Which products will have a VAT reduction?

According to the OE2026, olive oil production, game meat, and works of art sold in galleries will be taxed with 6% VAT.

The 6% VAT rate, which already applies to olive oil as a commodity, will now cover “the operations of transforming olives into olive oil,” which until now were taxed with the standard VAT of 23%.

Starting on 1 January, the list of goods and services subject to the reduced VAT rate of 6% will be expanded to include three new items. Similarly, under the 2026 State Budget (OE2026), certain products will continue to be exempt from consumption tax.

The VAT rate on game meat will also drop from 23% to 6%, following a proposed amendment to the OE2026 presented by the PSD and CDS-PP parties. This change aligns the taxation of game meat with that of fresh or frozen edible meats and offal.

When they presented this proposed amendment, the parliamentary groups supporting the government justified the tax reduction by stating that big game meat hunted in Portugal is “immediately transported to Spain, where it is processed, packaged and marketed, without generating any tax revenue” in Portugal, returning to the national market as a final product and “leaving in Spain all the added value associated with the value chain, from processing to marketing”.

Transfers of works of art made by registered art dealers will also be taxed at 6%, instead of 23%. This puts them on equal footing with sales of works made by the authors themselves, heirs, and legatees, which are already taxed with the reduced ICMS (State VAT).