Relevant changes have been introduced to the VAT regime applicable to self-employed workers, directly affecting tax registration and access to the VAT exemption regime under Article 53 of the Portuguese VAT Code.
1. VAT Exemption Regime – Article 53
Self-employed individuals may benefit from the VAT exemption regime if they:
- Are established or resident in Portugal;
- Do not carry out export operations or related activities;
- Did not exceed an annual turnover in Portugal of €15.000,00 in the previous calendar year.
EU residents may also benefit from this exemption, provided that their total turnover, including income earned outside Portugal, does not exceed €100.000,00.
2. Non-EU Residents
Residents outside the European Union are required to register for VAT, regardless of the amount of their annual turnover.
3. Transition to the Standard VAT Regime
When annual income exceeds certain thresholds, the following rules apply:
- If annual turnover is above €15.000,00 and up to €18.750,00, the self-employed individual will enter the VAT regime as from 1 January of the following year, with registration required within the first 15 working days of that year.
- If annual turnover is above €18.750,00, VAT becomes applicable from the moment that amount is reached, inclusive.
These changes highlight the need for self-employed workers to closely monitor their turnover in order to comply with VAT obligations.