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.
