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Safeguarding measures – can Portugal reduce VAT rate on food?

© Catarina Mantero

In a recent press release addressing “Safeguarding food security” measures in light of the current global context, the European Commission  indicated that EU Member States may move forward with reduced VAT rates on food.

Currently, Portugal provides reduced (6%) and intermediate (13%) rates to specific food products. Most reduced rates cover raw materials but leave out processed and composite products.

This is a distinct policy to other EU MS in which  human consumption food products (in general) benefit from reduced VAT rates.

This means that  in the upcoming months we can see further debate on the extension, in Portugal, of the food categories with reduced VAT rates.

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