What are certified invoices and why is that important?
In Portugal, certified invoices (faturas certificadas) are a type of electronic invoice that has been validated and certified by the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT). These invoices are issued digitally and carry a unique identification code provided by the AT. All businesses or self-employed individuals who are registered for VAT (Value Added Tax) purposes must send certified invoices.
To issue a certified invoice, businesses must use certified invoicing software or services that are compliant with the AT's technical specifications and standards. The certified invoice includes information such as the seller's and buyer's identification, description of the goods or services, amounts, tax rates, and other necessary details for tax purposes. Moreover, the certified billing software needs to allocate a unique ATCUD code and a QR code.
Businesses in Portugal need to send certified invoices to ensure their compliance with the regulations surrounding certified invoices, to fulfil their tax obligations and avoid penalties. Non-compliance with these requirements can result in penalties since certified invoices are the only ones considered legally valid, as they comply with the regulations set by tax authorities.
The importance of certified invoices lies in
- Paperless Documentation: Eliminates the need for paper-based records, contributing to environmental sustainability.
- Cost Reduction and Efficiency: Streamlines processes, reducing operational costs and increasing efficiency for businesses.
- Improved Organization and Tracking: Enhances the ability to organize and monitor all financial transactions accurately.
- Safety and Convenience: Ensures the security of financial data and offers convenient access and management.