"Recibos verdes" is a commonly used term referring to self-employed workers in Portugal. These individuals work autonomously, without formal employment contracts, often collaborating with companies on a permanent or occasional basis. In practice, green receipts are the documents that self-employed workers must issue to demonstrate that they have received payment for their professional activities. This guide outlines the types of receipts, their issuance process, and the role they play in tax compliance.
Types of receipts
Receipt: Proof of payment issued when the full amount for a product or service is received.
Invoice: Document issued for commercial transactions, not serving as proof of payment.
Invoice-receipt: A final document combining the invoice and receipt, serving as proof of payment for a product or service, avoiding the issuance of two separate documents.
Issuance process
Receipts or invoice-receipts must be issued on the Portal das Finanças (Tax and Customs Authority website) or through certified means like integrated software.
Freelancers must identify themselves and the client (name, address, VAT number) and indicate IRS and VAT options.
Independent contractors with self-employment income (category B) must issue these documents to justify their self-employed income.
As a general rule, these invoices must be issued within 5 days since transaction.
What is considered as self-employment income?
According to Article 3 of the IRS Code (CIRS), self-employment income includes earnings from various activities such as commercial, industrial, agricultural, forestry, or livestock activities.
It also encompasses income from self-employed services, including those of a scientific, artistic, or technical nature.
Additionally, income from intellectual or industrial property (royalties) and the provision of information related to experience in various sectors, when earned by their original owner, falls under self-employment income.
InvoiceXpress
InvoiceXpress is an online invoicing software approved by the Portuguese Tax and Customs Authority (AT), designed to streamline the invoicing process for freelancers. As part of our commitment to simplifying your business operations, Relocate Now offers a free subscription to InvoiceXpress, ensuring you have access to one of the most comprehensive plans, without incurring any additional costs.
Key Features:
Anywhere Access:
InvoiceXpress provides you with the flexibility to access your invoicing tools from anywhere, ensuring you can manage your self-employment income invoices and receipts seamlessly.
User-Friendly Interface:
The user account for InvoiceXpress will be created by Relocate Now, making it easy for you to get started with this certified invoicing software.
Legal Compliance:
Being a certified invoicing program, InvoiceXpress stays updated with legal changes from the Tax Authority. This ensures that your invoices align with the latest regulations, giving you peace of mind.
Comprehensive Plan:
Our free subscription includes the package L, ideal for scaled businesses. This plan, priced at 30€/month, offers a range of features to meet your invoicing needs efficiently. [InvoiceXpress Best Plans to Simplify your Invoicing link]
Customization Options:
Tailor your invoices to suit your needs with customizable features. From logos to language preferences, bank account details, emails, and export formats, InvoiceXpress allows you to make your invoices uniquely yours.
Versatility in Document Issuance:
InvoiceXpress not only facilitates the issuance of invoice-receipts but also supports other certified documents such as receipts, credit and debit notes, providing you with a versatile and more intuitive invoicing solution.
Integration Capabilities:
Benefit from API integration with other platforms and a plug-in for e-commerce, streamlining your overall business operations and ensuring seamless communication between different systems.
Multi-Language and Multi-Currency Support:
Conduct business on a global scale with InvoiceXpress, which supports multiple languages and currencies, providing you with the flexibility needed for an international clientele.
Direct Communication with Tax Authority:
Stay compliant effortlessly by utilizing features like the export of SAF-T PT files (invoicing report), enabling direct communication with the Tax and Customs Authority.
Embrace the simplicity of invoicing with InvoiceXpress, and let Relocate Now support you in maintaining invoicing compliance with the Tax and Customs Authority (AT) and navigating the world of freelancing with ease.
Monthly reporting for non-existent invoices: How to do it?
One of the new tax obligations for 2023 is related to the obligation to report the non-existence of invoices issued in a given month (as opposed to SAF-T reporting).
As such, a self-employed that does not issue invoices during a given month is now obliged to report this fact to the Tax Authority by the 5th of the following month (even if it has automatic reporting through the Tax Authority's website or a certified software such as InvoiceXpress). Carrying out this operation is very simple:
1 - Access the e-fatura portal;
2 - Select 'Faturas' and then 'Sr. Emitente';
3 - Log in;
4 - Click on 'Comunicar' in the new section 'Comunicação mensal por inexistência de faturação'.
Frequently Asked Questions
What is the difference between Fatura (invoice) and Fatura-Recibo (invoice-receipts) and which should I use?
What is the difference between Fatura (invoice) and Fatura-Recibo (invoice-receipts) and which should I use?
Both documents should be issued whenever a commercial transaction is carried out, however, the Fatura (invoice) cannot be a proof of payment, whilst the Fatura-Recibo (invoice-receipt) is both an invoice and proof of payment (receipt). On this note, the option Fatura-Recibo (invoice-receipt) is more commonly used to avoid issuing two separate documents (the invoice and the receipt).
If I issue my own customized invoices to bill my clients, do I still need to issue Recibos Verdes from the Tax Authority’s website?
If I issue my own customized invoices to bill my clients, do I still need to issue Recibos Verdes from the Tax Authority’s website?
Yes, even if you issue your own customized invoices to receive payment from your clients, it is still mandatory to issue the invoice-receipts from the Tax Authority’s website once the payment is received into your bank account, since your own customized invoices have no tax value and are not recognized by the Authorities.
Do I need to send the Recibos Verdes to my clients?
Do I need to send the Recibos Verdes to my clients?
No, it is not mandatory to provide these invoice-receipts issue through the Tax Authority’s website (Recibos Verdes) to your clients.
Can I customize the Recibos Verdes?
Can I customize the Recibos Verdes?
No, the invoice-receipts issued through the Tax Authority’s website are not customizable and fully written in Portuguese.
Is there a deadline to issue the Recibos Verdes after the funds receipt?
Is there a deadline to issue the Recibos Verdes after the funds receipt?
No, however, "Recibos Verdes" should generally be issued within 5 days of receiving the full amount for a product or service. This timeframe ensures timely documentation of the transaction for tax and compliance purposes.
Are there specific VAT options that need to be indicated on Recibos Verdes?
Are there specific VAT options that need to be indicated on Recibos Verdes?
Yes, freelancers must indicate their VAT options on Recibos Verdes to comply with tax regulations. This includes providing identification details for themselves and their clients. For more information on VAT, you may consult our [VAT (IVA)] section.
Can I customize my invoices with InvoiceXpress?
Can I customize my invoices with InvoiceXpress?
Yes, InvoiceXpress provides customization options, allowing you to personalize your invoices. You can add your logo, choose your preferred language, input bank account details, customize emails and select export formats.
Is InvoiceXpress compliant with legal regulations?
Is InvoiceXpress compliant with legal regulations?
Absolutely. InvoiceXpress is a certified invoicing program, ensuring that your invoices are always up to date with the latest legal requirements from the Tax Authority.
Is there any cost associated with using InvoiceXpress through Relocate Now?
Is there any cost associated with using InvoiceXpress through Relocate Now?
No, the usage of InvoiceXpress is included as part of the services provided by Relocate Now, with no additional costs to the client.
Note: These FAQs provide general information and guidance. Specific cases may vary, and individuals are advised to seek personalized advice.