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.
