Country Guide

How to invoice in Portugal

Portugal requires certified invoicing software and a unique ATCUD code on every invoice. The tax authority monitors invoices in near real-time. This guide covers what you need to stay compliant.

Why Portuguese invoicing rules matter

Portugal has one of the most digitally advanced tax systems in Europe. The Autoridade Tributária e Aduaneira (AT) requires businesses to use certified invoicing software and report invoices electronically. Every invoice must carry an ATCUD code, a unique identifier that links the document to the tax authority's systems. Non-compliance can result in fines starting at 200 EUR and going up to 100,000 EUR for repeated violations. If you sell to or from Portugal, understanding these rules is not optional.

Key tax and invoicing facts

IVA rates
Standard rate is 23% on the mainland. Reduced rates of 13% and 6% apply to specific goods and services. The Azores and Madeira have slightly lower rates: 16%, 9%, and 4%.
NIF tax identification
Every business needs a NIF (Número de Identificação Fiscal). For EU cross-border transactions, a Portuguese VAT number (PT + 9 digits) is required. The AT validates NIF numbers in real time.
ATCUD and certified software
Every invoice must include an ATCUD unique code and a QR code. Only AT-certified invoicing software can generate these codes. Using non-certified software is a fineable offense.
SAF-T reporting
Businesses must submit SAF-T (PT) files to the AT monthly or on request. The SAF-T file contains all accounting data, including invoices, payments, and tax information. Annual submissions are due by February.
Common payment methods
Bank transfer (transferência bancária) is standard for B2B. Multibanco references are widely used for domestic payments. MB WAY is growing for smaller transactions. SEPA direct debit is common for recurring billing.
Currency
Euro (EUR). All domestic invoices must be in EUR. Foreign currency invoices are permitted for international transactions, but the IVA amount must be converted to EUR at the ECB exchange rate on the invoice date.

Required invoice fields in Portugal

  • Full name and address of the seller
  • Full name and address of the buyer
  • Seller's NIF (Número de Identificação Fiscal)
  • Buyer's NIF (mandatory for B2B transactions)
  • A unique, sequential invoice number
  • Invoice issue date
  • Date of supply of goods or services
  • Description of each item or service
  • Quantity and unit price (net) per line item
  • Applicable IVA rate per line item (23%, 13%, or 6%)
  • Net amount, IVA amount, and gross total
  • ATCUD (Código Único de Documento) unique code
  • QR code linking to the AT tax portal
  • Reference to IVA exemption if applicable (CIVA article)

VAT rates in Portugal

See the current VAT rates, reduced rates, and registration thresholds for Portugal.

View VAT rates →

Invoicing guides for neighboring countries

🇪🇸

Spain

Guide →
🇫🇷

France

Guide →

Questions

Do I need certified invoicing software in Portugal?

Yes. All businesses operating in Portugal must use invoicing software certified by the AT. The software must generate ATCUD codes and QR codes, and produce SAF-T (PT) export files. Billstride handles all of this automatically.

What is the ATCUD and why is it mandatory?

ATCUD stands for Código Único de Documento. It is a unique alphanumeric code assigned to every commercial document. The AT uses it to track and validate invoices. Each ATCUD is generated from a series validation code obtained from the AT portal and a sequential document number.

What IVA exemptions exist in Portugal?

Small businesses with annual turnover under 14,500 EUR can apply for IVA exemption under Article 53 of CIVA. Exempt invoices must state 'IVA - isento artigo 53.º do CIVA'. Certain activities like medical services, education, and financial services also qualify for exemptions under specific CIVA articles.

How does reverse charge work for Portuguese invoices?

For B2B services with EU partners, the reverse charge mechanism shifts IVA liability to the buyer. Your invoice must not include IVA and must reference the applicable CIVA or RITI article. Both parties need valid EU VAT numbers.

How long must invoices be retained in Portugal?

12 years. Portuguese tax law requires businesses to archive all invoices and accounting documents for 12 years. Digital storage is accepted, but the files must remain unaltered and accessible for the entire retention period.

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