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Portugal VAT takings on retaurants indicate no cut to reduced rate

  • VAT
  • 01 December 2013 | Richard Asquith

Portugal VAT takings on retaurants indicate no cut to reduced rate

The latest positive estimates of Portuguese VAT restaurant receipts points indicates no need for a cut from the standard 23% rate to the reduced 13% rate.

Portugal restaurant VAT dispute

Along with a number of the 'peripheral' EU countries, Portugal raised its VAT rate on restaurant services from 10% to 23% in 2012.  Portugal has increased its standard VAT rate from 21% to 23% in 2010 at the height of its financial crisis.  Both of these changes were done in agreement with the bail out 'Troika', which includes the European Central Bank, the European Union and the International Monetary Fund.

Since this rise, there has been much debate about the damage the rise has done to the restaurant trade.  The opposition party points to a cut in the Greek restaurant VAT rate in August 2013.  In addition, Ireland has secured an extension to its reduce restaurant and tourism 9% VAT rate in October 2013.

Latest VAT receipts cast doubt of need for VAT cut

Last week, new figures from the government indicated that there was a healthy intake of €180 million from the increase.  This compares to the opposition party claims of a loss of €850 million.


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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.