Service Portugal (All Economic Information)

Empresa na Hora - How to Create a Company Instantly?

2025-10-27T08:43:00.005+00:00

Empresa na Hora - How to Create a Company Instantly?

It's possible to open a company in approximately one hour at one of the counters located in various locations throughout Portugal. This option is only available for the formation of sole proprietorships with limited liability, limited partnerships, and corporations with pre-approved articles of association.

FIRMAS E DENOMINAÇÕES

FIRMAS E DENOMINAÇÕES COM MARCA

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For more information, please contact us.

(Author)

Mr. Raj

Everything you need to know about electronic invoicing for official entities!

2024-09-14T17:16:00.005+01:00

Everything you need to know about electronic invoicing for official entities!

Small and Medium-sized Enterprises (SMEs) holding public contracts with the State are required to submit electronic invoices as of January 1, 2023. In an effort to speed up and improve transparency, this new public procurement method mandates that businesses doing direct business with government agencies issue EDI electronic invoices.

As a result, all Portuguese businesses are now subject to the same regulations that governed larger businesses previously, requiring them to sign contracts with the State and submit electronic invoices as of 2021.

An electronic invoice: what is it?

This invoice may be processed automatically and electronically because it was created, sent, and received in an organized electronic format. It is not just a straightforward scan of a paper invoice; it needs to be generated by approved invoicing software. The invoice needs to be sent straight from the issuer's system to the buyer's system after it is issued. In line with European Directive 2014/55/EU on electronic invoicing, the primary goal when sending electronic invoices to public bodies is to streamline communication between the State and its suppliers.

Benefits of Electronic Billing

Companies can benefit from the new electronic invoicing system in a number of ways, including:

reduction of administrative expenses; reduction of time and complexity involved in mailing invoices;

increased dependability and security over conventional invoices;

Simple consultation and reduced physical footprint due to the availability of bills in digital format;

more openness during the whole invoicing procedure;

Better for the environment since it uses less paper and emits less CO2.

EDI: Public Administration's Electronic Invoicing

The use of electronic invoicing, or EDI (Electronic Data Interchange), facilitates communication between public agencies and private agents and encourages openness throughout the billing process. As a result, it is feasible to lower operating and transaction costs, shorten payment deadlines, and guarantee increased dependability and transparency throughout the entire process.

The Portuguese government has made the decision to use electronic invoices, or EDIs, for public contracts. As a result, it has charged eSPap (Public Administration Shared Services Entity, IP) with creating an online platform that links vendors looking to issue invoices and other tax-related papers with state entities (as consumers).

The preferred format for invoices (an XML file containing all of the sent documents) is CIUS-PT.

The model for adopting electronic invoicing in public contracts was outlined by Decree-Law no. 123/2018, of December 28 (amended by Decree-Law no. 14-A/2020, of April 7) and Decree-Law no. 104-A/2021, of November 27. This is the schedule that was chosen based on the size of the businesses:

January 1, 2021 for major firms; January 1, 2023 for small and medium-sized businesses; and January 1, 2023 for microbusinesses.

Effects of Electronic Billing on Businesses and Governmental Organizations

Companies must set up their invoicing systems to issue electronic invoices to any public entity by the deadline set by law, taking into account the size and volume of the business. This is because it is now required for suppliers of public entities to adopt electronic invoicing within the framework of public contracts.

In order for public entities to receive and process electronic invoices, they must expeditiously execute the Electronic Invoicing process.

How to follow the updated billing regulations?

Complying with these new invoicing regulations can be enhanced by using certified invoicing software. You may issue electronic invoices, integrate ATCUD codes in your bills, and discuss invoice series with this certified invoicing software all on the same platform.

Digital signature qualification delayed until 2025

In 2024, certified digital signatures on PDF invoices were supposed to become necessary. But since the ruling was postponed until January 1, 2025, PDF invoices that lack a digital signature will still be accepted as electronic invoices through December 31, 2023.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

What is a Complaint Book and What is it for?

2024-03-20T08:34:00.003+00:00

What is a Complaint Book and What is it for?

The Complaints Book: What Is It?

It is an official form that allows customers to file written complaints quickly, easily, and cost-free. It also functions as a tool for keeping an eye on how businesses interact with their clients.

For whom is a Complaints Book necessary?

In places of business that cater to the general public, such as public administration agencies and services, it is required. An orderly file of the complaints submitted must be kept (for at least three years), and a notice indicating that the complaints book is available at the establishment must be placed in a prominent location.

The consumer must always request access to the complaints book. In the event that this is not the case, the customer may ask to speak with a police officer so that the book can be delivered to them and the incident recorded.

Which Types of Businesses Need to Keep a Complaints Book?

Pharmacies;

Retail trade and commercial complexes;

Wholesale trade with resale to the final consumer;

Fuel filling stations;

Laundries, dry cleaning and ironing establishments;

Hairdressing salons, beauty institutes or similar;

Tattoos and piercings;

Sale, maintenance and repair of bicycles, mopeds, motorcycles and motor vehicles;

Showcases of an artistic nature;

Underground or surface parking lots;

Rental of bicycles, motorcycles and motor vehicles;

Repair of personal and household goods;

Private notaries;

Construction companies;

Real estate development companies;

Condominium management companies;

Real estate appraisal companies;

Providers of essential public services;

Providers of road, rail, sea, river and air transport services;

Providers of electronic and postal communications services;

Providers of water supply, wastewater sanitation and urban waste management services;

Private Social Security Institutions;

Credit institutions and financial companies;

Insurance companies, intermediaries, insurance brokers and pension fund management companies;

Veterinary medical care centers;

Private and cooperative pre-school and basic and secondary education establishments;

Private and cooperative higher education establishments.

Where to buy the Complaints Book?

The complaints book is available for purchase at Turismo de Portugal, citizen stores, the Direção Geral do Consumidor's premises, INCM (Imprensa Nacional Casa da Moeda) branches, and authorized professional associations. There is also the option to buy online via the INCM store. In order to accomplish this, you must register on the website and input business information, including the establishment's name, address, NIF, and CAE.

What is the price of the Complaints Book?

The cost of the Complaints Book is 19.76 €. An electronic book containing 25 complaints is provided with every physical complaints book purchase. Credit card payments, ATM service payments, and Payshop purchases are all accepted forms of payment. Portugal's mainland will be delivered three to five days after payment.

How to fill out the Complaints Book?

Before completing the complaint form, carefully read the instructions to avoid jeopardizing the complaint;

Use capital letters and a ballpoint pen to fill out all the fields;

succinctly and impartially explain the reasons behind the complaint;

Sign the complaint sheet and enter the date.

Once the complaint is finished, it must be sent to the appropriate regulatory body and the duplicate delivered to the customer (the complaints book has a 10-working-day response deadline).

How to Monitor the Status of the Complaint?

The consumer can monitor the status of the complaint on the RTCI Portal (Common Information Telematic Network):

Click on the Consumers and Economic Operators area ;

Enter the requested data: complaint number, citizen card number, identity card or passport.

To obtain additional information, contact the regulatory authority. To find out which regulatory entity is responsible, search the RTCI.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Is it possible to send the SAF-T File after the deadline?

2024-02-03T00:57:00.003+00:00

Is it possible to send the SAF-T File after the deadline?

Sending the SAF-T file after the deadline is feasible, yes. On the other hand, late submission of the SAF-T will result in fines. A fine of between 450,00 and 22.500,00 euros will be paid if invoices and other documents issued by sending SAF-T 1.04 are not communicated by the deadline.

