Invoicing
If I pay an expense and don't request an invoice with the company's VAT number, what happens?
If this expense was incurred in Portugal, it will be taxed at 50% in IRC. Please ensure you request invoices with the company's VAT number in the future. For expenses incurred abroad, the VAT number does not have to be on the invoice, but it is highly recommended.
When can I start invoicing?
After receiving the letter from the tax authority (AT) stating your tax credentials, you must first upload this document to the Rauva platform (App or desktop). Then, we will make the required connection at the tax authority and inform you upon completion, at which point, you can start invoicing.
Which VAT exemption reason should I use?
There are several VAT exemption reasons and their own unique codes. Here are some most common examples:
a) If services are provided outside the EU (either to companies or individuals) the VAT exemption reason will be code M40.
b) If you are providing services to companies within the EU and have a valid VAT number in VIES, you will also be exempt from VAT under code M40. If the service is instead for individuals, you'll have to invoice at 23% VAT.
c) If you are selling products to customers outside the EU (whether to companies or individuals), the reason for the VAT exemption will be code M05.
d) If you are selling a product to companies within the EU and you have a valid VAT number in VIES, you will also be exempt from VAT, but under code M16. If it's for individuals, you'll have to invoice with VAT at 23%.
e) If none of these examples fit your situation, it's best to contact your accountant.
What is the rate of withholding tax I should mention on invoices?
The field must be set to 0. However, if you are a freelancer, your services will be subject to a 25% fee.
What elements should I fill in when making an invoice?
When you are making an invoice you need to fill in the following details: Invoice date, customer NIF, customer address, customer name, description of the service/good, VAT rate, if VAT exempt, which item and code should be used, exact value.
When I collect from a client, should I issue an invoice-receipt?
If you issue an invoice-receipt, you don't need to issue a receipt. If you have issued an invoice, you must issue a receipt in order to show the invoice was paid. As evidence of the transaction received, you must attach the invoice-receipt or invoice issued.
When should I upload the documents to the App?
You should upload the document immediately after incurring an expense/executing a payment or sending an invoice/receiving payment. Uploading documents early allows your accountant to anticipate challenges in advance and helps prevent delays at the end of each monthly cycle.
Should all transfers be evidenced?
Yes, all transfers should have a legal base / documentation.
ATCUD — What is it?
The ATCUD is a unique code used to identify fiscal documents, such as invoices or credit notes. It includes a prefix from the sequences registered in the AT portal for a specific user and a sequential number from the documents issued in that sequence. For example: JFG92M-2, JFG92M-3, JFG92M-4. This code, along with a QR code, validates the document. When you issue documents through Rauva (like invoices, invoice-receipts, credit notes, or quotes), you ensure compliance with the Tax Authority (AT) standards.
Setting up automatic communication with the Tax Authority
This is a mandatory and very important step for all Supercharged users. Setting up automatic communication in the app is very simple and straightforward. When setting up invoices for the first time, there will be a step that requires you to set your preferred communication method (automatic, or manual). Simply select 'Automatic Upload to the AT portal', re-enter your sub-user credentials, and you’re all set.
Please check our article here.
By setting up the automatic communication with the Tax Authority, you will ensure that every invoice you issue is going to be communicated automatically to the AT. This will save you time each month.
How should I issue a credit note?
There are two types of credit notes: partial or total credit notes. Credit notes always refer to the total or partial cancellation of a previously issued document. As the name suggests, total credit notes nulls the entire document, while partial credit notes only null part of the document. Credit notes should be issued when there is an error in the invoice, when product returns are necessary, in case of exchanges. They can also be used to provide a discount to the supplier.