Portugal’s Azores raises VAT to 18%
The Portuguese independent region of the Azores islands has raised its standard Portuguese Value Added Tax (Imposto sobre o Valor Acrescentado) rate from 16% to 18%. The rise was passed into law on 1 January 2014.
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) on basic foodstuffs and hotels also increased to 5%.
Azores follows Portuguese VAT increases
Portugal has been forced into two VAT rises since the start of the global financial crisis. The first 1% Portuguese VAT rise to 20% came in July 2010. A second, 2% Portugal VAT rise to 22% followed at the start of 2011. The average EU VAT rate is now over 20%.