Law n.º 17/2023, of April 14, 2013, came into force today, which provides for the transitional application of an exemption from Value Added Tax (VAT) with the right to deduct (zero rate) to food products in the food basket healthy essentials, as an exceptional and temporary measure in response to the extraordinary increase in food prices.

These are some of the food products whose importation and transmission is exempt from VAT:

Bread

• Potatoes in their natural state, fresh or chilled

• Pasta and similar dry pastes, excluding stuffed pasta

• Rice (hulled, blanched, polished, glazed, steamed, cracked)

Onion

Carrot

• Sprouts

• Spinach

Pork

Chicken

Peru

Cow

Oil

Butter

The Tax Authority also issues a Circular Letter with a view to clarifying the changes introduced, namely the scope of the exemption.

This will be temporarily in force until October 31, 2023.

For additional details, please contact us: gabinete.juridico@aip.pt.