Portugal reduces VAT rates on certain goods and services in 2023

Portugal reduces VAT rates on certain goods and services in 2023. The scope of the 6% reduced rate is extended to include a new set of products and services.

Some of these categories are subject to 6% reduced VAT rate in Portugal are:

• Canned fish and mollusks when the content of fish is at least 50%.
• Vegetal butter, drinks, and yogurts. These can be produced based on dry fruits, cereals, fruits, vegetables, etc.
• Sale or repair service of bicycles. However, when it concerns the sale of spare parts of the bicycle, these will be subject to the standard VAT rate (23%).
• Access to direct broadcasting of concerts, theatres, amusement parks, museums, cinemas and similar events.
• Sale and installation of specific heaters and boilers that work with biomass.
• Pellets and briquets made from biomass.

Separately, the registration threshold for established companies will progressively increase from 2023 to 2025 until reaching the EUR 15,000 threshold:

• 2023: EUR 13,500
• 2024: EUR 24,500
• 2025: EUR 15,000

The official notice can be found here.