Portugal Tax Agency Posts Amendments to VAT Code in 2025 State Budget

The Portuguese Tax and Customs Authority Jan. 2 issued Circular No. 25056, clarifying certain changes to the VAT Code and related legislation for 2025. The circular includes: 1) an explanation that bicycles, with or without an engine, aren’t considered tourist vehicles and are eligible for VAT deduction; 2) the introduction of a reduced tax rate for food products for infants and young children, including follow-on formulas, medical foods, and diet replacements, 3) an extension of reduced rates to tickets for certain cultural events, provided they aren’t already exempt; 4) VAT refunds granted to public interest entities for defense, security, or ...