Craft fairs: what do I need to be legal?
Note: This post reflects my experience and the information I have gathered over the years from organizations and other artisans. Always seek information from legitimate channels and sources.
Participating in craft fairs is an excellent way to promote your work, connect directly with customers, and generate income. However, before setting up your stall, it's important to understand the legal requirements associated with selling handcrafted products. This article explains the main points to consider.
1. Regularized tax situation - having an open business activity.
To sell at fairs, you need to be legally authorized to carry out economic activity . In Portugal, this means:
- Open a business in Finance as a self-employed worker.
or - Being covered by the isolated act regime , if the participation is punctual and sporadic.
2. Issuing invoices or receipts
Whenever a sale occurs, a tax document (invoice or bill) must be issued, even at fairs or temporary events.
Currently, this can be done via:
- From the Finance Portal
- From billing applications certified with ATGO
- Or from authorized manual systems, depending on the tax framework.
Most artisans issue a single invoice at the end of the day, with the total value of sales. Legally, they must issue an invoice for each item sold.
Invoices requested by customers should be sent by email or printed. In markets, printing is not always possible, so at least have the option of sending by email available.
3. VAT and applicable regime
Depending on the volume of business, the artisan can be:
- Under the VAT exemption regime (art. 53 of the VAT Code)
- Or under the normal VAT regime.
It is important to confirm which tax regime applies to know whether or not prices should include VAT and what the reporting obligations are. If they expect to invoice less than €15,000 annually, then they fall under the VAT exemption regime (Article 53 of the VAT Code).
4. Registration with Social Security
Those who work as self-employed individuals must, as a rule, be registered with Social Security and make the respective contributions.
There are temporary exemptions, for example at the start of a business activity, but these must be confirmed on a case-by-case basis. Ideally, you should contact social security.
5. Workers' Compensation Insurance
This was one of the things I put off as long as possible, until I started doing the markets frequently. Workers' compensation insurance is mandatory for self-employed workers. Prices vary: in my case, it costs R$107 annually. I got my insurance through mudey.pt/
6. Mere prior communication
The Mere Prior Communication (MCP) is a mandatory electronic declaration in Portugal that allows the immediate commencement of an economic (commerce, services, catering) or urban planning activity, informing the competent authority (Municipal Council, DGAE, etc.) that all legal requirements are met, dispensing with prior authorization and allowing the commencement of the activity after submission and payment of fees, if applicable.
Prior notification is requested only once and is mandatory; it is free of charge and can be done online at [website address]. gov.br/
7. Complaints book
Having an online complaints book is mandatory, even if you don't have an online store. The process is simple and free: Go to livroreclamacoes.br/inicio/ and register.
8. Transportation guide
A transport permit is mandatory, even if you are traveling in a passenger vehicle. You can do it for free on the Finance Portal: faturas.portaldasfinancas.gov.pt/DocTransporte/emitirDocTranspForm.action
In my case, I make one for the whole year because I almost always take the same number of items.
9. Products subject to special rules
Certain handcrafted products may have additional legal requirements , such as:
- Handmade cosmetics
- Candles
- Soaps
- Food products
In these cases, authorizations, registrations, or compliance with specific safety and labeling standards may be required.
Conclusion
Although handicrafts are often seen as an informal activity, selling to the public involves complying with legal and tax regulations. Being properly registered not only avoids problems but also conveys greater confidence to customers and fair organizers.
Information and suggestions
If you have any suggestions to add to this post, please get in touch! Email: designer@gabrielabonito.com