Labor & Taxes
School meal companies must charge 13% VAT to municipalities
The tax authority (AT) clarified in a binding ruling that private companies providing school meals to municipalities must bill for these services with a 13% VAT rate. While the final price charged to students remains VAT-exempt, the municipalities themselves cannot deduct the VAT paid to these private providers.
Why it matters
If you are involved in municipal management, school administration, or a private company providing catering services to public schools, this ruling confirms that the 13% VAT cost is non-deductible for the municipality, which may impact how these service contracts are budgeted and managed.Diário de NotíciasRead original ↗
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