IVA (VAT) for Alojamento Local
Reviewed on 12 October 2026, against the law in force that day.
VAT (IVA) on an AL is less of a mystery than it looks, but it has two or three traps. The biggest is the VAT on platform commissions, which you pay even when you're exempt.
We went to the tax authority's (AT) own sources for every point. The links are at the bottom.
What rate do I charge?
AL accommodation is charged at the reduced rate. The AT confirmed in a binding ruling (no. 13830) that AL falls under item 2.17 of List I of the IVA Code. In 2026 the reduced rate is:
- 6% on the mainland
- 4% in the Azores
- 4% in Madeira
Who is the invoice made out to?
To the guest, not to Airbnb or Booking.com. And for the full price of the stay, without taking off the platform's commission. That's what the AT said in binding ruling 5566/2016.
Can I be exempt?
Yes, under article 53 of the IVA Code, if you're based or domiciled in Portugal, you don't export, and your turnover in Portugal last year didn't go over €15,000. That threshold has applied since the change made by Decreto-Lei n.º 35/2025.
Watch the current year: if you go over the threshold by more than 25%, so above €18,750, the exemption ends right then, not just next year. From that point you charge VAT, and you have 15 working days to file the change of details (article 58).
Monthly or quarterly?
Quarterly, if last year's turnover was under €650,000 (article 41, no. 1). The deadlines for quarterly filers:
| Quarter | File the return by | Pay by |
|---|---|---|
| Q1 (Jan–Mar) | 20 May | 25 May |
| Q2 (Apr–Jun) | 20 September | 25 September |
| Q3 (Jul–Sep) | 20 November | 25 November |
| Q4 (Oct–Dec) | 20 February | 25 February |
The second quarter is the exception that trips everyone up. The general rule would make it August, but the law pushes it to September (article 41, no. 10, and article 27, no. 10).
What about VAT on commissions?
Commission invoices from Airbnb (Ireland) and Booking.com (Netherlands) come without Portuguese VAT. That doesn't mean there's no VAT to pay: the host accounts for it. This is the reverse charge (autoliquidação).
If you're in the normal regime, the reverse charge goes on the quarter's periodic return.
If you're exempt under article 53, you still have to reverse-charge. The current law (article 27, no. 3, as worded by Decreto-Lei n.º 97/2026) says to file and pay by the end of the month after the one in which the tax became due, but only for periods in which you had these purchases (no. 5). The AT looked at exactly this case, an exempt AL with Airbnb commissions, in binding ruling 25603.
Where to check
- AT, Taxas aplicáveis 2026 (leaflet, Portuguese)
- IVA Code, article 27 (Portuguese)
- IVA Code, article 41 (Portuguese)
- IVA Code, article 53 (Portuguese)
- IVA Code, article 58 (Portuguese)
- Binding ruling 13830 (reduced rate for AL, Portuguese)
- Binding ruling 25603 (exempt AL and Airbnb commissions, Portuguese)
- Binding ruling 5566/2016 (who the invoice goes to, Portuguese)
This is a summary of the law and of what the AT wrote, as they stood on the date above. It is not tax advice. If in doubt, ask your accountant.