Note: In cases of negligence as well as for legal entities, the values listed apply. In the event of fraud or tax offenses committed by natural persons, different amounts of fines may apply.

When is the SAF-T submission deadline?

According to Article 3rd of Decree Law No. 198/2012, the SAF-T delivery deadline from 2023 to 2019 is the fifth day of the subsequent month. For instance, by November 5 of the same year, the SAF-T for the month of October must be turned in.

SAF-T PT: What is it?

It is a standard file that lets you export records for a given tax year. Following the July 2017 modifications, version SAF-T PT 1.04 of this file needs to be submitted to the Tax Authority. Every document that the business issues is exported:

Proforma invoices, receipt invoices, streamlined invoices, and invoices;

Acknowledgments; Order, Debit, Credit, and Return Notes;

Transport and shipping notes;

Consignment and own asset movement guides;

spending plans;

service documentation

Table queries.

Who has to deliver the SAF-T?

Businesses operating in Portuguese territory that engage in commercial, industrial, or agricultural operations are required to submit the SAF-T to the Finance Department. There are several ways to send the SAF-T file:

Document exchange in real time;

SAF-T sent automatically each month;

SAF-T file exported for delivery to the Finance Portal.

How to Validate SAF-T?

Well, you can, use the Tax Authority's SAF-T validator. The online version is not currently available, but it is possible to obtain the offline validator . To access the AT SAF-T Validator you need:

Access the Finance Portal;

Enter your data;

Download the official SAF-T Validator;

Select the Option “Local Validation Application, from the data structure of Ordinance No. 302/2016, of December 2.”

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Payment of Services - How to do it?

2023-12-14T13:41:00.009+00:00

Payment of Services - How to do it?

Well, to simply the payment process and to complish the payment in a better way, the Multibanco references are introduced. Multibanco references are a code that allows you to pay for services to the state, invoices for services such as energy, water, TV NET VOZ wherever you go. They include three fields:

Entity (Entidade) – identifies the company/sector of the state to which the payment will be made).

Reference (Referência) – This is the code that identifies the invoice being paid, so that the charge is recognized by the user.

Amount (Valor) – The amount you have to pay.

Enough talk!

Let´s talk about the procedure to do "Payment of Services".

First of all, you need to insert your debit/credit card inside the ATM machine and put the personal code as shown in the picture below.

Next, you need to select "Pagamentos e Outros Serviços" as shown in the picture below.

Next, you need to select "Pagamento de Serviços/Compras" as shown in the picture below.

Next, you need to insert the correct values in "Entidade, Referência, and Montante" sections and click on green button to finish the transaction as shown in the picture below.

In this way, you can do the payment of services.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

How to consult the Permanent Certificate of a company?

2023-07-16T10:31:00.005+01:00

How to consult the Permanent Certificate of a Company?

Information about a company can be accessed online with the Permanent Certificate. The latest articles of incorporation and updated statutes of companies, cooperatives, public companies, and other entities with commercial registration are accessible, as are computerized records, electronic documents associated with the companies' electronic dossier (aside from accountability documents), and computerized records.

The permanent certificate serves as evidence of the business's agreements with customers and partners in practice and legally. Every time a request for a permanent certificate is made, an access code is given; the paper certificate is not required to be presented. It is accessible online through the Citizen's Portal.

Enough talk!

Let´s talk about the process to consult the Permanent Certificate of a Company.

First of all, you need to click on the following picture where it says "ePortugal.gov.pt"

Next, you need to introduce the Permanent Certificate number and click on "continuar" as shown in the picture below.

Next, you can see the Permanent Certificate as shown in the picture below. If you want, you can print or save this document.

In this way, you can access the Permanent Certificate of a company.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

How to create a user in Finance Portal for the communication of the invoices?

2023-05-14T11:05:00.003+01:00

How to create a user in Finance Portal for the communication of the invoices?

In order to activate the communication of the invoices, you must create a user on the Finance Portal, with the necessary permissions for the communication of documents.

First of all, you need to click on the following picture where it says "AT Autoridade Tributária e Aduaneira".

Next, you need to log on using your Finance Number and the Password as shown in the picture below.

Next, you need to click on "Todos os Serviços" as shown in the picture below.

Next, you need to click on "Gestão de Utilizadores" as shown in the picture below.

Next, you need to click on "Criar um Novo Utilizador" as shown in the picture below.

Next, you need to create user and password as shown in the picture below.

eg. 123456789/1, 1234567897/2, 123456789/3, and so on.

Next, you need to check the required permision as shown in the picture. The permissions may defer from billing software to software.

eg. Uber-Fonoa needs following permisions.

CGS - Comunicação e Gestão de Séries

WDT - Webservice for communication of transport documents

WFA - Webservice de communication de dados de faturas

WSE - Comunicação e Gestão de Séries por webservice

Next, you need to select all of the permissions and click on "Submeter" as shown in the picture below.

Next, you need to click on "Listar Utilizadores" as shown in the picture below.

Next, you need to click on "Alterar Dados" as shown in the picture below.

It is strongly recommended to choose a correct description for the user. eg. ETPos, TR Soft, Vendus, Uber-Fonoa, Bolt-Fonoa, and so on.

Next, you need to type a description as shown in the picture.

Next, you need to click on "Submeter" as shown in the picture below.

Next, you need to click on "Listar Utilizadores" as shown in the picture below.

In this way, you have created a user in Finance Portal for the communication of the invoices.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Discover the basket of 46 products with 0% VAT!!

2023-04-14T22:47:00.009+01:00

Discover the basket of 46 products with 0% VAT!!

For a period of six months, 46 food items will be tax-free. The list of goods exempt from VAT resulted from the recommendations of the Directorate-General for Health and the products most consumed by families in Portugal, according to the association of distribution companies. The program's total cost will be 640 million euros, of which 140 million will go toward production support.

The zero VAT basket includes the following seven food families:-

Cereals and derivatives,

Vegetables,

Fruits,

Legumes,

Dairy products,

Meat, Fish and Eggs,

Fats and Oils, and

Other products (Outros produtos).

This is the list of 44 products in a basket that will be VAT free

from April to October.

Cereals and derivatives (Cereais e derivados)

Bread (Pão)

Potato (Batata)

Pasta (Massa)

Rice (Arroz)

Vegetables (Hortícolas)

Onion (Cebola)

Tomato (Tomate)

Cauliflower (Couve-Flor)

Lettuce (Alface)

Broccoli (Brócolos)

Carrot (Cenoura)

Courgette (Curgete)

Leek (Alho Francês)

Pumpkin (Abóbora)

Turnip Greens (Grelos)

Portuguese Cabbage (Couve Portuguesa)

Spinach (Espinafres)

Turnip (Nabo)

Peas (Ervilhas)

Fruits (Frutas)

Apple (Maça)

Banana (Banana)

Orange (Laranja)

Pear (Pera)

Melon (Melão)

Legumes (Leguminosas)

Red Bean (Feijão Vermelho)

Black-Eyed Peas (Feijão Frade)

Chickpea (Grão-de-bico)

Dairy products (Laticínios)

Cow Milk (Leite de Vaca)

Yogurts (Iogurtes)

Cheese (Queijo)

Meat, Fish and Eggs (Carne, Pescado e Ovos)

Pork (Carne de Porco)

Chicken (Frango)

Turkey Meat (Carne de Peru)

Beef (Carne de Vaca)

Cod (Bacalhau)

Sardines (Sardinha)

Hake (Pescada)

Horse Mackerel (Carapau)

Glit-head Bream (Dourada)

Mackerel (Cavala)

Fats and Oils (Gorduras e Óleos)

Oil (Azeite)

vegetable Oils (Óleos Vegetais)

Butter (Manteiga)

Other products (Outros produtos)

Canned Tuna (Atum em Conversa)

Chicken Eggs (Ovos de Galinha)

Plant-based Drinks and Yoghurts (Bebidas e Iogurtes de base Vegetal)

Gluten-free products for celiac patients (Produtos sem glúten para doentes celíacos)

Congratulations!

