The reduction of standard VAT rate in the Region of Azores (Portugal)

The standard (current) VAT rate which was 18% has been reduced to 16%, after the proposal from the Government of the Azores and later on a proposal by the regional assembly. The starting date of this reduction is 1st July 2021.

The regional government has defined these measures as a necessity to help the citizens during the difficulties caused by the Covid-19 pandemic effects.

With this implementation, the standard VAT rate will be 30% lower than the standard VAT rate on the national level which is 23 %.

This modification and the differences between the rates on the national and regional level are supported by the finance law.

From the 1st of July 2021, VAT in the Region of Azores will be 4% as the reduced one, 9% as the intermediate one, and 16% as the standard VAT rate.