Reference
VAT Exemption Codes in Portugal 2026, Complete Reference
Last updated: 2026-05-03
Common exemption codes for solo entrepreneurs
When you issue an invoice at 0% VAT, you must include an exemption code and the corresponding legal text. These are the codes most freelancers encounter:
| Code | Legal basis | When to use |
|---|---|---|
| M07 (122) | Art. 53 CIVA | Small business exemption, revenue under €15,000/year |
| M16 (115) | Art. 6, n.6, a) RITI | Reverse charge, B2B services to EU customers with valid VAT number |
| M01 (090) | Art. 6 CIVA | Place of supply outside Portugal, services to non-PT customers (B2B non-EU, B2C non-EU/non-EEA) |
| M20 (113) | Art. 14, a) RITI | Intra-community supply of goods to EU business |
| M19 (063) | Art. 14, n.1, a) CIVA | Export of goods outside the EU |
How to choose the right code
The exemption code depends on three factors:
- Your VAT regime: exempt under Art. 53, or standard regime?
- Your customer: business or consumer? With or without a valid VAT number?
- Your customer's location: Portugal, EU, or rest of world?
Use the VAT guide to answer these questions interactively and get the correct code.
Art. 53 exemption (M07)
If your annual revenue is below €15,000, you can operate under the Article 53 exemption. All your invoices carry code M07 regardless of where your client is. You don't charge VAT and don't file quarterly VAT returns.
The invoice text reads: "IVA, regime de isenção, artigo 53.º do CIVA."
Reverse charge for EU B2B (M16)
When you sell services to a business in another EU country that has a VIES-validated VAT number, you issue at 0% with code M16. The customer accounts for VAT in their own country (reverse charge mechanism).
You must also file a quarterly recapitulative statement (declaração recapitulativa) declaring these transactions.
Services to non-EU customers (M01)
Services provided to businesses or consumers outside the EU are outside the scope of Portuguese VAT. Use code M01. No recapitulative statement needed for non-EU transactions.
Important: every 0% line needs a code
Portuguese invoicing law requires that every invoice line with 0% VAT includes the applicable exemption code and legal reference. Issuing a 0% invoice without an exemption code is a compliance violation.