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Invoicing in Portugal

An invoice is a crucial document when doing business transactions. Its primary purpose is to provide written proof of the successful delivery of goods between a buyer and a seller. It can also serve as proof of payment between an employer and their employee. Depending on your country of residence, official invoices have a particular format to follow and should list details such as the date and nature of goods or services provided.

 

As a member of the European Union (EU), Portugal requires invoices to follow a strict set of guidelines. In this article, we list down several important details about invoicing in Portugal.

 

Invoicing and e-invoicing in Portugal

Since 2019, Portugal has made the move to make e-invoices the standard over written invoices. E-invoices have become mandatory for all business to government (B2G) transactions. This was done in order to comply with EU directives stating that e-invoices must have equal weight to their written counterparts.

 

At the start of 2021, the Portuguese government made it so that business-to-business e-invoices (B2B) have to use government-issued series numbers. Companies must also utilize government-certified software to provide QR codes on each invoice.

The e-invoices must be submitted through a government website. 

 

Requirements for an invoice in Portugal

 

For an invoice to be considered valid, it must contain the following details:

  • date of the invoice
  • VAT information of the supplier
  • details of the supplier
  • government contractor details
  • terms of the contract
  • terms of delivery
  • payment details
  • type of goods and/or services provided
  • amount of VAT payable
  • net and gross value of the invoice

 

Suppliers with sales of at least €50,000 must also use government-approved invoicing software to include a unique invoice code.

 

 

What should be included in an invoice?

 

When goods or services are exchanged, a seller must provide the buyer with an invoice to consider it a valid business transaction. In Portugal, the invoice has to include specific details such as:

 

  • a unique invoice number
  • business details such as company logo, business address, and contact details
  • buyer’s name and address
  • date of transaction
  • date of issuance of the invoice
  • due date for the transaction
  • description of goods or services being exchanged
  • quantity of goods or services exchanged
  • individual price of goods or services
  • total amount due

 

What are the benefits of using externalized invoicing?

With the current trend of technology and with the global market being more open, international transactions have become more common. If a company is looking to modernize and streamline its accounting and financial process, using invoice processing software and hiring specialists is a must. Here are a few of the benefits of adhering to externalized invoicing:

 

  • Time and money saver
    • Without having an internal accounts payable department, expenditures from training to salaries can be minimized or outright avoided.

 

    • Payments made directly to a client by a company could hit roadblocks and thus, take longer. With the help of a third-party invoicing service, late or missed payments can be avoided altogether.

 

  • Organized bookkeeping 
    • Third-party invoice processing services will provide a proper and organized record-keeping system. This will make keeping track of all business transactions a breeze.

 

  • Ease of payment
    • With the help of an external team, making payments will be a seamless process. External invoicing services also have access to different currencies, making international transactions possible.

 

Why choose INS Global for your invoicing solution

Knowing what is required for an invoice in Portugal is an essential step in doing business in the country. Our customized and localized invoicing solutions ensure that we can address the needs of our clients according to their specific company structure and that they adhere to Portugal’s rules and regulations.

 

INS Global as Your Partner

As one of the world’s leading Professional Employer Organizations (PEO), we are also able to provide payroll and tax processing services, recruitment, and company incorporation in Portugal and across other parts of the world. Contact us today and let us help make your international expansion simple.

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