The tax authority (TA) has determined the application of a VAT rate of 23% to the cost of restaurant menus, provided that in addition to food products (taxed at a rate of 6%), they include soft drinks or wine, products subject to the maximum tax in these establishments. bid. “This makes life difficult for restaurants, especially all those that belong to the so-called “fast food” category, which work mainly with a menu,” explained Afonso Arnaldo BusinessDeloitte indirect tax specialist. However, this Wednesday the tax authorities reversed their decision and the flat VAT rate of 23% will no longer apply to soft and alcoholic drink menus.
The information was published on Tuesday by the portal Business magazine and arises due to changes made to the VAT Code in the State Budget for 2024.
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%.