Portugal will launch B2G e-invoicing in phases. B2G will become mandatory in Portugal from January 1, 2021 and January 1, 2022.
The adoption of the EU Directive 2014/55/EU of 16 April 2014 (the 'E-Invoicing Directive') made the use of electronic invoicing during public procurement mandatory. An 'electronic invoice' means an invoice that has been issued, transmitted, and received in a structured electronic format, which allows for its automated processing.
The 'core elements of an electronic invoice' are essential information components that an electronic invoice must contain to enable cross-border interoperability, including the necessary information to ensure legal compliance. The core elements of an electronic invoice are, among other things:
- process and invoice identifiers;
- the invoice period;
- seller information;
- buyer information;
- payee information;
- seller's tax representative information;
- contract reference;
- delivery details;
- payment instructions;
- allowance or charge information;
- invoice line item information;
- invoice totals;
- VAT breakdown.
Member States have implemented the 'E-Invoicing Directive' into their national law.
Portugal: e-invoicing and public procurement (B2G)
Portugal will launch B2G e-invoicing in phases. B2G will become mandatory in Portugal from January 1, 2021 and January 1, 2022. Implementation is postponed due to the Coronavirus outbreak. The new deadlines are:
- 1 January 2021 for large companies
- 1 July 2021 for small & medium-sized enterprises (SMEs)
- 1 January 2022 for small businesses
'Entidade de Serviços Partilhados da Administração Pública' (eSPAP) will coordinate and is responsible for receiving and sending e-invoices between public contractors and public authorities. Portugal uses the invoice format UBL 2.1 “CIUS-PT” and CEFACT “CIUS-PT,” and eSPAP will accept these electronically signed invoice formats.
Institutions using the central platform:
- Public institutions & government administrations
- The issuer of electronic accounts
- e-invoice providers for public tenders
Specific institutions that can use eSPAP on a voluntary basis such as the Presidency of the Republic, the Republic Assembly, the Attorney General, and the Courts, etc.
The central platform eSPAP is not yet fully operational. For example, not all authorities are connected to the central B2G platform yet.
Other European countries
- Germany and e-invoicing for B2G mandatory by 27 November 2020
- Finland's new B2G e-invoicing postponed
What wil we do?
The Key Group will monitor developments and support clients with services and products.
What is an SAP add-on?
An SAP add-on enhances standard SAP itself.
Add-on components are extra functionalities that do not come with the main SAP product. Different organizations have different requirements. SAP has recognized that and facilitated that additional functionality can be added and that such functionality as a component can be integrated with Standard SAP.
An add-on is permitted by SAP – the code 'ABAP' is written and transported where SAP allows it. That means these add-on components sit above the core and access the same dictionary objects or repository objects and perform the required functionality. It contains custom authorization objects according to SAP standards.
SAP add-on solutions are, therefore, without an external interface or external software and can be implemented with minor or no SAP impact in any other area. An SAP add-on does not change the programming code of SAP. As a result, SAP upgrades do not lead to any problems, and maintenance is straightforward. Additional functionality is added to Standard SAP.
Written by Richard Cornelisse
Richard advises multinational businesses in improving the efficiency and effectiveness of their Indirect Tax Function and Tax Control Framework.
He started his career as a manager at Arthur Andersen and then became a partner in EY where I led the indirect tax performance team for Netherlands and Belgium. Currently, he is a senior managing director of KEY Group.
Richard has over 20 years’ experience advising clients on international VAT issues. He is specialized in the tax aspects of financial transformations, shared service center migration, and post-merger integration work. Richard is also somewhat of a mentor, giving back to the profession. If you are interested in conversation and discussion, please feel free to contact him.