Covid-19 in Bulgaria: MPs approve lower VAT on takeaway food

Covid-19 in Bulgaria: MPs approve lower VAT on takeaway food

Bulgaria’s Parliament passed at second reading on November 19 a bill of amendments to the Value Added Tax Act that includes a provision to lower the VAT rate on takeaway food from 20 per cent to nine per cent.

The provision was included between readings, while the bulk of the bill concerns Bulgaria’s implementation of EU Directive 2017/2455 on value added tax obligations for supplies of services and distance sales of goods.

The lower VAT rate will remain in effect until the end of 2021, making takeaway food the latest in a series of goods and services with reduced VAT, a measure promoted by the government as assistance to counter the impact of the Covid-19 pandemic.

So far, the lower tax rate has been applied to restaurant sales, catering services, wine and beer sales in restaurants, books, baby foods and baby hygiene products, charter bus services, gyms and other sports facilities.

As on previous occasions when Parliament discussed lower VAT rates, the opposition socialists once again tabled an amendment to cut the tax rate on medicines with costs covered by the National Health Insurance Fund, medical goods and diet foods for medical purposes. Once again, the amendment did not pass.

 

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