The introduction of the Value Added Tax, commonly known as VAT, was an essential condition for integration into the common market, implying the replacement of the existing transaction tax with a general consumption tax harmonised according to the European model. Directive 77/388/EEC (Sixth VAT Directive) was transposed into Portuguese law through Decree-Law...
VAT, what are you good for?
Thursday, 12 March 2026RSS
Context & Explainers
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
