The austerity-based 23% rate, that restaurateurs and cafe owners claim led to the loss of tens of thousands of jobs, is partially over with meals now attracting 13% VAT on mainland Portugal.
Some drink types, however, will still attract VAT at the top rate of 23%.
Alcoholic drinks, soft drinks, fruit juices and fizzy water will remain at the highest rate, with still water, tea and coffee going down to 13%.
Good news for couch potatoes though, takeaways and pizzas etc delivered to customer's homes will be at the lower 13% rate.
The islands have different VAT rules with meals in the Açores going down to 9% and down to 12% in Madeira.
In exchange for the drop in VAT rate, the national restaurateurs association AHRESP promises that its members will invest, create jobs and actively cooperate with the tax authorities to combat tax evasion.
The adjustments formed part of incoming Prime Minister António Costa's pre-election pledge package, as was a reduction in tolls on formely free motorways. At least the VAT pledge for the restaurant sector is to be put into action, albeit seven months into the year.
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