Portugal Invoicing
Invoicing B2B services: customers in the EU outside Portugal
You sell a project to a business. To prepare the invoice, identify the service, contracting customer and establishment receiving it, then connect those details to the actual agreement.
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Identify the service and business customer
Describe the work delivered: an audit, development, advice or maintenance. A job title is insufficient to determine what is being invoiced. Identify the legal entity placing the order even when discussions happen with a subsidiary or agency. Request billing details and evidence of business status. A contact person’s country, the contract language or payment currency does not replace identification of the actual customer and the establishment for which the work is performed.
- Agreement, purchase order and receiving establishment.
- Deliverable description and the service period.
- Customer status and complete billing details.
Locate the service before choosing its treatment
For a B2B service within the general rule, taxation follows the customer establishment receiving the service. Your Europe describes the usual reverse-charge mechanism for a business customer in another Member State. Check taxable-person status, tax details and the receiving establishment, since some services follow exceptions. Do not turn the rule into a universal instruction that every European customer means no VAT. The invoice and reporting obligations need to be examined together against the actual transaction, with the evidence retained in the customer file.
Prepare a consistent invoice and supporting file
Connect each sale to an agreement or order, a period and evidence of delivery. Gather seller and customer identifiers, amounts, currency and payment terms. Have the VAT wording or applicable basis checked before reusing the template. Keep credit notes and corrections with the relevant invoice. A bank statement confirms a payment but does not, by itself, explain the service or its treatment. Test the document flow with one complete transaction before relying on it for a larger set of customers.
Review projects outside the ordinary case
Work connected with property, admission to an event or an on-site engagement may require a different analysis from ordinary remote consultancy. Disclose travel and performance locations without confusing them with customer residence. If the agreement contains several services, show the breakdown. This allows relevant exceptions to be checked instead of automatically copying the treatment of an earlier invoice. It also gives the accountant a description that can be matched to the completed work.
Portugal
Before you incorporate
Registering as self-employed and incorporating a company are different routes. The choice depends on how your business actually operates. A Portuguese company alone does not determine your tax residence or the treatment of every source of income.
Information to gather
- Your country of residence and where you actually work.
- A description of the services or products you sell.
- Whether your customers are businesses or individuals, and their countries.
- Any shareholders, existing business structure and your planned timing.
Sources and references
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