The persistence of doubts about the products covered or not by the VAT exemption has led the tax present new clarification about what is included.
The sale of 46 categories of food products without VAT has been in force since April 18, with its launch accompanied by explanations by the Tax and Customs Authority (AT) about the varieties of food included or not by the measure.
But the practical application of this fiscal measure, which aims to mitigate the impact of price increases, revealed that there are still questions to be clarified. As was the case with cod. The list published in the law that came into force in April, places it among the products exempt from VAT, regardless of whether it is fresh, chilled, frozen, dried, salted or in brine.
Now the tax authorities have clarified that zero VAT covers whole cod and parts and that it reaches not only the slices, but also the bellies, faces or tongues.
It was already known that 'basmati' or 'jasmine' rice would not be charged VAT, and the same applies to steamed rice. As for fruit, a cantaloupe is on the list in the law and according to the AT, the same is true of melon as it is "a variety of melon, characterised by its rounded shape".
"Watermelon is not listed in Law No. 17/2023, of April 14, as it is not covered by the exemption".
As for meat, the AT also specifies that zero VAT covers piglet meat (fresh or frozen) since the measure "applies to pork, regardless of the animal's degree of growth". The same reasoning applies to the various denominations of beef.
Fruit juices and nectars, however, do not enter the zero VAT basket because, explains the AT, "they have their own framework in item 1.11 of List I annexed to the VAT Code, not having integrated the list of food products in the essential healthy food basket".
The basket of products with zero VAT will be in force until the end of October, with the Government estimating that it will make a contribution of 0.2% in reducing the inflation rate in 2023.