New VAT Circular clarifies the application of different tax rates to food and beverage services

• New Circular Letter No. 25019 clarifies the previous Circular Letter No. 25018 regarding the application of VAT to menus with different taxed products.
• The Circular Letter states that services of food and beverages can include items subject to different tax rates.
• If alcoholic beverages or soft drinks are provided along with food and beverages, the intermediate rate will apply to the food and the normal rate will apply to the drinks.
• If a single price is established for the supply of food and beverages, regardless of how it is advertised, the normal rate will apply to the total price if different taxed items are included without separate indication.

Source: espanhaassociados.pt

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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