Vat on renovations

Hi,

From the "VatMan"  go to "Rates of VAT"  which has links lists of stuff at 6%, 13% and the rest is 23%.

https://eportugal.gov.pt/en/cidadaos-eu … m-portugal

In Portugal, there are three rates of Value Added Tax (VAT):

    a reduced rate of 6% in mainland Portugal, 4% in the Autonomous Region of the Azores and 5% in the Autonomous Region of Madeira for goods and services in List I of the Value Added Tax Code

    an intermediate rate of 13% in mainland Portugal, 9% in the Autonomous Region of the Azores and 12% in the Autonomous Region of Madeira for goods and services in List II of the Value Added Tax Code

    a standard rate of 23% in mainland Portugal, 16% in the Autonomous Region of the Azores and 22% in the Autonomous Region of Madeira for all remaining goods and services.

But I'd just ask the contractor, builder, workmen, suppliers who are going to bill you.

@Peter,

6% VAT is for essential goods such as water, milk, meat, fish,  etc.

The normal VAT rate is 23 %.

Have a look at list II of the VAT code -  essentially this is what it says:

For repairs / maintenance to habitation properties (specifically excludes gardens, swimming pools) the vat on the labour and (profit) is 6% (5% Madeira and 4% in the Azores). However the invoice has to explicitly breakdown between labour and materials. If the materials exceed 20%, then this should be invoiced at 23% (22% etc in the autonmous regions). If the invoice is not broken down the the maximum vat rate. If the materials is 20% or less, the minimum vat rate applies to the whole lot. Best to clear up with service provider beforehand - a lot of builders are not geared up to invoice this way

@TonyJ1, Hi Tony, how does one go about getting the lower 6% VAT on labour? Is this something the contractor does automatically or is it something I would have to reach out to the camara to get?

You negotiate with the service provider, and you may have to quote the relevant law (2.27 of List I of the VAT code)