Portugal complies with Council Directive 2010/45/EU

European Union Council Directive 2010/45/EU (that’s the famous invoicing one) says that “Member States shall adopt and publish, by 31 December 2012 at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive.” Portugal is one of these 27 member states and properly plays by the rules, because the Southwestern European country has published VAT legislative changes.The changes to electronic invoicing rules are effective from 1 October 2012 onward.

Decree Law no. 197/2012

The invoicing rules have been revised:

• Reinforcement of the requirement for issuing an invoice regarding all supplies of goods or services performed in Portuguese territory (regardless of the acquirer’s VAT status and having(or not having) requested the invoice).
• Recognition of the invoice as the only allowed document to support a given taxable transaction( “documents equivalent to an invoice” – e.g., containing the same requirements but not specifically mentioning “invoice” are no longer admissible) – subject to penalties for a failure to comply.
• Introduction of a measure to allow for simplified invoices regarding transactions subject to VAT in the Portuguese territory, with reference to supplies of goods up to a value of €1,000 provided by retailers to non-taxable legal persons and other supplies of goods or services up to €100.
• Simplification of the requirements for the use of electronic invoices, and availability for issuance of electronic invoices through systems other than electronic signature and electronic data interchange.

Decree Law no. 198/2012

The main measures cover (among others) the following areas:

• Introduction of a system for electronic transmission of the data contained on the invoices and other documents with fiscal relevance.
• Taxable persons established in Portugal and carrying out transactions subject to VAT must report to the Portuguese tax authorities, through electronic data communication, the data of the invoices issued each month, by the 8th day of the month following the month of the issuance of the invoice.