VAT exempt under Article 53 of the Portuguese VAT Code (CIVA)

During the year 2026, only taxable persons with their registered office or domicile in Portugal may benefit from the application of the special exemption regime in Portugal, provided that they:

• Do not carry out export operations or related activities;
• In the previous calendar year (2025), had a turnover in national territory equal to or less than €15,000;
• In the current calendar year (2026), the exemption threshold of €15,000 is not exceeded by more than 25% (€18,750);
• When starting activity in 2026, the forecast turnover in national territory is equal to or less than €15,000.
• When the relevant period is shorter than a calendar year, the estimated turnover must correspond to the foreseeable value of the supplies of goods and the provision of services to be carried out from the start date of the activity until the end of the year. As of 01.07.2025, the conversion to an equivalent annual turnover, provided for in the previous wording of Article 53 of the VAT Code, no longer applies.

 
Taxable persons with their registered office or domicile in Portugal, covered by the special exemption regime, cease to be able to benefit from this regime in Portugal (cessation of the regime) when any of the following situations occurs:

 
i) In the previous calendar year, they reached a turnover in national territory exceeding €15,000 (as from 01.01.2026) – Submission of a declaration of changes within 15 working days, counted from the last day of the year in which the threshold was exceeded;

 
ii) In the current calendar year, the exemption threshold of €15,000 is exceeded by more than 25% (from the moment €18,750 is exceeded) – Submission of a declaration of changes within 15 working days, counted from the date of issuance of the invoice that caused this threshold of €18,750 to be exceeded;

 
iii) From the moment they begin carrying out export operations or related activities – Submission of a declaration of changes within 15 working days, counted from the date of issuance of the invoice that evidenced the export operation or related activity;

 
iv) They waive the regime, by submitting a declaration of commencement or changes, as applicable, producing effects from the date of its submission (being required to remain under the standard taxation regime for a period of at least five years).