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:
192
Content accuracy validation date:
08.03.2024
Content accuracy validation time:
09:00h
Content
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 document was uploaded: Digital Product Passport
Author: Kristina Dosen
Do you even know what DPP is? Digital Product Passports (DPP) are set to play a crucial role in the European Union’s commitment to a circular economy. The purpose of this document is to provide you with a necessary overview of the upcoming Digital Product Passport requirements set to be implemented by the European Union. Read more
New document was uploaded: S4F backoffice patch
Author: Kristina Dosen
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). For each patch it is specified for which countries it is released for and with this information and with information from release notes user should prioritize the installation of the patch if S4F Backoffice is used in specified countries. Even though the patch may be prioritized for specified countries please make sure to install all patches sequentially, including the previous ones (if any) even if they are not related to used countries. This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
New document was uploaded: S4F backoffice installer
Author: Kristina Dosen
S4F backoffice installer is intended for users who are installing the software for the first time. Please make sure to obtain latest version of installer and to apply all subsequent patches that are released subsequently. This package contains instruction, release notes, changelog and software packages required for deployment of this software component. This version of the Backoffice installer supports the following countries: Austria, Bulgaria, Croatia, France, Italy, Poland, Portugal, Romania, Slovakia and Slovenia. Read more
New document was uploaded: S4F backoffice patch
Author: Kristina Dosen
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). For each patch it is specified for which countries it is released for and with this information and with information from release notes user should prioritize the installation of the patch if S4F Backoffice is used in specified countries. Even though the patch may be prioritized for specified countries please make sure to install all patches sequentially, including the previous ones (if any) even if they are not related to used countries. This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Please note that this patch contains changes for following country: Croatia. Read more
Fiscalization in Portugal: is there an obligation to communicate information relating to pro forma invoices?
Portugal
Author: Kristina Dosen
Proforma invoices are verification documents and must be communicated to the AT-Tax authority. But, is there an obligation to communicate information relating to pro forma invoices? Read more
New document was uploaded: S4F backoffice patch
Author: Kristina Dosen
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). For each patch it is specified for which countries it is released for and with this information and with information from release notes user should prioritize the installation of the patch if S4F Backoffice is used in specified countries. Even though the patch may be prioritized for specified countries please make sure to install all patches sequentially, including the previous ones (if any) even if they are not related to used countries. This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Please note that this patch contains changes for following country: France Read more
New education was created: Educational videos for Portugal
Portugal
Author: Kristina Dosen
This series of instructional videos provides an insight into the Portuguese fiscalization system. The system is based on special software requirements with various methods of sending data to the tax authority. Both the legal and technical aspects of the Portuguese fiscalization system are presented and divided into appropriate topics. Read more