Tax reforms in Portugal starting January 1st, 2023

August 18, 2022

The Portuguese parliament enacted the 2022 Budget Law, which includes many tax reforms starting on January 1st, 2023.

Among other reforms, the most relevant are:

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Shortening the deadline to report transactions.

From Jan 1, 2023 those businesses that communicate invoices to the Portuguese tax authority (AT) must do so by the 5th day of the following month. This communication must be made by electronic data transmission in real-time or by sending the SAF-T file (invoicing application) produced by the certified invoicing software. Currently, the deadline for invoice communication is the 12th day of the following month. A shortened timespan for reporting leaves less time for manual work and review. 

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Expanding the scope of entities that are obliged to report transactions.

The budget law extends the obligation to report transactions to non-resident entities that are VAT registered in Portugal. The AT requests a monthly communication either through SAF-T or Fiscalization (real-time reporting). Previously, only businesses with a local presence were in scope. Now, all businesses with a VAT registration are obligated to report transactions. 

This change gives rise to a new compliance obligation for non-resident entities doing business in Portugal. Combined with the shortened deadline to report transactions, compliance in Portugal will become more challenging.

How can Fonoa help?

Fonoa can help you automate the process of reporting transactions to local tax authorities in real-time and stay compliant with reporting regulations worldwide, including in Portugal. Get in touch to connect with one of our experts. 

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Sources and further reading:

Please, see Article 317 that reforms Article 3 of the Decree-Law 198/2012 (previous text and reformed text).

https://www.garrigues.com/en_GB/new/portugal-vat-obligations-amended-state-budget-law-2022

Agustín Trevisiol
Tax Researcher

Agustin is an International Tax Lawyer and specialist in cross-border digital transactions. He has worked with VAT, GST, and DST in over 90 countries on all five continents. Over those jurisdictions, he has been handling registration thresholds and procedures, invoicing requirements, compliance, return submission, and tax remittance. With that respect, he has been providing assistance and advisory to many leading firms in the digital economy, especially in online education, video games, and fintech.