Portugal Extends 0% VAT Rate for Essential Foods

Following a Cabinet meeting held on 7 September 2023, Portuguese Prime Minister Antonio Costa announced an extension of the application of the temporary 0% VAT rate (zero-rate) on a basket of essential food products to help mitigate the extraordinary increase in food prices. The 0% rate applies to the import and supply of several types of foods including, among others, bread, potatoes, pasta, rice, various fruits and vegetables, various dry legumes, milk, yogurt, cheeses, meat, and edible off…