Portugal e-invoicing
Summary

Standard VAT rate: 23%
E-Invoicing: B2G only
Reporting: SAF-T
Digital service tax: no

Compliance and rates

VAT number format

All EU member states have a fixed format for their VAT numbers. In Portugal, it includes 9 digits and prefix PT, where the first digit for companies should be number 5 (i.e. PT501234567).

VAT rates

The standard VAT rate in Portugal is 23% with reduced rates of 13% and 6% on certain goods and services. A number of services are exempt from Portuguese VAT, such as intra-community supplies of goods and exportations.

23% (Standard) – Applies to all taxable supplies, with certain exceptions

13% (Reduced) – Some foodstuffs, restaurants food, some agricultural supplies, tickets for cultural events

6% (Reduced) – Some foodstuffs, pharmaceutical and medical products, some books and newspapers, water supplies, certain agricultural supplies, legal services, construction supplies for new buildings

0% (Zero) – Intra-community transactions and exportations

VAT payments and returns

Businesses with Portuguese VAT number must submit periodic payments. VAT filings and payments are submitted either monthly or quarterly, as well as the VAT returns.

VAT Payment frequency

Monthly – 15th of the second following month

Quarterly – 20th of the second following month

VAT Returns submission frequency

Monthly – 10th of the second following month

Quarterly – 15th of the second following month

Penalties in case of late filings or misdeclarations

Non-payment and late payment of VAT – In case of the late filing of VAT returns and payments, the Portuguese government prescribed the penalty from 30% to 100% of the tax due and an interest rate of 4.825% per year. 

Non-submission and late submission of VAT returns – Penalties applicable in case of non-submission or late filing of VAT returns can vary from EUR 150 to EUR 3,750.

Incomplete and incorrect VAT returns – Penalties applicable in case of omissions or inaccuracies in relevant documents for tax purposes can vary from EUR 375 to EUR 45,000.

Non-compliance with invoicing and accounting obligations – Penalties applicable in case of non-issuance of invoices or its issuance after the legal deadline can vary from EUR 300 to EUR 7,500.

Invoice requirements

All electronic invoices in public procurement, which will be mandatory from April 2020, must contain at least the following:

  • date of issuance
  • supplier / issuer data (company name, address, VAT number)
  • government contractor data (name, address)
  • contract between parties
  • details about delivery
  • payment instructions
  • full description of goods and services (quantity, price per unit)
  • the net, taxable value of the invoice, 
  • rate and amount of VAT applicable for the category of goods and services provided
  • the invoice total, gross value of the invoice

E-Invoicing

From 1st January 2019, the implementation of electronic invoicing in public contracts has become mandatory. That means that the issuing, sending, receiving and archiving of invoices in public contracts, takes place only electronically, and the authenticity of the origin and the integrity of the invoice content must be guaranteed through the electronic signature of the issuer.

Portugal adopted the UBL 2.1 fromat (Univeral Business Language) for electronic invoicing. This format is used by most EU and Latin American countries in the context of electronic invoicing.

SAF-T

Portugal introduced the Standard Audit File for Tax (SAF-T) on 1 January 2008.

SAF-T is an electronic schema developed for the efficient exchange of information between the tax authorities and businesses. It was created by the Organization for Economic Cooperation and Development in 2005 as a standard to be used globally to ensure consistency from country-to-country to facilitate exchange of data between tax authorities. The file requirements are expressed using XML, although the EU does not specify the exact file format.

Turnkey invoice compliance.

Built for online marketplaces, by people from online marketplaces