The Bulgarian tax authorities are slashing the vat rate on books and restaurants to 9% in an effort to ease costs on these goods and services in light of the Coronavirus pandemic.
The temporary reduced 9% VAT rate for books and restaurant services will apply from 1 July 2020 until 31 December 2021.
The Bulgarian national revenue agency published the following clarifications around the new VAT rate specifically for restaurants:
- Food zones in commercial centres will be allowed to apply the 9% VAT rate for food unless it is ordered for take away;
- Catering services may also apply the 9% VAT rate when the supply of food is accompanied by other services; and
- Supplies of food in shops and vending machines will remain subject to the standard 20% VAT rate.
Bulgaria is one of many EU countries to implement continuous VAT easements and provisions. Countries are trying to alleviate both local and foreign taxpayers while individuals and corporates alike remain both cash-strapped and light on resources.
Read more Covid-19 related VAt updates here.