On 5 June 2019, the parliament submitted a proposal for the introduction of new reduced VAT rates, as follows:
- a 9% VAT rate for medicinal products included in the list of medicinal products covered under the National Health Insurance Fund, and for dietary foods for special medical purposes; and
- a 5% VAT rate for meat, milk, eggs, flour and flour-based food products.
Currently, the only reduced VAT rate in Bulgaria is 9%, which applies to accommodation services provided in hotels and similar establishments.
In addition, the threshold for general mandatory VAT registration is proposed to be increased from BGN 50,000 to BGN 100,000.
The above amendments should apply as from 1 January 2020.
As a next step, the proposal will be voted on at two readings by the parliament. Further developments will be reported once they occur.