As the year 2024 draws to a close, Portugal’s proposed 2025 Budget brings significant updates for businesses regarding two critical regulatory mandates: the Qualified Electronic Signature (QES) and the SAF-T accounting submission. Both requirements, originally slated for earlier enforcement, face further delays, providing companies additional time to align their systems with compliance standards.
Updated Deadlines: QES and SAF-T
- Qualified Electronic Signature (QES)
Initially scheduled for January 1, 2021, the implementation of QES has experienced multiple postponements. The latest proposal suggests a new deadline of January 1, 2026. If approved:- Businesses may continue using PDF invoices without QES until the end of 2025.
- This delay acknowledges the technical and financial hurdles faced by businesses in adopting QES.
- SAF-T Accounting Submission
The mandatory submission of the SAF-T (Standard Audit File for Tax), initially planned for 2026, is now proposed for 2027, impacting the financial reporting of the 2026 fiscal year.- This extension provides companies additional time to ensure that their accounting systems are fully compliant.
Reasons for the Delays
The Portuguese government recognizes the challenges businesses encounter when implementing these regulatory changes. By granting more time, the government aims to:
- Reduce financial burdens on businesses.
- Support smoother transitions to QES and SAF-T requirements.
- Provide companies with the opportunity to adapt their technical infrastructure for compliance.
This approach aligns with Portugal’s broader objective of modernizing its tax and accounting systems without overburdening its business community.
Implications for Businesses
These extensions offer businesses much-needed flexibility to prepare for the upcoming changes:
- For QES:
Companies relying on PDF invoices have until the end of 2025 to transition to the QES framework. Early adoption, however, is encouraged to avoid last-minute compliance efforts.
- For SAF-T:
Businesses now have an extra year to integrate SAF-T submission requirements into their accounting processes, ensuring seamless compliance by 2027.
Proactively planning and investing in digital tools for compliance can help mitigate future challenges and ensure readiness ahead of the revised deadlines.
Portugal’s proposed delays in implementing QES and SAF-T mandates reflect a balanced approach to regulatory enforcement, acknowledging the complexities businesses face. With extended deadlines for compliance, companies have a valuable opportunity to modernize their systems and adopt best practices for tax and accounting reporting.
What is SAF-T Reporting in Portugal?
The Standard Audit File for Tax (SAF-T) is an electronic reporting format designed to standardize the exchange of accounting and tax data between businesses and tax authorities. SAF-T Portugal is a key component of the country’s digital tax system, ensuring financial transparency and improving audit efficiency. The SAF-T Portugal applies to accounting records, invoices, and tax declarations, helping businesses comply with national tax regulations.
When Was SAF-T Introduced in Portugal?
SAF-T reporting was introduced in Portugal in 2008, initially as a voluntary system. Over time, its scope expanded, and it became mandatory for businesses to submit SAF-T files for invoices and accounting records. The obligation to submit the Portugal SAF-T accounting file has been postponed until 2027 applying the tax year 2026. Although, it is mandatory for businesses to submit accounting file if requested by the tax authority. The requirement was gradually refined to align with Portugal’s digital tax strategy, ensuring real-time tax reporting and automated audit processes supported by the Portugal SAF-T structure.
SAF-T Deadlines in Portugal
Businesses in Portugal must submit SAF-T files periodically based on their tax obligations. The main deadlines include:
- Monthly SAF-T submission for invoicing data – Due by the 5th day of the following month.
- Annual SAF-T for accounting records – Must be submitted before the deadline for corporate tax filings.
- On-demand SAF-T submission – Required when requested by tax authorities during an audit or tax inspection.
Failure to meet these deadlines can result in penalties or tax compliance issues, making it essential for businesses to ensure timely and accurate SAF-T submissions as required under the Standart Audit File Tax in Portugal.
Is SAF-T Mandatory in Portugal?
Yes, Standart Audit File Tax in Portugal is mandatory for businesses that fall under specific tax reporting requirements. Companies must comply with SAF-T regulations if they:
- Issue invoices using certified billing software.
- Maintain digital accounting records.
- Are subject to tax audits or reporting obligations under Portuguese tax law.
To ensure compliance, businesses must use government-approved accounting and invoicing systems capable of generating SAF-T files in the required format aligned with SAF-T Portugal.
SAF-T Requirements in Portugal
The Portugal SAF-T file format follows a structured XML schema, including:
- Invoicing Data – Details of issued invoices, including customer information, VAT amounts, and transaction details.
- Accounting Data – General ledger entries, financial transactions, and account balances.
- Tax Information – VAT reporting, tax codes, and fiscal obligations.
These files must be generated using certified accounting software and comply with Portugal’s tax authority specifications to ensure correct formatting and validation under the SAF-T Portugal system.
SAF-T Declaration in Portugal
Businesses must generate and submit SAF-T files electronically through the designated government tax portal. The submission process involves:
- Extracting financial data in SAF-T format from accounting or invoicing systems.
- Validating the XML structure to ensure compliance with Portuguese tax regulations.
- Submitting the SAF-T file via the tax authority’s online platform.
Companies should regularly verify their SAF-T records to ensure data accuracy and avoid submission errors that could trigger tax audits or penalties which would impact compliance with the Standart Audit File Tax in Portugal.
What Companies Must Declare SAF-T in Portugal?
The Portugal SAF-T requirement applies to:
- All businesses operating in Portugal with taxable activities.
- Companies using certified billing and accounting software.
- Foreign entities with a tax presence in Portugal.
Ensuring compliance with Portugal SAF-T obligations helps businesses avoid fines and maintain proper financial records for tax audits.
Portugal’s SAF-T implementation is a crucial part of the country’s digital tax system, designed to improve compliance and streamline audits. Businesses must submit SAF-T files on time, ensure accounting software compatibility, and keep accurate tax records to meet legal requirements. By maintaining structured financial data, companies can ensure smooth tax reporting and avoid penalties under Portuguese tax regulations, in line with SAF-T Portugal standards.