Portugal reduces VAT rates on certain goods and services in 2023
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.
Have a look at our overview of VAT rates in Portugal.