Other Indirect Taxes

1. Excise Duties

In Portugal there are several excise duties in line with the EU Directives on this matter. These specific excise duties are levied on the related products (alcohol and alcoholic beverages, beer, oil and gas and manufactured tobacco) in the manufacturing, processing or import phases and applicable throughout the Portuguese territory.

Excise duties are subject to self-assessment, but assessed by the Portuguese Tax and Customs Authorities based on the returns delivered by the taxpayer. The circulation of goods subject to excise duties in duty suspension arrangements is made through an Electronically Administrative Document (e-DA).

2. Tax on Alcoholic Beverages and Non-Alcoholic Beverages Added with Sugar (IABA)

The IABA is levied on the beer, wines, other fermented beverages, other intermediate products and spirit drinks, generally known as alcoholic beverages and on the Ethyl alcohol. The rates applicable to Alcohol and Alcoholic beverages are the following:

Product	Rate
Beer	From € 9,64/hl to € 33,85/hl
Wine	€ 0
Intermediate products	€ 87,92/hl
Fermented beverages	€ 12,06/hl
Ethyl Alcohol and Spirit Drinks	€ 602,51/hl
Non-Alcoholic Beverages Added with Sugar or Sweeteners	Variable rate between €1.16/hl and €23.18/hl, depending on sugar content per litre
Beverage Concentrates	Fees range from €6.95/hl to €231.78/hl, depending on the sugar content per litre

*In the case of spirituous drinks, those that, until 31 December 2025, are manufactured from the fruits of the strawberry tree in certain municipalities of the country (applicable to liqueurs and crème de, as well as distilled spirits), are excluded, to which a rate of 25% of the initial rate is set.

3. Tax on oil and energetic products (ISP)

The ISP is levied on the oil and energetic products and any other products that are used as fuel or carburant in any type of non-stationary engine. The ISP is levied on the other hydrocarbons, with the exception of the peat and natural gas, destined to be used, sold or to be consumed in use as fuel, being considered as such the use of a product, through combustion.

4. Tax on Tobacco products

The tax on tobacco is levied on cigarettes, cigars, cigarillos and any other smoking tobacco.

Cigarette taxation has two elements: specific and ad valorem. The specific element reflects taxation per thousand cigarettes, while the ad valorem element translates into taxation of an exact percentage of the product's market price. The applicable rates are

On cigarettes: €151.88 (specific element) and 1% (ad valorem element);

On cigars and cigarillos: 25%;

Fine-cut tobacco intended for rolling cigarettes: €0.091/g (specific element) and 15% (ad valorem element);

Nicotine-containing liquid for electronic cigarettes: €0.351/m

5. Vehicle Taxes

The vehicle tax (Imposto sobre Veículos or ISV) is a registration tax levied upon the release of vehicles for private consumption. The taxable base is the engine capacity and the level of the carbon dioxide (CO2) emission. VAT is also levied on the acquisition of cars and the ISV is included in the tax base for VAT purposes.

ISV is 50 per cent exempt up to a limit of €7,800.00 for large families, which are considered to be households that have more than 3 dependents or have 3 dependents and two of them are under 8 years old. The exemption is only recognised for 1 vehicle per household.

The annual circulation tax (Imposto Único de Circulação, IUC) is an ownership-based tax, which applies amongst others to passenger vehicles and vehicles used for mixed passenger and goods transport, vehicles used for private transport of goods and transport services, motorcycles, boats and private aircrafts. The final tax payable varies in accordance with the engine capacity and the CO2 emissions of the vehicle.

A 50% exemption applies for certain vehicles for large families (with more than 3 dependants or 3 dependents in which two of them are less than 8 years old).