The TVDE driver's VAT: article 53 explained
Published 17 August 2026 · Ler em português
Good news for anyone starting out: most TVDE drivers don't charge VAT, don't file VAT returns and don't think about VAT. Legally. It's called the article 53 exemption regime. This guide explains how it works, who fits inside it and what happens when the business grows.
What the article 53 exemption regime is
It's the regime designed for small-volume activities: while annual turnover stays, as a rule, below €15,000, the self-employed worker is exempt from VAT. In practice this means two things: your receipts to the fleet come out without VAT, and you don't file periodic VAT returns.
You enter this regime right at the opening of activity, through the income estimate you give on the form. We explained the process step by step here.
What the receipt looks like, in practice
When issuing the fatura-recibo at the Portal das Finanças, you indicate the exemption reason corresponding to article 53 and the document comes out without VAT. The fleet gets a clean receipt, and you collect and hand over nothing. (Guide: how to issue receipts to the fleet without errors.)
What changes when the business grows
The rules of this regime changed in 2025, and this is where attention pays off:
- When you cross the €15,000 threshold, as a rule the move to the normal VAT regime happens from 1 January of the following year;
- Going far above the threshold can force a switch immediately, with a short deadline to notify the tax office.
Missing this timing is one of the most avoidable fines there is. It's just a matter of keeping an eye on your own numbers through the year. Zeelity does that watching automatically and warns you in advance.
And in the normal regime, what is it like?
Whoever moves to the normal regime charges VAT on their receipts: for passenger transport, as a rule, the reduced rate of 6% applies. You file periodic returns and become able to deduct the VAT on the activity's expenses (fuel, maintenance, tolls). For some drivers with high expenses, the normal regime can even pay off. It's a calculation worth doing with an accountant.
A note for anyone with more than one activity
The threshold considers your self-employed activity as a whole, not just TVDE. If you also run another activity on green receipts, the amounts add up for the purposes of the limit. In that case, confirm your framing with an accountant before assuming the exemption.
Quick questions
Does the receipt I issue to the fleet carry VAT?
If you are under the article 53 exemption regime, the starting point of most drivers, no. The receipt comes out without VAT, indicating the corresponding exemption reason when issuing at the Portal das Finanças.
I crossed the limit this year. Now what?
As a rule, when you pass the €15,000 threshold the change to the normal regime happens from the following 1 January; going far above the threshold can force an immediate switch, with a short deadline to notify the tax office. The rules changed in 2025. Confirm your specific situation with an accountant.
Under the exemption regime, can I deduct VAT on expenses?
No. The exemption cuts both ways: you do not charge VAT to clients, but you also do not deduct the VAT you pay on fuel, maintenance or other expenses. It is one of the calculations to make when the business grows.
Keep reading
- How to open activity (abrir atividade) as a TVDE driver, step by step
- Green receipts in TVDE: how to invoice the fleet without errors
- Social Security for TVDE drivers
VAT limits, deadlines, regime changes: Zeelity follows your numbers through the whole year and warns you before any deadline, with a certified accountant behind the service.
Get early accessThis guide is informational and does not replace personalised advice. Every tax situation has its own details. When in doubt, talk to a certified accountant.