Isenção do Artigo 53.º
Article 53 VAT Exemption
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The VAT exemption under Article 53 of the Portuguese VAT code (CIVA) for small businesses and freelancers earning below the annual revenue threshold.
Artigo 53.º do CIVA (Article 53 of the Portuguese VAT code) is the provision that lets small businesses and freelancers operate without charging IVA (VAT). For many new trabalhadores independentes, it's the default starting point.
What the exemption means
If you qualify, three things happen:
- You don't charge VAT on invoices. Your prices are final, no 23% added on top.
- You don't file VAT returns. No periodic declarations to the tax authority about VAT collected and paid.
- You can't deduct VAT on expenses. The VAT you pay on business purchases (software, equipment, supplies) stays as a cost, you can't reclaim it.
It's a trade-off. You gain simplicity and lower prices for your clients, but you absorb the VAT on everything you buy.
The revenue threshold
The exemption applies if your annual revenue is below the threshold set by Portuguese law, approximately €15,000, though the exact amount is adjusted periodically. If you start mid-year, the threshold is prorated. Starting in July with a €15,000 annual threshold means your limit for that first partial year is roughly €7,500.
Choosing it when you register
You select the Article 53 exemption during your abertura de atividade (opening of activity). The Portal das Finanças asks about your expected revenue and lets you choose your VAT regime. If you're under the threshold, Article 53 is the straightforward choice.
The mandatory invoice note
Every invoice you issue must state the exemption. The standard wording is:
IVA, regime de isenção, artigo 53.º do CIVA
Certified invoicing software includes this automatically when your account is configured for Article 53. If you're issuing Recibos Verdes through the Portal das Finanças, the portal handles it.
Exceeding the threshold
Since July 2025 (DL 35/2025), how the transition works depends on how much you exceed the threshold:
Between €15,000 and €18,750 (125% of the threshold): Standard transition. Your exemption continues until December 31. VAT registration is required from January 1 of the following year.
Above €18,750 mid-year: Immediate transition. The invoice that pushes your cumulative revenue past €18,750 must include VAT. You do not wait until January, VAT registration is required from that invoice forward.
This matters for growing freelancers. If your revenue is tracking toward €18,750 during the year, act before crossing it. Descodify's Art. 53 threshold tracker shows your progress against both limits in real time.
You can also voluntarily opt into VAT registration below the threshold, but you'll be locked in for a minimum of 5 years.
Related tools
Once you cross the threshold and need to charge VAT, use the VAT guide to find the correct rate and exemption code for each invoice type. For invoices to EU business customers, verify their VAT registration number first with the NIF checker before applying the reverse charge.
Frequently asked questions
What is the Article 53 VAT exemption?
It's a provision in the Portuguese VAT code (CIVA) that exempts small businesses and freelancers from charging VAT if their annual revenue stays below a certain threshold (around €15,000, though the exact amount is updated periodically). You don't charge VAT, don't file VAT returns, and can't deduct VAT on your expenses.
How do I qualify for Article 53?
You must be a solo entrepreneur or small business with annual revenue below the threshold. You choose this exemption when you open activity (abertura de atividade) on the Portal das Finanças. If you're starting mid-year, the threshold is prorated based on the remaining months.
What happens if my revenue exceeds the threshold?
It depends on how much you exceed it. Between €15,000 and €18,750 (125% of the threshold): your exemption continues until December 31, and VAT registration begins January 1 of the following year. Above €18,750 mid-year: registration is immediate, the invoice that pushes you past €18,750 must include VAT. This two-tier rule has been in effect since July 2025 (DL 35/2025).
Do I need to mention the exemption on my invoices?
Yes. Every invoice must include a note stating you're exempt under Article 53 of the CIVA. The standard wording is: 'IVA, regime de isenção, artigo 53.º do CIVA.' Without this note, the invoice is not compliant.
Can I voluntarily register for VAT even if I'm under the threshold?
Yes. Some freelancers choose to register for VAT even when they qualify for Article 53, typically because they have significant business expenses with VAT they want to deduct, or because their clients prefer to receive invoices with VAT. Once you opt in, you must stay registered for at least 5 years.
Related terms
The English term for the Portuguese VAT exemption that lets freelancers earning below the annual threshold operate without charging, filing, or deducting VAT.
IVAVATImposto sobre o Valor Acrescentado, Portugal's value-added tax, charged on most goods and services. The standard rate on the mainland is 23%.
Abertura de AtividadeOpening ActivityThe process of registering as a self-employed worker (trabalhador independente) with the Portuguese tax authority, officially starting your freelance activity.
Regime SimplificadoRegime Simplificado de Tributação · Simplified Tax RegimePortugal's simplified tax regime for solo entrepreneurs and small businesses, where taxable income is calculated using fixed coefficients applied to gross revenue.
Trabalhador IndependenteSelf-Employed WorkerThe Portuguese term for an independent worker or sole entrepreneur, the equivalent of a freelancer or sole trader in other countries.