SAF-T Accounting Document to be Mandatory in Portugal by December 2025
In a move to enhance transparency and streamline financial reporting, Portugal has announced that the submission of the SAF-T accounting document will be mandatory by December 31, 2025. This requirement is established under Article 182.º-A of the Assembly of the Republic and is in line with the terms set out in Ministerial Order No. 31/2019. The obligation to submit the SAF-T accounting file will apply to accounting periods from 2025 onwards, with submissions starting in 2026 and subsequent years.
The SAF-T (Standard Audit File for Tax Purposes) is an electronic accounting file that contains detailed information about a company’s financial transactions. It provides tax authorities with a standardized format to access and analyze financial data, ensuring compliance with tax regulations. The introduction of this mandatory requirement aims to improve the efficiency and accuracy of tax reporting, reducing errors and facilitating audits.
By implementing the SAF-T accounting document, Portugal joins several other European countries that have already adopted this standardized format. The SAF-T format was first introduced in Portugal in 2008, and its usage has gradually expanded to cover various financial transactions. The mandatory submission of the SAF-T accounting file will further strengthen the country’s commitment to digitalization and modernization of its tax system.
Companies operating in Portugal will need to ensure that their accounting systems are capable of generating the SAF-T file in the required format. The file should contain detailed information about sales and purchases, general ledger transactions, inventory movements, and other relevant financial data. This information will be crucial for tax authorities to verify the accuracy of reported transactions and identify any potential tax evasion or fraud.
To assist businesses in complying with this new requirement, the Portuguese tax authorities have provided detailed guidelines on how to generate and submit the SAF-T accounting file. These guidelines outline the technical specifications and data requirements, ensuring that companies can accurately prepare and submit the file. It is essential for companies to familiarize themselves with these guidelines and ensure that their accounting systems are updated accordingly.
The mandatory submission of the SAF-T accounting file will have significant implications for companies operating in Portugal. It will require them to invest in robust accounting systems capable of generating the file in the required format. Additionally, companies will need to ensure that their internal processes and controls are in place to capture and record the necessary financial data accurately.
The introduction of the SAF-T accounting document reflects Portugal’s commitment to combat tax evasion and enhance transparency in financial reporting. By providing tax authorities with access to detailed financial data, the country aims to improve tax compliance and reduce the tax gap. This move is part of a broader effort to modernize the tax system and align it with international best practices.
In conclusion, the mandatory submission of the SAF-T accounting document in Portugal by December 2025 is a significant development in the country’s tax landscape. It will require companies to adapt their accounting systems and internal processes to comply with the new requirement. By doing so, Portugal aims to enhance transparency, improve tax compliance, and ensure the accuracy of financial reporting. Businesses operating in Portugal should familiarize themselves with the guidelines provided by the tax authorities and take the necessary steps to meet the upcoming deadline.