Fatura
Invoice
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A formal invoice issued through certified software or the AT portal. For solo entrepreneurs on the simplified regime, income tax and Social Security remain cash-basis (tied to payment) regardless of when the invoice is issued.
A fatura is a fiscal document. Not a commercial convenience, not a PDF you whip up in a spreadsheet. In Portugal, an invoice issued through certified software or the AT portal is a legal event, the tax authority knows about it the moment it's generated.
For VAT purposes, the obligation is created at issuance (if you're not VAT-exempt). But for income tax (IRS) and Social Security, solo entrepreneurs on the simplified regime remain on cash-basis: those obligations are triggered by payment, not by issuing the invoice.
The document types
Portugal's invoicing system has several document types, each with a letter-code prefix:
- FT: Fatura. The standard invoice. Used for most B2B transactions.
- FS: Fatura Simplificada. A simplified invoice for transactions under 100 euros, or when the buyer doesn't provide a NIF.
- FR: Fatura-Recibo. This is the Recibo Verde. Invoice and receipt in one, issued at payment.
- NC: Nota de Crédito. A credit note. Used to correct or cancel a previously issued invoice.
- ND: Nota de Débito. A debit note. Used for additional charges on top of an existing invoice.
Each document gets a sequential number within its series, and none of them can be deleted. Issued is issued. If you make a mistake, you correct it with a credit note, not by pretending the original didn't happen.
The certified software requirement
Since Portaria 363/2010, all invoices in Portugal must be issued through software certified by the AT (Autoridade Tributária e Aduaneira, the tax authority). The software communicates with the AT's systems, and every invoice is reported.
For solo entrepreneurs, the Portal das Finanças itself serves as certified software, that's where you issue Recibos Verdes. But if you want to issue standard faturas (FT series), you need separate certified invoicing software. There are several options on the market, ranging from free to expensive.
When to use a fatura vs a Recibo Verde
For domestic clients where invoicing and payment happen together, the Recibo Verde (FR) is simpler, one document, one step.
For foreign clients (or any situation where your client needs an invoice before they can pay), issue a standard fatura (FT) through certified invoicing software, then issue a receipt (RC) when payment arrives. Both approaches preserve cash-basis accounting for IRS and Social Security under the simplified regime.
The only timing difference is VAT: if you're on the normal VAT regime (not Art. 53 exempt), issuing a fatura creates the VAT obligation at issuance. But IRS income and Social Security contributions follow payment timing regardless.
For more on how this works with foreign clients, read Invoicing foreign clients as a solo entrepreneur in Portugal.
Frequently asked questions
What's the difference between a fatura and a Recibo Verde?
A fatura (FT) is an invoice issued before or at payment. A Recibo Verde (fatura-recibo, FR) combines the invoice and receipt into one document issued at payment. For solo entrepreneurs on the simplified regime, both preserve cash-basis accounting, IRS and Social Security are based on when you receive payment, not when you issue the invoice.
Do I need certified software to issue a fatura in Portugal?
Yes. Portuguese law (Portaria 363/2010) requires all invoices to be issued through software certified by the tax authority (AT), or directly through the AT portal. You cannot legally issue a fatura using a Word template or generic invoicing tool that isn't AT-certified.
What types of faturas exist in Portugal?
The main types are: FT (fatura, standard invoice), FS (fatura simplificada, for small amounts under 100 euros), FR (fatura-recibo, the Recibo Verde), NC (nota de crédito, credit note to correct or cancel), and ND (nota de débito, debit note for additional charges). Each has a specific series prefix.
Should I issue faturas or Recibos Verdes as a freelancer?
Both work. Recibos Verdes (FR) are simpler for domestic work, one document handles everything. For foreign clients who need an invoice before they can pay, use a standard fatura (FT) and issue a receipt (RC) when payment arrives. Both preserve cash-basis accounting on the simplified regime.
Can I cancel or correct a fatura after issuing it?
You can't delete a fatura, once issued, it exists in the system permanently. To correct it, you issue a nota de crédito (credit note, series NC) that references the original invoice and reverses the amount. The tax authority sees both documents.
Related terms
A combined invoice-receipt (fatura-recibo) issued by solo entrepreneurs in Portugal through the Portal das Finanças when they receive payment for services.
Regime SimplificadoRegime Simplificado de Tributação · Simplified Tax RegimePortugal's simplified tax regime for solo entrepreneurs and small businesses, where taxable income is calculated using fixed coefficients applied to gross revenue.