Do you qualify for IVA franquia?
Check the €15,000 Portuguese-turnover test, the separate €18,750 immediate-exit rule, and the other Article 53 conditions.
Frequently asked questions
What is regime de franquia?
Portugal's Article 53 small-business VAT exemption. A Portugal-based taxpayer generally needs previous-calendar-year turnover in Portugal of no more than €15,000 and must satisfy the other conditions, including not carrying out exports or connected activities. A new activity uses its estimate for the current calendar year. Exempt invoices state ‘IVA – regime de isenção’, and input VAT cannot be deducted or recovered.
What counts toward the €15,000 threshold?
Article 53 uses annual turnover realised in Portuguese territory. Cross-border place-of-supply rules decide whether an operation is in Portugal; an EU client by itself does not answer that question. For a new activity, use the estimate through the end of the current calendar year without annualising a partial year.
What happens when I cross €15,000?
If an existing exempt activity finishes the year above €15,000 but at no more than €18,750, the normal regime starts on 1 January of the following year and the change is due within 15 working days after year-end. If current-year turnover exceeds €18,750, the exit is immediate: VAT is due on the transaction that crosses the line, and the change is due within 15 working days.
Can I opt out of franquia if I'm under the threshold?
Yes. Article 55 allows a taxpayer who meets the exemption conditions to choose normal VAT taxation. The official AT guidance says that choice generally binds the taxpayer for at least five years, so compare recoverable input VAT and customer type before opting out.
Does invoicing a client in another EU country automatically end the exemption?
No. The client's country alone is not enough; place-of-supply, B2B/B2C and goods-versus-services rules matter. Article 53 specifically excludes exports and connected activities, while Article 58-A contains a separate cross-border small-enterprise scheme. Get transaction-specific advice instead of treating every EU invoice the same.
Is this checker legal advice?
No. It was checked against Articles 53 and 58, AT FAQ 5620 and Ofício-Circulado 25062/2025 on 31 August 2026. Cross-border supplies, mixed activity, restart restrictions and sector-specific exemptions need transaction-specific confirmation.