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VAT & General Cost of Food/Drink

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VAT & General Cost of Food/Drink

Hi

I'm heading to Lagos for the third time in a couple of weeks. Always liked it there because you can eat and drink well for a reasonable price. However, I understand that VAT's about 23% now!

Have the prices for good & drink (eating out) gone up considerably? From memory it was between €2-€3 for a beer in 2008. I'm guessing it's €3-€4 now?

Albufeira, Portugal
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for Algarve, Faro
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1. Re: VAT & General Cost of Food/Drink

No, one good piece of news that the raise in VAT (it is 23% on some items now and soon to go up again) and the exchange rate conspired to make it potentially quite expensive for UK visitors. Most places I go have not put up their prices since 2008 or so.

Obviously this reduces profits, but some money is better than watching people go to LIDL for their cheap drink.

Problem is that our government will soon be raising all taxes and utility prices. There is no way businesses will be able to absorb these rises. Look out for price rises soon.

Meanwhile a large beer (40cl Sagres, Superbock etc) is still around €2,50 and I had a bottle of Sagres beer (33cl) for €1 at Tavira railway station a couple of weeks ago.

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2. Re: VAT & General Cost of Food/Drink

That's great news, thanks!

I'm really looking forward to getting back to Lagos. It's a brilliant place.

Lisbon, Portugal
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for Azores, Lisbon, Portugal
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3. Re: VAT & General Cost of Food/Drink

For the moment VAT for food and restaurants is still 6% or 13%. Things might change for some products one of these days.

yorkshire
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4. Re: VAT & General Cost of Food/Drink

the beer at stones bar has been 2 euros per bottle for the last 10 years

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5. Re: VAT & General Cost of Food/Drink

Good news then!

I was a touch worried that price increased would have made sampling the nightlife a little prohibitive.

yorkshire
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16 reviews
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6. Re: VAT & General Cost of Food/Drink

theres a little horse shoe bar which is one of the cheapest in lagos and the sagres is well kept.

typical local bar

Pentraeth, United...
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7. Re: VAT & General Cost of Food/Drink

Where is that bar please? I like the sound of an inexpensive, typical local bar.

Thanks.

Albufeira, Portugal
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for Algarve, Faro
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44,937 posts
28 reviews
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8. Re: VAT & General Cost of Food/Drink

The local papers were saying last week that a lot of restaurants and bars didn't put up their prices in January when VAT went up from 13% to 23% but are having to do so now.

Don't forget that VAT isn't just increased on drinks and meals, it went up bug time on just about everything. Throw in a 5% increase in electricity and 20% increase in social security payments by employers everything is bound to be going up. Many places are cutting back on staff and we are seeing closures. More and more people buy cheap drinks in supermarkets and sit on their balconies, then wonder where the bars have gone when they do venture out.

Sound familiar?

yorkshire
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9. Re: VAT & General Cost of Food/Drink

the Germans are voting with their feet and turning their backs on the Algarve.

Bring back the escudo.

go north of the N125 for cheaper food and drink.

Albufeira, Portugal
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for Algarve, Faro
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44,937 posts
28 reviews
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10. Re: VAT & General Cost of Food/Drink

How about not making huge hikes in taxes and utility charges? Our water bills have increased ten-fold in the past 18 months and a further 800% increase is threatened. With costs increasing like that no wonder people won't come.

I agree though that outside the tourist zone, north of A22 though, going out is cheaper.

If Portugal/Greece leaves the Euro, holiday costs go up about 3% as visitors from Euroland will have to pay the change their money. That might be the final nail in the coffin for many.