As part of the Budget 2024, the Portuguese government is proposing to introduce the following VAT measures:

- The VAT exemption for essential food items will not be extended
- The VAT exemption for compost, fertilisers and soil improvers, flour, cereals, seeds and any other products suitable for feeding livestock, poultry and other animals, is extended until the 31st December 2024
- VAT exemption on tickets for people accompanying others with a degree of permanent disability of at least 60% duly proven with medical certificate and on whom they depend for the visit and attendance to certain cultural services
- Application of the reduced VAT rate of 13% to juices, nectar, aerated water or water containing carbon dioxide or other substances, when supplied as part of a supply of food and beverage services.
- Travel agencies would be able to benefit from a simplified VAT refund regime for certain types of expenses incurred in the organisation of conventions, fairs, exhibitions, conferences and similar events.

If you have any questions on the impact of the above changes on your business, please contact us here.