Accounting for retail and wholesale businesses.

Accounting for retail and wholesale businesses in Porto

Who is it for?

High-street and shopping centre shops, wholesalers, importers and exporters, and online shops selling to Portugal and other European Union countries.

Which VAT scheme?

• Exemption for those with an annual turnover of up to €15,000 (Article 53 of the VAT Code);
• Quarterly scheme for most small and medium-sized enterprises;
• Monthly payment plan mandatory for turnover of €650,000 or more, and optional for amounts below that — it is worthwhile for those who receive frequent refunds, such as exporters.

Selling to other countries

Sales to businesses in other EU countries with a valid VAT number registered in VIES are exempt and must be included in the recapitulative statement. Online sales to private individuals in other EU countries are subject to VAT at the rate applicable in the customer’s country when the total exceeds €10,000 per year; everything is declared in Portugal via the OSS one-stop shop. Purchases from outside the EU are subject to VAT and customs duties.

Stock levels and margin

In a retail business, profit lies in the stock: without accurate stock takes, you cannot know the cost of goods sold or the profit margin. We close the financial year with a physical stock-take, report stock levels to the tax authorities where required, and monitor profit margins by product category throughout the year.

Invoicing and software

Certified invoicing software, ATCUD, monthly SAF-T filings and, for online shops, the integration between the sales platform, the payment processor and the accounting system — this is where the differences lie that are often overlooked by banks.

Income Tax (IRS) or Corporation Tax (IRC)

For sole traders, under the simplified scheme, income tax is levied on 15% of sales of goods (Article 31 of the Income Tax Code). In the case of a company, there is simplified corporation tax regime for smaller businesses. Compare at simplified tax regime simulator or organised accounting.

How we work

1. Background. VAT regime, exports, invoicing software.
2. Every month. Purchases, sales, bank transactions and platforms have been reconciled with the documents held by the customer department.
3. Reports. Sales, profit margins and cash flow: making decisions based on figures.

The accounts and tax returns are signed by a Certified Accountant registered with the Institute of Certified Accountants (see Legal information). The rules described here are those for 2026; the classification of each case is always confirmed at the first meeting.

Frequently asked questions

When does an online shop have to charge VAT from another country?

When sales to private individuals in other EU countries exceed a total of €10,000 per year. From that point onwards, the VAT rate of the customer’s country applies, as declared in Portugal via the OSS one-stop shop.

Is it worth switching to monthly VAT returns?

For those who receive frequent refunds, such as exporters, the answer is often yes, because the money comes back more quickly. For everyone else, it’s more work for no gain.

Do I have to carry out a stock-take every year?

Yes. The year-end stock take is included in the accounts and, above certain thresholds, must be reported to the tax authorities.

I sell on Amazon and other marketplaces. Does that make any difference?

The way you invoice and declare VAT on certain sales is changing. We’ll look at your situation at our first meeting.

Other sectors: Doctors and clinics · Property · Local accommodation · Restaurants and cafés · Architects, engineers and consultants.