Companies that supply school meals to municipalities in Portugal must charge VAT at a rate of 13%. This obligation arises when a school, instead of providing the cafeteria service directly to students, hires a private company to carry out this activity.
The Tax and Customs Authority (AT) explained how VAT rules apply in this specific context. When there is this intermediation between the municipality and the supplying company, the operation is considered as a supply of services subject to VAT, not benefiting from the reduced rate or exemption that would apply if the service were provided directly by the school to students.
