e-Fatura

e-Fatura is the backbone of Portugal's tax deduction system. Every purchase where you provide your NIF gets automatically registered in this system. Without your NIF on the invoice, it is not linked to you unless you register it yourself.

How it works

When you buy something and give your NIF, the merchant's invoicing software reports that transaction to AT. It appears in your e-fatura account, categorized by the type of expense (health, education, general, etc.). AT uses these records to pre-fill your tax deductions on Anexo H of your IRS return.

The review deadline

By the end of February, you need to log into the e-fatura portal and review your expenses. Some purchases are automatically categorized correctly. Others are ambiguous, a purchase at a pharmacy could be health or cosmetics, and the system needs you to confirm.

Expenses you don't review may default to the wrong category or not count toward any deduction at all. The deadline comes early in the year, so it is easy to miss.

For solo entrepreneurs

If you provide services under the simplified regime, e-fatura plays a double role. Your personal expenses feed into Anexo H deductions. Your business expenses count toward the 15% proof requirement, the minimum documented expenses you need to avoid having extra income added to your tax base.

Business expenses that never reach e-fatura, like purchases from a supplier in another EU country, are declared by you on your annual return instead (Anexo B, Quadro 17A, campo 17002). How software bought from outside the EU fits is a question we are still confirming with an accountant.

For a full walkthrough of every category and deduction cap, see eFatura: How to Read Your Expense Statement.