Portugal raises VAT rate on restaurants from 10% to 23% in 2012 |
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30 November 2011 As part of a wide range of austerity measures, the Portuguese parliament voted to raise the VAT rate on restaurant meals to 23% in 2012. Food and meals supplied by restaurants is currently liable to VAT at the reduced, 10% rate. It will now be recategorised under the standard VAT rate of 23%. This follows two increases in the standard VAT rate from 20% to 23% in Portugal in the past year. It mirrors a similar rise in restaurant VAT in The austerity moves are part of the measures to reduce the Portuguese budget levels to satisfy the conditions of the 2011 IMF, EU and ECB sovereign debt bail out. You can read more about Portuguese VAT compliance by clicking here. |
