Bulgaria ends restaurant VAT cut 2025

2025 budget ends COVID VAT cut to 9% for restaurant and catering services

The Bulgarian 2025 budget has withdrawn the temporary reduced VAT rate of 9% on restaurant services from 1 January 2025. The measure was first introduced in July 2020. The cut also included bread and flour.

The rise will raise BGN 400 million.

Dec 2023 MP’s back extending temporary VAT rate cut introduced at height of COVID pandemic

Bulgarian Members of Parliament have extending the COVID-19 temporary VAT rate cuts for restaurants, tourism and gyms. The reduction from 20% to 9% was due to run out on 31 December 2023.

The new schedule is:

• Tour operators, sport events and bread 9% VAT until 30 June 2024; and
• Restaurant and catering services 9% until 31 December 2024

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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2026 Global VAT changes