Aldi starts implementing VAT exemption on Tuesday

Retail chain Aldi announced this Monday that it will introduce VAT exemption from Tuesday for 46 government-approved food products published last week in Diário da República.

“PVP [Preço de Venda ao Público] the final price without VAT will be visible through special price tags indicating — “VAT on goods 0%” — so that buyers can easily identify these goods on the shelves, as well as the final price to be paid, eliminating additional calculations and thus simplify your purchases,” Aldi said in a released statement.

Law no. 17/2023 of 14 April establishes and formalizes the entry into force on Tuesday of a VAT exemption for a basket of 46 foods that are considered basic and healthy.

“After payment, the customer can confirm the VAT applied to each product on the respective purchase receipt,” adds the German-origin chain, which says it intends to implement the measure in a “clear and transparent way.”

Stores will display informational posters and labels showing products with a zero VAT rate, as well as “general information in the weekly booklet” and in the “flyer”. [folheto] for mailing to mailboxes.

There will be a place in the digital channels with general information and a list of eligible products on the Aldi portal and mobile app, as well as on social media.

Aldi also tends to do it “down” when rounding values.

“For example, for the country ball product, which has an MSRP of €0.18 including VAT on April 17, the price without VAT results in a value of €0.1698, resulting in a final Aldi MSRP of €0.16 “, — specifies the source. statement.

Aldi Portugal executive chairman Wolfgang Graff, quoted in the statement, said stores will continue to adapt to “any measures that arise to facilitate consumer shopping” and allow “to provide a better service.”

Aldi also says the list of 46 products “influences more than 500 articles” across departments.

The list of food products that will be exempt from VAT under a tripartite agreement signed between the government and the food production and distribution sectors includes fresh, chilled and frozen vegetables, meat and fish, as well as rice and pasta. , cheese, and yogurt, as well as fruits such as apples, pears, oranges, bananas, and melons, among others.

The final text of the proposal, approved in the final global vote, included some changes to the proposal that the government sent to parliament, as the specific discussion approved proposals from BE and PAN, which added vegetable drinks to the list and one from PSD. y on dietary products intended for enteral nutrition.

PSD’s proposal to include fermented milk in the category of dairy products was also previously approved.

The VAT exemption agreement for this basket was signed following the signing of a pact to stabilize and reduce food prices between Prime Minister António Costa, CEO of the Portuguese Association of Distribution Companies (APED) Gonzalo Lobo Xavier, and President of the Confederation of Portuguese Farmers (CAP) Eduardo Oliveira and Souza in March

After the signing, the head of government indicated that APED had made a commitment that “15 days after the publication of the diploma in Diário da República” food retailers will adjust prices in line with the VAT reduction.