The standard VAT rate in the Azores has been reduced from 18% to 16%. This regulation will come into force from July 1, 2021.
The coalition responsible has stated that the VAT rate should be 30% lower than the normal national rate of 23%, the maximum level allowed by law. This serves the implementation of various directives established by the Government of the Azores.
Thus, as of July, VAT rates of 4%, 9% and 16% will apply in the Azores, i.e. the reduced, medium and normal tax rates. This change is expected to have another significant impact on the economy, businesses and families, especially in the context of the pandemic.