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Invoicing

Fatura-Recibo

Invoice-Receipt

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A combined invoice and receipt document issued by Portuguese solo entrepreneurs when payment is received, the document type behind the Recibo Verde system.

A fatura-recibo (abbreviated FR) is a combined invoice-receipt, the single most common document type for Portuguese freelancers. It's the document behind the Recibo Verde system, and understanding it is key to understanding how invoicing works in Portugal.

Two documents in one

In most countries, invoicing has two steps: you send an invoice when the work is done, then issue a receipt when payment arrives. Portugal's fatura-recibo collapses both into a single document. One action, one document, one tax event.

This is what makes it powerful and also what makes it tricky. When you issue an FR, you're making three statements at once:

  1. You performed a service for a client
  2. The client paid you
  3. The income is now registered with the tax authority

The tax obligation, both IRS (income tax) and Social Security, arises at the moment you issue the FR. There's no going back.

How it differs from a standalone fatura

A standalone fatura (FT series) only records the obligation to pay. The client sees it, processes it through their accounts payable, and pays you later. You then issue a separate receipt (recibo, RC series) when the money arrives.

The FR skips all of that. It assumes payment happened when you press submit.

This is why a fatura-recibo requires a payment method: bank transfer, cash, check, or other. A standalone fatura doesn't need one because no payment has been made yet.

No separate receipt needed

Because the FR already confirms payment, you cannot issue a receipt against it. The document is self-contained. If you need to correct it, you issue a credit note (nota de crédito).

When to use each

  • Domestic clients who pay immediately or on short terms: use the fatura-recibo. It's simpler and it's what the Recibo Verde system is built for.
  • Foreign clients or clients who need an invoice before paying: use a standalone fatura (FT), then close it with a receipt (RC) when payment arrives.

Both approaches are valid under the simplified regime. The choice depends on your client's payment workflow, not on your tax treatment.

Frequently asked questions

What is a fatura-recibo?

It's a single document that combines an invoice (fatura) and a receipt (recibo) into one. When you issue a fatura-recibo, you're simultaneously billing for a service and confirming that payment was received. It's the document type used in the Recibo Verde system.

How is a fatura-recibo different from a fatura?

A standalone fatura (FT) records an obligation to pay, the client owes you money. A fatura-recibo (FR) records both the service and the payment in one document. With an FT, you'd later issue a separate receipt when paid. With an FR, it's all done at once.

Can I issue a receipt against a fatura-recibo?

No. A fatura-recibo is self-contained, it already confirms payment. You can't issue a separate receipt (recibo) against it because the payment is already recorded in the document itself. This is different from a standalone fatura, which does need a receipt.

When does the tax obligation arise with a fatura-recibo?

At the moment of issuance. When you issue an FR, you're telling the tax authority you received payment. Your IRS (income tax) and Social Security obligations are triggered immediately. This is why you should only issue it when payment has actually been received.

Do I need to include a payment method on a fatura-recibo?

Yes. Unlike a standalone fatura, a fatura-recibo requires a payment method (meio de pagamento), bank transfer, cash, check, etc. This is because the document confirms payment, so the tax authority needs to know how you were paid.

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