9% VAT for tourism, accommodation services, restaurants and books

On 15.05.2020 a Project on amendment of VAT law was tabled by government in front of the Parliament. The government's proposal is a 9% VAT rate for restaurant or catering services that deliver "prepared or uncooked food" and books to take effect on July 1 and continue to be in force until December 31, 2021.

The measure is proposed in order to "speed up the recovery of the sector from the effects of the COVID-19 virus pandemic and protect Bulgarian production."

Minimum insurance income BGN 800 for tourism and restaurant sector

Along with the reduction of the indirect VAT tax, however, the government proposes another amendment which will affect the entire tourism and restaurant industry. The transitional and final provisions of the Bill are amended in the State Social Security Act for 2020. It states that for the entire tourism and restaurant sector the minimum insurance income should rise from BGN 610 to BGN 800.

16.05.20

Accounting, Payroll, Tax & Legal since 1989

9% VAT for tourism, accommodation services, restaurants and books

Minimum insurance income BGN 800 for tourism and restaurant sector

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