When requesting a painting quote, the first concern is usually the price. Square meters, number of coats, type of paint. But there is a line on the invoice that can make the total vary unexpectedly: VAT. Not all painting jobs are taxed in the same way, and understanding when you pay 6% or 23% can make the difference between a quote that fits your budget and one that forces you to recalculate.
The VAT rate is not always the same for a painting job
In Portugal, work on residential properties can benefit from the reduced VAT rate of 6%, but this application depends on very specific conditions. The reduced rate applies to repair, maintenance and improvement work on own residence, provided that the invoice is issued to the property owner and the 20% materials rule is met1. When the house is more than two years old and the work is maintenance (such as interior or exterior painting), the 6% VAT may apply, but not automatically.
In homes located in Urban Rehabilitation Areas (ARU), the rules are different and, in many cases, more favourable. Even so, not all work in ARU guarantees the reduced rate if it is not part of a formally approved Urban Rehabilitation Operation (ORU). Outside those areas, the application of 6% depends on other conditions, namely the age of the property and the weight of materials in the invoice.
The 20% limit on materials and why that changes everything
Materials supplied by the contractor cannot exceed 20% of the total contract value. On a total invoice of 5,000 euros, materials included cannot exceed 1,000 euros. If they do, the entire operation is taxed at 23%. It is a simple rule on paper, but in practice it can be unexpected: the cost of paint, primers, repair compounds, rollers, brushes and all materials used by the painter count towards that limit.
When the weight of materials exceeds 20%, there are two options: either the entire invoice is taxed at 23%, or the contractor separates on the invoice the value of labour (which remains at 6%) and the value of materials (which are taxed at 23%). This second option allows partial use of the reduced rate, but requires that the invoice clearly distinguishes the two components. If the invoice shows only a global price and materials exceed 20%, the VAT applied will be 23% on everything.
In painting jobs, especially when using premium paint, when there is much surface preparation (compounds, primers, moisture treatment products) or when painting a large area, the weight of materials can easily exceed that limit. That is why, when comparing quotes, it is worth understanding whether the price given already includes the correct VAT rate or whether that line is still open.
Work on new or recently built properties always pays 23%
The standard rate of 23% applies in all cases where the conditions for the reduced rate are not met, namely in new construction or any work on a property less than 2 years old. A newly built house, even if already occupied, does not benefit from the reduced rate for painting work if it has not yet completed two years since the completion of construction. This also applies to new apartments where the owner wants to change the wall colour before moving in: the VAT will be 23%, not 6%.
This rule also applies to recent extensions. If an extension was built less than two years ago and you want to paint it, the applicable VAT will be at the standard rate, even if the rest of the house is older. What matters is the age of the part of the property where the work is carried out.
What should be on the invoice to avoid problems with reduced VAT
The contractor's invoice must describe the work performed and justify the application of the 6% VAT rate, namely through the mention "Reduced rate under item 2.27 of List I attached to CIVA"2. In addition to that mention, the invoice must clearly identify the property owner (name and tax identification number), the property where the work was carried out (full address) and, if applicable, the breakdown between labour and materials.
If the invoice does not have these elements, the Tax Authority may refuse to apply the reduced rate in any future inspection. And this is not a problem just for the painter: the property owner is also exposed, because they benefit from the reduced rate and must be able to justify that application. So before accepting the invoice, it is worth checking whether all mandatory elements are present.
Another important detail: if the property owner buys the paint directly from a shop and hires only the labour, that labour can benefit from the 6% rate (provided the house is more than two years old), but the purchase of paint from the shop will always be at 23%, because it is not a contract for services but a sale of materials.
How to compare quotes when VAT is not yet defined
Many quotes show a base value followed by the note "plus VAT at the applicable rate". This means the final cost depends on whether 6% or 23% applies, and that difference can represent hundreds of euros in a medium-sized painting job. A quote of 3,000 euros without VAT can cost 3,180 euros (with VAT at 6%) or 3,690 euros (with VAT at 23%). The difference is 510 euros, which is not insignificant.
So when comparing quotes, it is worth asking the professional which VAT rate will be applied and why. If the answer is vague or if the painter cannot justify the application of the reduced rate, this may be a sign that the quote was not prepared with the necessary rigour. A professional who knows the VAT rules well usually indicates the applicable rate right away on the quote and, if necessary, explains whether or not the materials exceed 20%.
On our platform, all job details are recorded online and are visible to the customer, the professional and the platform. This includes the description of the work, the agreed price and payment terms (50% at the start to reserve the date and purchase materials, and 50% at the end after verification). This transparency helps avoid misunderstandings, including those related to VAT.
Planning your budget with a margin for tax variations
When planning a painting job, it is worth including in the budget a safety margin that accounts for possible VAT variations. If the house is more than two years old and the work is clearly maintenance (repainting walls, ceilings, doors), the 6% rate is likely to apply. But if there is doubt about the weight of materials, if the house is very recent or if there are works beyond simple painting (structural repairs, moisture treatment with specific products), it may be more prudent to expect the 23% rate.
This does not mean accepting any rate without questioning. It simply means that, when requesting quotes, it is useful to clarify upfront what rate will be applied and ask the professional to justify that choice. If the professional is registered on the platform (which we always verify before presenting them as an option), they know these rules well and can explain them clearly.
In the end, VAT is just one line on the invoice, but it is a line that can weigh heavily on the total. Understanding when you pay 6% or 23% is not a technical detail: it is part of planning any painting job in Portugal.
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