E-invoicing in Portugal for Public Procurement (2023 Updates)

E-invoicing in Portugal has been phased in for public procurement or B2G transactions since 2021 to align with the e-invoicing Directive 55/2014/EU and VAT in the Digital Age (ViDA) proposal. Portuguese digital reporting is enforced through a software fiscalization system along with mandatory SAF-T reporting since 1 January 2023.

Latest news

SMEs and microenterprises received an extension of the deadline for issuing e-invoices to the public sector. The new deadline for this regulation is 1 January 2024.

Implementation timeline

• 1 January 2021: Mandatory e-invoice issuance for large public procurement suppliers.

• 1 July 2021: Mandatory e-invoice issuance for small and medium public procurement suppliers.

• 1 January 2022: Mandatory e-invoice issuance for micro and public entities, as well as a QR code, must be included on relevant invoices and tax documents.

• 31 December 2023: End of PDF invoices being considered electronic invoices.

• 1 January 2023: Mandatory issuance of a monthly SAF-T file and the document code ATCUD must be included on relevant invoices and tax documents.

• 1 January 2024: Digital signatures are required for e-invoices and micro and SMEs must issue e-invoices for B2G transactions.

Fiscalization and SAF-T

Portugal utilizes a software fiscalization system that primarily revolves around the use of POS applications certified by the Direcção Geral dos Impostos (DGCI), or the Portuguese Tax Authority. The system must also undergo formal check-ups to maintain its reliability. This requires a local contact in order to certify and re-certify a POS system.

From 1 January 2023, it will also be obligatory for local organizations and non-resident taxpayers to submit their monthly standard audit files for tax (SAF-T) by the 5th of every month.

E-invoicing requirements in Portugal (2023)

Full VAT invoice characteristics

• Invoice issuance date

• Supplier information

  • Name, address, and VAT number

• Quantity of goods or services supplied

• Net VAT amount, applicable rate and amount of VAT payable

• Justification for not applying tax, if applicable

• Date of goods availability, service rendering, or advance payment.

• Reference to reverse charge, if applicable.

Simplified VAT invoice characteristics

• Invoice issuance date

• Supplier's VAT number

• Type of goods or services supplied

• Price of goods

• Amount of VAT payable

Invoice issuance

An invoice must be issued by a supplier within 5 working days of the service or goods being provided.

Format

UBL 2.1 “CIUS-PT”, CEFACT “CIUS-PT.”

Validation

E-invoices must include a qualified electronic signature, which is used to verify an e-invoice.

Archiving

In Portugal, e-invoices must be stored in a secure archive by both the issuer and recipient for 10 years.

Legislation

• Decree-Law no. 111-B/2017

• Decree 123/2018

How to send a Portuguese B2G e-invoice

Here are the steps to send a compliant e-invoice:

1. Make sure that the e-invoice is in a proper format, such as UBL 2.1 “CIUS-PT”, CEFACT “CIUS-PT” or other European standard EN 16931 compliant formats.

2. Establish a connection with an e-invoicing service provider such as DDD Invoices in order to comply with requirements.

3. Connect to the FE-AP portal

4. Transfer the e-invoice via the e-invoicing service provider

ATCUD code

This is a series number (ATCUD) assigned to an invoice that can be used for identification as well as confirmation of validity since 1 January 2023. The ATCUD consists of the following format; ATCUD: validation code-sequential number. The validation code is received on request from the eSPap.

QR code

The QR code has been required since 2022, but may be left out for those issuers who use electronic data interchange (EDI) for standardized intercompany communication of invoices. The advantage of QR codes is that they are easier to read by IT systems and can hold more information than barcodes. The first part of the code consists of a tax authority-provided validation code, while the second part consists of the sequential document number.

How DDD Invoices can help your business

Here are the benefits of choosing DDD Invoices as your e-invoicing system:

• Unlock the ability to send and receive e-documents around the world, without worrying about local e-invoicing regulations. Through our API, we automatically fill in your invoice data and send the invoice to the proper authorities, letting you focus on your core business processes and we manage the bureaucracy.

• Seamlessly integrate into your current invoicing system, ERP, or CRM in as little as one day. Enjoy an error-free and automated invoicing process through our secure and reliable service.

FAQs about e-invoicing in Portugal