I Exceeded the €15,000 VAT Threshold Mid-Year. What Now?
You were VAT-exempt and suddenly realised you've crossed €15,000. Don't panic — here's exactly what to do, step by step.
Everything you need to know about invoicing, VAT and Social Security in Portugal.
Your customers can now pay by Multibanco and ifthenpay, with the reference printed straight onto the invoice PDF. You can also issue transport documents and report them to the AT, plus a new alert when one client takes up too much of your turnover.
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You were VAT-exempt and suddenly realised you've crossed €15,000. Don't panic — here's exactly what to do, step by step.
Do you have more than one activity? You can hold multiple CAE codes simultaneously. What changes, what stays the same, and why the income tax coefficients matter.
If you invoice over €15,000/year and charge VAT, the VAT you pay on professional expenses reduces what you owe the state. Most freelancers don't know this.
Work slowed down and you want to close your activity temporarily? Or for good? The process is simple — and yes, you can always reopen.
Have a job and want to take on side projects? It's legal, it's common in Portugal, and it's simpler than you think. Here's everything you need to know.
Most freelancers use the words interchangeably. In practice it usually works — but legally there are differences that can matter when it counts.
You invoiced €1,000 and the client paid €770. No mistake. It's withholding tax — an advance payment of your IRS that the company sends directly to the tax authority. Here's what it is, the rates (23% and 11.5%) and how it appears on your recibo verde.
Need help with a project? You can hire another freelancer. Their receipt is your expense — straightforward, legal, and deductible.