08.18.22

SAF-T obligation extended to non-established businesses

The Portuguese State Budget, approved on 27 June 2022, introduced some changes for SAF-T reporting. SAF-T reporting refers to the Standard Audit File for Tax and Portugal pioneered the SAF-T format, being the first country to introduce it on 1st January 2008. It was created with the underlying intention to orchestrate an efficient exchange of information between businesses and tax authorities.

All VAT-registered taxpayers in Portugal are subject to SAF-T reporting obligations. The State Budget has now extended this obligation to foreign businesses from 1st January 2023.

This effectively brings the Portuguese SAF-T legislation in harmony with the requirement for non-established companies in Portugal to also use certified billing software, which came into effect in July 2021. This requirement ensures that taxpayers can only use billing systems authorised by the Portuguese Tax Authorities (PTA), thus reducing the scope for tax evasion and fraud.

Compliance is complicated

Want to learn more about how Tungsten Network makes the process of staying compliant easier?

Browse Portugal updates

Reduction of VAT on purchase of bicycles
  • VAT/G(S)ST rate information
Portugal
Reduction in VAT for gas and electricity
  • VAT/G(S)ST rate information
Portugal
Extension of certain VAT rates
  • VAT/G(S)ST rate information
Portugal
New standard rate of 16% in the Azores
  • VAT/G(S)ST rate information
Portugal