For more information, please contact us.

(Author)

Raj Don

What are the VAT rates in Portugal?

2023-03-31T00:42:00.004+01:00

What are the VAT rates in Portugal?

VAT is a general consumption tax levied on transfers of goods, provision of services, intra-community acquisitions and imports. Find out about the three VAT rates in Portugal, applied depending on the geographic location and the type of product sold or service provided.

VAT rates

In Portugal, VAT rates are stipulated by the Government and, at the moment, are mentioned below.

Portugal Continental - 23% standard VAT rate, 13% intermediate VAT rate and 6% reduced VAT rate;

Autonomous Region of Madeira - 22% standard VAT rate, 12% intermediate VAT rate and 5% reduced VAT rate;

Azores Archipelago - 16% standard VAT rate, 9% intermediate VAT rate and 4% reduced VAT rate.

VAT (Reduced Rate)

The reduced rate - 6% on the mainland, 5% on Madeira and 4% on the Azores - applies to the following products and services.

Essential goods (such as bread, milk and derivatives, meat and vegetables);

Periodical publications (newspapers, magazines);

Pharmaceutical products (medicines, orthopedic devices);

Accommodation in hotels;

Passenger transport.

VAT (Intermediate Rate)

The following products and services are taxed at an intermediate rate - 13% on the mainland, 12% on Madeira and 9% on the Azores:

Ready meals;

Preserve;

Wine and other food products;

Tickets to music, theater, dance, singing, cinema and circus shows;

Collection and use of solar, wind and geothermal energy.

VAT (Normal Rate)

The remaining products and services not covered by the reduced and intermediate rates. Instead, they are taxed at the normal VAT rate: 23% on the Mainland, 22% on the Madeira and 16% on the Azores. You can consult all the products and activities covered by each fee in the CIVA Lists.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Reasons for VAT Exemption!

2023-03-30T21:30:00.005+01:00

Reasons for VAT Exemption!

You can use the list we've developed to quickly find the justification for your situation's exception.

What are the reasons for VAT exemption?

The reasons for VAT exemption are mentioned below.

M01 - 1 Artigo 16.º, n.º 6 do CIVA

Amounts paid in the name and on behalf of the purchaser of goods or the recipient of services, recorded by the taxable person in appropriate third-party accounts.

M02 - Artigo 6.º do Decreto-Lei n.º 198/90, de 19 de junho

Sales of goods worth more than €1,000 per invoice, made by a supplier to a national exporter, exported in the same state (see applicable rules).

M04 - Isento artigo 13.º do CIVA

Certain type of imports or re-imports. (see article for more details)

M05 - Isento artigo 14.º do CIVA

Exports, assimilated operations and international transport.

M06 - Isento artigo 15.º do CIVA

Operations related to suspensive regimes. (see complete list in the respective article)

M07 - Isento artigo 9.º do CIVA

Varied activities related to health, social support, arts & shows, insurance, lease of spaces, lotteries and duly authorized bets and others (see the complete list in the respective article)

M09 - IVA - não confere direito a dedução

Retailers who are natural persons, do not have or are obliged to have organized accounting for IRS purposes and have not had a volume of purchases in excess of €50,000 in the previous calendar year, to determine the tax due to the State, apply a coefficient of 25% to the value of the tax borne on the acquisition of goods intended for sale without transformation.

M10 - IVA - regime de isenção

Taxable persons who, neither having nor being obliged to have organized accounting for the purposes of the IRS or IRC, nor carrying out import, export operations or related activities, nor carrying out an activity consisting of the transfer of goods or provision of services mentioned in Annex E of the Code VAT, have not reached, in the previous calendar year, a turnover of more than €10,000 or between €10,000 and €12,500 which, if taxed, would fall under small retailers.

M11 - Regime particular do tabaco

Tobacco growers and dealers. (see specific conditions in said Decree-Law)

M12 - Regime da margin de lucro – Agências de Viagens

Operations of travel agencies and tour organizers who act in their own name towards customers and use, for carrying out these operations, the transfer of goods or the provision of services carried out by third parties. The tax charged to the user, in the country of the agency's head office or permanent establishment, is levied only on the "gross margin" of the same. (See specific rules in said Decree-Law)

M13 - Regime da margem de lucro – Bens em segunda mão

Transfers of second-hand goods, carried out under the terms of this diploma, by taxable resellers or by organizers of auction sales acting in their own name, on behalf of a principal or pursuant to a sales commission agreement.

M14 - Regime da margin de lucro – Objetos de arte

Subject to VAT, according to the special margin taxation regime, transfers of art objects, carried out under the terms of this diploma, by taxable resellers or by auction sales organizers acting in their own name, on behalf of a principal or pursuant to a sales commission agreement.

M15 - Regime da margin de lucro - Objetos de colection e antiguidades

Transfers of collections and antiques, carried out under the terms of this diploma, by taxable resellers or by organizers of auction sales who act in their own name, on behalf of a principal or pursuant to a sales commission agreement.

M16 - Isento artigo 14.º do RITI

The transmission of goods, carried out by a taxable person, dispatched or transported by the seller, by the acquirer or on their behalf (with Finance Number (NIF) validated in the VIES), from the national territory to another Member State with destination to the acquirer, when This is a person natural or legal entity registered for the purposes of value added tax in another Member State.

M19 - Other exemptions

Outras isenções

Temporary exemptions determined in a separate diploma.

M20 - IVA - regime forfetário

Agricultural products transferred to other taxable persons who do not benefit from this regime or an identical regime in the Member State where they are established; Agricultural products dispatched or transported to another Member State, whose purchaser is a legal person who is not a taxable person, but who carries out intra-community acquisitions subject to VAT in the Member State of destination or arrival of the goods; Agricultural services provided to other taxable persons who do not benefit from this regime or an identical regime in the Member State where the operations are located.

M21 - IVA – não confere direito à dedução (or similar expression)

Deliveries made by resellers on behalf of distributors.

M26 - IVA – Isenção de IVA com direito à dedução no cabaz alimentar

Transitional application of VAT exemption to certain food products.

M30 - IVA - autoliquidação

Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who, in the national territory, are purchasers of the goods or services mentioned in Annex E of the CIVA and are entitled to total or partial deduction of the tax, provided that the respective transferors or providers are taxable persons.

M31 - IVA - autoliquidação

Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who have their headquarters, permanent establishment or domicile in the national territory and who carry out operations that confer the right to total or partial deduction of the tax, when purchasing civil construction services, including refurbishment, repair, maintenance, conservation and demolition of real estate, on a contract or subcontract basis.

M32 - IVA - autoliquidação

Natural or legal persons who, independently and on a regular basis, carry out activities of production, commerce or provision of services, including extractive, agricultural and free profession activities, as well as those who, in the same independent, carry out a single taxable transaction, provided that this transaction is connected with the exercise of said activities, wherever it occurs, or when, regardless of that connection, such transaction fulfills the assumptions of actual incidence of personal income tax individuals (IRS) or corporate income tax (IRC) , and who have their headquarters, permanent establishment or domicile in the national territory and who carry out operations that confer the right to total or partial deduction of the tax, when they are purchasers of services whose object is emission rights, certified emission reductions or greenhouse gas emission reduction units, referred to in Decree-Law no. 233/2004, of 14 December. (Added by Law no. 3-B/2010-28/04).

