VAT Exemption Calculator (Article 53) 2026

Portugal's article 53 VAT exemption covers activities invoicing up to €15,000/year. Exceed €15,000 but stay at or below €18,750 and you exit the exemption on 1 January; exceed €18,750 (25% above the threshold) and VAT applies immediately, with 15 business days to file an amendment declaration. In your first year the threshold is assessed proportionally. Check your position in the calculator.

How the regime works

• Threshold — €15,000 of annual turnover (annualised in the starting year).
• Normal exit — above €15,000 up to €18,750: exemption ends the following 1 January.
• Immediate exit — above €18,750: charge VAT right away + amendment declaration within 15 business days.
• Waiver — possible, to deduct input VAT; binds you to the normal regime for 5 years.

Freelancing in Portugal? See the freelancers guide and the green receipts simulator. Specific cases (imports, waivers) deserve case-by-case advice — talk to us.

Frequently asked questions

What is the article 53 exemption?

The regime exempting activities up to €15,000/year from charging VAT. No VAT charged to clients — and none deducted on purchases.

What if I exceed €15,000?

Up to €18,750: you exit on the following 1 January. Above €18,750: VAT applies immediately, with 15 business days to file the amendment.

First year of activity?

The threshold is assessed proportionally — turnover is annualised and compared with €15,000.

Can I waive the exemption?

Yes, to deduct input VAT — but you stay in the normal regime for at least 5 years.

Do I still issue invoices?

Yes, always, with the article 53 exemption mention.