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Portugal restaurant VAT decision soon

  • Sep 20, 2013 | Richard Asquith

Portugal restaurant VAT decision soon

The Portuguese VAT rate for restaurants and catering services may be reduced in the forthcoming 2014 Budget.

The VAT rate was increased several years ago from the reduced rate of 13% in 2010.  It has estimated benefit for the increase is around €200m per annum, and the corresponding loss in corporate income tax from restaurants is €7m plus the rise in unemployment contributions is €21m.  So, in economic terms, the VAT rise was a success.

Greece drops restaurant VAT rate forcing Portugal rethink

Campaigning has grown for a restoration of the reduced Portuguese VAT rate has grown since Greece dropped the VAT rate on restaurants at the start of August 2013.

The average European VAT rate is over 21%, although most countries operate reduced VAT rates for tourism, hotels and restaurants.

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.