Invoices, payments and taxes for car repair workshops and mechanics

In CAE-Rev.4, in force since 2025, it is 95310, «Reparação e manutenção de veículos automóveis», also for a mechanic who repairs at the client’s place. In CAE-Rev.3, the code was 45200, «Manutenção e reparação de veículos automóveis».

If you also sell parts over the counter, you can add 47820, «Comércio a retalho de peças e acessórios para veículos automóveis», as a secondary activity.

Decree-Law 9/2025 (CAE-Rev.4) (Opens in a new window) ·Decree-Law 381/2007 (CAE-Rev.3) (Opens in a new window)

Yes, unless exempt: 23% on repairs and parts, on the mainland. If you invoiced up to 15,000 € in the previous year, or expect no more than that in the year you start, you can invoice without IVA; then the IVA on the parts and tools you buy stays a cost.

If you pass 18,750 € in the current year, you lose the exemption and charge IVA from that moment.

IVA Code, art. 18 (Opens in a new window) ·IVA Code, art. 53 (Opens in a new window) ·art. 58 (Opens in a new window)

In the simplified regime, repairs have the coefficient 0.35: 35% of what you invoice counts as income. With 24,000 € in repairs, IRS is worked out on 8,400 €. Mechanics are not in the IRS activity table, so the 0.75 coefficient does not apply. Parts sold over the counter, without a repair, have the coefficient 0.15.

To avoid paying more IRS than you need to, business expenses need to reach 15% of what you invoice for services. Business invoices on e‑Fatura, the rent for your premises and the salaries you pay count, plus a fixed amount the law already allows for, or your Seg. Social contributions if they are higher. If the total is below 15%, the difference is added to your taxable income. FIZ shows how much is left to reach 15%.

In the year you open your activity, the services coefficient is reduced by 50%, and the next year by 25%, if in those years you receive no salary or pension and have not closed an activity in the previous five years.

IRS Code, art. 28 (Opens in a new window) ·art. 31 (Opens in a new window) ·IRS activity table (Opens in a new window)

Yes: the invoice shows each part and the service provided, with the quantity and the price, as the IVA Code requires. In FIZ, each invoice line is a product or a service, with its own IVA rate.

A simplified invoice can be used for repairs of up to 100 € and for sales of parts to private customers of up to 1,000 €; with the IVA exemption, with no limit.

IVA Code, art. 29 (Opens in a new window) ·art. 36 (Opens in a new window) ·art. 40 (Opens in a new window)

Under the simplified regime, Seg. Social counts 70% of repairs and 20% of parts sold over the counter, without IVA, and the monthly contribution base is a third of that amount for the quarter. The rate is 21.4%, or 25.2% if you declare to Seg. Social that you are an empresário em nome individual with only commercial or industrial activity. Anyone working as self-employed for the first time pays no contributions for 12 months.

FIZ calculates the contribution from your invoices, prepares the quarterly declaration and submits it with one click from you.

Contributions Code, art. 162 (Opens in a new window) ·art. 168 (Opens in a new window)

Yes. You open the activity with the Finanças under CAE 95310 and invoice with your own NIF, without setting up a company. With turnover up to 200,000 € in the previous year, you stay in the IRS simplified regime. The Seg. Social contribution is 21.4%, or 25.2% if you declare that you are an empresário em nome individual with only commercial or industrial activity.

IRS Code, art. 28 (Opens in a new window) ·art. 31 (Opens in a new window) ·IRS activity table (Opens in a new window) ·Contributions Code, art. 162 (Opens in a new window) ·art. 168 (Opens in a new window)

The CAE, IVA and invoice rules stay the same. The company pays IRC on profit and keeps full accounting (contabilidade organizada) with a certified accountant.

IRC is filed in the Modelo 22 by the end of May. Under the simplified regime, with turnover up to 200,000 € and the other legal conditions, it is worked out on 10% of repairs and 4% of parts sold without a repair.

In FIZ, the company’s certified accountant confirms the IVA declaration with one click and FIZ submits it to the AT.

IRC Code, art. 86‑A (Opens in a new window) ·art. 86‑B (Opens in a new window) ·IRC Code, art. 123 (Opens in a new window) ·OCC Statute, art. 10 (Opens in a new window)