Hi all ,
lm just a bit confused, I am having my property renovated in the algarve, my question is do I pay 6% vat or is it 23% - 6% everywhere I've read gives conflicting information can anyone help as to which one it is.
regards
Peter
Vat on renovations
5
238
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.
3866
@Peter,
6% VAT is for essential goods such as water, milk, meat, fish, etc.
The normal VAT rate is 23 %.
152
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
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