Municipal Tourist Tax implemented by some municipal councils
Incidence of the Municipal Tourist Tax
Some Portuguese municipal councils have implemented the Municipal Tourist Tax on overnight stays.
The Municipal Tourist Tax is due for paid nights in tourist resorts and local accommodation establishments, located in some municipalities, such as Lisbon and Porto. This rate is applicable to guests over the age of 13 and is calculated per person per night for a maximum of 7 consecutive nights, regardless of the type of booking (in person, analog or digital). Its unit value varies and can be consulted in the regulations of each municipality. In early 2019, this rate was set at 2 euros per night in the municipalities of Lisbon and Porto.
The maximum nightly rate is only applicable after seven consecutive nights at the same establishment, provided there is no interruption of stay.
If there is an interruption and if the same guest returns, the fee should be charged again to its maximum if applicable.
In case the guest stays more than 7 consecutive nights in the same stay, the maximum amount to be charged is 14 euros, corresponding to the multiplication of 2 euros per night and 7 consecutive nights.
The fee is levied on guests, regardless of their place of residence, and is exempt from paying, guests whose stay is motivated by medical treatment, extending this exemption to a companion, as well as guests with a disability of 60% or more. .
Such exemptions will only apply provided that proof of appointment / medical service or equivalent document and proof of disability status of the guest are presented, respectively.
The payment of the city tourist tax is made at the end of the stay in a single installment and charged by the hotel or local accommodation to the guest.
The Municipal Tourist Tax is not subject to VAT - Value Added Tax.
In the invoice confirming the payment of the municipal tourist tax it should be mentioned that it is not subject to VAT under the terms of paragraph 2 of article 2 of the Code of Value Added Tax (CIVA).
There are platforms that consider this rate automatically, however, in most cases it has to be the owner to handle this situation.
This tax is self-assessed on a monthly or quarterly basis through a portal created for this purpose by the municipalities.
Obligations
of accommodation establishments
The Municipality provides an electronic platform for the exclusive use of tourist resorts, local accommodation establishments and other entities of the sector, for the purposes of registration, settlement and delivery of the overnight rate. These entities must make their initial registration on the electronic platform within 30 days of starting their activity.
All tourist resorts and local accommodation establishments are required to register with the Tourist Tax Platform.
The municipal tourist tax constitutes municipal revenue and must be delivered to the competent municipality by the tourist enterprises and local accommodation establishments, within the period established by them. The municipalities argue that this is a measure that aims to make the most attractive and sustainable destinations.
- 20 January 2020