natural or legal persons, responsible for paying group stays for non-tourist purposes, such as: academic, sports, cultural or professional activities.
8- Are there any current requirements?
Yes. SAF-T (PT) (Standard Audit File for Tax Purposes - Portuguese version) is a standardized file (in XML format) with the aim of allowing easy export, at any time, of a predefined set of accounting, billing records, of transport documents and receipts issued, in a common and readable format, regardless of the program used, without affecting the internal structure of the program's database or its functionality.
To Automate the reporting of "faturaçao" with Mews properties are requested to connect with InvoiceXpress from Omniboost, and InvoiceXpress will send the "Faturas" to the Portuguese legal tax entity.
The following three actions all trigger the creation of an invoice or a credit note in InvoiceXpress:
-When a bill is closed in Mews
-When there are negative revenue items on a bill
-When there are positive revenue items on the bill
In order to make sure the integration runs as smooth as possible, we recommend you the following:
- All the products in Mews must have an accounting category assigned. You can assign products with different VAT to the same accounting category. Please note that the bill from InvoiceXpress will show the name of the accounting category and not the name of the product.
- Do not create a paymaster to manage costs. For “Petty cash” we recommend you to create a cashier.
- Always add the country in the address field of the guest profile to guarantee that the information is communicated properly between Mews and InvoiceXpress. *If you don’t have a country assigned to the guest, InvoiceXpress will assume the guest is Portuguese. When this happens, InvoiceXpress validates the Tax ID and if the Tax ID is not valid, the bill will not be transferred to InvoiceXpress.*
Invoices WILL be transferred to InvoiceXpress in the following scenarios:
- If you have a guest with a valid Tax ID (no country assigned)
- If you have a guest with an invalid/valid Tax ID + Other country (The bill will be transferred because InvoiceXpress is not validating the international Tax ID.)
-If you have a guest without Tax ID and country assigned
Invoices WILL NOT be transferred to InvoiceXpress in the following scenarios:
- If you have a guest with an invalid Tax ID (no country assigned or Portugal as a county)
-If you have a guest with an incomplete or wrong email format
<<Government link HERE>>
9- Are there any upcoming requirements?
10- Are there any tourism reports required?
Yes. In Portugal, all the properties that can accommodate more than 10 guests are obliged to submit every month a statistic report to INE (National statistics).
The report for the previous month must be sent in the first 8 days of the current month.
Note: If there’s no check-ins during a certain period of time, the property still has to send the report to INE.
How can a property submit the statistics report?
Send an XML file through webservice.
In the following website http://swhupload.ine.pt/ after introducing the GUID that uniquely identifies each organisation in the development and production environment, we can access:
XML upload in development environment - In order to fine tune the construction of XML files; Generic TAD documentation; Specific documentation of each survey that allows TAD;
Introduce GUID to access the files: http://swhupload.ine.pt/Default.aspx GUID: 912226E3-BAE0-4BBA-9D15-8B790A7DD53D
Test unit: 3330000050001
11- Is there Foreign Police integration required?
Yes. SEF in Portugal, all the properties PMS send the police report to SEF via web service which means the property does not need to upload the XML file every day in the Police website. Currently Mews only generates the file via the integration and then it is up to the property to upload it to SEF
12- Any other Statistical Authority reports required?
Data collection requirements
13- What data of guests should be collected (and does Mews require during online check-in) by law?
Arrival and departure date
ID Card or Passport
14- Is it legal to take copies of passports?
No, copies of passports or ID cards are not allowed.
15- Accounting currency