Tax Authority clarifies VAT rate applicable to gluten-free foods.

Item 1.12 of List I annexed to the VAT Code, which provides for the application of the reduced VAT rate of 6% to dietary products intended for enteral nutrition and gluten-free products for celiac patients, is not, in any case, applicable to foods that in their natural state, composition or original formulation are gluten-free, and contamination (including technically unavoidable contamination) is unlikely.

The aforementioned rate is also not applicable to foods that in their natural state, composition or original formulation have a gluten content of less than 20mg/kg.

The Tax Authority, through Circular Letter 25070 of May 27, considers that the reduced VAT rate of 6%, foreseen in item 1.12 of List I annexed to the VAT Code, does not apply to foods or products where, according to the guidance note from the Directorate-General for Food and Veterinary Medicine (DGAV), in conjunction with the Portuguese Celiac Association (APC), the mention "gluten-free" is not admissible because the exemption is evident and contamination (including technically unavoidable contamination) is unlikely, namely:
“Fresh and dried fruits, vegetables and herbs
Dried legumes - beans, chickpeas, broad beans, peas, lentils, soybeans, lupins
Rice and corn kernels
Raw milk or milk subjected to thermal processing, with varying fat content
Fresh cheese and cottage cheese
Unprocessed meat, fish and shellfish
Eggs Fresh produce
Sugar
Honey
Salt
Olive oil and other vegetable oils
Water
Nectars and fruit juices
Wines and spirits
Roasted coffee beans

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