Portugal’s state budget law for 2024 implemented changes to VAT rates for food and beverage services, but there have been not-so-clear rules for certain types of goods and services and their taxation in terms of VAT. That’s why Circular Letter No. 25019 was published to clarify the application of the intermediate VAT rate.
Clarifications on VAT rates for food and beverage services in Portugal
Public
Portugal
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
4903
Content accuracy validation date:
08.03.2024
Content accuracy validation time:
09:00h
More precisely:
- Food and beverage services detailed in a commercial invoice (e.g., a main course, dessert, juice, coffee) that do not include a supply of alcoholic beverages or soft drinks are subject to the intermediate VAT rate (currently, 13% in mainland Portugal, 12% in Madeira, and 9% in the Azores).
- If food and beverage services are detailed in a commercial invoice (e.g., a main course, dessert, juice, coffee) that includes a supply of alcoholic beverages or soft drinks, the intermediate VAT rate will be applicable to the supply of food and beverages other than alcoholic beverages and soft drinks, and the standard VAT rate (currently, 23% in mainland Portugal, 22% in Madeira, and 16% in the Azores) will be applicable to the supply of alcoholic beverages and soft drinks.
- If the services or goods supplied are not duly specified in a commercial invoice and are covered only by a reference to the “menu” (i.e., where food and beverages are consumed, but without the detail of the tax rate for each item), the standard VAT rate is applicable.
Importantly, commercial invoices must separate items subject to different tax rates and include specific details for each item. In other words, the circular letter clarifies that if a commercial invoice includes services subject to different tax rates, the following elements must be indicated separately, according to the applicable rate:
- Quantity and usual denomination of the goods transferred or services provided;
- Net price of the services or goods provided, the applicable tax rates, and the amount of tax due; and
- Price of the services or goods provided, including tax at the applicable rates.
Other news from Portugal
New webinar was uploaded: Recorded webinar: EV Chargin in Europe - Green Growth Meets Fiscal Reality
Author: Gordana Lakić
On June 19th, 2025, Fiscal Solutions organized a free webinar on the topic of "EV Charging in Europe—Green Growth Meets Fiscal Reality." The webinar was held by Fiscal Solutions Sales Manager Gordana Lakić. Let’s find out more on this! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: S4F backoffice patch
Author: Dejan Šijačić
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New webinar was uploaded: Recorded webinar: Fiscalization and online sales in European countries
Author: Nikolina Basić
On May 15th, 2025, Fiscal Solutions organized a free webinar on the topic of "Fiscalization and online sales in European countries". The webinar was held by Fiscal Solutions Legal Consultant Nikolina Basić. Let’s delve deeper into this topic! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Portugal: VAT Updates
Portugal
Author: Ema Stamenković
Between March and May 2025, Portugal’s Tax and Customs Authority released new VAT rules and clarifications, with key changes taking effect from July 1, 2025. These include simplified VAT filing procedures, a €650,000 turnover threshold for monthly returns in 2026, and the adoption of the EU SME Scheme for cross-border businesses. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Q& A from the webinar: Fiscalization and online sales in European countries
Author: Nikolina Basić
On May 15th, 2025, Fiscal Solutions organized a free webinar on the topic of "Fiscalization and online sales in European countries". The webinar was held by Fiscal Solutions Legal Consultant Nikolina Basić. Let’s find out more about answers to questions asked during the webinar. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Recorded webinar: Fiscalization and online sales in European countries
Author: Nikolina Basić
On May 15th, 2025, Fiscal Solutions organized a free webinar on the topic of "Fiscalization and online sales in European countries". The webinar was held by Fiscal Solutions Legal Consultant Nikolina Basić. Let’s delve deeper into this topic! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
End of intra-model European electronic invoice and new rules introduced
Public
Author: Nikolina Basić
Starting July 1, 2030, the EU will eliminate the Intra models for VAT reporting, replacing them with mandatory electronic invoicing under Directive 516/2025. The new system, part of the VIDA 2030 Package, will require businesses to issue standardized e-invoices for all intra-EU B2B transactions, with data transmitted to VIES for cross-border VAT monitoring and fraud prevention. This shift aims to... Read more