Six questions and answers not to get lost (and confused) with the new VAT – Express

1. Prices in restaurants will descend from Friday

Not necessarily – depends on the pricing policy followed by each establishment. That is, the prices only go down if the restaurants reflect a decidas rates in the prices charged to customers. It is recalled that in 2012, when rising to 23%, there were cafes and restaurants that have kept prices. So they can now also keep them. On the other hand, sales outlets rose prices this time can also claim that now the descent gives them leeway to hire workers instead of descending prices. The truth is that the new VAT rate of 13% is reflected in the products to which it applies, they will get cheaper. In this group the pastries, natural smooth water, cafeteria products (coffee, carioca, tea, cocoa and drinkable chocolate), milk and drinking yoghurts.

2. The lowering of VAT also applies to soft drinks and alcoholic beverages?

No. Alcoholic beverages, soft drinks, juices, nectars and carbonated or added carbon dioxide waters continue to be subject to the maximum VAT rate: 23% in Portugal, 22% in Madeira and 18% in the Azores. Only a portion of the beverage service (such as cafeteria and natural water drinks) shall be subject to the intermediate rate. When you set a single global price for a service with products subject to different rates, such as meal menus with drink, there are two options: apply the fees (intermediate and normal) to each of the articles that compose it in proportion of the products on the menu, as if they were sold individually. Or apply the maximum rate of 23% on the menu value.

3. What happens in events and buffets services?

How is a service where the game there is no consumption limit, and budgeting and billing are performed by requiring a fixed amount per person makes If impossible to apply differentiated VAT rates. If the budget and the price are given without differentiation between food and drink, should be applied to higher VAT rate. If they are different, the rate of 13% for food and a few drinks and the maximum is applied to the other drinks not covered by the intermediate rate.

4. How will it be with the take-away, home delivery and accommodation with meals?

The meals where the products are consumed off the premises (take-away and home delivery) are now also subject to intermediate rate of 13%. The terraces are considered establishments. In the case of accommodation in hotel units with meals included applies the reduced rate of 6% when the breakfast is included or assumptions applied in events and buffets if consumption independent breakfast housing. In the case of half board, 75% of the price is taxed at 6% and the remaining 25% take the intermediate rate. If the service is full board, half price leads to the reduced rate and the other half with the intermediate rate.

5. There are differences between the rates applied to the provision of food services and the sale of goods?

There and are complex. The example of glass of milk and cream pastel allows better understand these differences. Who is a pastry to eat a custard tart accompanied by a glass of milk will pay a VAT rate for the provision of food and beverage services, ie, 13% in Portugal. If aviar these products over the counter to eat out pastry, which creates a condition of sale of goods, pay VAT at the reduced rate – 6% – for the bottle of milk. But the pastel de nata will be much more expensive because its VAT rate is 23%, applied to the sale of the property.

6. How does the customer can confirm that the VAT rates are well implemented?

The surveillance system will not be easy. With so many variations consecrated in the law will be almost impossible to be no doubt or avoid questions about the relevant VAT rates applicable to the provision of the service or the sale of goods. Potential problems related to the complexity of the rates applicable to various situations were admitted from the moment it announced its intention to change the VAT rates in the restoration. And this question is so relevant that several agencies admitted that the Government would be able to apply rates equal to the entire restoration, standardizing the tribução to avoid complications. However, the changes take effect with significant differences.