Invoices, payments and taxes for car repair workshops and mechanics

FIZ issues the invoice for every repair, with labour and parts, takes card payments on your phone, gathers your expenses from e‑Fatura, such as parts and oil, and prepares your IVA and Seg. Social declarations. All you do is confirm.

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A mechanic holds his phone while a customer pays contactless by card, next to a car with its bonnet open, in a small workshop in Lisbon.
Customers
15,000
App Store rating
4.9
AT certification
No. 3041

CAE, IVA and taxes for workshops and mechanics

What is the same for everyone, and what changes between being self-employed and having a company.

For everyone

Activity code (CAE)

95310, «Reparação e manutenção de veículos automóveis», also for mechanics who repair at the client’s place. Before 2025, the code was 45200, «Manutenção e reparação de veículos automóveis», grouped with the car trade.

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

IVA

23% on repairs and parts, on the mainland.

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

IVA exemption

If you invoiced up to 15,000 € last year, or expect no more than that in the year you start, you can invoice without IVA. Once you pass 18,750 € in the current year, you charge IVA from that moment.

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

Invoices

One invoice for every repair, even if the customer does not ask for it, describing the parts and the labour. 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)

Self-employed

IRS · income tax

The tax you pay once a year on what you earned, in the declaration filed from April to June of the following year. In the simplified regime, 35% of repairs counts, and 15% of parts sold without a repair. With 30,000 € in repairs, IRS is worked out on 10,500 €.

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

Seg. Social

Under the simplified regime, the contribution is worked out on 70% of repairs and 20% of parts sold over the counter: 21.4% for trabalhadores independentes, 25.2% for empresários em nome individual.

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

Company

IRC · corporate tax

Yearly tax on the company’s profit, filed in the Modelo 22 by the end of May. With turnover up to 200,000 € and the other legal conditions, it can opt for the simplified regime: 10% of repairs counts, and 4% of parts sold without a repair.

IRC Code, art. 86‑A (Opens in a new window)art. 86‑B (Opens in a new window)

Accounting

The company must keep full accounting (contabilidade organizada), with a certified accountant.

IRC Code, art. 123 (Opens in a new window)OCC Statute, art. 10 (Opens in a new window)

Checked on 9 October 2026

Every day: the repair is paid and the invoice goes out at once

When you hand back the car, issue the repair invoice in FIZ, with labour and parts. The customer pays contactless on your phone or scans a QR code, and FIZ reports the invoice to the AT.

It works the same for a repair at the client’s place, with no terminal to buy or rent. Each payment has a fee, which depends on the plan.

Accept paymentsCertified invoicing

Contactless

The customer holds a contactless card, or a phone with Apple Pay or Google Pay, near your phone.

By QR code

Show the QR code to your customer. They scan it and complete the payment on their own phone.

Expenses: purchase invoices reach FIZ by themselves

When you buy parts, oil or tools with your NIF, the supplier’s invoice lands in the AT’s e‑Fatura. On the paid plans, FIZ fetches it by itself and suggests whether the expense is for work, personal or mixed use.

Expenses and tax deductions
Brake pads and discs

Autopeças Lusitânia, Lda. · Portuguese supplier invoice

Amount excluding IVA
210.00 €
IVA (23%)
48.30 €
Payable to the supplier
258.30 €

If you charge IVA, this IVA is deducted from the IVA on your sales. With the IVA exemption, it stays a cost.

Example with sample data

At the end of the quarter: the declarations are ready

On paid plans, FIZ calculates your Seg. Social contribution from your invoices and prepares the quarterly declaration. Confirm with one click and FIZ submits it.

If you charge IVA, on the Auto Pro and Prime Pro plans FIZ does the same with the periodic IVA declaration.

Seg. Social for the self-employedIVA declaration for the self-employed
Seg. Social quarterly declaration

July to September

Repairs: 70% of 9,000 €
6,300 €
Parts over the counter: 20% of 900 €
180 €
Monthly base: one third
2,160 €
Monthly contribution: 21.4%
462 €
Example with sample data

Start using FIZ today.

No need to wait until the end of the month, quarter or year. FIZ imports from Portal das Finanças (the AT website) the invoices already issued and received, including those from other software. No need to enter it all again.

A woman working on a laptop at a table at home
From Portal das Finanças to FIZ

Choose a plan for your business

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Frequently asked questions about workshops and mechanics

Which CAE does a car repair workshop use?

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.

Does a self-employed mechanic on recibos verdes charge IVA?

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.

Which IRS coefficient applies to a mechanic?

In the simplified regime, repairs have the coefficient 0.35: 35% of what you invoice counts as income. With 30,000 € in repairs, IRS is worked out on 10,500 €. 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.

Does a workshop invoice have to list parts and labour separately?

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.

How is Seg. Social worked out for a self-employed mechanic?

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% for trabalhadores independentes and 25.2% for empresários em nome individual. Anyone working as self-employed for the first time pays no contributions for 12 months.

On paid plans, FIZ calculates the contribution from your invoices and prepares the quarterly declaration: confirm with one click and FIZ submits it.

Can I open a workshop as an empresário em nome individual?

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 of an empresário em nome individual is 25.2%.

What changes when the workshop is a company?

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

IRS declaration

Other industries

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