M33 - IVA - autoliquidação

When purchasing cork, wood, pine cones and pine nuts with bark. (Added by Decree-Law No. 165/2019, of 10/30).

M40 - IVA - autoliquidação

See the complete list in the respective article.

M41 - IVA - autoliquidação

The intra-community acquisition was subject to tax in the Member State of arrival of the dispatch or transport of the goods, provided that the following conditions were met at the same time: the taxable person had acquired the goods to carry out their subsequent transfer in that Member State and this operation included in the recapitulative statement referred to in paragraph 1 of article 30; (Wording provided by Article 4 of Decree-Law No. 186/2009, of 12/08, effective from 01/01/2010); the purchaser of the goods transferred in that Member State is a taxable person registered there for value added tax purposes); the acquirer is expressly designated, in the invoice issued by the taxable person, as the debtor of the tax for the transfer of goods carried out in that Member State.

M42 - IVA - autoliquidação

See the complete list in the respective article.

M43 - IVA - autoliquidação

See the complete list in the respective article.

M99 - Não sujetio ou não tributado

See other situations covered by exemptions in the articles indicated.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Customer Support Lines - New rules!

2023-02-26T16:11:00.007+00:00

Customer Support Lines - New rules!

According to the new rule, businesses that offer goods and services as well as organizations that deliver public services must offer free or inexpensive customer assistance lines.

Although added value lines (such as those beginning with 7 or 808) are not entirely banned, businesses are required to offer free or inexpensive customer care alternatives.

Learn what kinds of helplines you can offer to your clients and, more importantly, what has to change at your business to meet the new consumer helpline regulations set forth by the Portuguese government.

Customer Service Lines: What are they?

These telephone lines, often known as customer helplines, make it easier for clients to contact your company. The causes may vary, but they almost always have to do with offering goods or services for sale:

billing and payments,

support and technical issues,

service renewal or cancellation.

Companies often charge clients for value-added calls, or customer care numbers, whose cost to the customer varies depending on the prefix:

707 and 708 - the amount charged in the first minute, then it starts to be billed per second.

0.11 cents per minute from landlines.

0.16 cents per minute if the call is made from the mobile network.

760/761/762 - regardless of the duration, a maximum amount of 0.74 cents, 1.23, or 2.46 euros is charged per call, respectively.

808 - has a maximum cost of 0.9 cents in the first minute (from the first-minute billing is done per second) and a different value in the following minutes:

if the call is made during normal hours - between 9 am and 9 pm - the maximum cost is 0.3 cents;

if the call is made during off-peak hours - between 9 pm and 9 am on weekdays and on weekends and holidays all day is 0.1 cent.

809 - with a maximum cost of 0.3 cents per minute and billing per second after the first minute.

Line 6 - audio-text services (contests, pastimes, telesales, etc.) whose cost is defined by the providers.

What modifications are made by the new law (Decree-Law No. 59/2021)?

Decree-Law n.o. 59/2021 was authorized as a measure of customer protection to ensure that "the consumer can contact the supplier of goods or service providers by telephone without any hurdles or limits." This law lays out the requirements for offering and revealing telephone lines to customers, which you must do if you own a business.

Companies that supply basic public services like power, water, gas, telecommunications, or electricity are therefore required to provide a free or affordable alternative to the telephone ( mobile number). Companies may still offer added value lines, but this cannot be their exclusive method of getting in touch with customers.

Companies that do not offer vital services are not required to establish customer service lines, but if they do, they must offer free lines or charge the usual call rate (to a landline or mobile number).

In all of the company's communication channels, businesses must also explicitly identify the phone numbers they offer and their charges. Prior to informing value-added lines, toll-free lines and geographic or mobile lines (beginning with 2 and 9) must first be informed.

What happens if the company does not comply with the law in force?

You must comply with the following according to Decree-Law 59/2021, which took effect on July 1, 2022.

Having free or inexpensive phone numbers that are prominently shown in the company's commercial communications, on the homepage of the website, on invoices, in written communications with customers, and in contracts that are signed in writing;

In every form of communication, disclose the true cost of calls. The information "Call to the national fixed network" or "Call to the national mobile network" must be supplied if it is not possible to state the set pricing for the call;

give the same level of service whether the provided number is free or not.

The ASAE (Authority for Food and Economic Security), in the event of a significant or very serious economic infraction, will impose fines if these new guidelines are not followed.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Independent Workers and Social Security - How to calculate the Contribution?

2023-02-22T17:31:00.006+00:00

Independent Workers and Social Security - How to calculate the Contribution?

Self-employed workers must fulfill certain obligations relating to their professional activity, namely contributions to Social Security.

Calculation of Social Security for Independent Workers

Starting in 2019, the brackets are no longer in use, and the contribution rate is applied directly to the relevant revenue (80% in the case of production and sale of goods, or 70% of the relevant income from the preceding quarter). In order to strengthen their rights, self-employed people can request a 25% discount on the amounts reported quarterly or contribute more money.

The new contribution rate for independent workers is 21.4% (it was previously 29.6%). The rate for sole proprietors and shareholders of limited liability individual firms is 25.2% (down from 34.75% previously). The rate of 28.3% for agricultural producers who earn their entire income from farming no longer applies.

Quarterly Income Statement

Since 2019, self-employed workers must now file a declaration detailing their earnings from the previous quarter. Based on this assertion, the amount of social security that independent workers will be required to pay in the upcoming three months will be determined.

The final day of January, April, July, and October is the due date for the quarterly income statement. On the Social Security Direct website, you can find instructions on how to fill out and submit the quarterly income tax return.

For self-employed workers, filing an income tax return with Social Security is not required:-

With organized accounting;

With exemption from payment of contributions for accumulation of activity with a disability or old-age pension;

With incapacity for work equal to or greater than 70% resulting from professional risk;

With relevant income determined based on taxable income;

Who has not been obliged to submit a quarterly return on income obtained in the previous calendar year.

Social Security Exemption for Independent Workers

In certain situations, self-employed workers are exempt from paying Social Security contributions:

The first year of activity;

Pensioners due to a disability, old age, or resulting from professional risk;

Suspension of activity;

Unavailability for work due to parental leave;

Temporary disability due to illness.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

ATCUD - Single Code goes into effect in 2023

2022-11-13T05:57:00.007+00:00

ATCUD - Single Code goes into effect in 2023

The implementation of ATCUD on our invoices has been postponed to 2023. Find out what the Unique Document Code (ATCUD) is, how it works in practice, and when you are obliged to insert the invoices that you issue to your clients.

ATCUD postponed to 2023

The Single Document Code - ATCUD - is an element that will become mandatory on invoices and other tax-relevant documents from 2023 onwards. ACTUD was supposed to come into force in January 2022.

However, as a result of the non-approval of the State Budget for 2022, the mandatory use of this code became January 1, 2023. While it is not in operation, both the SAF-T and the QR code must indicate "zero". in the ATCUD field, as indicated in the Finance Portal.

What is ATCUD?

The ATCUD is a unique code composed of the series validation code and the sequential number of the document within the series, assigned by the Tax Authority. This series validation code will consist of a set of eight characters, at least, and will make it possible to identify a document regardless of who issues it, and what type or series is used.

