1) What is the “place of supply” and why does it matter?
It’s the rule that determines in which country VAT is due on a transaction. In Portugal, the core rule is in Article 6 of the VAT Code (CIVA).
If you get the place of supply right, you typically get the invoice right (VAT charged or not), who accounts for VAT, and what must be reported in the DP / DR.
2) The base rule to memorize
Situation | Simple rule | Typical outcome |
B2B (customer is a taxable person) | Customer’s location | Supplier usually does not charge VAT; customer reverse-charges(self-assesses VAT) |
B2C (customer is a private consumer) | Supplier’s location | Supplier charges VAT of their country |
This follows CIVA Art.º 6.º, n.º 6: (a) for B2B and (b) for B2C.
3) When the rule changes: key exceptions (simple list)
Real estate services → where the property is located (architecture/project, brokerage, valuation, accommodation/hotel).
(Art.º 6.º, n.º 7-a and 8-a)Restaurant / catering → where the service is physically carried out; on board (ship/plane/train in intra-EU transport), the place of departure applies.
(Art.º 6.º, n.º 7-c,d and 8-c,d)
Admission to events (cultural/scientific/sports, fairs, in-person training) → where the event takes place.
(Art.º 6.º, n.º 7-e and 8-e)
Passenger transport → proportionally to the distance covered in each territory.
(Art.º 6.º, n.º 7-b and 8-b)Hiring / leasing of means of transport
Short-term → where the vehicle is put at the customer’s disposal
Long-term B2C → where the customer resides
(Art.º 6.º, n.º 7-f / 8-f and n.º 9-g / 10-g)
Goods transport / ancillary services (loading/unloading, inspections) and work on movable goods → specific rules depending on B2B/B2C and place of performance.
(Art.º 6.º, n.º 9-a,b,c,d and 10-a,b,c,d)TBE services (telecoms, TV/radio broadcasting and electronic services) B2C → where the consumer resides; applies Art.º 6.º-A + the €10,000 micro-threshold (OSS).
Mental shortcut: if the service has a clear physical anchor (property, event, meal, a car handed over at a counter), the place-of-supply tends to follow that place.
4) Decide the place of supply in 4 steps (fast decision tree)
Is it an exception? (see list above) → apply that exception rule.
If not an exception:
B2B → customer’s location (usually no Portuguese VAT; reverse charge by customer)
B2C → supplier’s location (charge supplier’s VAT)
(Art.º 6.º, n.º 6)
Effective use & enjoyment can override the result (e.g., telecom/e-services, some rentals).
(Art.º 6.º, n.º 12 - 15)Is it TBE B2C? → check Art.º 6.º-A (threshold €10,000, option, OSS).
5) Decision tables (ready to use)
5.1. I BUY services (I’m the customer)
Service | Customer | Place of supply | Typical invoice | Do I report? |
Consulting / SaaS B2B | PT company | PT (B2B rule) | Supplier invoices without VAT | DP with reverse charge (no deduction if under art.º 53) |
Video editing B2C | Private consumer (FR) | PT (B2C rule) | Portuguese VATcharged | Supplier reports in PT |
Architecture project for property in ES | B2B/B2C | ES (real estate) | May have Spanish VAT | Usually no DP in PT |
Conference ticket (FR) | B2B/B2C | FR (event admission) | French VAT | No reverse charge in PT |
Catering at event in DE | B2B/B2C | DE (place of performance) | German VAT | No reverse charge in PT |
Telecom / e-services (use in PT) | B2C | May be pulled to PT | Depends | Check “use & enjoyment” (12–15) |
5.2. I SELL services (I’m the supplier)
Service | Customer | Place of supply | Typical invoice | Do I report? |
Consulting B2B to ES | ES company | ES (B2B rule) | No PT VAT (reverse charge) | DR (B2B services in customer’s Member State) |
Design B2C to FR | Private consumer (FR) | PT (B2C rule) | Portuguese VAT | DP in PT |
Admission to a fair in PT | B2B/B2C | PT (event in PT) | Portuguese VAT | DP in PT |
In-person training in IT | B2B/B2C | IT (event) | Italian VAT | No DP in PT; may have local obligations |
Short-term car rental in PT | B2B/B2C | PT | Portuguese VAT | DP in PT |
TBE B2C (apps, e-content) | EU consumer | Consumer’s country (6-A) | OSS / destination VAT | Report via OSS if applicable |
DR (Recap Statement): B2B services located in the customer’s Member State go into DR, as do exempt intra-EU supplies of goods. Legal basis: CIVA art. 29.º and RITI art. 30.º/31.º.
6) “Use & enjoyment” in plain language
Some services can be taxed where they are actually used, not where the basic rule would place them. Common examples include telecoms, certain e-services to consumers, and some rentals. Art.º 6.º, n.º 12–15 allows adjusting the place of supply to Portugal (or away from Portugal) when the effective use is in PT (or elsewhere).
7) The practical side (invoice, DP and DR)
When you BUY (you are the customer)
B2B with place of supply in PT → the foreign supplier invoices without VAT; you reverse-charge in the DP of the period when VAT becomes chargeable.
If you are under Art.º 53, you cannot deduct (it becomes a cost).
(Place-of-supply rule: Art.º 6.º, n.º 6-a; DP deadlines follow general DP rules.)
When you SELL (you are the supplier)
B2B with place of supply in customer’s country → no Portuguese VAT (add “reverse charge” mention) + DR.
(Legal basis: CIVA art. 29.º; RITI art. 30.º/31.º).B2C with place of supply in PT → you charge Portuguese VAT (unless TBE/OSS etc.).
(Art.º 6.º, n.º 6-b; 6.º-A).DR only when there are B2B services located in the customer’s Member State (and exempt intra-EU supplies).
DP only for periods where there are operations to report.
(RITI art. 30.º, n.º 2)
8) Quick bridge to RITI (goods / intra-Community acquisitions)
€10,000 threshold (intra-EU goods purchases): below it, origin-country rule; above it (or by option), place-of-supply becomes PT + reverse charge.
(RITI art. 5.º)Chargeability for intra-Community acquisitions (AIC): 15th day of the following month, or the invoice date if earlier.
(RITI art. 13.º)DP only when there are operations (AIC): obligation only in periods with transactions.
(RITI art. 30.º)
9) Common mistakes (and how to avoid them)
Treating event admission as “online services”: admission follows the event location.
(Art.º 6.º, n.º 7-e / 8-e)B2B without a valid VAT number (VIES) → the supplier may treat it as B2C and charge their VAT.
Forgetting the DR when selling B2B services located in the customer’s country.
(CIVA art. 29.º / RITI art. 30.º)Ignoring use & enjoyment for telecom/e-services: it can pull the place of supply back to PT.
(Art.º 6.º, n.º 12–15)