In the State Gazeta (SG) no. 55, the Law for
amendment and supplement of the VAT Act was promulgated, in
force from 01.07.2020.
The change is related to the temporary introduction of a
reduced tax rate of 9 % for certain goods and services - from July 1, 2020 to
December 31, 2021.
Restaurants and catering
The reduced 9 % VAT rate will apply to restaurant and
catering services, which deliver prepared and uncooked food. In the scope of
the new regime should fall all category of restaurants including fast food
restaurants, coffee shops and bars.
Reduced VAT rate will apply for beverages such as coffee, tea,
water, soft drinks, etc. However, it is excluded from the reduced rate the
supply of beer, wine and alcohol drinks for which it will continue to apply the
rate of 20%.
Another exception is food delivery for home as this type of
service is not equated to restaurant service. For these services will continue to applies
the rate of 20%.
Sales of books
books are also in the scope of reduced VAT rate whether or not they are provided
on physical or electronic media.
are advertising materials and video or audio-music content which will continue
to apply 20% VAT rate. 20% VAT rate will continue to apply for newspapers and magazines
as well as at the moment the changes in the law do not regulate these supplies.
VAT on baby and baby food and diapers
Annex № 4
to the law is drafted in order to specify baby categories and baby food, and
diapers (adapted baby milk, porridge, and purees diapers) which will apply the reduced 9% VAT rate.
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