Digital Invoice Archive: What You Actually Need to Know
Legal requirements, accepted formats, audit readiness, and how to migrate from paper — for EU businesses, with Portugal-specific detail.
What Is a Digital Invoice Archive?
A digital invoice archive is a legally valid electronic copy of every invoice your business has sent or received, stored in a way that satisfies tax authority requirements. 'Digitally stored' is not the same as 'legally valid' — the archive must meet specific rules about format, integrity, and accessibility.
Legal Retention Requirements
EU VAT Directive 2006/112/EC requires member states to allow electronic invoice storage. Individual countries set the retention period — in Portugal it's 10 years, in Germany 10 years, in France 10 years, in Spain 4 years (10 for some documents). The invoices must be readable by tax authorities on demand in their original form.
Accepted Formats and What 'Legally Valid' Means
PDF/A is the archival standard recommended by most tax authorities — it's PDF that embeds all fonts and does not rely on external resources, ensuring the document looks identical in 10 years. Standard PDF is generally accepted. Photos (JPEG, PNG) are accepted if they clearly show all required invoice fields. The key test: could a tax inspector read and verify the invoice from your stored copy?
Audit Readiness: What Inspectors Actually Look For
Tax audits on invoice archives check three things: completeness (every invoice is present, no gaps in sequence), integrity (the stored file matches what was originally received — no tampering), and accessibility (you can produce any invoice on request within a reasonable time). Faturiza stores files in your own Google Drive, giving you direct, auditor-accessible storage.
How to Migrate from Paper to Digital
Start by scanning any paper invoices you still have — your phone camera works fine. Store them in a dedicated Google Drive folder organised by year and supplier. Going forward, route all incoming invoices through a single email address and have Faturiza process and file them automatically. The archive builds itself.
Go Deeper
Guides on archiving, compliance, and invoice management
- Digital Invoice Archiving: What You Actually Need to Know
- Invoice Retention: The 10-Year Rule Explained
- How to Digitize Invoices for Your SME
- Managing Invoices in Google Drive
- Invoice Storage: Google Drive vs Closed SaaS
- Invoice Archive for E-commerce & Marketplace Sellers
- Reverse Charge VAT on EU Supplier Invoices
- Invoice Management for Alojamento Local
Frequently Asked Questions
How long do I need to keep invoices in Portugal?
10 years from the end of the tax year in which the invoice was issued. This applies to both invoices you sent and invoices you received.
Can I destroy paper invoices after scanning them?
In Portugal, the AT accepts digital archives as legally valid, meaning you can destroy paper originals after creating a certified digital copy. Your accountant can advise on the certification process for your specific situation.
Does my digital archive need to be in a specific format?
No single format is mandated in Portugal, but PDF, PDF/A, and JPEG are widely accepted. The invoice must be legible and the data must be unaltered. Faturiza stores the original file exactly as received.
Can I store invoices in Google Drive?
Yes. Google Drive is accepted as a storage medium for digital invoice archives. Faturiza automatically organises invoices into your Drive by supplier and date, making audits straightforward.
What happens if I can't produce an invoice during an audit?
Missing invoices during a Portuguese AT audit can result in fines and disallowed VAT deductions. Each missing invoice can result in a penalty of €150–€3,750 depending on severity.
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