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Bulgaria cuts VAT on heating and bread to combat 15.6% inflation

Temporary tax breaks on domestic fuel and basic foodstuffs as inflation continues rise

The Bulgarian government has confirmed a range of emergency VAT rate cuts and rollovers of existing temporary cuts:

  • An extension of the temporary cut to 9% for domestic energy and hearting until 1 July 2023
  • Bread to be cut to 0% until 1 July 2023
  • Ending of the reduced VAT rate on alcohol served with food. The standard VAT rate will now apply

Inflation in May hit 15.6%, up from 14.4% in April 2022. Inflation has been rising for 15 consecutive months but started speeding up in the past several months due to surging energy prices. Food inflation has reached 22.7%.

Many other EU states cutting VAT on fuel. In April 2022, EU completed new reduced EU VAT rate setting freedoms  To receive our free global VAT and GST news updates, sign-up here.

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