Electronic Invoicing in Portugal
Similar to other developed nations, Portugal has adopted electronic invoices, which are digital documents replacing paper invoices while retaining the same legal validity. The goal of electronic invoicing in Portugal is to enhance efficiency, reduce costs, and ensure transparency in commercial transactions. The integration of electronic invoicing has been gradual, with the following milestones:
- Since January 2020: The Portuguese Authorities have mandated the use of certified invoicing software for all transactions
- Since January 2019: Â Public administrators were obliged to receive e-invoices
- Since 31 December 2021: Â Portugal formally mandated B2G e-invoicing for large companies
- Since 1 January 2025: Portugal will formally mandate B2G e-invoicing for micro, small- and medium-sized companies
Therefore, from 1 January 2025, all suppliers who conduct business with the Public Administration must issue all invoice to the public sector entities in electronic format.
This evolution signifies the Portuguese government’s continuous efforts to digitize and modernize its fiscal processes.
Guidelines and Legal Obligations
Currently, electronic invoicing aids in tax compliance and enhances the operational efficiency of companies. By automating invoicing, companies can reduce errors, minimize costs, and accelerate payment cycles. Additionally, e-invoicing supports sustainability by reducing paper usage.
To achieve regulatory compliance, companies must be aware of two fundamental terms related to electronic invoicing in Portugal:
- SAFT Portugal: Standardization and Fiscal Control
- The SAFT in Portugal is a standardized format that facilitates electronic tax audits of companies. This system allows the Autoridade Tributária e Aduaneira (AT) to access tax information efficiently and transparently. Therefore, companies must ensure their electronic invoicing systems are compatible with SAFT.
- ATCUD Portugal: New Coding Requirement
- Another key concept is ATCUD Portugal, a unique alphanumeric code generated for each document and validated by the fiscal authority before being included in the invoice. This ensures that each document is unique and cannot be duplicated or altered.
The Role of Electronic Signatures in Portugal
Electronic signatures are also indispensable in Portugal. Companies must use recognized digital certificates to electronically sign their invoices. There are several types of electronic signatures:
- Simple Electronic Signature: For documents that do not require an elevated level of security.
- Advanced Electronic Signature: For files or documents that require greater certainty of authenticity.
- Qualified Electronic Signature (QES): The most secure, complying with the requirements of the European eIDAS, and mandatory for most transactions as it originates from the EU itself. QES will be mandatory for every issued PDF for B2B and B2C transaction from 1 January 2025 (having been postponed from 1 January 2024).
How to Implement Electronic Invoicing in Portugal
Implementing electronic invoicing can be challenging, whether in Portugal or any other country. It is vital to choose certified invoicing software, such as that provided by eezi, which ensures compatibility with SAFT Portugal and meets all legal and business requirements, including the integration of electronic signatures (QES) and ATCUD Portugal. Therefore, the electronic invoicing software must include the following features to comply with Portuguese regulations:
- Compatibility with SAFT-PT to ensure fiscal data is in the correct format.
- The ability to generate and validate the ATCUD code.
- The capability to digitally sign invoices with recognized certificates.
- Facilitation of invoice creation, sending, and tracking.
- Assurance of data protection and compliance with privacy regulations and information security policies.
Adapting to Regulatory Changes
It is important to note that e-invoicing regulations are evolving. Therefore, staying aware of any regulatory changes is crucial. A recent example is the introduction of ATCUD in 2021, which required adjustments to billing systems to include the new code. Moreover, it is important to note that PDF invoices will be considered as electronic invoices for all tax related purposes until December 31, 2024. But after that, the real e-invoicing rules apply, and PDFs are no longer valid.
Penalties for not complying with electronic invoicing in Portugal
Non-compliance with electronic invoicing regulations in Portugal can lead to significant penalties, ranging from late reporting to faulty bookkeeping. Each mistake carries a potentially substantial fee:
- Missed deadline when issuing invoices or receipts: €150-€3,750
- Using non-compliant billing software or equipment: €3,000-€18,750
- Inaccuracies or missing data in statements or tax-relevant documents: €750-€22,500
Failing to prepare the relevant accounts according to Portuguese accounting standards may result in further penalties ranging from €1,000 to €10,000. The failure to include mandatory elements, such as the QR Code (Pdf) and or the ATCUD or QES on invoices, can incur a penalty ranging from €200 – €1,000 per invoice.
It’s crucial to adhere to these regulations to avoid these hefty fines. If you need any more details or assistance, feel free to ask!
It is important to make sure you are tracking deadlines, using a compliant certified invoicing software, and following the appropriate accounting practices. Contact our team of experts to help make this transition a seamless one.
