Portugal has published Law No. 17/2023 of 14 April 2023 in the Official Gazette, which provides for the application of a temporary 0% VAT rate (zero-rate) on a basket of essential food products to help mitigate the extraordinary increase in food prices. The 0% rate applies to the import and supply of several types of foods including, among others, bread, potatoes, pasta, rice, various fruits and vegetables, various dry legumes, milk, yogurt, cheeses, meat and edible offal including pork, chicken, and beef, various fish, chicken eggs, and olive oil, vegetable oils, and butter. As previously reported, the 0% VAT rate was to apply for 6 months from April to October 2023, but given the timing of the approval and publication of the law, the 0% VAT rate applies from 18 April 2023 until 31 October 2023.
Source Orbitax
