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Gyms taxed at 23% IVA

Exercising at gymnasiums and sport academies in Portugal will become more expensive next year as the facilities will incur a VAT charge of 23%.

The tax increase will reflect on prices charged by the sports facilities.

The association for gymnasiums and sport academies in Portugal (AGAP) asked the government to keep the tax rate at its lowest of 6% and fears that the tax increase will lead to insolvencies and collective dismissals in a sector that has already registered a fall in business of between 15% and 20%.