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Portugal: Meet the law – Tax measures that enter into force in 2023

published on 14 February 2023 | reading time approx. 5 minutes

Series Number or ATCUD on Fiscal Documents
Electronic Invoicing and Electronic Invoices in Portugal
Invoicing of non-resident taxpayers
Invoice communication (SAF-T)
Obligation to submit the SAF-T (PT) of the accounting for IES/DA
Reporting of inventories
New grounds for VAT exemption
Changes in VAT legislation
Exceptional regime of flexibilization of tax obligations (VAT and CIT)
Regime of Goods in Circulation
Communication to Social Security of data on new and active employees
Update of the minimum wage
Update of meal allowance
End of contributions to the Work Compensation Fund (FCT)

Series Number or ATCUD on Fiscal Documents

The Series Number (ATCUD) is a unique code in the invoice document that simplifies control of commercial transactions by making it possible to uniquely identify a document, regardless of its issuer, the type of document and the series used.

This code must be created when the document is issued by the invoicing program software and, in addition, the Series Number must appear on every page of the tax document within the printing limits of each one.

Regarding its use, all invoicing and tax relevant documents must include this number that must be published above the QR Code (or can be next to the data) and its readability in the document must be guaranteed.

Each issuer must communicate in their area of the tax portal prior to use the series they intend to use, for each type of document and means of processing, in order to obtain a validation code with which will be composed the respective Series Number (ATCUD).

The validation code is valid for the entire series of documents for at least one fiscal year.

Electronic Invoicing and Electronic Invoices in Portugal

Invoices in pdf format will continue to be accepted in 2023, being considered as electronic invoices for all purposes set out in tax legislation.

This measure does not apply to big companies which are suppliers to the Public Administration, who are required to issue electronic invoices since 2021. We would like to point out that electronic invoicing is only compulsory for companies which supply the public sector and is optional for all others.

Invoicing of non-resident taxpayers

From 1 January 2023, non-resident taxpayers will be able to communicate their invoicing to the Tax Authority, being able to use the SAF-T (PT) file for this purpose.

We underline that this obligation does not apply to: (i) non-resident taxpayers without a permanent establishment or tax representative in Portugal, in which case the obligation to liquidate the tax falls on the taxpayer acquiring the goods or services (reverse charge); (ii) when the operations are performed under the "One-Stop Shop" - OSS special regimes.

Since 2021, non-resident taxpayers were already obliged to issue invoices and other fiscally relevant

documents through software previously certified by the Tax and Customs Authority. However, the State Budget Law of 2022 establishes that taxpayers subject to the rules for issuing invoices in Portuguese territory are obliged to communicate to the Tax Authority, by electronic data transmission, the elements of invoices and other tax relevant documents.

Invoice communication (SAF-T)

From 2023 onwards, as provided for in the State Budget for 2022, the legal deadline for communicating invoices, as well as the obligation to communicate other tax relevant documents, will be the 5th day of the following month.

Nevertheless, the need for economic operators to adapt was recognised, and the Secretary of State for Tax Affairs signed an Order determining greater flexibility in the tax calendar and in the compliance of companies with their tax obligations to the Tax and Customs Authority, from 2023 onwards, it will be possible for this communication of invoices to be made by the 8th day of the following month, without this implying any penalties and also with the implementation of an alert system. According to a statement made by the Chair of Certified Accountants, invoices issued in December 2022 can be communicated to the AT until 12 January 2023.

On the other hand, taxpayers who have not issued any documents during the month must communicate this fact to the Tax and Customs .

Authority through the Finance Portal, within the period mentioned in the previous point.

Obligation to submit the SAF-T (PT) of the accounting for IES/DA

The obligation to annually submit to the Tax Authority the SAF-T file on company accounts has been postponed to 2025.

This obligation to submit the Simplified Corporate Information/Annual Statement (IES/DA) through the prior submission of the SAF-T file on accounting takes effect for the periods 2024, to be delivered in the year 2025.

Reporting of inventories

The communication of inventories relating to 2022 is allowed to be made by economic operators without any addition or penalties until the date of 28 February 2023. Following this order, economic agents are granted an extra month to comply with this tax obligation. In the main objective of controlling tax evasion, fraud and the parallel economy, from 2023 onwards, the information that companies must report on the Finance Portal is a valued inventory for 2022, to which, the inventory report with only the quantities of raw materials and products for sale is no longer sufficient, whereby, it will be necessary communicate the value of each existence in the company or its cost value.

New grounds for VAT exemption

The grounds for VAT exemption have been updated by the Tax and Customs Authority.

In this regard, new codes for exemption purposes have been made available, for example, the introduction of the code for goods on consignment (M25), all contained in the table made available by the AT.

The grounds for exemption and respective codes in this table must be used when issuing new documents. This adaptation of the systems must be completed in order to ensure that, as from January 1, 2023, all documents issued under these terms are communicated to the E-Invoice System in accordance with the new table.

Changes in VAT legislation

Regarding the sale of excess electricity produced for self-consumption, - with an installed capacity of 1 MW or less- a new rule on reverse charge has been approved when these operations are made to electricity resellers. With the introduction of the requirement to use the self-billing in certain situations or the exemption of verification of the conditions for its application, the invoicing rules are simplified.

A regime of tax refund to event organizers has been created and entered into force on 22 December 2022, which allows the refund of the totality of the VAT borne by entities organizing events and made, regarding certain expenses whose deduction is partially limited – expenses such as lodging, foods, beverages and others.

In respect of the obligation to communicate the elements of the self-billed invoices, this can be fulfilled by the acquirer, provided that it is foreseen in the framework of the prior self-billing agreement.

Exceptional regime of flexibilization of tax obligations (VAT and CIT) for 2022

In November and December 2022, taxpayers qualified as cooperatives or micro, small and medium-sized companies or Small Mid Cap companies may pay VAT in three- or six-monthly instalments of € 25 or more, without interest.

Taxpayers qualified as cooperatives or as micro, small and medium enterprises or Small Mid Cap may be wailed payment of half of the amount of the third advanced CIT payment. This concerns the tax period starting on or after 1st January 2022.

Regime of Goods in Circulation

According to the regime of goods in circulation, namely, the decree-law of goods in circulation subject to transactions between VAT taxpayers (regarding the obligation and requirements of the transport documents that accompany them) the documents communicated to the Tax and Customs Authority will now be considered exhibited, provided that these documents contain the respective Series Number (ATCUD) and the QR code, when this is compulsory, whereby this does not apply to documents issued on paper.

Communication to Social Security of data on new and active employees

The deadline for notifying the Social Security services of the admission of new workers has been altered. The communication of the admission of workers will now be made within 15 days prior to the employment contract coming into effect (and no longer within the previous 24 hours).

Update of the minimum wage

The Government sets the value of the minimum monthly salary guaranteed at 760 Euros, with effect from 1 January 2023.

Update of meal allowance

The value of the food subsidy for the public and private sectors has been updated. For IRS purposes, the meal allowance is set at € 5.20 if paid in cash and, if it is granted through a food card or meal voucher, the amount is set to be € 8.32.

End of contributions to the Work Compensation Fund (FCT)

According to the Medium-Term Agreement on Improving Wages, Income and Competitiveness, the Government decided to abolish the Work Compensation Fund (FCT) and suspend contributions to the Work Compensation Guarantee Fund (FGCT) until 2026.