Portugal’s VAT Regime

Portugal pushes further ahead with VAT digitization

Back in 2019, Portugal passed a mini e-invoicing reform consolidating the country’s framework around SAF-T reporting and certified billing software.

Since then, a lot has happened: non-resident companies were brought into the scope of e-invoicing requirements, deadlines were postponed due to Covid, and new regulations have been published.

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Quick facts

  • Use of certified billing software is mandatory for the creation of all types of invoices; this is understood to be the taxpayer’s ERP system.
  • A QR code should be included in all invoices. Technical specifications about the content and placement of the code in the invoice are available on the tax authority’s website.
  • A unique ID number (ATCUD) must be included in all invoices and is part of the content of the QR code. The ATCUD is a number with the following format ‘ATCUD:Validation Code-Sequential number’.
  • In April 2021, Portugal clarified that non-resident companies with a Portuguese VAT registration should comply with domestic VAT rules. This includes using certified billing software for invoice creation, among others. These companies must also ensure integrity and authenticity of e-invoices, which in Portugal means using a qualified electronic signature or seal, or use of EDI with contracted security measures.
  • B2G invoices must be issued electronically in the CIUS-PT format and transmitted to the public administration through one of the available web services.

Important dates

  • Since 1 July 2021, non-established but VAT registered companies must adopt certified billing software.
  • Issuance of B2G e-invoices:
  • Mandatory B2G e-invoicing: all supplies to public sector companies require the related invoice to be issued in CIUS-PT format and transmitted via an approved web service.
    • 1 January 2021:  Phased roll out on a voluntary basis started for large companies.
    • 1 July 2021:  Extended to include small and medium-sized businesses subject to a grace period during which PDFs accepted by public sector buyers.
    • 30 June 2022: The new format and transmission approach must be used by all businesses including microenterprises.
  • 1 January 2022:  A QR Code and ATCUD will be required in all invoices. This is voluntary for 2022 and expected to become mandatory on 1 January 2023.

Need help to ensure your business is VAT compliant in Portugal?

Sovos provides a complete VAT, SAF-T and B2G compliance solution for Portugal helping customers meet the demands of the digital transformation of tax and public procurement through a single provider. Sovos uniquely combines local expertise with a seamless, global customer experience.

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