Inflation: Zero VAT impact is nil in restaurants and the like

The Portuguese Association of Hotels, Restaurants and Similar (AHRESP) said this Friday that the impact of zero VAT, a measure to mitigate inflation, which came into effect on Tuesday, “is zero” for the sector.

“For the catering and related sectors, the impact of this VAT reduction is nil, since it is a final consumption tax, with no impact on economic activities,” the association said in a statement, referring to the fact that this is also the understanding of the Order of Certified Accountants (OCC).

In a statement, the association highlights that “as mentioned in the legal diploma, the zero rate of VAT only applies to the food products that appear there, and exclusively for the operations of import or alienation of the respective goods”.

In other words, continues the AHRESP, “in normal catering and similar activities, such as the supply of prepared dishes and the provision of food and beverage services, the diploma does not apply.”

However, according to the statement, AHRESP and OCC “warn that, in the specific case of the sale of unprocessed food for consumption outside the establishment (carryhome delivery or self-service), other than prepared meals, restaurants and the like must apply a VAT rate of 0% themselves”, in some situations.

This is the case of situations in which “they have already acquired that product with a zero VAT rate and they are going to sell it without any transformation (not being prepared dishes), and only and only in the case of sale for consumption outside the country”. the establishment”.

The same occurs with situations in which “they produce a good included in the zero VAT list (such as bread, without adding any other ingredient), and only and only in the case of sale for consumption outside the establishment”.

“In cases where companies still have products in stock that they bought from their supplier subject to VAT, these products are sold to the final consumer without VAT”, indicates the AHRESP.

The term to apply zero VAT is not 15 days. The measure already applies to all supermarkets.