Portugal temporarily applies zero rate VAT to certain foodstuffs

In response to rising food prices due to inflation, Portugal have approved legislation which will temporarily reduce the VAT rate on certain food products which are deemed healthy to 0%.

With effect from 18th April 2023 until 31st October 2023, food products which are deemed healthy will be subject to 0% VAT and include the following:

• Cereals and derivatives tubers (i,e Bread, potatoes, pasta)
• Vegetables, (Fresh chilled dried dehydrated or frozen)
• Fruits
• Legumes in dry state (Kidney beans, black-eyed peas, chickpeas)
• Dairy products (Raw, sterilised, pasteurised, ultra-pasteurised, fermented or powdered cow’s milk, yogurt or fermented milk, cheeses)
• Meat and edible offal (fresh or frozen)
• Fresh fish (Chilled, frozen, dried, salted or in brine, with the exception of smoked or preserved fish)
• Canned tuna
• Chicken eggs (Fresh, dried or preserved)
• Fats and oils (Olive oil, butter)
• Vegetable based drinks and yoghurts, without milk and dairy products, based on dried fruits, cereals or preparations based on cereals, fruits, vegetables or horticultural products
• Dietetic products intended for enteral nutrition and gluten-free products for celiac patients