The use of ATCUD aims to simplify the communication of invoices and speed up the process of defining deductible expenses in the IRS. In this way, there is greater security and transparency for the merchant and the customer.

It is, of course, another tool in the fight against fraud and tax evasion, along with the use of the QR Code, mandatory from January 2022. Learn more about the Quick Response Code (QR Code) and how to implement it in your business invoicing.

How does ATCUD work?

The ATCUD, consisting of at least eight characters, must appear on all invoices and other tax-relevant documents issued by:-

billing software and billing applications provided by AT,

other electronic means of invoicing, such as cash registers, electronic terminals, or electronic scales;

pre-printed documents at authorized printers.

This unique code, with the format "ATCUD:CodigodeValidação-NumeroSequential", must be perfectly readable, regardless of the medium in which it is presented to the customer, and must contain the following elements:-

Series validation code;

The sequential number of the document within the series.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Real Time - Guia de Transporte

2022-11-11T02:12:00.007+00:00

Real Time - Guia de Transporte

What is a Guia de Transporte?

It is a document that must accompany the transport of goods, for example, from the warehouse to your store. It is mandatory that it be validated with the Tax Authority so that, if approached by an agent, it can legally justify the goods it transports.

In Vendus it is possible to communicate this type of document in real-time.

To do this, just follow the steps below.

Create a User in the Tax Authority

Access the Finance Portal and log in (if you have not already done so);

Then click on Create a User as shown in the picture below.

You must define these data and later configure them in the Pos software. Create a secure password.

You must also select the user access options for this, as shown in the picture below.

Finally, you must configure that user in the Pos software.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Permanent Inventory - Who is covered?

2022-11-09T11:28:00.008+00:00

Permanent Inventory - Who is covered?

Decree-Law no. 98/2015 introduced some changes regarding companies obliged to adopt the permanent inventory system. Let's clarify some relevant points so you can understand whether your business fits the list.

What is Perpetual Inventory?

It consists of the continuous classification of goods in terms of their nature, quantity, unit, and global costs. Thus, it is possible to verify at any time whether the physical proportion corresponds to that indicated in the accounting records.

Is my business covered?

Most companies are, as of January 2016, required to adopt this system. If your business exceeds 2 of the 3 following criteria, it may fit on the list:

Balance in excess of €350,000;

Turnover over 700,000;

More than 10 employees.

What types of activities are exempt?

In addition to micro-enterprises, the following activities are not covered by this decree law:

Agriculture, animal production, beekeeping, and hunting;

Forestry and forest exploitation;

Fishing and aquaculture industry;

Retail outlets that, as a whole, do not have sales in excess of €300,000 or 10% of the overall sales of the entity in question during a financial year;

Activities that mainly consist of the provision of services, considering those that present, in the period of a financial year, a cost of goods sold and materials consumed that is less than €300,000 and does not exceed 20% of the respective operating costs.

My company is covered. What should I do?

In addition to the classification mentioned above (regarding the nature, quantity, and costs of the goods), you must carry out a physical count of the stock monthly and send it to your accountant.

What is the term?

The inventory must be communicated to AT by January 31 of the year following the one in question. In cases where the tax period does not coincide with the calendar year, the communication must be made by the last day of the month following the end of that period.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

How to open a Company in Portugal?

2022-08-28T21:57:00.006+01:00

How to open a Company in Portugal?

It is possible to open a business in approximately one hour at one of the branches in several locations in Portugal. This option is only available for the incorporation of single-member limited liability companies, limited liability companies, and public limited companies with pre-approved articles of association.

Choice of Company Name

You have three options to choose the name of the company you want to create:

Choose a name from the official list of names (it is possible to add an expression related to the activity);

Choose a name associated with a brand from the official list (with a name and expression related to the company);

Present a valid Company Admissibility Certificate previously issued by the National Register of Legal Persons (RNPC).

You can obtain this certificate online, at the various branches of the RNPC, or by mail using a specific form (it has an associated cost of €75 or €150 in urgent cases).

Pre-Approved Social Pact

You must choose a pre-approved pact. If you want to know more about the existing agreements, consult the information in the Social Pacts of the Company on the spot.

Counter on Time

The partners must go to a service point or a commercial registry office and deliver the appropriate documentation for the type of company they intend to set up.

Documentation

If you are a Natural Person, you will need the following documents:

Taxpayer Card;

Identification document - Citizen's Card, Identity Card, Passport, Driving License, or Residence Permit (the last two documents are only allowed if the capital is less than 15 thousand euros).

In the case of a Corporate Person :

Company Card (or the access code) or Corporate Card (or the respective access code);

Updated Commercial Registration Certificate;

Minutes of the General Assembly.

On the other hand, after completing the commercial registration, you will receive the following documentation :

Social Pact Certificate;

Code of access to the Permanent Certificate of Commercial Registration;

Social Security Number (NISS);

Company Electronic Card Access Code (later you will receive the company card in physical support).

Note: The Company's Electronic Card contains:

Date of Incorporation and legal nature of the Company;

Legal person identification number (NIPC);

Social Security Registration Number (NISS);

Main Portuguese Classification of Economic Activity (CAE) and up to 3 secondary CAEs.

Central Register of Effective Beneficiaries (RCBE)

The Central Register of Effective Beneficiaries (RCBE) intends to identify all the people who control a company, fund, or legal entity of another nature. You need to concern with one of the Lawyers in order to get this document.

Business Bank Account (IBAN)

With all the above documents, you can open a business bank account.

Declaration of Start of Activity

The delivery of the Declaration of Commencement of Activity must be made:

Upon incorporation of the company, signed by a TOC (Official Accountant);

At the time of incorporation of the company by choosing a TOC from a name exchange made available over the counter;

Within 15 days, you need to deliver the Declaration of Commencement of Activity to a Tax Office (duly filled in and signed by a TOC). There are fines if we miss doing this.

Share Capital (Capital Social)

If you are going to open a limited liability company or a limited liability company, you will have to deliver the share capital by the end of the first financial year.

In the case of Public Limited Companies, the value of the share capital must be deposited in a bank in the name of the company, within five working days after the incorporation of the company.

Brand on Time

It is also possible to create a registered trademark at "Empresa na Hora" counters for the following classes of products and services:

Clothing, footwear, and headgear;

Alcoholic beverages (except beers);

advertising, business management, business administration, office functions, sales promotion for others, and retailing or wholesaling;

Insurance, financial sponsorship, and financial, monetary, and real estate affairs;

Real estate administration and brokerage services in the purchase and sale of real estate;

construction, repair, and installation services;

Education, training, and sporting and cultural activities;

Restaurant services (food) and temporary accommodation.

Instant Business Creation Costs

A company with capital made up of cash costs €360 (commercial registration and publications included).

If the company's capital also consists of assets, you will have extra amounts to pay:

€50 per property or shareholding;

€30 for each movable property;

€20 per moped or motorcycle (with a cylinder capacity of fewer than 50 cm3).

If you choose to create a brand, it costs €200 (a class of products or services). Each additional class costs €44.

These amounts may be paid in cash, by check, or via ATM.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

IUC - How much your Car pays?

2022-08-26T23:36:00.009+01:00

IUC - How much your Car pays?

The Single Circulation Tax (IUC) must be paid annually, except for exceptions provided for in this tax code. In this article, you are going to learn how IUC is calculated and what to do to pay without fines.

The IUC aims to restrict vehicle owners for the environmental and road costs they cause when driving. Therefore, in most cases, the amount to be paid depends on the engine capacity, CO2 emissions, type of fuel, and age of the vehicle.

