After all, the menu with soft and alcoholic drinks will not become more expensive, and the tax authorities will not apply a single VAT rate of 23%.

Revenue and Customs has already changed its interpretation that menus including soft and alcoholic drinks will now be taxed at a rate of 23%, regardless of the products included in them.

This understanding was changed this Wednesday thanks to a new letter published by AT, as already announced by the Association of Hotels, Restaurants and Similar Establishments of Portugal (AHRESP).

“Quantity 3.1 of Schedule II attached to the VAT Code allows food and beverage establishments to include services subject to different tax rates,” argues AT, arguing that thus “when together with food and beverage services are covered by the budget (e.g. meal, dessert, juice, coffee, etc.), if services for the sale of alcoholic or non-alcoholic beverages are provided, the intermediate rate will be applied to the former, and the regular rate to the latter.”

“In the information provided by AHRESP, the State Secretariat for Financial Affairs clarified that the interpretation of the AT does not correspond to the principle that led to the change in drinks subject to the maximum rate of VAT, and for this reason a new Official Letter will be published by B. In other words, the possibility of a distribution of rates remains VAT on menu sales with a single global price,” AHRESP said.

In practice, only soft and alcoholic drinks will be subject to VAT at a rate of 23%. Other products included in the menu will be taxed at a rate of 13%.

The Tax Authority (AT) on Tuesday determined that a VAT rate of 23% will apply to the cost of a restaurant menu containing soft drinks or alcoholic drinks, regardless of whether the products have different rates.

This is a document (distributed letter) issued by Revenue and Customs on the VAT rate for the Global Single Price Menu (Food and Drinks) following the entry into force of changes to the tax rate on certain drinks. .in accordance with the State Budget 2024 (OE2024).

OE2024 added some drinks to the list of products subject to the intermediate VAT rate, while keeping soft or alcoholic drinks within the maximum rate of 23%.

Following these changes, AT issued a circulated letter stating that in the case of a single global price menu including soft or alcoholic drinks, the maximum global price tax rate will apply unless there is price discrimination (drinks and food). ).

“A single price is indicated without this distribution [dos valores que correspondem aos serviços abrangidos pelas taxas intermédia e máxima do IVA] including items taxed at different rates, the normal rate will be applied to this value [23%] tax” is indicated in the above-mentioned document.

When the costs corresponding to the services covered by the intermediate tariff (e.g. meal, dessert, juice, coffee, etc.) and alcoholic or non-alcoholic beverage services are listed separately, the intermediate tariff will apply to the first and up to seconds at the normal rate.” indicates AT.