Decree-Law no. 28/2019, of 15 February, was officially published, within the framework of the SIMPLEX + program, in order to promote the dematerialisation and reduce over-bureaucratisation in the emission and archiving of invoices, namely, consolidating and revising some provisions scattered through the legislation.
This Decree-Law came into force on 16/02/2019, nevertheless, the application of some provisions awaits further regulation.
Below we underline some the amendments resulting from this legislation:
Invoicing programs certification: the use of invoicing programs previously certified by the Portuguese Tax Authorities (“PTA”) becomes mandatory for taxable persons with headquarters, permanent establishment or domiciled within the Portuguese territory whenever (i) the turnover of the previous calendar year has exceeded 50,000 euros (75,000 euros for 2019, but only from 01/07/2019 on, according to Order no. 85/2019.XXI, of 1 March, issued by the State Secretary for Tax Affairs, as until that date the limit is maintained at 100,000 euros as previously applicable) or when, in the fiscal year of commencement of activity the reference period is inferior to the calendar year and the annualized turnover regarding such period exceeds that amount, (ii) the taxable person makes use of invoicing software or (iii) is obliged or has opted for the organised accounting system.
Invoices reporting: the deadline to report the invoices’ elements to the PTA, currently until the 20th day of the month following the issuance, has now to be performed until the 15th day. From 2020, the deadline will change to the 10th day of the following month.
Books of account, records and supporting documentation: the general archiving period of 10 years is maintained, nevertheless, whenever the taxable person exercises a right with a deadline exceeding this period, the archiving obligation is extended until the expiration of the limitation period provided for the assessment of the corresponding tax.
Client’s recapitulative statements (Annex O of the IES): taxable persons with headquarters, permanent establishment or domiciled within the Portuguese territory are dismissed from submitting such statement (that is, this obligation is only maintained for VAT registrations).
Amendments differed or subject to regulation
Invoices printing: taxpayers are now dismissed from printing invoices in paper or from transmitting it by electronic means to the acquirer or to the non-taxpayer recipient, except if requested by the former, if cumulative requirements are met, namely, the invoices contain the tax identification number of the acquirer, are processed by certified computer program and the taxpayers opt for the electronic transmission in real time to the PTA of the elements present in the invoices. However, this possibility is still dependent of regulation.
Invoices requirements: from 01/01/2020, invoices and other fiscally relevant documents must contain a two-dimensional bar code (QR Code) and a document unique code, to be defined by Ministerial Order.
Invoice issuance waiver: public entities, non-profit organizations and particular institutions of social solidarity which perform solely VAT exempt operations and have obtained for CIT purposes, in the immediate previous tax period, an annual gross amount not higher than 200.000 euros, are dismissed from the obligation of issuing invoices starting from 01/01/2020. These entities must, however, issue a document, dated and numerated sequentially, which must contain the majority of the elements that must be included in the invoices.
Reporting to the PTA of the location of archiving of invoices and other documents of tax relevance: after the announced publication of the Ministerial Order that will change the form of the declarations of beginning and end of activity (to be delivered in the future), taxpayers must report to the PTA, within 30 days, the establishment or installation in which its tax documentation is centralized, as well as the location of its archive in electronic form, as indicated in Dispatch no. 85/2019.XXI, above mentioned.
Reporting to the PTA of the taxpayer’s establishments where the invoices are issued must be due:
Until 30 June 2019 – by VAT taxpayers which already perform an activity at 16/02/2019 or begin to perform an activity until 31/05/2019;
Within 30 days subsequent the beginning of activity or until the occurrence of amendments to the elements previously reported.
Even though the Decree-Law does not state so, we assume that the means to report said obligation will be regulated since the diploma omits this procedure.
Annual reporting of inventories: the dismiss of reporting obligation, which was previously applied to taxpayers with a turnover in the previous tax period not exceeding 100.000 euros, is now applicable, starting 01/01/2020, to taxpayers applying the simplified scheme of taxation under PIT or CIT, irrespective of the turnover.
Finally, we highlight that, as the above mentioned regulations start being published, the PTA shall issue administrative instructions to help on its correct application.