Invoicing foreign clients from Portugal involves 4 distinct VAT scenarios: EU B2B (reverse-charge, 0% VAT, VIES-validated), EU B2C digital (OSS at customer-country rate above EUR 10k threshold), non-EU B2B (out-of-scope, 0% VAT), and non-EU B2C (typically 0% export of services). All invoices must be issued via AT-certified software (Moloni, Sage, PHC, FacturaPlus, etc.) with mandatory QR code + ATCUD. Currency is flexible (any currency with EUR equivalent at AT rate). Payment platforms — Stripe, Wise, Revolut — are widely used; SEPA for EU.
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The 4 VAT scenarios — quick reference
| Client type | VAT treatment | Rate | Invoice note |
|---|---|---|---|
| EU B2B (with valid VAT ID) | Reverse-charge | 0% | "VAT reverse-charge — Article 196 of Directive 2006/112/EC" |
| EU B2C digital, < EUR 10k cross-border | Portuguese VAT | 23% (mainland) | Standard PT VAT line |
| EU B2C digital, ≥ EUR 10k cross-border | OSS — customer-country VAT | Customer country rate | "Subject to OSS regime — VAT charged at customer-country rate" |
| EU B2C non-digital services | Portuguese VAT | 23% | Standard PT VAT line |
| Non-EU B2B services | Out of scope (export) | 0% | "Out of scope — export of services to non-EU" |
| Non-EU B2C services | Out of scope (export) | 0% | "Out of scope — export of services to non-EU" |
| Goods exported outside EU | Exempt | 0% | "VAT exempt — Article 14 CIVA, export" |
| Goods sold to EU B2B (intra-EU supply) | Exempt | 0% | "VAT exempt — Article 14 RITI, intra-EU supply" |
Step-by-step: issuing an invoice to a foreign client
Step 1 — Identify the client type and country
Before issuing the invoice, determine:
- Is the client a business or individual?
- Is the client in the EU or outside?
- For EU B2B: do they have a valid VAT ID?
- For B2C digital services: where is the customer's permanent address?
Step 2 — Validate EU VAT ID (for EU B2B)
For EU business clients, validate their VAT ID at vies.europa.eu. This is critical:
- If VAT ID is valid → apply reverse-charge (0% PT VAT)
- If VAT ID is invalid → must charge Portuguese VAT at 23%
- Validation should be done at the time of invoice and saved as evidence (most certified software stores VIES validation logs automatically)
Penalty for incorrectly applying reverse-charge with invalid VAT ID: full Portuguese VAT plus interest, plus penalties up to 100% of the VAT.
Step 3 — Determine VAT treatment
Apply the matrix above. Common cases:
- Software developer in Lisbon billing a US tech company: Non-EU B2B services → 0% VAT, out-of-scope. Invoice in USD or EUR.
- Designer in Porto billing a German agency: EU B2B (with valid DE VAT ID) → 0% VAT, reverse-charge note.
- SaaS company in Lisbon billing French consumers (B2C): EU B2C digital — OSS at FR 20% if above EUR 10k cross-border, else PT 23%.
- Consultant in Lisbon billing a UK company: Post-Brexit UK is non-EU → 0% PT VAT, out-of-scope.
Step 4 — Issue the invoice via certified software
Required elements on every Portuguese invoice:
- Issuer: name, NIF, address, "Sociedade por Quotas" or "Empresário Individual" indication
- Client: name, address, country, VAT ID (where applicable)
- Invoice number, document type (FT — fatura), document series, ATCUD code
- Issue date, supply date
- Description of goods or services
- Quantity, unit price, total per line
- VAT rate per line, VAT total
- Total in original currency + EUR equivalent (if not EUR)
- Reverse-charge / exemption legal references where applicable
- Payment terms and method
- QR code (mandatory since 2022)
- Software certification number from AT
Step 5 — Send invoice and configure payment
Common payment configurations:
SEPA (for EU clients)
- Provide IBAN of your Portuguese business bank account (Millennium BCP, ActivoBank, etc.)
- Free or near-free for EU customers paying in EUR
- Settles in 1 business day
Wise (multi-currency, popular with US/UK/BR clients)
- Get local account numbers in USD (US ACH), GBP (UK Faster Payments), EUR, CAD, etc.
