VAT in the Digital Age (ViDA) and E-Invoicing Requirements in Portugal
On March 11, 2025, the European Commission formally adopted the VAT in the Digital Age (“ViDA”) initiative. This new legal framework introduces mandatory electronic invoicing (“e-invoicing”) for intra-EU supplies of goods and services, which will become effective across the European Union (“EU”) as from July 1st, 2030.
ViDA establishes the progressive implementation of structured electronic invoicing and additional real-time reporting obligations, significantly transforming VAT compliance requirements for businesses operating within the EU.
Legal framework for e-invoicing in Portugal
In Portugal, invoices and other tax-relevant documents can be issued electronically, provided that customer acceptance is obtained and that the authenticity of origin and integrity of the documents are ensured.
In any case, currently, e-invoicing is only mandatory for transactions involving public sector entities (B2G – Business to Government). For transactions with private entities and final consumers (B2B and B2C) e-invoicing remains optional. Since the COVID-19 pandemic, the Portuguese government has annually extended a temporary measure allowing invoices issued in PDF format to be accepted as electronic invoices. This temporary measure is currently applicable until December 31st, 2026, although it may be further extended.
Expected developments under ViDA and how e-invoicing works in practice in Portugal
Under the ViDA package, mandatory structured e-invoicing will be progressively introduced, with full compliance expected by July 1st, 2030.
Currently, is expected that further real-time reporting and auditing obligations will be gradually implemented.
Experience and challenges in implementing e-invoicing
Although e-invoicing is not mandatory for a substantial number of entities operating in Portugal, the transition has been gradual. Our experience supporting organisations with e-invoicing projects shows that, despite the clear benefits in terms of efficiency and compliance, implementation often represents a substantial investment for the organizations.
Common challenges include the integration of e-invoicing solutions with existing ERP and accounting systems, as well as the technical complexity and the fact that the requirements are not always fully clear in the legislation – leading to uncertainty and delays during implementation.
Nevertheless, most organisations recognise the importance of e-invoicing and are progressively adapting their systems and processes to meet compliance obligations.
We are providing support to several entities that are applying the developments with the goal of having its e-invoicing system functioning in accordance with the necessary legal and tax requirements. With these projects we are able to provide to our clients additional efficiency and avoid costs or liabilities.
Key considerations for businesses
In Portugal, e-invoices must be issued in a legally required structured electronic format and submitted through approved platforms. Regardless of the type of transaction (B2G, B2B or B2C), invoices must be archived for 10 years in a manner that ensures their authenticity, integrity, readability and accessibility for audit purposes.
Furthermore, even where e-invoicing is not mandatory, entities established in Portugal must issue invoices compliant with Portuguese invoicing rules and submit invoices relevant data to the Portuguese Tax Authorities – using one of the following options/means: i) electronic transmission of data in real time via web service; ii) submission of the monthly SAF-T (Standard Audit File for Tax) report; or iii) direct entry of the relevant information on the Portuguese Tax Authorities’ online portal.
SAF-T reporting obligations in Portugal
Portugal implemented the monthly SAF-T reporting obligation for invoicing data – if the communication of the invoices and other relevant document´s details were not done in real time or via direct entry in the Portal. This obligation was extended to non-resident entities in 2023.
This data must be electronically submitted to the Portuguese Tax Authorities on a monthly basis, at the beginning of the month following the transactions concerned.
While SAF-T reporting for invoicing data is fully implemented, the obligation to submit SAF-T files for accounting data has been postponed until 2028.
Alternatively, you can contact our central compliance email address:
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