The Portuguese e invoicing rules delayed until 1 January 2021.
The Portuguese Government postponed the requirement for non-resident VAT registered businesses to produce electronic VAT (IVA) invoices on certified software packages. Consequently the initial deadline of 1 January 2020 now delayed to 1 January 2021.
Foreign VAT-registered companies meeting any of the following conditions creates the requirement to comply with this obligation once they meet:
- Local Portuguese sales exceed the specified EUR 50,000 (previously EUR 75,000) threshold;
- The company is already using invoicing software; or
- Required to have organised accounts (financial statements) or opted for this system. This in accordance with the International accounting rules (IFRS and IAS).
The delay in the implementation of these Portuguese e-invoicing rules is seen as good news for non-resident businesses. However it is still important to understand how this may affect your business. You will need to start taking the necessary steps now to ensure you are compliant with the Portuguese e-invoicing rules by 1 January 2021. Penalties of up to EUR 37,500 might apply for non-compliance.
For more information and help please contact our VAT experts.