In addition to automobiles, motorcycles, mopeds, tricycles, and quadricycles, as well as recreational boats and aircraft for private use, are also subject to payment of the IUC.

How is the IUC of a car calculated?

The IUC is calculated by adding the tax rates applicable to the vehicle category in question. In the case of category B vehicles, it is still necessary to apply a coefficient referring to the year of registration.

IUC categories for automobiles

Category A

Light passenger and mixed-use vehicles with a gross weight of up to 2,500 kg, registered for the first time in Portugal or in another European Union or European Economic Area country since 1981 and until the date of entry into force of the IUC Code (2007).

Category B

Light passenger cars, mixed-use, and goods, as well as passenger cars weighing more than 3500 kg and with a capacity of not more than nine seats (including the driver's) and mixed-use light cars with a gross weight not exceeding 2500 kg, registered for the first time in Portugal or in another country of the European Union or the European Economic Area after the entry into force of the IUC Code (2007).

Category C

Goods and mixed-use vehicles with a gross weight of more than 2 500 kg, are intended for the private transport of goods, transport on their own account, or rental without a driver for these purposes.

Category D

Goods and mixed-use vehicles with a gross weight of more than 2 500 kg, intended for the public transport of goods, transport for hire or reward, or rental without a driver for these purposes.

Examples

To exemplify how the IUC accounts are made, we present two cases of category B cars.

The first step is to check the rates and coefficients applicable to category B vehicles. This information is contained in article 10 of the IUC Code and article 216 of Law 82-B/2014.

Displacement rates and C02 emissions

Cylinder Echelon

fees

CO2 step

(grams per kilometer)

fees

NEDC WLTP

up to 1 250 29.68 up to 120 up to 140 60.88

More than 1 250 to 1 750 59.56 More than 120 to 180 More than 140 to 205 91.23

More than 1 750 to 2 500 119 More than 180 up to 250 More than 205 to 260 198.14

More than 2 500 407.26 more than 250 more than 260 339.43

Values for 2022 (from July)

Additional fees for CO2 emissions

CO2 step

(grams per kilometer)

Fees

(Euros)

NEDC WLTP

More than 180 up to 250 More than 205 to 260 29.68

more than 250 more than 260 59.56

Note: This table only applies to cars registered after January 1, 2017.

Values for 2022 (from July)

Coefficients

Year Coefficient

2007 1.00

2008 1.05

2009 1.10

2010 and following 1.15

Values for 2022 (from July)

Additional diesel fees

Displacement (cubic centimeters)

Additional fee

(euros)

up to 1,250 5.02

More than 1250 up to 1750 10.07

More than 1,750 up to 2,500 20.12

More than 2,500 68.85

Values for 2022

The next step is to add the applicable fees and then multiply the result by the coefficient for the year of enrollment.

Finally, if the engine is diesel, it is still necessary to add the respective additional fee.

car 1

Category B | 2014 enrollment | Displacement of 988 cm3 | Gasoline | CO2 emissions of 110 g/km (NEDC test)

Cylinder rate = 29.68 euros

CO2 emissions rate = 60.88 euros

Coefficient of the year of first registration: 1.15

Amount of IUC payable = (29.68 euros + 60.88 euros) x 1.15 = 104.14 euros

Take note

The CO2 surcharge (registration is before January 1, 2017) and the diesel surcharge (this is a gasoline car) do not apply.

car 2

Category B | 2019 Enrollment | Engine capacity 1 968 cm3 | diesel | CO2 emissions of 125 g/km (WLTP test)

Cylinder rate: 119 euros

CO2 emission rate: 60.88 euros

Coefficient of the year of registration: 1.15

Additional diesel fee: 20.12 euros

Amount of IUC payable = (119 euros + 60.88 euros) x 1.15 + 20.12 euros = 226.98 euros

Take note

No additional CO2 charge applies (emissions are less than 205 g/km in the WLTP test)

When is the tax paid?

In the year of registration or registration of the vehicle in national territory, the IUC is paid within 30 days after the registration deadline. Afterward, it is paid annually until the last day of the month of the registration anniversary, even if the vehicle is not in use.

Payment of this tax is due until cancellation of registration or registration due to slaughter.

What to do to pay?

To proceed with the payment of the IUC, you must issue the Single Document of Collection (DUC) on the Finance Portal.

Once the DUC has been issued, you can make the payment immediately, on the Finance Portal, by MB Way. If you prefer, you can pay later at Multibanco, home banking, or at the Post Office, indicating the payment reference that appears in the DUC.

If you are unable to issue the DUC, you must pay the IUC at a tax office.

How to issue the DUC?

To issue the IUC, follow these steps:

1. Access the Finance Portal;

2. In the search field, write “IUC”;

3. In the list of search results, click on “Deliver current year”;

4. Authenticate yourself by inserting the Tax Identification Number (NIF) and the respective access password;

5. On the “Deliver IUC” page, mark the search for the category corresponding to the vehicle and click on the “Search” button;

6. In “Consult”, select the vehicle and press the “Send” button.

Is it possible to pay the IUC in installments?

Yup. According to article 42 of the General Tax Law, anyone who cannot fully comply with the tax debt at once may request payment in installments. The request must be made through the e-counter or delivered to any Finance service.

Who is exempt?

Although it is mandatory to pay the IUC, the tax code provides for exceptions to this rule. Find out if you are entitled to an exemption from paying the IUC and how to apply it.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

How to verify if you have (don´t have) Debt to Social Security?

2022-08-21T19:30:00.014+01:00

How to verify if you have (don´t have) Debt to Social Security?

In this article, you are going to learn how you can check if there are any debt to Social Security or not. The step-by-step procedure is mentioned below.

First of all, you need to click on the following picture where it says "Segurança Social Direta".

In turn, you need to log on using your Social Security Number and the Password as shown in the picture below.

Next, you need to click on "Conta-corrente" as shown in the picture below.

Next, you need to click on "Posição atual" as shown in the picture below.

Next, you need to click on "Valores a pagar" as shown in the picture below.

In the highlighted section, if there are zeros as shown in the picture below, that means you do not have debts to Social Security.

On the other hand, if you see some amount in the highlighted section as shown in the picture below, that means you have debts to Social Security.

In this way, you can verify whether you have debts to Social Security or not.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

How to verify if you have (don´t have) a Debt to Finance?

2022-04-25T19:51:00.012+01:00

How to verify if you have (don´t have) Debt to Finance?

In this article, you are going to learn how you can check if there is any debt to Finance or not. The step-by-step procedure is mentioned below.

First of all, you need to click on the following picture where it says "AT Autoridade Tributária e Aduaneira".

Next, you need to log on using your Finance Number and the Password as shown in the picture below.

Next, you need to check a message box with signs and colors as shown in the picture below.

If the message is in green color as shown in the picture below, that means you do not have debt to Finance. However, you can not verify payments for installment from here.

On the other hand, you will see a red message box if you have debt to Finance as shown in the picture below.

In this way, you can verify whether you have debt to Finance or not.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

Simplified Regime vs Organized Accounting

2022-04-03T19:59:00.008+01:00

Simplified Regime vs Organized Accounting

A Sole Proprietorship or self-employed person can choose one of two tax regimes which are simplified or organized accounting. Both the simplified regime and organized accounting are income taxation options that have specific requirements and advantages and disadvantages in their use. So, which one to choose? To help with the choice, we will analyze the characteristics of each regime.

