We call it globalization, and one of its best consequences is that international transactions are becoming increasingly common. At the same time, the environment is now fully online. That is why electronic invoicing is a reality and a necessity across all countries and businesses. In this post, we will look at the case of a specific country that is close to home: electronic invoicing in Portugal. As in Spain, it is now an essential tool for the entire business community. So this guide is designed for those who want to understand and correctly apply electronic invoicing in their commercial transactions with organizations in the neighboring country.
History and evolution of electronic invoicing in Portugal
As in other developed countries, electronic invoicing in Portugal is the digital document that is replacing paper invoices, with the same legal validity. Its purpose is to improve efficiency, reduce costs, and ensure transparency in commercial transactions.
The fact is that the adoption of electronic invoicing in Portugal has accelerated in recent times. How? Through the implementation of the SAFT Portugal system (Standard Audit File for Tax purposes), which we will discuss in more detail later.
Their integration into the neighboring country, as here, has been gradual, but with two notable moments:
- Since January 2019, electronic invoicing has been mandatory for all Portuguese companies that interact with the public sector.
- As of January 2021, this obligation was extended to transactions between private companies (B2B).
Likewise, this evolution reflects the Portuguese government's ongoing efforts to digitize and modernize its tax processes.
Regulations and legal requirements
Right now, electronic invoicing facilitates tax compliance while improving the operational efficiency of companies. By automating invoicing, companies reduce errors, minimize costs, and speed up payment cycles. In addition, electronic invoicing contributes to sustainability by reducing paper use.
However, to achieve regulatory compliance, there are two fundamental terms related to electronic invoicing in Portugal that we must examine
1. SAFT Portugal: standardization and tax control
SAFT Portugal is a standardized format that facilitates electronic tax auditing for companies. SAFT Portugal is a standardized format that facilitates electronic tax auditing of companies. This system allows the Tax and Customs Authority (AT) to access tax information efficiently and transparently. Therefore, companies must ensure that their electronic 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 authoritybefore being included on the invoice. This ensures that each document is unique and cannot be duplicated or altered.
The role of electronic signatures in Portugal
In turn, electronic signatures are also an indispensable element in Portugal. 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 greater 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 comes from the EU itself.
Advantages of digital invoicing in Portugal
What has already become clear is that the adoption of electronic invoicing in Portugal, as in other countries, offers multiple benefits. Among the advantages, at easyap we would highlight:
- Cost reduction such as paper, physical storage, and shipping.
- Greater operational efficiency through automation and hyper-automation of processes.
- Compliance with tax regulations, which avoids penalties of all kinds.
- Greater transparency to facilitate audits and internal controls.
- Reduced paper usage and contribution to sustainability.
In fact, in many organizations, the adoption of electronic invoicing tends to improve business relationships, as it facilitates faster and more efficient payments.
How to implement electronic invoicing in Portugal
However, the most serious problem often arises when it comes to implementing electronic invoicing, both in Portugal and in any other country. In this regard, it is vital to choose software such as that offered by easyap that ensures compatibility with SAFT Portugal and meets all requirements, including the integration of electronic signatures and ATCUD Portugal.
Therefore, electronic invoicing software must include the following features to comply with Portuguese regulations:
- Make it SAFT-PT compatible so that tax data is in the correct format.
- That it has the ability to generate and validate the ATCUD code.
- That allows digitally sign invoices with recognized certificates.
- Facilitates the creation, sending, and tracking of invoices.
- Ensure data protection and compliance with privacy regulations and the information security policy.
In addition, implementing electronic invoicing requires careful integration with the company's existing systems. To this end, we offer you this detailed step-by-step:
- Assess the specific needs of your company.
- Configure the software with existing systems and billing options.
- Properly train employees in the use of the new system.
- Conduct tests to ensure that the system is functioning correctly and that it complies with regulations.
Now, the launch. For this final step, implement the system throughout the company, and from there, you can start issuing electronic invoices.
Be careful when adapting to regulatory changes
You should also bear in mind that electronic invoicing regulations are constantly evolving. So it is important to stay abreast of any regulatory changes. The most significant and recent example is the introduction of the ATCUD in 2021, which required adjustments to 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 how digital invoicing currently stands in several countries.
- In Germany, electronic invoicing is governed by the ZUGFeRD regulation and the Factura-X formatformat. It will soon be extended to the whole country, regardless of whether the transaction is B2B or B2C.
- In France, electronic invoicing is mandatory for transactions with the public sector and must comply with the Factur-X format. In addition, 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 through the Sistema di Interscambio (SDI).
- In Spain, electronic invoicing is mandatory for transactions with the public sector, and the Facturaeformat is used. In addition, steps are being taken to extend this requirement 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 the 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 such as those offered by easyap are designed to manage these complexities, offering multilingual support and ensuring compliance with each country's regulations.
The relationship between easyap and Portuguese electronic invoicing
This is where we want to pause and reflect on ourselves; easyap is a leading provider of electronic 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
The easyap 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 meet authenticity and integrity requirements.
3. Integrated electronic signature
The easyap software also includes advanced electronic signature features, with recognized digital certificates. This means that all electronic invoices issued are legally valid and secure, complying with Portuguese and EU regulations.
4. Ongoing support and updates
At easyap, we provide continuous support and regular updates to our clients. This includes adapting 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 seamlessly with existing systems, providing an efficient and hassle-free electronic invoicing experience.
In short, electronic invoicing in Portugal not only complies with a legal obligation, but also optimizes processes, reduces costs, and provides transparency. In this regard, easyap is a strategic ally with customized digital invoicing solutions, both in Portugal and around the world. With us, you can focus on growing your business while your invoicing is in the best hands. Contact us and see for yourself.
