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IVA > Tax Free > General Interest


The new regime is set out in the Decree-Law no. 19/2017, of February 14, amended by Law no. 114/2017, of December 29 (OE 2018), and in the Ordinance no. 185/2017, of June 1, as amended by Ordinance no. 12/2018, of January 10.

The VAT Tax Management Area laid down the following instructions:

- Administrative instruction n.º 30192/2017, of July 31;

- Administrative instruction n.º 30197/2018, of January 12;

- Administrative instruction n.º 30198/2018, of January 12. 

The exemption operates directly, in that the seller doesn’t charge VAT in the purchases for private purposes to travellers whose domicile or habitual residence is not located in the European Union territory.

To qualify for the exemption, travellers must leave the EU territory carrying the goods in their personal luggage by the end of the third month after the purchase.

No, as a rule, the exemption does not operate through a refund process. It’s an exemption that operates directly, i.e., verified its conditions the seller doesn’t charge VAT in the operation.

This regime considers a traveler any private person who is not domiciled or habitually resident in the territory of the European Union, who purchases goods within Portugal and transports them in his personal baggage outside the territory of the Union by the end of the third month following the month of acquisition.

In order to benefit from the VAT exemption established in the «e-TaxFree Portugal» scheme, the traveler has to fulfill the following conditions:

• Habitually reside outside the European Union (in a third country or territory);

• His purchases must not have commercial nature;

• He must leave the European Union with the goods in his personal luggage within 3 months of their purchase (i.e., before the third month following the month in which the purchase was made);

• The invoice amount (net of tax), must be equal to or greater than € 50.00.

It’s a country that is not a member of the European Union. In order to qualify for the exemption he cannot be habitually resident in the European Union, ie, he cannot be habitually resident in the following countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Netherlands, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Switzerland, United Kingdom.

However, there are territories of countries belonging to the European Union which are considered as "third countries" or "third territories", which are treated for VAT purposes as not belonging to the European Union.

The following shall be considered as "third countries":

- Island of Helgoland and territory of Businger, Federal Republic of Germany;

- Ceuta and Melilla, of the Kingdom of Spain;

- Livigno, Campione d'Italia and national waters of the Lugano River, of the Italian Republic;

The following shall be considered as "third territories":

- The Canary Islands, of the Kingdom of Spain;

- The territories of the French Republic referred to in Articles 349 and 355 (1) of the Treaty on the Functioning of the European Union (Guadeloupe, French Guiana, Martinique, Maiote, Reunion, Saint-Barthélemy, Saint-Martin);

- Mount Atos of the Hellenic Republic;

- Channel Islands of the United Kingdom of Great Britain and Northern Ireland (Jersey, Guernsey, Alderney and Sark);

- Aland Islands, Republic of Finland;

If the traveler resides in a third country or territory he may benefit from the VAT exemption under the scheme.


Personal luggage is considered to be the carry-on luggage or the hold luggage that is own and carried by the traveler himself.

Purchases are considered to have a non-commercial destination, when, according to their nature or quantity, they are not intended to be used for commercial purposes. There is a case by case evaluation regarding the nature of the purchases.

It is the one mentioned in any identification document officially recognized as valid. It should be noted that there is no right to the exemption when the Tax and Customs Authority concludes, through any evidence at its disposal, that the purchaser has his permanent residence or usually resides in the Union European territory.

The provision of services, as well as the transfer of equipment or supplies for sporting boats and pleasure boats, passenger aircrafts or any other means of private transport, do not benefit from tax exemption.

Also, the exemption is not applied to sales in the national territory, whose invoice amount (net of tax) is less than € 50, as well as purchases of goods acquired with commercial intent.

Yes, the exemption is not applied to sales in the national territory, whose invoice amount (net of tax) is less than € 50.

It’s an electronic system to control the conditions for verification of the VAT exemption provided for in Decree-Law no. 19/2017, of February 14, and which was created by Ordinance no. 185/2017, of June 1 (modified by Ordinance 12/2018, of January 10).

As a rule, the exemption of VAT operates directly, that is, verified its assumptions, the seller does not charge VAT. It does not operate through reimbursement.

However, there is no obstacle to the certification of the exportation of the undue settlement of VAT on invoices for the transfer of goods carried out under the «e-TaxFree Portugal» system. For the seller, this situation determines the delivery of the tax unduly paid, established in the periodic VAT return, in the terms and within the deadlines set forth in paragraph 1 of article 27 of the VAT Portuguese Code.


It is a company which, under a contract with the taxable seller, secures the return of the guarantee amount to the traveler.