Standard Regime — Quarterly
Business owners with annual turnover below €650,000. This requires filing a VAT return every three months and reduces administrative workload.
Standard Regime — Monthly
Business owners with annual turnover of €650,000 or more. This requires filing a VAT return every month and allows for faster refunds, where applicable.
Exemption Regime (Article 53)
Business owners with turnover up to €14,500 in 2024 and a maximum of €15,000 in 2025 are exempt from VAT under Article 53 of the Portuguese VAT Code (CIVA). In these cases, they do not charge VAT to customers and do not file periodic VAT returns.
To benefit from this regime, the activity must be properly registered with the Tax Authority (Autoridade Tributária), indicating that it operates under Article 53, at the time of starting the activity or when updating it. This tax status must be reflected in the system for the exemption to be considered valid.
Exemption Regime (Article 9)
Some professional activities are VAT-exempt regardless of turnover, under Article 9 of the Portuguese VAT Code (CIVA). In these cases, professionals do not charge VAT on their invoices and do not file periodic VAT returns. Professions typically covered by this exemption include:
Doctors and other healthcare professionals, including dentists, psychologists, physiotherapists, occupational therapists, nurses, midwives, nutritionists, among others;
Teachers, trainers, and tutors (teaching services provided by individuals);
Artists and authors in cultural activities, such as writers, musicians, actors, choreographers, and directors;
Religious professionals performing worship-related duties;
Social and care services, including home carers and elderly assistance;
Non-profit organisations in their core activities (churches, IPSS, foundations);
Sports and recreational activities when carried out by exempt associations;
Services provided by Portuguese Sign Language interpreters, in a legally recognised context.
To benefit from this exemption, it is essential that the activity is correctly registered with the appropriate CAE or CIRS code, according to the nature of the activity performed. A mismatch between the registered code and the real activity may result in the loss of the exemption and an obligation to charge and pay VAT retroactively.