VAT on Works before the ARU is approved in Portugal: 6%, 13% or 23%?
23% applies to building works on a property whose ARU has not yet been approved, because verba 2.23 needs an ARU delimited in law. Invoices already issued at 23% need no correction.
- Rate
- 23% (standard rate) on the mainland
- Reason
- The property is not yet in a legally delimited ARU
- Case
- Alteration and extension of a single-family house, with annexes, while the municipality's ARU process was still under way
- Earlier invoices
- No correction needed when the VAT was correctly charged at 23%
- When VAT falls due
- When the service is performed, so the ARU status at that time counts
- 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
- The ARU must be approved and in force; a pending process does not count.
- Other reduced-rate items, such as the home-repair rule (verba 2.27), may still apply to a lived-in home.
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
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