Tax Authority clarifies tax rules for school meals in Portugal

School meal costs can be deducted from Personal Income Tax (IRS) within the education and training section, on the condition that they comply with the requirements set by the Tax and Customs Authority (AT).

By Íris Marçal, in News, Politics · 08 Oct 2026, 16:03 · 0 Comments

In order to be eligible for the tax deduction, the invoices must concern services provided by the restaurant industry and have to be issued by organisations that appear on the official list of suppliers submitted to the tax authorities by the Directorate-General for School Establishments
and the Institute for Financial Management of Education.

It is up to the taxpayer to correctly link and verify these invoices on the e-fatura portal. On the other hand, meal expenses suffered at university canteens overseas—specifically those incurred under the Erasmus program—are not eligible for this deduction since these
establishments are not listed in the registry of suppliers recognised by the Portuguese tax authorities.

Where VAT applies

In a recent binding decision, the AT also made clear how the Value Added Tax (VAT) applies to canteens in schools which cover the 2nd and 3rd cycles of basic education and secondary education, in the case where the management of these schools was handed over to the municipalities in 2019.

If the local authorities enter into contracts with private companies to prepare and supply meals, then these service providers are required to bill the municipality at the intermediate VAT rate of 13%. However, when they issue invoices to students, the local authority is able to take advantage of the VAT exemption applicable to education and related services; this means that the municipality cannot deduct the tax it paid when contracting the suppliers.