During 2020, Bulgaria extended the scope of application of the reduced 9% VAT rate for various goods and services until 31 December 2021 as a COVID-19 pandemic related measure. On 23 December 2021, the Bulgarian parliament voted at first and second (final) reading, amendments to the VAT Act extending the period for application of the lower rate until the end of the COVID-19 pandemic. The goods and services for which the reduced 9% VAT rate will continue to apply are the following:
- restaurant and catering services;
- tour operator services, including the organization of excursions by tour operators and travel agents with occasional transportation;
- books and some other publications;
- services related to use of sports facilities; and
- foods suitable for babies and young children as well as baby nappies and similar baby hygiene products (provided in a list included in Annex 4 to the VAT Act).
Accommodation services in hotels and other similar establishments are also subject to 9% VAT rate in Bulgaria, but this rate is applied permanently, i.e. not as a temporary measure in relation to COVID-19 pandemic.
The full text, issued on 23 December 2021, is available here (in Bulgarian only).