The Azores (a Portuguese independent region) has increased its standard Value Added Tax (Imposto sobre o Valor Acrescentado) rate from 16% to 18%, with effect from 1 January 2014. Further, the reduced VAT rate of 9% (IVA intermedio) on water, fuel, entertainment etc will rise to 10%. The other reduced rate of 4% (IVA reduzido) applicable to foodstuffs and hotels was also increased to 5%.
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