You have just registered as a freelancer in Portugal and completed your Statement of Activities. Now it's time to bill for your work hours. Issuing invoices is relatively easy, even if you're not fluent in Portuguese.

Freelance in Portugal how to issue your invoices

So here you are, working as a freelancer at the Portugal You’ve landed your first project, and now that it’s complete, it’s time to get paid and send your invoice to your client. How does this work? Is it possible to use payment software? What information must be included on the invoice?

In this article, we provide answers to all your questions. 

Issuing an Invoice as a Freelancer in Portugal

All you have to do is go to the Finance Portal and then in the following sections: Services > Get > Electronic Green Receipts.

Your personal information will be automatically filled in based on the details you provided when you filed your business registration. This dynamic system makes the process quick and easy to complete.

After confirming your personal information, you must enter the customer’s information (name, address, and tax ID number), select the tax options, and enter the amount you are billing for the service provided. The final calculations (amounts, VAT, income tax, and credits) appear automatically based on the options selected in the previous fields.

To complete the process, click the «Send» button. The document will be saved in your finance portal. You can then download it as a PDF to send to your client.

Cancel Green Receipts

It is also through the Finance Portal If you wish to cancel Recibos Verdes that have already been issued, you may do so until the deadline for filing the IRS Form 3 annual tax return.

How to Cancel a Recibos Verdes

1. Visit the website of the Finance Portal ;
2. Enter your personal information (tax ID number and password) to log in;
3. In the « Frequently Asked Questions«, click « Invoices and Green Receipts«  ;
4. Select the « Consult«  ;
5. Enter the data into the search bar, such as the month and the year when the receipt was issued. If you prefer, you can enter the receipt number or the buyer's tax ID number;
6. Select the green receipt you want to cancel and click « More Info«  ;
7. Scroll to the bottom of the page and click « Cancel«  ;
8. Finally, you will be asked to confirm the cancellation of the receipt. Simply select "Yes" to cancel it.
   

Every time you cancel a Recibo Verde, you will automatically receive a notification from the General Directorate of Contributions and Taxes confirming that the Recibos has been canceled. This notification may be sent by email, if you have authorized the Department of Public Finance to contact you by email. Alternatively, it may be sent by mail.

Reason for cancellation

You may cancel a Recibos Verdes for the following reasons:

• You created a receipt by mistake or entered incorrect information
• Failure to pay or a breach of contractual obligations.
  

When payment for a service is not made, the taxpayer has no reason to pay taxes on amounts he has not received—a consequence that, in addition to being reflected in the IRS, also has implications for the VAT.

Those subject to the VAT system must remit the corresponding amount to the government. That is why, in such cases, it is possible to cancel the Recibos Verdes. If you forget to void it, the receipt you issued will be considered proof of payment, and your client may use it as a deductible expense.