Portugal has announced a rise in its standard VAT rate from 21% to 23% from 1 January 2011. The follows the worsening Euro financial crisis, and threat to a number of countries’ deficits. Other countries, including Ireland, Romania, Italy, Spain and Greece have also been forced into VAT raises.
The reduced rates will remain at 6% and 13%.
This increase is part of a range of measure introduced to underpin collapsing government revenues following the recent European economic crisis, and financial markets concerns around Portugal’s ability to meet its debt repayments.
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