Portugal restaurant VAT decision soon
- Sep 21, 2013 | Richard Asquith
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.