Portuguese Carbon Tax
The Portuguese Government has introduced a new Carbon Tax on Sea and Air Travel in its State Budget for 2021 and by Ministerial Order in February 2021. It enters into force on 1 July 2021 and 97 percent of the tax proceeds will go into an environmental fund to finance emission reduction projects.
What is the Carbon Tax?
The Portuguese Carbon Tax (Taxa de carbono sobre viagens aéreas) amounts to 2 € per chargeable passenger. From 1 July 2021, it is charged on passengers carried on board commercial flights from an airport situated in Portuguese territory. The Carbon Tax is administered by the Portuguese National Civil Aviation Authority (ANAC).
Who is liable to pay the Carbon Tax?
The Portuguese Carbon Tax is levied on passengers carried on board commercial flights from Portugal. Ultimately, it is the aircraft operator that is liable for tax because it must pass on the tax to the passenger. Private, non-commercial flights are exempt.
Several other passenger and flight exemptions apply, such as the exemption of infants, flights to and from Madeira and the Azores, flights following a forced landing at a Portuguese airport due to bad weather, technical reasons or other similar reasons, and flights performed in the framework of public service obligations.
What Are the Tax Obligations?
As a participating aircraft operator, you must:
- appoint a fiscal representative, such as FCC Aviation, if you don’t have a fixed establishment in Portugal. The appointment of a fiscal representative is optional if you are based in an EU member state.
- submit a tax declaration (due date and other details to be confirmed shortly).
- pay the carbon tax by the 20th day of the month following the end of the reporting month.
- display the tax in the advertised fare.