The list of products inserted in the food basket with Zero VAT has already been published. This exemption will be in force on 18 April and will last until 31 October 2023.
The VAT exemption will concern raw productsi.e. on the value at time of acquisition of the same and before they are incorporated within the scope of a service provision restaurants and beverages.
The Law 17/2023 of 14 April, establishes the transitional application of a Value Added Tax (VAT) exemption for certain food products considered essential and healthy, as an exceptional and temporary measure in response to the extraordinary increase in food prices.
Example of the application of ZERO VAT
If an establishment sells goods included in the Zero-VAT food basket directly to the public as part of the retail trade, it will have to apply the Zero-VAT rate to these products for as long as this measure is in force.
Example 1: sale of bread in bakeries - subject to Zero VAT.
Example 2: sale of a couvert, in a restaurant, which includes bread - it is a service, it is subject to VAT.
List of products covered by ZERO VAT
Cereals and derivatives, tubers
- Bread (meet the types of bread which apply in the Article 3 of Ordinance No. 52/2015of 26 February)
- Potatoes, natural, fresh or chilled
- Pasta and similar dry pasta, excluding filled pasta
- Rice (husked, milled, polished, glazed, parboiled, broken)
Fresh or chilled, dried, dehydrated or frozen vegetables, whether or not pre-cooked
- Portuguese cabbage
Fruit in its natural state
Pulses in dry state
- Red Kidney Beans
- Kidney beans
- unprocessed, sterilised, pasteurised, ultra-pasteurised, fermented or powdered cow's milk
- Yoghurts or fermented milks
Meat and edible meat offal, fresh or frozen, of:
Fresh (live or dead), chilled, frozen, dried, salted or in brine, excluding smoked or preserved fish
- Horse mackerel
Fats and oils
- Olive oil
- Directly edible vegetable oils and their blends (edible oils)
- Canned tuna
- Hens' eggs, fresh, dried or preserved
- Vegetable-based beverages and yoghurts, not containing milk or milk products, and produced from nuts, cereals or preparations of cereals, fruit, vegetables or cereal products
- Dietary products for enteral nutrition and gluten-free products for coeliac patients.