How this works
The rule is simple and lives in two articles of the VAT Code. Art. 53.º exempts low earners: if your Portuguese turnover last year stayed under €15,000 (the 2026 figure), you can invoice without VAT. Above that, you enter the normal regime and art. 41.º sets the cadence: quarterly filing up to €650,000, monthly beyond. There is also the +25% rule — passing €18,750 mid-year forces you out of the exemption at once, no waiting for January.
- 1
Estimate your annual turnover
It is your total invoiced in a calendar year in Portugal. When starting out, annualise the forecast (expected turnover × 12 ÷ months active until December).
- 2
The tool applies the thresholds
It compares your figure with €15,000 (exemption) and €650,000 (quarterly vs. monthly) and shows the resulting regime and filing frequency.
- 3
Read the warnings
Near the threshold, I show your headroom to €18,750 (the +25% rule). Always confirm your specific case with a certified accountant.
Frequently asked
Is the exemption threshold really €15,000 in 2026?
Yes. The art. 53.º special exemption threshold rose to €15,000 in 2025 and stays at €15,000 for 2026. It counts your domestic turnover from the previous calendar year. One caveat: this figure changes from time to time by law, so check the CIVA text before you commit.
What is the +25% rule (€18,750)?
The normal threshold looks at last year. But if, during the current year, you exceed it by more than 25% — i.e. you pass €18,750 (€15,000 + 25%) — you lose the exemption immediately. The invoice that goes over already carries VAT, and you must report the change on the Portal das Finanças within 15 business days. You do not wait for January.
I am exempt. Can I export or sell to the EU?
Art. 53.º does not allow goods exports or related activities — if you export, you leave the regime. Since 1 July 2025, importing goods is compatible with the exemption. For B2B services located outside Portugal, the invoice uses the M40 mention ("VAT – reverse charge"), not the M10 exemption one. If this is your case, talk to an accountant.
Can I choose to charge VAT even below €15,000?
You can. Waiving the art. 53.º exemption makes sense if you buy a lot with VAT and want to deduct it (under the exemption there is no deduction). You waive it via a "Declaração de Alterações" and stay bound to the normal regime for 5 years. It is a cost-benefit calculation, not an automatic choice.
Under the normal regime, can I opt into monthly filing?
Yes. The art. 41.º default is quarterly under €650,000 and monthly above it, but anyone in the quarterly regime may opt into monthly (useful if you usually have VAT credit to recover). You request it in the start-up or change declaration, and it holds until you opt back into quarterly filing (filed in January, effective 1 January). Since 2026 the old 3-year minimum-stay rule no longer applies.
DISCLAIMER
The figures are for the 2026 tax year (€15,000 exemption threshold and €650,000 periodicity threshold) and may change by law. This tool gives the basic regime read from turnover alone — it does not cover exports, intra-EU operations, isolated acts, art. 9.º exemptions or specific elections. Not tax advice; for your case, consult a certified accountant or the tax authority.