VAT on Solar water heater installation in Portugal: 6%, 13% or 23%?
23% applies to supplying or fitting a solar thermal water heater on the mainland since 1 July 2025, because verba 2.37 (6%) ceased on 30 June 2025.
- Rate
- 23% (standard rate) on the mainland
- Until 30 June 2025
- 6% under verba 2.37, which covered thermal and photovoltaic panels
- Now
- Verba 2.37 is marked as ceased in Lista I
- 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/codigo...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/inform... - Checked
- 2026-11-05
What decides the rate
- The date the VAT falls due decides the rate, not the order date.
- Standard rate applies to anything not named in the reduced or intermediate lists (art. 18 CIVA).
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.