We call it globalization, and one of its best consequences is that international operations are becoming increasingly common. At the same time, the environment is now fully online. Therefore, e-invoicing is a reality and a universal necessity across all countries and businesses. In this post, we will look at the case of a specific country that is close to us: e-invoicing in Portugal. As in Spain, it is already an essential tool for the entire business fabric. So, this guide is designed for those who want to understand and correctly apply e-invoicing in their commercial transactions with organizations in the neighboring country.
History and Evolution of E-invoicing in Portugal
Like other developed countries, e-invoicing in Portugal is the digital document replacing paper invoices, with the same legal validity. Its objective is to improve efficiency, reduce costs, and ensure transparency in commercial transactions.
The fact is that the adoption of e-invoicing in Portugal has accelerated recently. How? Through the implementation of the SAFT Portugal system (Standard Audit File for Tax purposes), which we will detail later.
Its integration in the neighboring country, as here, has been progressive, but with two significant milestones:
- Since January 2019, e-invoicing has been mandatory for all Portuguese companies interacting with the public sector.
- As of January 2021, this obligation extended to transactions between private companies (B2B).
Likewise, this evolution reflects the continuous effort of the Portuguese government to digitize and modernize its tax processes.
Regulations and Legal Requirements
Currently, e-invoicing facilitates tax compliance while improving companies’ operational efficiency. By automating invoicing, companies reduce errors, minimize costs, and accelerate payment cycles. Furthermore, e-invoicing contributes to sustainability by reducing paper usage.
However, to achieve this regulatory compliance, there are two fundamental terms related to e-invoicing in Portugal that we must break down
1. SAFT Portugal: standardization and fiscal control
The SAFT Portugal is a standardized format that facilitates electronic tax auditing for companies. This system allows the Tax and Customs Authority (AT) to access tax information efficiently and transparently. Therefore, companies must ensure that their e-invoicing systems are compatible with SAFT.
2. ATCUD Portugal: new coding requirement
Another key concept is ATCUD Portugal. It is a unique alphanumeric code that is generated for each document and must be validated by the tax authority before being included in the invoice. Thus, it ensures that each document is unique and cannot be duplicated or altered.
The role of the electronic signature in Portugal
In turn, the electronic signature in Portugal is also an indispensable element. Companies must use recognized digital certificates to electronically sign their invoices. However, there are several types of electronic signatures:
- Simple electronic signature for documents that do not require a high level of security.
- Advanced electronic signature for files or documents that require a higher certainty of authenticity.
- Qualified electronic signature, which is the most secure and complies with the requirements of the European eIDAS regulation. It is mandatory for most transactions, as it originates from the EU itself.
Advantages of digital invoicing in Portugal
What has already become clear is that the adoption of e-invoicing in Portugal, as in other countries, offers multiple benefits. Among the advantages, from easyap we will highlight:
- Cost reduction such as paper, physical storage, and shipping.
- Greater operational efficiency due to the automation and hyperautomation of processes.
- Compliance with tax regulations, which prevents all types of penalties.
- Greater transparency to facilitate audits and internal controls.
- Reduction in paper use and contribution to sustainability.
Even, in many organizations, the adoption of e-invoicing tends to improve business relationships, as it facilitates more agile and efficient payments.
How to implement e-invoicing in Portugal
However, often the most serious problem arises when it comes to implementing e-invoicing, both in Portugal and in any other country. In this regard, it is vital to choose software like easyap that ensures compatibility with SAFT Portugal and complies with all requirements, including the integration of electronic signatures and ATCUD Portugal.
Therefore, e-invoicing software must include the following features to comply with Portuguese regulations:
- It must be compatible with SAFT-PT so that tax data is in the correct format.
- It must have the ability to generate and validate the ATCUD code.
- It must allow for digital signing of invoices with recognized certificates.
- It must facilitate the creation, sending, and tracking of invoices.
- It must ensure data protection and compliance with privacy regulations and the information security policy.
Furthermore, implementing e-invoicing requires careful integration with a company’s existing systems. For this, we offer you this detailed step-by-step guide:
- Evaluate the needs specific to your company.
- Configure the software with existing systems and invoicing options.
- Properly train employees on the use of the new system.
- Conduct teststo ensure that the system functions correctly and complies with regulations.
Now, it’s time for the launch. For this definitive final step, implement the system across the entire company, and from there, you can start issuing electronic invoices.
Be mindful of adapting to regulatory changes
You should also keep in mind that e-invoicing regulations evolve. So it is important to stay informed of any regulatory changes. The most significant and recent example is the introduction of ATCUD in 2021, which required adjustments in invoicing systems to include the new code.
Comparison with other European countries
On the other hand, for companies operating in Portugal or other European countries, it is essential to understand the differences in electronic invoicing regulations. So, here is a brief comparison of the current state of digital invoicing in various nations.
- In Germany, electronic invoicing is governed by ZUGFeRD regulations and the Factura-X format. It will soon be extended nationwide, regardless of whether the transaction is B2B or B2C.
- In France, electronic invoicing is mandatory for operations with the public sector and must comply with the Factur-X format. Furthermore, efforts are being made to extend this obligation to transactions between private companies.
- Italy has implemented a mandatory electronic invoicing system for all B2B and B2C transactions. The format used is FatturaPA, and invoices must be sent via the Sistema di Interscambio (SDI).
- In Spain, electronic invoicing is mandatory for transactions with the public sector, and the Facturae format is used. Furthermore, steps are being taken to extend this obligation to transactions between private companies.
- Sweden has adopted the PEPPOL for electronic invoicing in the public sector, which facilitates interoperability and the exchange of invoices at a European level.
As you can see, each country has its own requirements and formats for electronic invoicing, which can complicate cross-border operations. However, solutions like easyap’s are designed to manage these complexities, offering multilingual support and ensuring compliance with each country’s regulations.
easyap’s relationship with Portuguese e-invoicing
At this point, we want to focus on ourselves; easyap is a leading provider of e-invoicing solutions, and our software is perfectly adapted to comply with Portuguese regulations. Why? Because of the specific features and advantages of our software.
1. Full compatibility with SAFT-PT
easyap’s software is designed to generate and manage SAFT-PT files in accordance with the specifications of the Autoridade Tributária e Aduaneira (AT). Therefore, all tax transactions are recorded with complete accuracy and are available for audits.
2. Automatic generation of ATCUD
Our solution is capable of automatically generating and validating the ATCUD code for each invoice. This eliminates manual processes and reduces the risk of errors, ensuring that all invoices comply with authenticity and integrity requirements.
3. Integrated electronic signature
easyap’s software also includes advanced electronic signature functionalities, with recognized digital certificates. In this way, all issued electronic invoices are legally valid and secure, complying with the regulations of Portugal and the EU.
4. Continuous support and updates
At easyap, we provide continuous support and regular updates to our customers.This includes adaptations to any regulatory changes that may occur, ensuring that companies are always up-to-date with current regulations.
5. Customized Solutions
Finally, at easyap we understand that every company is unique. That’s why,we offer customized solutions that integrate perfectly with existing systems,which provides an efficient and hassle-free electronic invoicing experience.
Ultimately, electronic invoicing in Portugal, in addition to complying with a legal obligation, optimizes processes, reduces costs, and provides transparency. In this regard,easyap is a strategic ally with tailored digital invoicing solutions,both in Portugal and throughout the rest of the world. With us, you can focus on growth while your invoicing is in the best hands.Contact usand see for yourself.
