Portugal raises VAT 1% to 21%

Sat 15th May 2010

Portugal has announced a rise in its standard VAT rate from 20% to 21%.

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.

This is a reverse of a Portugal VAT 1% cut in the rate in July 2008.