Parliament lowers VAT rate to 9% for restaurant services, books and baby food

Bulgaria’s Parliament on June 10 adopted at second reading the amendments to the Value-Added Tax Act, which provided for reduction of the tax rate on restaurant and catering services, books, baby foods and baby hygiene products from 20% to 9%.

The lower rate is intended to apply to accommodation in hotels, including when renting places for camping sites or caravans. Parliament also approved the MRF's proposal to reduce the value added tax rate on baby food and diapers from 20% to 9%. There will also be holiday vouchers in the amount of BGN 210 for employees from the healthcare and security system, who work on the front-line in the fight against the coronavirus.

The proposed amendments to reduce the VAT on wine and alcoholic beverages sold in restaurants, tabled by the minority government coalition partner VMRO as well as to reduce VAT on medicine, tabled by the opposition socialists, were rejected by MPs.

Source: BNT

The reduced VAT rate will be temporary and in effect between July 1, 2020 and December 31, 2021.