February 28 2022

Bulgaria Gazettes Extended Scope and Period of Application of Reduced 9% VAT Rate

Source: IBFD Tax Research Platform News

Bulgaria has promulgated amendments to the Value Added Tax Act in the State Gazette as follows:

  • extension of the scope of application of the reduced 9% VAT rate by including also specialized milk formulas (with partially hydrolysed protein and formulas for children with allergies) and dietary foods for special medical purposes intended for infants (falling within EU code 2106 90 92 and EU code 2106 90 98);
  • implementation of Council Directive (EU) 2021/1159 of 13 July 2021 amending VAT Directive (2006/112), in response to the COVID-19 pandemic as well as Council Directive (EU) 2019/2235 of 16 December 2019 amending VAT Directive (2006/112) and Excise Directive (2008/118);
  • inclusion of food vouchers in the scope of application of the special VAT rules for vouchers (currently, they are explicitly excluded from this scope);
  • introduction of rules for adjustments of incorrectly issued invoices even when a tax audit assessment notice has entered into force; and
  • various clarifications concerning the new VAT rules for e-commerce applicable as of 1 July 2021 and the supplies of goods between Bulgaria and Northern Ireland;

The full text of the law, published in Official Gazette No. 14 on 18 February 2022, is available here (in Bulgarian only).