July 30 2020

COVID-19 Pandemic: Bulgaria Extends Scope of Reduced 9% VAT Rate

Source: IBFD Tax Research Platform News

On 30 July 2020, the Bulgarian parliament approved at second (final) reading the proposal for extending the scope of the products for which the reduced 9% VAT is applied. The new products include:

beer and wine provided as part of restaurant/catering services;
the use of certain sports facilities; and
tour operators' services, including the organization of excursions by tour operators and travel agents with occasional transportation.

The reduced 9% VAT rate for the above products will apply temporarily during the period from 1 August 2020 – 31 December 2021.

As a next step, the amendments to the VAT Act must be promulgated in the State Gazette. Further developments will be reported as they occur.

The draft proposal is available here (as a PDF and in Bulgarian only).