VAT Directive Expands Exemptions for Food, Beverages, and Medicines
Uma nova diretiva europeia aprovada em 2022 que tem de ser transposta para o regime jurídico português até ao final deste ano, vai alargar as isenções do IVA a sete categorias de produtos, designadamente medicamentos, alimentação e bebidas, exceto as que contenham álcool. Mantém-se, no entanto, o limite máximo de 24 grupos de bens ou serviços com taxas reduzidas ou zero.
The key innovation of this directive is that it allows Member States to apply a third reduced rate below 5%, which was previously not permitted, in addition to two rates above this threshold, which in Portugal are currently 13% and 6%. The European Union introduced this change in 2022, and countries were able to implement it immediately, even before transposing it into national law, to respond to the pandemic and inflation crisis.
The new directive thus extends the possibility of exemption to seven categories of products:
- · Food products (including beverages, except alcoholic ones) intended for human and animal consumption;
- · Water supply;
- · Pharmaceutical products used for medical and veterinary purposes, including contraceptives, feminine hygiene products, and absorbent hygiene products;
- · Medical equipment, devices, aids, protective equipment, and articles typically used in healthcare or for people with disabilities, including sanitary face masks;
- · Passenger and goods transportation, such as luggage, bicycles (including electric bicycles), motor vehicles, or other transportation-related services;
- · Supply, including library loans, of books, newspapers, and periodicals, in physical or electronic format, excluding those primarily intended for advertising or consisting predominantly of video or music content;
- · Delivery and installation of solar panels in private residences, homes, public buildings, and buildings of public interest.
Toll Collection: Reduction of Fines Not Yet Enforced by the Tax Authority
The new law on fines and fees for late toll payments was published in July of last year (Law 27/2023), establishing fairer regulations on this matter. The law indicated that the new rules would take effect from July 1, 2024. However, according to various media outlets, the Tax Authority has not complied with the law, continuing to apply fines and fees under the old rules.
Pay First and Request a Refund Later
Although almost four months have passed since the mentioned date, the solution the Tax Authority is reportedly offering taxpayers is to pay the fine and fees according to the old rules and then file a claim to receive a refund in line with the law.
What Are the Minimum and Maximum Values Under the New Rules?
Regarding values, the new rules stipulate that the minimum fine for unpaid tolls is €25. However, this minimum amount increases fivefold if the toll exceeds this amount. The maximum fine is double the minimum fine, in accordance with RGIT limits. Thus, contrary to reports in several media outlets, even under the new rules, the maximum fine is not €50 (it could be higher), as it will depend on whether five times the unpaid toll amount exceeds €25.
