VAT (IVA) as a Freelancer in Portugal

In Portugal, there are two situations for freelances concerning VAT: regime normal (normal regime) and regime de isencao (exemption regime).

To be exempt from paying VAT or IVA, you must not have a turnover of more than €12,500 on taxable goods and services. If you need to charge your clients IVA, then you must send a declaration every three months to the tax authorities online. The VAT rate is 23% in mainland Portugal, 18% in the Azores, and 22% in Madeira.