Restaurant VAT back down to 13 percent, drinks unchanged

Last Friday, VAT on restaurants dropped back down to 13 percent after having been at 23 percent for some years under great protest by sector associations.

in Business · 07 Jul 2016, 14:48 · 1 Comments

According to the alterations that came into force on 1 July, all food service is to be subject to the intermediate VAT bracket (13 percent on the mainland, nine percent in the Azores and 12 percent on Madeira).
Most drinks, except water tea and coffee, will still be charged at the maximum rate (23 percent on the mainland, 18 percent in the Azores and 22 percent on Madeira).
The cut in VAT is not immediately expected to have any effect on prices at bars, cafés and restaurants, with the national hotel and restaurant association saying that their members did not push prices up when taxes were raised and therefore should not be expected to reduce them even though VAT has been lowered.

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Comments

Holiday home Vilamoura
I agree
All though it took Vilamoura a long time to relise there was a recession.
In the last 4/5 years restaurant and bars pricing has been very competitive.
Hopefully some this vat saving will go into the workers pockets.
Probably not.

By Tom Bailey from UK on 08 Jul 2016, 08:14