Council of Ministers rules on adoption of eInvoicing

Council of Ministers Resolution n.º 137/2005, DR N.º 157, I Series B, of 17th August

Establishing the adoption of the eInvoicing system by the Public Administration’s services and bodies.

The XVII Constitutional Government’s Programme set mobilising Portugal for the Information Society as one of its objectives. In this respect, the Government intends to invest in making Information and Communication Technologies widely available for the development of Portuguese society.

In actual fact, use of Information and Communication Technologies contributes decisively to the development of eCommerce, which is crucial in terms of ensuring the national economy’s competitiveness.

In this regard, it is essential that the practice of issuing and receiving invoices electronically becomes widespread. Virtual invoices are vital for the life of companies and State and to increase eCommerce in general.

At the legislative level, and more precisely with a view to fostering the expansion of eCommerce, the legal framework for eInvoicing has been laid out. In 1999, with approval from Decree Law nº 375/99, of 18th September, it was established that paper and electronic invoices are equally valid. In 2003. following adoption of Directive nº 2001/115/EC, of the Council, of 20th December, amending Directive nº 77/388/EEC, of the Council, of 17th May, regarding the common system of value added tax (VAT), Decree Law nº 256/2003, of 21st October, was approved. This transposed the said directive into national law, with a view to simplifying, modernising and harmonising the conditions applicable to invoicing for VAT. This decree law revoked Decree Law nº 375/99, as well as the respective regulation (Regulatory Decree nº 16/2000 , of 2nd October, and Rule nº 52/2002, of 12th January).

Bearing in mind the State’s weight in the eCommerce field, it is now time for the Public Administration to adopt the eInvoicing system, where operations can be electronically processed, and show preference for receiving invoices electronically for operations carried out as a purchaser of goods and services.

By switching to this system, it is hoped this will act as a catalyst for public and private companies to follow suite.

Thus:

In the terms of paragraph g) of article 199 of the Constitution, the Council of Ministers resolves to:

1. Stipulate that by 31st December 2006, the public services and organisms that are directly and indirectly part of the State administration shall implement the necessary mechanisms enabling invoices or equivalent documents to be issued by electronic means, where operations can be electronically processed, as per the law.
2. Stipulate that from 1st January 2007, the bodies mentioned in the previous number, as suppliers and purchasers of goods and services, shall, where operations can be electronically processed, issue invoices or equivalent documents by electronic means, as per the law, except where the recipient shows a manifest interest in having the invoice or equivalent document issued in paper form, and also shall give preference to receiving said documents electronically, as per the law.
3. Stipulates that UMIC - Knowledge Society Agency, I.P., shall monitor and assess the execution of this resolution, keeping the Government regularly informed of developments, via the Minister of Science, Technology and Higher Education.
4. Stipulates that the bodies referred to in nº 1 shall submit  the calendar for measures to be applied to conform with the provisions of this resolution to UMIC - Knowledge Society Agency, I.P. within a maximum of six months.
5. For the effects of the provisions of nº 2, the bodies mentioned in nº 1 shall inform their clients and suppliers of the adoption of the eInvoicing system and their preference in terms of receiving invoices or equivalent documents by electronic means at least three months before the system is to start.

Presidency of the Council of Ministers, 29th July 2005, the Prime Minister, José Sócrates Carvalho Pinto de Sousa.