VAT on Materials and fittings in an ARU contract in Portugal: 6%, 13% or 23%?
6% applies to goods and services included in the global price of a qualifying rehabilitation contract (verba 2.23). Goods or services bought outside the contract are taxed at 23%.
- Rate inside the contract
- 6% on the mainland
- Rate outside the contract
- 23% (standard rate)
- Legal basis
- Verba 2.23, Lista I, Código do IVA (CIVA)
- Condition
- The contract must be a rehabilitation works contract for a building in an ARU
- Included
- All goods and services that form part of the contract
- Official text (Lista I of the Código do IVA)
- info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
- Sources
- info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/inform... - Checked
- 2026-11-05
What decides the rate
- A works contract is work agreed for a global price, not paid by the day.
- Costs not written into the contract are taxed at 23%.
Important
- This page is a general summary of public sources and not tax advice.
- Rates shown are for mainland Portugal. The rate depends on the facts of each job, so ask a certified accountant (contabilista certificado) or the Tax Authority (AT) before you invoice or pay.
More: VAT guide
Free check
Tell us what work you plan and where. We will answer your VAT question by email, for free, using the official sources. This is general information, not tax advice.