As of 1st July 2025, there have been changes to the Portuguese VAT regime applicable to Independent Activity. Learn more about how these changes affect you and your independent income.
As of 1st July there have been some changes to the VAT regime applicable to Independent Activity.
1. If you are exempt from VAT under Article 53 and have exceeded the 15,000 income from activity but less than 18,750 Euro the calendar year will need to register and become VAT registered from the 1st of January 2026. (Previously this was only from the 1st February 2026)
2. If you have exceeded or will exceed 15,000 Euro plus 25% 18,750.00 Euro then you have to include VAT on the invoice that will take you past the 18,750.00 income immediately. This means you have to amend your registration to become VAT registered and file quarterly VAT returns.
3. Any invoices/receipts issued to clients outside of Portugal, whether in Europe or outside Europe does not count towards these thresholds.
4. If you are not VAT registered under Article 53 and are supplying services to a Business/Company (B2B) in the foreign state then the VAT exemption code you must select is “IVA-autoliquidaco-Artigo 6. n 6 alinea a) do CIVA”
5. If you are not VAT registered under Article 53 and are supplying services to a individual/Consumer (B2C) in the foreign state then the VAT exemption code you must select is ” IVA-Isencao Art 53 do CIVA”
6. If you are VAT registered and are are supplying services to a Business/Company (B2B) or individual/ Consumer (B2C) in the foreign state then the VAT exemption code you must select is always “IVA-autoliquidaco-Artigo 6. n 6 alinea a) do CIVA.
The “IVA-autoliquidaco-Artigo 6. n 6 alinea a) do CIVA” option will only appear if you insert a number in the customers/client identification box.
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