Portugal lowers restaurant VAT to 13%

The Portuguese parliament has ratified a proposal to lower the VAT rate on restaurant services from 23% to 13%. The implementation date will be 1 April 2016.

Ireland has claimed its policy of lowering VAT from 13.5% to 9% in 2012 was very successful at boosting its key tourism sector - it is estimated that the measure created 33,000 jobs in the industry.  The OECD recommended that Ireland withdraw this subsidy now that the financial crisis was long ended.

Most countries in the European Union (except the UK) promote their tourism industries through lower EU VAT rates on hotel or hostel accommodation and restaurant meals.