VAT updates in Portugal

More precisely, Portuguese Prime Minister Antonio Costa announced an extension of the application of the temporary 0% VAT rate (zero-rate) on a basket of essential food products to help mitigate the extraordinary increase in food prices. The Portuguese government approved as a temporary measure the zero VAT rate (with the right to deduct) on a list of essential food products. The zero VAT rate will apply both for imports and domestic supplies made in Portugal from April 18 to October 31, 2023 (now extended until December 31). The list of products included in the temporary 0% VAT rate corresponds to healthy essential foodstuffs, such as vegetables, fruits, oils, fish, and meat.