- Customer pays domestically in their currency at zero/low cost
- You convert to EUR when needed at mid-market rate + small fee
- Account-level integration with Portuguese accounting via CSV import
Stripe (for cards and recurring billing)
- Best for B2C SaaS, marketplaces, e-commerce
- Card processing fee ~1.4% + EUR 0.25 per transaction (EU cards)
- Settles to your Portuguese bank account or Wise account
- Stripe Tax handles OSS automatically for B2C digital
Revolut Business
- Multi-currency similar to Wise
- Useful if you also use Revolut personally
- Card-issuance and FX features
Step 6 — Record the invoice for VAT and accounting
Certified software automatically:
- Records the invoice in your VAT ledger
- Generates the monthly SAF-T file (submitted to AT by day 5 of next month)
- Calculates the Recapitulative Statement for EU B2B (Declaração Recapitulativa, monthly)
- Feeds the monthly or quarterly VAT return
- For OSS: generates the quarterly OSS return
Currency handling — practical guidance
Portuguese invoices can be issued in any currency, but:
- The VAT line (where applicable) must show EUR equivalent
- The total must show EUR equivalent
- Use the AT-published exchange rate of the invoice date (most certified software fetches this automatically)
- For accounting, the EUR equivalent at invoice date is what matters; FX gains/losses on payment are accounted separately
Practical example: USD invoice from Lisbon to NYC
- Invoice issued 15 April 2026: USD 5,000 for services
- AT FX rate that day: 1 EUR = 1.08 USD → EUR 4,629.63
- VAT: 0% (non-EU B2B services, out of scope)
- Total invoice: USD 5,000 (EUR 4,629.63)
- Customer pays via Wise on 28 April → EUR 4,650 received (FX rate moved)
- Accounting: revenue EUR 4,629.63 (invoice date) + FX gain EUR 20.37 (payment date)
Common errors when invoicing foreign clients
- ❌ Charging Portuguese VAT to an EU B2B customer with valid VAT ID (should be reverse-charge)
- ❌ Reverse-charging without validating VAT ID on VIES (creates AT exposure)
- ❌ Forgetting to file the monthly Recapitulative Statement
- ❌ Using invoicing software not certified by AT (invalid invoices)
- ❌ Issuing in foreign currency without EUR equivalent line (non-compliant)
- ❌ Treating UK clients as EU B2B post-Brexit
- ❌ Mixing personal and business payment platforms (Wise personal vs Wise Business)
- ❌ Not registering for OSS when crossing the EUR 10k B2C digital threshold
Recommended toolkit for Portugal-based freelancers/Lda invoicing abroad
- Invoicing software: Moloni (most popular for freelancers), InvoiceXpress, FacturaPlus, or PHC for larger Ldas
- VIES validation: bookmark vies.europa.eu — also automated by most invoicing software
- Multi-currency receiving: Wise Business (USD, GBP, EUR local accounts) + Revolut Business as backup
- Card processing: Stripe (with Stripe Tax for OSS) — for B2C SaaS, e-commerce
- Bank: Millennium BCP or ActivoBank — for EUR settlement and IBAN-based SEPA receipt
Frequently Asked Questions
Do I charge VAT to a UK client when I'm in Portugal?
Post-Brexit UK is non-EU. B2B services: 0% PT VAT (UK customer reverse-charges domestically). B2C: 0% PT VAT (export of services to non-EU).
How do I handle currency on invoices?
Any currency allowed but EUR equivalent must appear (using AT FX rate of invoice date). Payment can be in original currency via Wise/Revolut.
Can I use Stripe / Wise / Revolut?
Yes — widely used. Note: Stripe/Wise are payment rails, not invoicing tools. The Portuguese invoice must still come from AT-certified software.
What information do I need from a foreign client?
EU business: legal name, address, EU VAT ID (validated on VIES). Non-EU: legal name, address. Individuals: full name and address.
Are e-signatures required?
No manual signature — certified software auto-generates digital signature embedded in QR code. Mandatory.
What's the Recapitulative Statement?
Monthly filing listing reverse-charged EU B2B invoices per customer VAT ID. Auto-generated by certified software. Required for VIES cross-checking.