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Portugal lowers restaurant VAT to 13%

  • Mar 16, 2016 | Richard Asquith

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.

EU VAT rates on tourism services

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.

Country Hotels Restaurants Standard VAT Rate
Ireland 9% 9% 23%
UK 20% 20% 20%
France 10% 10% 20%
Germany 7% 19% 19%
Italy 10% 10% 22%
Spain 10% 10% 21%
Portugal 6% 13%


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.