VATLive > Blog > Portugal > Portugal launches VAT scheme

Portugal launches VAT discount scheme

  • May 25, 2021

Portugal is planning to use VAT discounts to help boost its struggling tourism sector. The Finance Ministry at the end of last week declared that it will pilot VAT vouchers as a way to encourage a boost to retail spend.

The ‘IVAucher’ will be provided on bills paid at museums, restaurants, cafes and hotels. These can then be redeemed against other spend to claim a discount. VAT constitutes 6% of the bill at hotels and cultural venues and 13% at restaurants, rising to 23% on sales of alcohol, juices and fizzy drinks.

The scheme will only be available to Portuguese shoppers who can provide a valid personal identification number for tax purposes. A credit is then provided to them.

The UK used a similar incentive during the height of the first lockdown. The ‘Eat Out to Help Out’ gave price subsidies to restaurants. And Ireland’s Stay and Spend scheme gave a €1 refund for every €5 spent in restaurants or cafés. 

Need help with your Portuguese VAT compliance?

Researching Portuguese VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

Latest Portuguese news

VATlive newsletter

Sign up for our free newsletter for a summary of the latest tax news.