Portugal: VAT on bicycles will drop to 6%

Good news for the Portuguese two-wheel and soft mobility sector, which sees VAT drop to six percent, after a strong pressure from ABIMOTA, representative of the Portuguese two-wheel industry. Until now the Portuguese VAT for bicycles was 23%.

The VAT reduction is an old “fight” of ABIMOTA, as Gil Nadais, General Secretary of this association that represents the two-wheel and soft mobility, hardware and furniture industries recalls:

“Since 2019 we have been demanding this measure, as we understand that this is a way of supporting the Portuguese sector of two wheels and soft mobility, a sector with strong implementation and expansion and also of encouraging the use of bicycles, promoting more comfortable travel habits. healthy for everyone and the environment.”

This measure is the result of a proposal to amend the State Budget for 2023 (OE2023), presented last Wednesday at the Portuguese Parliament (Assembléia da Republica) by Livre party, having received the favorable votes of all political forces, except the PSD, which abstained. 

Thus, the purchase and repair of bicycles will suffer a significant VATreduction, in 2023, as desired by portuguese companies of the two-wheel and soft mobility sector.

“We fought for the VAT reduction, just as, during the Pandemic, we pressed for bicycle repair shops to remain open, just like those in the automotive sector. Fortunately, we have found sensitivity, with the Portuguese Government, to understand these issues and the current VAT reduction is yet another good example of how there is sensitivity for two-wheels and soft mobility, a sector in great expansion and with a very strong tendency for exportation, which in this way gains even more competitiveness, both internally and across borders.” declared Gil Nadais.

The Secretary General of ABIMOTA received this good news in Australia, where he is participating in the Micromobility Conference, in Sydney, a trip that is part of the project “ABIMOTA Portugal Fest Australia 2022, co-financed by COMPETE and Portugal 2020. The Micromobility Conference is taking place in Sydney until November the 26th.