VAT cut for restaurants and hotels to take effect this year
A few hours after saying that value-added tax for restaurants and places of entertainment registered under the Tourism Act would be cut from 20 per cent to nine per cent as of the beginning of 2021, Bulgarian Prime Minister Boiko Borissov said that the cut would take effect this year.
However, the measure would be temporary and would stay in effect until the end of 2021, Borissov told a briefing in Parliament.
He said that the legislation would be tabled in the National Assembly on May 13, at which point it would become clear from what date the change was envisaged to take effect.
Borissov was speaking after meeting members of the parliamentary group of his GERB party and of minority coalition partners VMRO and NFSB.
This meeting resulted in the change from the move that he had announced after talks in the morning with representatives of Bulgarian restaurant and hotel associations.
Borissov reiterated that the VAT cut was vehemently opposed by Finance Minister Vladislav Goranov, who was against differentiated VAT rates.
Estimates are that the VAT reduction for restaurants and places of entertainment will cost 150 million leva (about 75 million euro) in lost revenue.
Borissov said that it was also proposed to reduce VAT on books to nine per cent. This reduction would be permanent, he said.
Source Credit – Sofiaglobe
Reduced VAT Rate to Support Restaurant and Catering Sector
A draft bill was submitted in the Bulgarian parliament on 4 May 2020 that would introduce a reduced VAT rate to support the restaurant and catering sector, which has been heavily impacted by the COVID-19 pandemic.
This includes a 9% reduced VAT rate for restaurant and catering services, with a temporary reduced VAT rate of 5% applied from 1 June 2020 to 31 December 2021 in order to help the sector recover more quickly from the effects of the pandemic. Such services are currently subject to the standard 20% VAT rate.
Source Credit – Orbitax
BULGARIA– Update 17th April
No easements in respect of VAT return filing or payment extensions have been announced and none are expected.
Source Credit – Accordance VAT