Invoice-Receipt
Fatura-Recibo
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The English term for fatura-recibo: a combined invoice and payment confirmation used by Portuguese freelancers, issued only when payment has been received.
An invoice-receipt is the English name for fatura-recibo (FR), the combined invoice-and-payment-confirmation document that Portuguese freelancers use daily. If you've heard people talk about green receipts or Recibos Verdes, this is the document type they mean.
A concept that doesn't exist elsewhere
In most countries, an invoice and a receipt are separate things. You invoice when you do the work, and you receipt when you get paid. Portugal fused them for solo entrepreneurs, creating a single document that says: "I did this work, and I was paid for it."
This fusion is what makes the Portuguese system simpler for straightforward domestic freelancing. One document does the job of two. But it also means you can only issue an invoice-receipt after payment, never before.
Why timing matters
When you issue an invoice-receipt, the tax authority immediately registers it as income. Your IRS withholding obligation (if applicable) and your Social Security contribution base are calculated from that moment. Issuing one before you've been paid means declaring income you haven't received.
This is where the two-step alternative comes in. If a client (especially a foreign company) needs an invoice before they can process payment, you issue a standalone fatura (FT series) first. When payment arrives, you issue a receipt (RC series) to close it. The tax treatment under the simplified regime is the same either way.
What makes it unique
Three things distinguish the invoice-receipt from a standalone invoice:
- Payment method is required. Because the document confirms payment, you must specify how you were paid, bank transfer, cash, check, or another method.
- No separate receipt can be issued against it. The FR is self-contained. It already confirms payment, so issuing a receipt on top of it would be double-counting.
- The tax event is immediate. With a standalone fatura, the tax event can be deferred until payment. With an FR, issuance is the tax event.
For the full technical details, document flows, and when to use each type, see the Portuguese entry: Fatura-Recibo.
Frequently asked questions
What is an invoice-receipt in Portugal?
An invoice-receipt (fatura-recibo) is a single document that combines an invoice and a payment receipt. It's issued when payment is received, not when work is completed. It's the default document type for solo entrepreneurs using the Recibo Verde system.
Why does Portugal combine invoices and receipts?
It simplifies cash-basis accounting for solo entrepreneurs. Instead of tracking invoices and receipts separately, one document handles both. The tax event is clear: when you issue it, income is registered. No reconciliation needed.
Can I send an invoice-receipt to a client before they pay?
No. An invoice-receipt confirms that payment was received. Issuing it before payment tells the tax authority you were paid when you weren't, creating a tax liability on money you haven't received. For clients who need an invoice before paying, use a standalone fatura (FT) instead.
How does an invoice-receipt affect my taxes?
The moment you issue one, the income is registered with the tax authority. Your IRS (income tax) withholding and Social Security obligations are calculated from the issue date. This is why timing matters, only issue when payment has actually arrived.
Is an invoice-receipt the same as a Recibo Verde?
Essentially, yes. When people say 'Recibo Verde' or 'green receipt,' they're referring to the fatura-recibo issued through the Portal das Finanças. The terms are used interchangeably in everyday conversation, though fatura-recibo is the technical document type.
Related terms
A combined invoice and receipt document issued by Portuguese solo entrepreneurs when payment is received, the document type behind the Recibo Verde system.
Recibo VerdeGreen ReceiptA combined invoice-receipt (fatura-recibo) issued by solo entrepreneurs in Portugal through the Portal das Finanças when they receive payment for services.
Green ReceiptRecibo VerdeThe English name for Recibo Verde, a combined invoice-receipt that solo entrepreneurs in Portugal issue through the tax portal when they receive payment.
FaturaInvoiceA 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.
ATCUDUnique Document CodeAT Code Unique Document: the unique identifier required on every invoice and receipt in Portugal, combining a validation code from the tax authority with a sequential number.