Portugal - new reduced VAT rates 2025
Portugal – new reduced VAT rates 2025
The State Budget for 2025 extends the reduced VAT rate (6% mainland Portugal and 4% Azores and Madeira autonomous regions) to the following new categories of goods and services:
Goods for rescue and salvage operations
Utensils and other equipment exclusively or principally intended for rescue and salvage operations will now be taxed at a reduced rate when acquired by the Regional Civil Protection Service, IP-RAM, by the Regional Civil Protection and Fire Service of the Azores, by municipalities and inter-municipal entities.
Bullfights
Tickets for bullfights will now be taxed at 6 per cent.
Baby food
The rate applied to food products for infants and young children, including follow-on formulas, as well as foods for specific medical purposes and whole diet substitutes for weight control, under Regulation (EU) No 609/2013 of the European Parliament and of the Council of 12 June 2013, will be reduced from 23% to 6%.
VAT exemption for fertilisers, soil improvers and animal feed
During 2025, transfers of (a) manure, fertilisers and soil improvers and (b) flour, cereals and seeds, including mixtures, residues and waste from the food industry, and any other products suitable for feeding livestock, poultry and other animals listed in the Codex Alimentarius, regardless of their breed and functionality in life, including farmed fish intended for human consumption, will be exempt from VAT.
At Belim, we are available to help you check the requirements for applying reduced rates and VAT exemptions in Portugal.
 | How can we help? | We are a Portuguese law firm made up of tax lawyers and tax consultants. Our focus is tax and customs law. |
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