Simplified Regime

The simplified taxation regime is the most common option which is assigned by default by the Tax and Customs Authority when an individual entrepreneur or self-employed professional opens an activity. This is characterized by the taxation of income earned by the application of coefficients, not considering the expenses of the activity. To be covered by this regime, you must accumulate the following requirements.

Be a taxable person resident in Portugal

Not being legally obligated to statutory audit

Have an annual gross income of lesser than 200 thousand euros

Have a balance sheet of the previous tax period of lesser than 500 thousand euros

The fact of having fewer tax obligations and extra expenses - such as not having to hire an official accountant - is one of the main advantages of this regime. The major disadvantage is related to the fact that it is not possible to deduct expenses as the Tax Authority considers that 75% of the income obtained is net and that the remaining 25% corresponds to expenses.

Organized Accounting

Organized accounting is the most efficient tax regime for more complex activities and when expenses with the activity exceed 25% of income. This tax regime is mandatory in the following situations:

All types of companies such as public limited companies or limited liability companies

All self-employed professionals or individual entrepreneurs who have a net annual income of more than 200 thousand euros

In the organized accounting system, you can deduct a large part of the professional expenses (for example, fuel, accommodation, computer equipment, among others) and accurately calculate the net income. The major disadvantages are legal obligations (such as preparing annual tax files) and hiring a certified accountant (an extra expense that can cost between €150 and €200).

Differences between Simplified Regime and Organized Accounting

You will have to analyze which regime best adapts to the income and characteristics of your business, taking into account that the greater the activity carried out, the more it fits into the organized accounting regime.

Note: self-employed professionals or individual entrepreneurs can opt for organized accounting even if their income does not exceed 200 thousand euros per year.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

SAF-T 2022 - Change of delivery date

2022-03-06T08:30:00.011+00:00

SAF-T 2022 - Change of delivery date

Changing the deadline for submitting the SAF-T file may change from the 12th to the 5th of the following month, as this was one of the measures included in the State Budget for 2022. Find out what the SAF-T is, who it is obliged to deliver this file, and how to communicate it to the Tax Authority (AT).

Change of SAF-T Delivery Date

Since 2013, companies are required to send invoices issued to the Tax Authority. In 2020, the deadline for sending invoices has moved from the 15th to the 12th of the following month.

In 2022, the Government proposed in the State Budget to change the deadline for the delivery of this file to the 5th of the following month.

Another relevant government proposal was the postponement of the annual submission of the SAF-T file to 2024, in relation to the income of 2023. By sending this SAF-T file, the Tax Authority starts to pre-populate several fields of the Simplified Business Information (IES).

Since the State Budget proposal was not approved, it is not yet known whether these measures will be implemented or not, but we will update this page with news as they arise.

What is the SAF-T File?

The SAF-T PT (Standard Audit File for Tax Purposes - Portuguese version) is a computer file in XML language, with all the tax and accounting information of a company for a certain tax period, for communication to the Tax Authority. It follows the international standards defined by the OECD and has been adopted by several European countries as a way to present accounting and tax information electronically.

Well, we can issue two types of SAF-T files.

SAF-T of Invoicing

It is a simplified file, based on the company's invoicing and that must be sent monthly to AT.

SAF-T Accounting

It is a complete file, based on the accounting data of the company. Normally, it is exported and sent to the Tax Authority whenever it requests it, in the process of carrying out an audit.

SAF-T file exports all types of documents issued by the company such as invoices (simplified invoices, receipt invoices), credit notes, debit notes, order notes, and guides (delivery guides, transport guides, consignment guides).

Communication of Invoices

Companies carrying out commercial, industrial or agricultural activity in Portuguese territory are required to deliver the SAF-T file to the Tax and Customs Authority. Since July 2017, the file must be exported in the SAF-T 1.04 version, as indicated on the Finance Portal.

The communication of the SAF-T file is mandatory and can be done in the following ways:

Enable real-time document communication

Enable automatic monthly SAF-T submission

Export the SAF-T from your account and submit it on the Finance portal

Grant access to the accountant

The following video shows how we can send SAF-T files to Tax Authority.

For further clarification, see the FAQs on SAF-T on the Finance portal

Congratulations!

For more information, please contact us.

(Author)

Raj Don

What are the Deadlines that Independent Workers can't miss?

2022-03-04T23:04:00.009+00:00

What are the Deadlines that Independent Workers can't miss?

Self-employed workers have to fulfill certain tax responsibilities from the moment they start their business activity until the moment they stop. Some appointments are punctual, others monthly and quarterly, which can cause some confusion throughout the year. So, you don't miss a thing, we've listed all the commitments and respective deadlines you have to meet if you want to work on your own!

Declaration of Start of Activity

The declaration of activity is one of the first responsibilities of those who want to work for themselves. It is a document that must be delivered when you intend to start your activity as an independent worker. Find out how to open activity on the Finance Portal.

Quarterly Declaration and Payment of Social Security

All self-employed workers must submit a declaration every three months, referring to the previous quarter's earnings. For example, in January 2022, workers with green receipts must submit the declaration with the income received between October and December 2021.

The quarterly statement allows you to calculate the amounts that self-employed workers must pay per month. It is important to mention that the declaration must be delivered even if no income was obtained in the previous quarter, in which case, there is a stipulated amount to be paid per month which is 20 euros.

To complete and deliver the quarterly statement, you must access Social Security Direct. It is only necessary to access the site, select the option “Direct Social Security” and follow the steps indicated to obtain the access password. Learn how to join Social Security Direct to deliver the quarterly statement and consult relevant information.

Issuance of Green Receipts

Green receipts are the documents that self-employed workers must issue as proof of payment for the provision of a particular service. Green receipts are issued through the Finance Portal.

If it is a regular service, you may have to issue receipts monthly, if not, there will always be a payment. Learn how to fill out electronic green receipts.

Withholding and Payment on Account

In the same way as contract workers, the self-employed person has to hand over a part of their income to the State. The IRS - personal income tax - can be paid in two ways:

Withholding tax - if the self-employed person has received more than 12,500 euros in the previous year, he/she has to withhold tax on the green receipts issued. Retention fees, which vary between 11.5% and 25%, are retained by the customer, the entity that pays for the service provided and receives the green receipt issued by the independent professional.

Payment on Account - if the self-employed worker does not withhold the green receipts issued, he will have to make the payment on account during the months of July, September, and October.

VAT

Value Added Tax (VAT) is mandatory when the self-employed person has a real value of income in the previous year that exceeds 12,500 euros. The tax amount must be declared on the green receipts and delivered to the Finance Department within the deadlines stipulated by law.

For example, in 2021, if you are on a monthly basis, the payment dates vary between the 20th and the 31st of the month following the month of operations. If you are in the quarterly VAT regime, you must deliver by the 15th of the second month following the quarter to which the operations relate.

1st Quarter (January, February, and March) - payment until May 20th

2nd Quarter (April, May, and June) – payment until August 31

3rd Quarter (July, August, and September) – payment until November 22nd

4th Quarter (October, November, and December) – payment by February 24th.

The self-employed person who has not received more than 12,500 euros of income in the previous year (or who has an expected income for that year less than that amount) is exempt from VAT - under Article 53 of the CIVA.

Advantages and Disadvantages of Being an Independent Worker

Self-employment has many advantages. Some of them are as follows.

autonomy in the execution of tasks

schedule flexibility - there is no fixed schedule.

workplace flexibility - at home or in a coworking space, the choice is up to the freelancer.

choice of work to be carried out - the self-employed worker can choose the work he prefers or is able to deliver in a given period of time.

possibility of working for several entities

However, there are also some disadvantages to being self-employed.

less social interaction - working from home can be tiring and monotonous and become a long-term challenge.

income instability - the volume of work is not always the same and, therefore, the income also fluctuates, with no fixed salary.

no benefits - there are no paid holidays, Christmas allowance, or health insurance.

