Bulgaria considers ending 9% VAT on catering and restaurants

Potential early ending to temporary VAT rate cut introduced at height of COVID pandemic

Bulgaria is looking to bolster it’s finances with a range of tax changes, including ending from 1 July 2023 a temporary reduction in VAT rate on catering and restaurant services, as well as sports facilities and gyms. This cut was originally introduced in July 2020 and has been roll-over several times.

Currently, the cut is intended to expire on 31 December 2023. Cuts to baby foods and books are not being reconsidered.

Dec 2022: Continuing COVID-19 disruption extension of VAT support for key sectors till 31 December 2023

Bulgaria is to extend for the third time  its cut in VAT for a range of services heavily affected by the continuing coronavirus crisis. The reduction from the standard rate to 9% will continue for the whole of 2023.

July 2020 cut now to last to 31 December 2023

Bulgaria had extended range of supplies from the standard VAT rate of 20% to the reduced VAT rate of 9%. This was to apply between 1 July 2020 and 31 December 2023. The tax break is designed to help key sectors during the coronavirus pandemic emergency.

The supplies now subject to the reduced rate include:

• Catering and restaurant services
• Tourism services
• Books and textbooks
• Baby foodstuffs and supplies
• Sports facilities and gyms

Accommodation, hotels and other overnight stay services are already at 9% reduced VAT rate.

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Future global VAT / GST changes