Bulgaria extends 9% VAT on tourism and restaurants

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 2024.

The new schedule is:

  • Tourism services 9% VAT until 30 June 2024; and
  • Restaurant 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.