Portugal introduce VAT changes from 1 January 2017

31 January 2017

The Portuguese parliament recently approved the 2017 Budget which included a number of VAT changes. These changes included:

• The introduction of a VAT deferment (via reverse charge) on import VAT for a range of goods from September 2017.
• From 1 January 2017 the VAT rate on some basic foodstuffs will be reduced to 13%.

A proposal to apply the reduced VAT rate on all beverages (alcoholic and non-alcoholic) supplied in restaurants and cafes.