Order 8/2022-XXIII: Mandatory electronic invoicing for the Public Administration still in force from 2023
The Portuguese State Secretary of Fiscal Affairs (SEAF) recently issued Order 8/2022 XXIII, which introduces a grace period for reporting obligations, as well as yet another of the stricter integrity and authenticity (I&A) requirements for electronic invoices.
The Order aims to highlight and promote Portugal’s plans to reduce the invoice data reporting obligations time window, as established by article 3 of Decree-law 198/2012. The Order also aims to establish the constant move towards real-time transmission of invoice data, as observed in other countries throughout the world.
Additionally, the Order affects the requirements of Decree-law 28/2019, by which the Portuguese government enacted a series of measures concerning invoice issuance, processing, and archiving, with the aim of simplifying and digitizing invoicing compliance in the country.
Changes in invoice reporting obligations
Since 2019, the Portuguese government has continuously reduced the time window for the invoice data reporting obligation. Starting 1 January 2023, the deadline for the monthly communication of invoice data will be until the 5th day of the month following the issuance of the invoice.
The new Order introduces a grace period concerning this obligation, with no penalties applied if reporting is carried out until the 8th day of the month following the invoice issuance. This is also applicable for cases where there is non-issuance of invoices during the relevant time period, where a nil monthly submission should also be made until the 8th day of each month.
The Portuguese government has also decided to implement a system of informative alerts by the tax authority in 2023. The aim is to promote voluntary compliance within the 5-day deadline by notifying taxpayers who don’t communicate invoice data until the 5th of the month following the issuance of the invoice.
Postponement of the stricter e-invoice integrity and authenticity requirements
Decree-law no. 28/2019 established several measures regarding invoicing, including a stricter integrity and authenticity requirement for invoices and fiscally relevant documents issued electronically. One of these requirements is the obligation to apply a qualified electronic signature (QES) or seal or use electronic data exchange system (EDI) for e-invoices, as per the European model.
This requirement has been postponed multiple times since enacted and was due to become mandatory on 1 January 2023. The newly published Order, however, explicitly states that until the 31 December 2023 all PDF invoices are considered electronic invoices for all fiscal effects.
Therefore, from the 1 January 2024, taxpayers must comply with the requirement of applying a QES or use EDI per the European Model to ensure integrity and authenticity of e-invoices.
Additional upcoming Portuguese requirements
Besides the stricter integrity and authenticity requirement and the grace period for communication of invoice data, taxpayers are expected to comply with new e-invoicing mandates underway in Portugal.
Namely, the mandatory B2G invoicing in the CIUS-PT format starting on 1 January 2023 for medium, small and micro enterprises. No further guidance has been issued at this time regarding a postponement of the adoption of the CIUS-PT format for these last taxpayer groups, meaning that public entities may reject invoices issued in other formats after the go-live date.
In conclusion, the impact of SEAF Dispatch 8/2022-XXIII is:
- The Dispatch is not considered applicable to relations with the Public Administration (B2G) regarding the obligation to issue electronic invoices in the CIUS-PT format, required for medium, small and micro-enterprises from 1 January 2023, maintaining this deadline in effect;
- Taxpayers will not be financially penalized for non-compliance with the current deadline for communicating invoice elements to the AT, if they are communicated by the 8th day of the month following the issue of the invoice.
- A qualified electronic signature/seal or transmission by EDI according to the European Model will only be mandatory for electronic invoices from 1 January 2024.