When comparing painting quotes in Portugal, attention usually focuses on the final price. But between two quotes with similar values, the tax difference can be considerable, and many property owners only notice it when they receive the invoice.
The reason lies in a simple but poorly explained rule: if the value of materials is less than 20% of the total work value, the reduced VAT rate (6%) applies to the entire contract value1. When materials exceed that limit, the tax treatment changes, and part of the quote may be subject to the standard 23% rate.
How the 20% rule works in painting jobs
Labour services in residential properties benefit from 6% VAT, and this includes work on remodelling, renovation, improvement or maintenance of buildings2. In the case of painting, this reduced rate naturally applies to the service. The issue arises when the painter also supplies the paint, primers, fillers and other materials.
The law allows these materials to follow the 6% rate, but only while their cost does not exceed one fifth of the total quote value. Materials supplied by the contractor cannot exceed 20% of the total contract value, which means that on an invoice totalling 5,000 euros, included materials cannot exceed 1,000 euros3.
If that proportion is respected, the entire invoice benefits from 6%. If it is exceeded, the invoice must separate 6% on labour and 23% on materials. In practice, this can represent a difference of several hundred euros in the final VAT amount to pay.
When painting easily exceeds 20% materials
Not all painting jobs have the same material intensity. A simple repaint of already prepared walls, with one or two coats of paint, consumes relatively little product. But there are situations where the material weight grows quickly.
When walls show cracks, recently treated damp, or a state of repair requiring filler work, the amount of primer, sealer and finishing filler increases. If the chosen colour is dark or intense, or if the goal is to cover a very different previous shade, three or more coats may be needed, which multiplies paint consumption.
In older apartments in Porto or Lisbon, where it is common to find walls with several layers of paint accumulated over decades, preparation may require partial stripping, application of fixative and levelling with several coats of filler. In these cases, the material component easily exceeds 20%, even if work time remains the main cost.
Also in houses in the Algarve or on the coast, where exposure to sea moisture degrades external surfaces, facade painting often requires anti-damp primers, specific sealers and paints of higher quality and coverage, increasing the weight of materials in the quote.
What counts as material and what doesn't
Everything the contractor buys and incorporates into the work (paints, tiles, piping, electrical wire, toilets, taps) counts as materials, while pure labour does not. In the context of painting, this includes tins of paint, primers, sealers, fillers, sandpaper, masking tape, protective plastic and any other consumable that is applied or used during the work.
The painter's tools (rollers, brushes, spatulas, trays, scaffolding) do not count, because they are reusable equipment, nor do their fixed costs such as travel, insurance or commercial margin. The calculation is based solely on what is bought for that specific job and stays incorporated or used up there.
How our platform handles this in quotes
When a property owner requests a quote on our platform, the professional sees photos and videos of the surfaces before presenting the value. This visual assessment allows for more accurate estimation not only of work time, but also of the quantity of materials the actual condition of the walls will require.
If the professional anticipates that the weight of materials will exceed 20%, they can choose one of two paths: itemise in the quote that part of the value will be invoiced at 6% and part at 23%, or adjust the proportion, for example by suggesting that the property owner buys the paint directly and supplies the material, with the painter responsible only for application. Both solutions are legal and transparent, as long as clearly explained before accepting the quote.
Verification that the professional is properly registered as self-employed or has a registered business is carried out by the platform, and the agreed scope remains visible online for the client, the professional and the platform. This reduces surprises in the final invoice and helps avoid misunderstandings about the tax treatment of the quote.
Ask before accepting the quote
Before proceeding, it is worth confirming three points with the painter: whether the presented value already includes VAT or will be added later, what rate that VAT will be applied at, and whether there is a breakdown between labour and materials. If the quote shows a single total value without these distinctions, and if the estimated weight of materials is high, it is worth asking for clarification.
A transparent quote specifies whether materials represent more or less than 20%, and clearly indicates how VAT will be calculated. This clarity protects both the property owner, who knows exactly how much they will pay, and the professional, who complies with tax obligations without room for misinterpretation later.
In exterior painting work, especially on degraded facades or in areas with demanding climate conditions (such as the coast or interior mountains), material consumption tends to be higher. In these cases, it is particularly important that the quote reflects this reality from the start, avoiding last-minute adjustments that can significantly alter the final value with VAT included.
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