The exemption is optional, applies if you expect to invoice less than €15,000 in the year (and did not exceed that amount in the previous year), and requires the statement «Sem retenção, nos termos do n.º 1 do artigo 101.º-B do Código do IRS.» on the receipt.
On this receipt
Service amount–
+ VAT–
− IRS withholding–
You receive from the client–
Annual estimate
Mainland IRS brackets. In the Azores and Madeira the rates are different. IRS estimated by applying the 2026 brackets (art. 68 CIRS) to amount × coefficient, without tax credits, without the minimum subsistence amount and without IRS Jovem, as if it were your only income. Under the simplified regime there may be an increase if you do not justify expenses (art. 31 CIRS). If you are not exempt, the VAT you charge is not yours: it is paid over to the State.
Approximate simulation, with no official value, and not tax advice. It uses the general 2026 rates and simplified rules: it does not take into account tax credits (deduções à coleta), the minimum subsistence amount (mínimo de existência), IRS Jovem, other household income, aggregation of income (englobamento), the increase in taxable income under art. 31 of the CIRS (unjustified expenses), or the IRS rates of the Autonomous Regions. The real result may be very different. Always check on the Portal das Finanças, on Segurança Social Direta or with a certified accountant (contabilista certificado). This site does not belong to and is not associated with the Autoridade Tributária e Aduaneira (AT) or the Segurança Social. Sources and rates.