What is the recommended duration for keeping invoices? You may now discover the suggested dates for keeping invoices.
Every Portuguese person is aware that when buying goods or services, they should request an invoice that includes their tax number. There are various reasons why this needs to be done.
For instance, evidence of payment is required if you wish to claim a warranty, whether it's to protect your rights in the case of a malfunction or breakdown or to demonstrate that a cost was properly incurred. Thus, the act of keeping invoices turns out to be a prudent practice.
But not every invoice should be kept indefinitely or stored in the documents folder for the same length of time. Are you aware of the suggested dates for keeping invoices on file?
What are the suggested cutoff dates for invoice storage?
All Portuguese individuals are required to save their invoices, and it's critical to keep them safe whether they're digital or on paper. If you do, though, avoid putting forgotten paper invoices in a folder. You need to put together a tidy dossier that lists the many features of every invoice.
It is important to remember that the data must be saved. The minimum retention period for each invoice, however, changes every time and is usually between six months and five years, depending on the kind of commodity or service. Digital invoices need to be kept organised as well.
Keeping invoices organised: some advice
If you find it difficult to keep up with all the paperwork, here are some suggestions to help you get everything in order:
You must first scan or take a photo of the relevant documents.
The digital documents you made should then be saved somewhere convenient for you, including on your computer, an external drive, or the cloud. This measure has several benefits, not only does this technique save you space in the house and is it ecologically good, but it also gives you smartphone access to the relevant documents.
Types of invoices
It might not be required to maintain a basic food shopping invoice. But you must save the receipt from when you bought your TV or phone. It is a good idea to do this since, should something go wrong with the purchased item, you may use this paperwork to activate the warranty.
Three different kinds of invoices need to be stored, so keep that in mind. Are they:
the previously listed invoices required to trigger the corresponding guarantee;
invoices that the IRS may want as proof of expenditures;
invoices put into e-Fatura by you, the customer, and not by the vendor or service provider.
Steps to be taken
When it comes to IRS-related invoices, keep in mind that the only invoices that can be destroyed are those that are automatically displayed on the e-Fatura portal and those which are requested with the taxpayer number.
The proof must be retained for four years in case it needs to be manually entered. You can discard the paper document, though, if the merchant uploads the invoice in the end and it shows up twice.
Please be aware that for IRS bills, this is the process that needs to be considered. The process varies for all other bills. The period of time that an invoice must be kept on file for purchases, service payments, or warranty purposes ranges from six months to five years.
Now, take note of the various due dates for keeping invoices, as per the details of each one.
Invoices that must be retained for a full year
Service-related invoices, such as those for gas, electricity, water, and telecommunications, are to be retained for six months. Companies who provide these services have this window of time to charge for usage.
The invoices therefore expire after this semester. Consequently, you are exempt from paying this amount if you are billed for consumption for a period longer than six months, as specified by Public Services Law (article 10).
The recommended period for keeping food and lodging invoices is also specified, unless it includes invoices that you want to submit as IRS costs.
Records of invoices to be retained for a year
If you hire a painter, plumber, electrician, or other service provider to do some work around your house, for instance, you might need to file a complaint against that provider; you have a year to do this.
In this sense, you also have a year to retain these invoices, after which you will no longer be able to file a complaint over the service.
Invoices that must be retained for two years
Invoices for purchases of moveable property must be retained for a period of two years. So, save your invoices for this time when you purchase any furniture, appliances, mobile phones, toys, or similar items.
Typically, these devices come with a two-year minimum warranty. Consequently, you ought to hold onto the paperwork during that period. You now have to save documentation of any warranty extensions you own.
Another example would be auto repairs. They have a two-year expiry date. As a result, after bringing the car to the garage for two years, you should save the invoice for this service in a secure location so you may refer to it later on.
Regarding services rendered by independent specialists, the same holds true. The issues raised by what has been said affect not only mechanics but also physicians and solicitors. For a minimum of two years, always carry the proof of payment for the costs incurred working with these professionals.
Invoices that must be retained for three years
Medical records must be retained during this time. These invoices need to be kept on file for three years, as that's when public institutions must submit payment claims. You can demonstrate that you made the payments if you preserve the receipts.
Invoices that must be retained for four years
The costs you enter into the e-Fatura must be saved over a period of four years, as previously mentioned. Though keeping the leftover bills is not required, several professionals in this field suggest holding onto them for a longer period of time.
According to these experts, it makes sense for customers to retain a copy of every IRS invoice until it is paid.
Additionally, documentation of Single Circulation Tax (abbreviated IUC) payments must be kept on file for four years. If you can't confirm the payment was made at that time, the tax authorities could ask you to do so.
Invoices that must be retained for a full five years
A minimum of five years must pass before proof of rent or condominium payments is lost. If you are a property owner, you need to use contracting services for this.
Documents pertaining to service payments must be stored securely for the duration of this five-year term so that they can be consulted as needed.
Deadlines for invoice storage: for businesses
The suggested deadlines for businesses are a little bit longer. When it comes to VAT, business owners need to be aware that invoices related to the computation of VAT must be retained for ten years. Yes, for ten years. Regarding IRC, 12 years is the recommended duration.