Bulgaria has informally inquired with the European Commission (EC) on the possibility to introduce a unified value-added tax (VAT) in the tourism sector from 2012, as proposed by the industry, but got a negative response.
The announcement was made by finance minister Simeon Dyankov at a meeting with MPs and the country's major tourist trade groups.
He explained that Bulgaria failed to introduce a unified VAT for all types of tourism a few years back and there is no room for further delay.
The Ministry of Finance (MoF) said earlier this week that a letter has been received from the EU insisting that Bulgaria should harmonise tourism VAT, which stands at 7% for organised groups and 20% for individual tourism. This difference places the two types of tourism on an uneven playing field which is why the country could be imposed a sanction, according to the MoF.