Invoices

Rules from Finanças - 22/11/2024

Invoices

Rules from Finanças

Until quite recently taxpayers were required to keep invoices for 6 months to 5 years for individuals and up to 10 years for companies for tax purposes. In fact one of the key points in our IRS seminars a few years ago, was a reminder to always ask for a factura and to keep them in a safe place until the end of the year. The question is do taxpayers still need to keep their invoices and the answer, according to the Tax Authority (AT), is NO. In fact they have stated now that “most invoices can be thrown away after checking whether they are correct on E-fatura”.

The only caveat, according to AT, is that you should keep an invoice from shops that have more than one activity, for example a newsagents where they sell various items with different IVA rates in case you feel the need to identify them individually in your IRS return. 

However, there are some situations in which it is beneficial to keep invoices, for example when purchasing a household equipment, electronic devices or jewellery, etc. In case of repairing, complaining, or replacing an item, the process becomes quicker if you have the invoice with you or at least a copy or a screen shot on your mobile, where the seller can quickly have access to the item code, date of purchase (in case of warranties), etc. But this is only necessary to assist with after sales problems and is not a requirement of the tax authorities. 

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