If you're a TVDE operator in Portugal and you still don't have complete clarity on how VAT works in your business, you're not alone. It's one of the most confusing topics for those starting out — and one of the most expensive when things go wrong.
This guide answers all the questions operators ask us most frequently: what the exemption scheme is, what the actual limit is, how business volume is calculated, and what happens when you exceed it.
What is the VAT exemption scheme for TVDE?
In Portugal, TVDE operators with an annual business volume below a certain threshold can opt for the VAT exemption scheme set out in Article 53 of the VAT Code. Under this scheme, the operator:
- Does not charge VAT to the client on invoices
- Does not remit VAT to the State
- Cannot deduct VAT incurred on purchases and expenses
It's a simplified scheme, designed for small operators. The main advantage is reduced bureaucracy: no periodic VAT returns, no quarterly payments to the State.
What is the €15,500 threshold?
For 2026, the exemption scheme threshold for TVDE operators is €15,500 of business volume per year. This figure corresponds to the sum of all gross revenue from the business in the calendar year (1 January to 31 December).
What counts towards this threshold:
- Uber trip revenue (gross value before Uber commission)
- Bolt trip revenue (gross value before Bolt commission)
- Any other passenger transport service provided
What does not count:
- Tips paid directly by the client to the driver (if not processed through the platform)
- State subsidies or compensation (in certain circumstances)
Practical example: how to calculate your business volume
Imagine that in a given month your vehicles made trips worth €2,800 gross on Uber and €900 on Bolt. Uber takes a 25% commission and Bolt takes 20%.
| Platform | Gross revenue | Commission | Amount received |
|---|---|---|---|
| Uber | €2,800 | €700 (25%) | €2,100 |
| Bolt | €900 | €180 (20%) | €720 |
| Total | €3,700 | €880 | €2,820 |
The business volume for VAT purposes is €3,700 — not €2,820. At this rate, over a year you would reach €44,400, well above the €15,500 threshold. In this case, the exemption scheme does not apply.
The exemption scheme is generally more suitable for operators with 1 vehicle and few months of intense activity, or with partial activity.
What happens when you exceed the threshold?
If your business volume exceeds €15,500 in a year, you can no longer remain in the exemption scheme. From that point:
- You must notify the tax authority (AT) of the change in scheme
- You must charge VAT on your invoices (6% rate for passenger transport)
- You must submit periodic VAT returns (quarterly or monthly)
- You can deduct VAT incurred on fuel, maintenance and other expenses
How to monitor your business volume in real time
The biggest problem for TVDE operators is not not knowing the threshold exists — it's not knowing at what point they are relative to the threshold at any given moment.
The platforms don't alert you when you're about to reach €15,500. Your accountant only sees the numbers when you send them the documents. And spreadsheets are filled in "when there's time".
The result: operators exceed the threshold without realising it, continue issuing invoices without VAT, and then have to regularise with the tax authority — with fines and interest.
The correct way to monitor:
- Weekly: add up the gross revenue from Uber and Bolt
- Monthly: accumulate the total since 1 January
- In advance: when you reach 80% of the threshold (~€12,400), speak with your accountant about what to do next
How much notice do you need?
If your business runs at €3,000 of gross revenue per month, starts in January, you will reach the threshold in May. You need to prepare the scheme transition with your accountant at least 1-2 months in advance.
Quarterly VAT returns: when and how
If you're already on the standard VAT scheme (because you exceeded the threshold or by choice), periodic returns are submitted quarterly:
| Quarter | Period | Submission deadline |
|---|---|---|
| Q1 | January – March | 15 May |
| Q2 | April – June | 15 August |
| Q3 | July – September | 15 November |
| Q4 | October – December | 15 February (following year) |
To meet deadlines without stress, you need to have the quarter's data organised before the deadline — revenue by platform, deductible expenses, commissions paid. This is exactly the type of report Frotis generates with one click.
Frequently asked questions about VAT in TVDE
Can I voluntarily opt for the standard VAT scheme even below the threshold?
Yes. You can waive the exemption scheme and opt for the standard scheme, even if your business volume is below €15,500. This may be advantageous if you have significant VAT expenses (fuel, maintenance, insurance).
Is the threshold per company NIF or per partner NIF?
The threshold is per taxable person — i.e. per company NIF. If you have two separate TVDE companies, each has its own threshold.
Are Uber and Bolt commissions a deductible expense?
Yes. If you're on the standard VAT scheme, commissions paid to the platforms are an external service expense, tax-deductible. They carry no VAT (the platforms issue invoices without VAT to Portuguese operators, under the reverse charge mechanism).
Never be caught off guard by the tax authority again.
Frotis monitors your business volume in real time and alerts you at 60%, 80% and 100% of the €15,500 threshold — giving you time to act.
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