Restaurant VAT to drop 10 percent on Friday
BY TPN/ LUSA,
The rate of value-added sales tax applicable in restaurants and cafés in Portugal is to be slashed on Friday - to 13% in mainland Portugal - after three and a half years at 23% as part of measures aimed at cutting the public sector deficit that were imposed despite protests by sector associations.
According to legislative changes that come into effect on 1 July, all food services are to be subject to the intermediate rate of VAT - which is 13% in mainland Portugal, 9% in the Azores and 12% in Madeira.
The new rate applies to all food sold in restaurants while for beverages the rate will vary. Alcoholic beverages, soft drinks, fruit juices and sparing water will remain subject to the top rate of VAT, while for still water, tea, coffee and mil the intermediate rate applies.
Takeaways and prepared food delivered to customer's homes is also to include the intermediate rate for food and the differing rules for drinks.
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