As the new year approaches, a set of new tax requirements are expected to come into effect.  Some of these require the approval of the 2023 State Budget, but in order to support our clients in complying with all the requirements, we describe here several changes that should take effect as of January 1, 2023.

It is important to say that Microsoft Dynamics NAV / Business Central has all the essential features for tax changes compliance. To ensure timely compliance with these requirements and adapt your company in a simplified way, please check below the changes and request the respective update now.

REPORTING OF VALUED INVENTORIES

Reporting of Inventories to the Tax Authority (AT) has been mandatory since 2015. In 2019, Ordinance no. 126/2019, of May 2, determined that, in addition to the quantities, the value of the inventory should be reported.

After three postponements of the implementation of the new rules defined in this ordinance, in 2023 the reporting of the valued inventories for 2022 becomes mandatory.

Changes specified in Ordinance 126/2019:

• Added the product category B – biological assets;
• Added information about the Total Value per product related with the reported quantity.

Who is required to report the inventory?

All taxpayers subject to IRS or IRC, regardless of its sales volume, except those covered by the simplified regime.

Those who do not have stocks but comply with the requirements that require the inventory report must declare on the e-fatura website that they do not have stocks (option “Não possuo existências”, followed by “Submeter”).

What is the deadline for delivering the Reporting of the Inventory?

By January 31, 2023, if the tax period matches the calendar year.

By the last day of the month following the end of the tax period, if the tax period is different from the calendar year, (e.g. if the tax year begins in March 2022, it ends in February 2023, so the deadline is March 31, 2023).

What are the fines?

Fines can range from €200 to €10,000 if you are an IRS taxpayer, and from €400 to €20,000 if you are a company.

REPORTING OF NUMBER SERIES TO THE TAX AUTHORITY

As of January 1, 2023, fiscally relevant documents will contain the ATCUD, obtained from the AT when the start of use of each posting series is reported.

ELECTRONIC INVOICING

As of January 1, 2023:

• An invoice sent as a PDF is only legally recognized if the invoice includes a qualified digital signature.
• Any national company with commercial relations with the Portuguese State or public entities, either small and medium-sized enterprises, microenterprises, or public entities as co-contractors, is invariably obliged to issue, transmit and submit invoices in a structured electronic format.

CHANGES IN THE REASONS FOR VAT EXEMPTION
AT is updating the reasons for VAT exemption, starting on January 1, 2023, to ensure the alignment of the various channels of communication of fiscally relevant documents.
The changes consist of:

• Addition of two codes: M19 – Other Exemptions – and M25 – Goods on Consignment;
• Replacement of code M08 – Reverse charge VAT – by several codes, M30 to M43, which detail the numerous situations in which reverse charge occurs (e.g. Domestic Operations: Waste Sales, Residues and Recyclable Scraps; Construction Services, Gold Sales for Investment, among other reasons; External Operations: Sales or Services Supply to Taxable Persons from the European Union.

DEADLINE FOR SAF-T SUBMISSION 
Starting on January 2023, the deadline for SAF-T submission is the 5th day of the following month.

OTHER REQUIREMENTS WITH IMPACT IN THE YEAR 2023 THAT HAVE ALREADY STARTED IN 2022

1 – DISCLOSURE OF TELEPHONE LINES FOR CONSUMER CONTACT
As of November 1, 2021, in accordance with Decree-Law 59/2021 of July 14, all companies, whenever they provide consumer contact phone lines on their website, invoices, written communications and contracts, are required to disclose, in a clear and visible manner, the price of the calls. Companies are also required to provide contact phone lines that the customer may use within the scope of the legal consumer relationship, which do not imply the payment by the costumer of any additional costs for the use of this channel, beyond the basic tariff.

In this Decree-Law 59/2021 of July 14, it was also established that fines would only be applied as of June 1, 2022.

2 – ALIGNMENT OF THE FUNCTIONALITIES AVAILABLE IN THE COMMUNICATION CHANNELS OF TAX RELEVANT DOCUMENTS (SAF-T OR WEBSERVICE)
In accordance with the recent legislative changes, particularly those related to the “Electronic Commerce VAT Package”, as well as those resulting from the “Paperless Invoice”, an alignment of the various channels was necessary:

• SAF-T File: Introduction of new options at the level of TaxCountryRegion (e-commerce); New method of communication of the file via Browser, without Applet (already working); SAF-T File is now called “Multidocument File” (already working);
• Web Service (*): Added missing fields, TaxCountryRegion (e-commerce) and PaperlessIndicator (Paperless Invoice); Ability to communicate working documents, cash receipts, stamp tax, VAT from other member states (e-commerce); Ability to remove the communication of Documents;
• Portal: Introduction of new options at the level of TaxCountryRegion (e-commerce); Ability to communicate; Ability to communicate working documents, cash receipts, tax if stamp, VAT from other member states (e-commerce); Ability to consult information reported of any document fiscally relevant.

Within the scope of this alignment, SAF-T is now called Multidocument File.

(*) Feature to be available in Microsoft Dynamics NAV/Business Central during 2023.

A Arquiconsult está desde já à disposição para acompanhar os seus clientes neste caminho de  transformação digital.

Contacte-nos através dos V. contactos habituais, ou pelo email comercial@arquiconsult.com.