Bulgaria to Raise Restaurant VAT to 20% Starting January 1, Amid Industry Concerns

Starting January 1, the VAT rate for restaurant services in Bulgaria will return to 20%, marking the end of the temporary 9% rate introduced during the Covid crisis. The reduced VAT was extended several times but will no longer apply, also affecting the zero VAT rate on bread and flour, which will revert to 20%. While the caretaker cabinet's draft budget proposed keeping the 0% VAT on bread for 2024, the delay in electing a new speaker of parliament and the subsequent Christmas break meant that the budget law would not be considered until January 7.

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