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Portugal
Electricity VAT rate reduction
Annual budgets provide countries with the opportunity to assess their existing tax rates, and devise strategies relating to these that align with their specific fiscal agendas.
Portugal has already reduced the VAT rate for electricity from 13% to 6% from October 2023. The country’s 2024 budget is proposing an increase in this reduction, until the end of 2024.
Portugal is compliant territory for Kofax, and our e-invoicing solution supports all valid VAT rates in the country today.
Browse Updates
- Country updates07.22.24
PDF digital signature requirements
Portugal is undergoing some significant changes in its e-invoicing trajectory in 2025.
Specifically:
- 1 January 2025: PDFs must include a digital signature
- 1 January 2025: Small and micro enterprises must adhere to Business-to-Government (B2G) obligations.
These requirements have been delayed on multiple occasions but look set to take effect next year.
- Country updates01.19.24
Business to Government B2G small medium enterprise SME delay
While B2G obligations for small medium enterprises (SMEs) has been on the agenda for some time in Portugal, the imposition of this requirement has been delayed multiple times.
The Portuguese government has yet again delayed the requirement, to 1 January 2025, in their annual budget.
Kofax will follow the progress of B2G e-invoicing in Portugal. More generally, you can read about e-invoicing in Portugal here.
- VAT/G(S)ST rate information01.04.24
Qualified Signature Requirement for Invoices Postponement
The Portuguese Budget Law 2024 has introduced some important changes regarding the requirement for qualified signatures on invoices.
Portugal has delayed the requirement for electronic invoices to be affixed with a qualified signature several times, with original changes planned for as far back as 2022.
This requirement has yet again been delayed to 1 January 2025. This effectively means that invoices without a digital signature will still fall under the category of electronic invoices until 31 December 2024.
The postponement for qualified signatures on invoices also coincides with the requirement for the submission of the Standard Audi File for Tax (SAF-T), the medium for taxpayers to report tax-related data to Polish authorities, being delayed, with obligations associated with the SAF-T file now required from 1 January 2026.
- VAT/G(S)ST rate information10.31.23
Electricity VAT rate reduction
Annual budgets provide countries with the opportunity to assess their existing tax rates, and devise strategies relating to these that align with their specific fiscal agendas.
Portugal has already reduced the VAT rate for electricity from 13% to 6% from October 2023. The country’s 2024 budget is proposing an increase in this reduction, until the end of 2024.
Portugal is compliant territory for Kofax, and our e-invoicing solution supports all valid VAT rates in the country today.
- Other applicable taxes09.27.23
VAT food reduction extension
Kofax recently communicated that the Portuguese government had introduced a temporary VAT reduction for basic foods.
This reduction has now been extended and will be effective until 31 December 2023.
- Mandate information06.27.23
Business to Government (B2G) small medium enterprise (SME) e-invoicing postponement (again)
The B2G landscape in Portugal has been subject to some revision, with delays going back as far as the summer of 2022. While initially having been mandatory on 1 January 2023, the Council of Ministers confirmed in a press conference of 18 May 2023 that the deadline for mandatory B2G e-invoicing for SME companies would once more be extended. The new law-Decree is yet to be published and confirmation of a new timeline is yet to be confirmed. Portugal is a compliant territory for Kofax and we will monitor e-invoicing developments in the country. Please refer to further e-invoicing on our dedicated e-invoicing page for Portugal here. - Country updates04.06.23
Option to use PDF as e-invoices further extended & other relevant tax changes
Order 8/2022-XXIII of the Secretary of State for Tax Affairs, dated 13 December 2022, introduced some amendments to the Portuguese 2023 tax calendar. These revisions have been summarised below:- The possibility to utilise PDFs as e-invoices for tax purposes has once again been extended, now to 31 December 2023, from which point a digital signature will be required on a PDF invoice.*
- For any fiscal documents, such as invoices, credit notes, etc issued in 2023, businesses will have until the 8th of the following month to submit the Standard Audit File for Tax (SAF-T). The SAF-T is an internally recognised standard which is used for the exchange of tax information.
