E-invoicing continues to emerge as a strategic element in Portugal’s digital transformation of public administration, significantly impacting both public and private sectors. With recent regulatory changes and postponements designed specifically to accommodate small and medium-sized enterprises (SMEs), Portugal is ensuring a smoother, more inclusive adoption of electronic invoicing.
1. Understanding E-Invoicing in Portugal
E-invoicing initiative in Portugal aligns with broader European efforts to standardize invoicing and enhance transparency and efficiency in financial administration.
Portugal has progressively adopted e-invoicing mandates, particularly within the public administration, as part of the Accounting Standardization System for Public Administrations (SNC-AP), in alignment with Decree-Law No. 192/2015. These regulations aim to guarantee effective control over budgetary execution.
2. Recent Developments: Postponement for SMEs
Portugal has implemented a postponement of B2G e-invoicing requirements. Initially set for earlier implementation, the deadline for small and medium sized enterprises (SMEs) to comply with mandatory e-invoicing in B2G transactions has been postponed to 1 January 2026. The decision to postpone was made official through recent legislative updates, notably Decree-Law No. 13-A/2025 (dated March 10, 2025).
This means that, SMEs are able to use invoicing mechanisms different than the structured CIUS-PT scheme until 31 December 2025.
This adjustment underscores the government’s consideration of SMEs’ financial and technological constraints, ensuring these enterprises receive adequate time and resources to comply fully.
3. Legislative Context and the 2025 State Budget
The recently enacted Decree-Law No. 13-A/2025 establishes provisions for the execution of Portugal’s State Budget for 2025, highlighting various budgetary measures, including those related to e-invoicing.
3.1. Penalties
Under this framework, penalties for non-compliance with electronic invoicing and other budgetary regulations have been clearly defined, including financial responsibilities and withholding measures. Entities failing to adhere to invoicing regulations may face financial implications, highlighting the importance of timely adoption.
3.2. Centralization and Digital Transition
The latest decree also underlines a goal to achieve complete adherence to the state’s financial administration system by integrating central administration entities into Budget Management Information System (SIGO). All budgetary data, must be logged in centralized platforms such as SIGO. This real-time registration reduces errors and gives oversight bodies near-instant tracking of where funds are going.
3.3. Adoption of SNC-AP
The Decree-Law also reinforces the obligation to migrate to the Accounting Standardization System for Public Administrations (SNC-AP), though some entities may be allowed limited exceptions for 2024 if they provide valid reasons.
Conclusion: A Strategic Approach to Digital Transition
The latest legislative developments and SME accommodations demonstrate Portugal’s strategic approach to digitalization. By recognizing the specific needs of SMEs and prioritizing transparency and efficiency, Portugal sets a valuable precedent for integrating electronic invoicing across public administration and private businesses.
Through strategic preparation and compliance, Portuguese businesses and public organizations can effectively leverage the considerable benefits of e-invoicing in their digital transformation journey.
