Mandatory B2G E-Invoicing in Portugal: Streamlining Transactions with the Public Sector 

For several years, the Portuguese government has been working to make electronic invoicing mandatory for B2G (Business-to-Government) transactions. 

Due to EU Directive 2014/55/EU, issued by the European Union, member countries are obliged to mandate electronic invoicing for public administrations. However, several EU member states have chosen to extend this requirement to suppliers when conducting business with the government. 

The Portuguese mandate, known as “Electronic Invoicing to the Public Administration” (Fatura Eletrónica à Administração Pública – FEAP), was introduced to streamline the invoicing processes and enhance efficiency in transactions between businesses and the public sector. 

In Portugal, companies that provide goods or services to the public sector are therefore required to send their invoices in electronically . 

Exceptions to E-Invoicing for the Public Sector 

However, there are exceptions in certain situations where electronic invoicing to the public sector is not required. Exceptions apply to: 

Classified contracts or contracts requiring special security measures. 

Contracts with a value less than EUR 5,000. 

The Process of Implementing Mandatory B2G E-Invoicing in Portugal 

When it comes to implementing new processes for taxation and invoicing, it’s common for timelines to extend and dates to change. This is a clear trend that we also see in other European countries. Many factors can lead to countries altering their schedules, such as the time it takes to determine the specifics of new requirements and the need for businesses in the country to adapt and implement these new processes. Therefore, it’s also common for requirements to be implemented in different phases. 

This is one of the reasons why it’s challenging to stay updated on requirements and changes in various European countries. 

Portugal is no exception, and the implementation has also been gradual. The first phase of the project involved public administration in Portugal starting to receive electronic invoices, which took place in April 2019. 

When Must Businesses Comply with B2G E-Invoicing in Portugal? 

Compliance with electronic invoicing for suppliers to the public sector is becoming mandatory in stages. This began with large companies in January 2021. The implementation timeline has been postponed several times, and currently, only large companies are required to issue electronic invoices. 

Currently, all public entities are required to receive e-invoices in the structured CIUS-PT format. In addition, all major companies supplying the public sector must issue e-invoices in this format. 

The deadline for SMEs has been postponed several times, but currently, the deadline is 31st December, 2023, when the announcement will be made, and we will learn more about the deadlines. 

When Must Businesses Comply with B2G E-Invoicing in Portugal? 

It is crucial to comply with the requirements for electronic invoicing, otherwise it is not possible or legal to send invoices to the public sector in Portugal. These requirements apply to companies with entities in Portugal that sell goods or services to the public. 

We are also hosting a webinar where our experts will delve into these topics and provide you with the opportunity to ask questions. Register for our webinar to gain firsthand insights and practical tips on maintaining accurate and seamless tax compliance in Europe. 

You can view the webinar here.