- The Portuguese Tax Authority (PTA) will promote compliance with the technical specifications necessary for the real-time communication of invoice data, either through webservice in real time, or through a monthly web service.
- The PTA will also plan to implement a process to issue supporting compliance alerts to taxpayers who do not communicate the data included in their invoices by the 5th day of the following month, or when applicable.
- Annual inventories can be submitted until the second month following the end the fiscal year. Consequently, the annual inventories for 2022 should be submitted before 28 February 2023.
- VAT/G(S)ST rate information03.15.23
Broadening of goods subject to reduced rate
In Portugal, the following goods and services will now be subject to the reduced rate of 6%:- Canned fish and molluscs when the content of fish is at least 50%
- Vegetal butter, drinks, and yogurts
- The sale or repair service of bicycles. The sale of spare parts of bicycles, however, will be subject to the standard VAT rate (23%)
- Access to direct broadcasting of concerts, theatres, amusement parks, museums, cinemas and similar events
- Sale and installation of specific heaters and boilers that work with biomass
- Pellets and briquets made from biomass.
- Other applicable taxes02.23.23
Guidance relating to single-use packaging tax
One of the most discerning observations of the past year has been the sharp increase in the deployment of environmental taxes. Through the taxation of elements that contribute to the proliferation of environmental issues that impact society today, the underlying objective of these taxes is ultimately the improvement of ecological affairs. This is a stark example of how countries can exploit fiscal measures to serve wider societal agendas. More recently, the United Kingdom and Spain have introduced a Plastic Packaging Tax (PPT). Portugal is the latest country to propose a similar initiative. Portugal has recently published guidance relating to a contribution required on single-use packaging made of either plastic or aluminium (or a combination of the two). This is expected to apply on read-to-eat meals and takeaways. The tax was initially expected to come into effect on 1 January 2023 but has been delayed until September 2023. Tungsten will follow developments in relation to the tax and assess whether we can support the upcoming tax in Portugal. - Country updates01.20.23
Revisions to Portuguese tax code
The turn of 2023 is a busy one for Portugal in fiscal-related matters, as it also has made significant revisions to its tax code. As a summary, these changes include:- An increase in the VAT exemption limit, from 12,500 Euros to 13,500 Euros in 2023
- An extension in the deadline for submitting tax returns, which includes an extension to 20 September for the filing of the second quarter VAT returns
- A reduction in the VAT rate for vegetable-based drinks and butter, to 6%
- A reduction on the VAT rate on biomass equipment, with specific equipment now taxed at 6%.
- Country updates01.20.23
Mandatory inclusion of the ATCUD code on invoices (miscellaneous)
As of 1 January 2023, it is mandatory to include an ATCUD code on a Portuguese invoice. Tungsten has previously commented on the delay of the mandatory implementation of the ATCUD code. As a reminder, the ATCUD is an 8-digit code unique identifier included on Portuguese fiscal documents, and comprises of the following:- A service validation code assigned by the Portuguese tax authorities, and
- A series of numbers usually derived from the taxpayers’ software.
- VAT/G(S)ST rate information01.20.23
Reduction of VAT on purchase of bicycles
Increasingly, we are seeing countries advance environmental and health agendas via the deployment of fiscal measures. Such tax measures, ubiquitous in 2022, are expected to be equally commonplace in 2023, as awareness of ecological and related matters increases. Via its 2023 State Budget, Portugal is introducing a reduction in VAT on the purchase of bicycles. In doing so, Portugal becomes the first EU country to enact such a measure. From 1 January 2023, this will be set at the lowest VAT rate possible in Portugal, at 6%. Tungsten supports all valid VAT rates in Portugal as part of its solution, including the 6% rate. We are also conscious of the countries intrinsically linking further societal agendas which extend beyond the economy in their tax agendas, and we are investigating how we can integrate these as part of our solution.