Portugal moves juices, nectars and sparkling waters served in catering to the 13% intermediate VAT rate from 2024

What changed in detail

Article 245 of Lei n.º 82/2023, de 29 de dezembro, Portugal’s State Budget law for 2024, gives item 3.1 of List II annexed to the Código do IVA a new wording. List II sets out the supplies taxed at the intermediate rate (13% on the mainland).

From 1 January 2024, item 3.1 reads: “Prestações de serviços de alimentação e bebidas, com exclusão das bebidas alcoólicas e refrigerantes” (food and beverage services, excluding alcoholic beverages and soft drinks).

Under the new wording, the only drinks excluded from the intermediate rate when served as part of a catering service are alcoholic drinks and soft drinks. Juices, nectars and sparkling or carbonated waters served in catering therefore move from the standard rate to the intermediate rate. Alcoholic drinks and soft drinks served in catering stay at the standard rate.

The change concerns catering services only. Drinks sold as goods are not affected by Article 245.

What it means

The rule is still in force in November 2026. The current consolidated List II still carries the 2024 wording of item 3.1, and no later budget has changed it.

For a restaurant or café, the practical question is how each drink line is classified at the till. A fresh juice or a sparkling water served with a meal takes 13% on the mainland. A cola or a beer served in the same meal still takes 23%. Point-of-sale tax codes set up before 2024 may still apply the standard rate to juices and waters.

The Azores and Madeira apply their own regional rates to List II items.