Congratulations!

For more information, please contact us.

(Author)

Raj Don

IRS - Calendar with dates for 2022

2022-02-28T23:14:00.010+00:00

IRS - Calendar with dates for 2022

The IRS is a tax obligation that must be fulfilled by individuals, self-employed workers, and companies! Discover the most relevant IRS dates for 2022.

Verification of invoices in the e-fatura portal, consultation and claim of deduction amounts calculated by the Tax and Customs Authority (AT), IRS consignment, and delivery of the automatic IRS or income declaration (Model 3), are the main tasks of the tax calendar of the Personal Income Tax that you need to be aware of.

February - Data update/Invoice validation

The 15th of February is the deadline to update any changes that have taken place in the household, namely, the birth of children or children who are no longer dependents, divorce or death of a spouse, or change of residence. If there is no change, you don't need to do anything, but if you have something to change, you need to enter the personal area of the Finance Portal and update your data.

February 25th is the deadline to validate invoices on the e-invoice portal. Remember that you have to manually enter invoices that have not been automatically registered by the system, for each element of the household. On the same date, self-employed workers with a simplified regime must state whether the expenses incurred are personal, professional, or mixed.

March - Confirmation of IRS deductions/consignment

Until the 15th of March, the values of tax deductions will be available on the Finance Portal. For example, interest on housing loans, user fees, public school fees, etc.

Between the 15th and the 31st of March is the period in which you can complain if you do not agree with the values presented by the Tax Authority in the various headings: general and family expenses, restaurants, workshops, beauty salons, transport, and veterinarians. Regarding the categories of education, health, real estate, and homes, you can correct directly in model 3 of the IRS declaration at the time of delivery.

The second half of March - between the 15th and 31st - is also the period to communicate to the Tax Authority the intention to consign 0.5% of the IRS.

April/June - Delivery of the IRS tax return

Between the 1st of April and the 30th of June, you must submit the annual income tax return for 2021. automatic, if covered. In addition to self-employed workers, employees (category A income) or pensioners (category H income) can deliver under the automatic IRS regime, provided they do not have other income.

July/August - IRS refund and payment

If you deliver the IRS statement within the legal deadline, by the end of July you will receive the settlement note. On the other hand, if you have to pay IRS, you must do so by August 31st. It is possible to make the payment at a Finance Treasury, at CTT, at an ATM, or at an authorized bank. If the amount is large, you can ask for payment in installments.

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Raj Don

How to Calculate the Hourly Value?

2022-02-28T00:07:00.002+00:00

How to Calculate the Hourly Value?

The hourly rate is the amount received for each hour of work performed. In general, the calculation of the minimum hourly rate serves as a basis for determining the amount that the worker should receive as a holiday allowance or any overtime.

Examples of Minimum Hourly Wage

Calculating hourly pay is simple, you just need to know some data and do some quick math. There are two ways to calculate the hourly rate, a simpler one, which allows you to have a general idea, and another that allows you to know the amount received more accurately.

Simple Calculation of the Hour Value

Using this form of calculation, it is only possible to identify the hourly rate received in each month and not the hourly rate earned throughout the year.

Thus, if the company employee's salary is €800 and he has worked for a month (5 days a week/eight hours a day), the calculation of the hourly rate will be as follows, depending on the days of the month:

January (22 working days) - €800/(22x8) = €4.54

February (20 working days) - €800/(20x8) = €5.00

March (18 working days) - €800/(18x8) = €5.55

Complex Calculation of the Hour Value

Article 271 of the Labor Code includes a formula that allows for a more rigorous calculation of the value of the normal working hour. This calculation is used because the majority of workers hired by a company are not paid on the basis of the hours they work. On the contrary, you receive the same salary every month, regardless of the days of the month.

Minimum Hourly Wage = (Base monthly salary/weekly hours) x (12 months/52 weeks)

Thus, using the same base value (800€), for a full-time schedule (40 hours per week), the hourly value is calculated as follows:

Minimum Hourly Wage = (800/40) x (12 months/52 weeks) = €4.62

Minimum Wage in Portugal

The value of the minimum wage has fluctuated over time and varies whether we are talking about Mainland Portugal, Madeira Island, or the Azores. For example, in 2021, the minimum wage in mainland Portugal - an amount received by around 20% of the working population in Portugal - increased by 30 euros.

The minimum wage in the Autonomous Region of Madeira represents 102% of the national minimum wage.

The minimum wage in the Autonomous Region of the Azores is 105% of the national minimum wage, according to Regional Legislative Decree 1/2000/A of 12/1.

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Raj Don

What are Transport Documents and when to issue them?

2022-02-27T11:30:00.005+00:00

What are Transport Documents and when to issue them?

Transport documents accompany circulation goods whenever they are sent or transported (goods that are outside the production or exhibition sites, in vehicles at the time of unloading or transshipment, and goods for sale displayed at fairs).

What are the types of Transport Documents?

Delivery Notes (Guias de Remessa)

It must be issued whenever goods are sent or transported or services are provided (logistic document).

Transport Guides (Guias de Transporte)

The transfer of goods between stores or warehouses must always be accompanied by this document.

Global Shipping Documents (Documentos de Transporte Global)

The global transport document is a document whose recipients of the goods are not known at the time of departure and corresponds to a list of all transported goods. The global transport document originates the issuance of ancillary documents such as invoices, actual delivery documents, or works sheets.

Note: Invoices (except simplified), return notes, and equivalent documents (eg. own asset movement notes or consignment notes) can also be used as transport documents. However, these must include the transport data.

How to issue Transport Documents?

Transport documents must be printed on paper and issued in triplicate: original for the recipient, duplicate for inspection purposes, and triplicate for filing.

You can issue transport documents using one of the following ways:

Electronic way

AT-certified software such as ETPos, TR Soft, and many more

Through software created internally by the company

On paper through authorized printers

Directly on the Finance Portal

You must communicate the transport documents to the Tax and Customs Authority (AT) before the goods are distributed. It must also circulate with the code that was assigned to each document so that it can be presented in case of inspection.

Note: The transport of goods from agricultural, beekeeping, forestry, or livestock producers resulting from their own production is excluded from this obligation.

What are the mandatory elements in the Transport Documents?

Transport documents must contain the following elements:

Name, business name, or company name of the sender of the goods

Domicile or head office of the sender of the goods

Tax identification number of the sender of the goods

Name, firm, or corporate name of the person acquiring the goods

The corporate name of the person acquiring the goods

Address of the person acquiring the goods

Recipient's tax identification number (when subject to VAT)

Commercial name of the goods (with the indication of quantities)

Loading and unloading locations

Date and time of the start of the transport

Transport documents issued in the paper must also contain elements identifying the typography (company name, registered office, and tax identification number) and numbering.

How to communicate the Transport Bills to AT?

If you issue transport documents through computerized means (electronically, certified invoicing program, or from the company) you must communicate them in real-time to the Tax Authority.

If you use the Finance Portal, transport documents are automatically communicated.

Transport documents issued manually on typographic paper are communicated via the telephone service (time, date, last 4 digits of the transport document number, and purchaser's NIF) and the remaining elements are entered in the Finance Portal by the 5th working day.

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Raj Don