If the budget of 2012 is approved by the President, there will be a number of VAT changes in Portugal in 2012. This should be approved by the 31st of December 2011 (everything points in that direction) and so here are some facts that will interfere financially with your daily life starting on the 1st of January.

IVA (VAT) Rate Changes for Portugal

• Beverages and dairy desserts (chocolate milk stays on the reduced 6% rate);
• Soft drinks, juices and nectars and vegetable juices, syrups including juices, concentrated juice drinks and juice concentrates products;
• Fresh Potatoes peeled, whole or cut, pre-fried, chilled, frozen, dried or dehydrated, even in puree or prepared by cooking or frying;
• Plants, medicinal roots and tubers in their natural state;
• Shows, events and sports events and other public amusements.

• Canned meat and edible offal;
• Canned clams;
• Canned fruits, especially in sauces, brine or syrup and their jams, jellies and marmalades;
• Coffee Green or raw, roasted, shelled or powdered and substitutes and mixtures;
• Snacks based on vegetables and seeds;
• Appetizers and snacks based on extruded corn and wheat, based on corn and fried potato starch or in individual packages;
• Provision of food and beverages (restaurants);

• Water spring and mineral waters, although enhanced or added carbon dioxide.
• Changes from the intermediate rate (13%) to the minimum rate (6%):
• The cooking oils and margarines down animal and vegetable category

• Exemption period is a maximum of three years applicable to urban properties whose asset value tax does not exceed EUR 125 000.
• Exemption shall not apply to those with higher income of EUR 153 000.

• The location coefficient is extended to a range of 0.4 to 3.5 (was between 0.4 and 3);
• Increased rate of IMI in the buildings assessed under the IMI is to vary between 0.3% and 0.5% (was 0.2% and 0.4%);
• Increased rate of IMI in buildings that have not been evaluated in terms of IMI is to vary between 0.5% and 0.8% (it was between 0.4% and 0.7%.