It has been announced by the Portuguese government that the current zero VAT rating of essential food products is to be extended, originally due to end in October, now to run to the end of December 2023. Originally coming into force in April 2023, the list of included products includes foods such as fruit, vegetables, fish and meat as well as other healthy essential foods.
In addition to this, the reduced VAT rate of 6% has also had the scope extended to include a wider range of products including:
- Canned fish, where the contents is at least 50% fish
- Vegetal butter, drinks and yogurts
- Direct broadcasting of concerts, cinemas, museums, theatres and similar events
- Sale or repair service of bicycles – not including the sale of spare parts for bicycles
- Sale and installation of specific heaters and boilers that work with biomass
- Pellets made from biomass
The products already included in this reduced rate bracket, including water supplies, certain pharmaceutical products and medical equipment remain the same.
