There is no need for a cut from the standard 23% rate to the reduced 13% rate. This is indicated by the latest positive estimates of Portuguese VAT restaurant receipts points.

VAT rate on restaurant services in Portugal raised from 10% to 23% in 2012. Portuguese standard VAT rate also increased.

The increased VAT rate has damaged restaurant trade. Other European countries including Greece and Ireland have applied the reduced VAT rate to restaurant services and they have suggested Portugal to reduce the VAT rate.

The last week VAT intake of €180 million from the increase in the VAT rate on restaurant services indicates that there is no need to reduce the rate.