Do you still have difficulties filling in electronic “recibos verdes”? In recent years, many Portuguese people have opted for this way of working.

Therefore, if you work as a self-employed professional, it is important to understand how this document works.

In today’s article, we explain how to fill in and issue electronic “recibos verdes”. Keep reading and get answers to all your questions!

Electronic “recibos verdes”: The main information you really need to know

Working for yourself certainly has many benefits. These and other factors have encouraged more and more people to venture into entrepreneurship.

The first step to formalising this type of work is to register your activity with the Tax and Customs Authority, which can be done online or in person at a tax office.

From that point onwards, whenever you provide a service or sell a product, you must issue what are known as “recibos verdes”.

This document serves as proof and allows the tax authorities to be informed of the amount received by the self-employed professional for the provision of a service or sale of a product.

In this regard, it is important to know that there are three types of documents that can be issued. These are:

• Invoice: Document issued when payment is made after the date on which the service was provided or the product was sold.
• Receipt: Document confirming that the total or partial amount relating to the provision of a service or sale of a product has already been received.
• Invoice-receipt: Document issued when payment and the provision of the service or sale of the product take place simultaneously.

That said, we will now explain what you need to do to issue your electronic “recibos verdes”.

Guide to issuing electronic “recibos verdes”

To fill in and issue your “recibos verdes”, follow the step-by-step guide below.

1 – Access the Portal das Finanças

To issue electronic “recibos verdes”, you need to access the Portal das Finanças using your username and password.

Once you have logged in, select the following options: “Serviços Tributários” > “Cidadãos” > “Obter” > “Recibos verdes eletrónicos” > “Emitir”.

2 – Choose the type of document

At this stage, you must choose between the three available document types (invoice, receipt and invoice-receipt). Select the option that corresponds to the situation described above.

3 – Fill in the remaining information

Some information is filled in automatically, such as your name, tax identification number and address.

You must therefore fill in the remaining details relating to the entity for which you provided the service or sold the product.

4 – Select the option “Importância recebida a título de”

The next step is to fill in the information relating to the service provided.

At this stage, you must indicate whether the amount corresponds to “Payment for goods or services”, an “Advance payment” or an “Advance payment for expenses incurred on behalf of and in the name of the client”. Then, provide a brief description of the service provided.

5 – The Base Amount

Enter the Base Amount, that is, the amount agreed with the entity for which you provided the service. This amount must be stated excluding VAT.

6 – Choose the VAT regime

If your Category B income does not exceed €12,500, you may benefit from VAT exemption, in accordance with Article 53 of the VAT Code.

There is also the possibility of VAT exemption depending on the type of activity you carry out. Consult Article 9 of the VAT Code to check whether your activity is covered.

Professionals who are not entitled to benefit from the exemption must select the applicable VAT rate, with the standard rate in Portugal being 23%.

7 – Select the “IRS taxable base”

Withholding at source is always applicable when the issuer of the invoice is covered by the organised accounting regime. 

However, workers covered by the simplified regime who, in the previous year, did not earn Category B income exceeding €12,500 are entitled to an exemption.

8 – Withholding at source

If you selected “No withholding at source” in the previous step, this field will be blocked.

For workers who are not covered by the exemption, withholding tax rates depend on the nature of the income. Consult Article 101 of the CIRS to find out the applicable rates.

See? Issuing electronic “recibos verdes” isn’t really that difficult! Save this article and refer to this information whenever you need it!