Restaurant Owners to Pay 20% VAT Due to Lack of Next Year’s Budget
Restaurant owners are now required to pay a 20% VAT following the absence of a budget for the next year. Richard Alibegev, chairman of the Association of Establishments, discussed the situation in the sector during an interview on "Offensive with Lubo Ognyanov" on NOVA NEWS.
"A rise in VAT rates will lead to a 7-10 day increase in restaurant prices," Alibegev said, noting that current discussions indicate this will not happen. "We hope that the 9% VAT rate for the restaurant sector will continue, with zero rates for bread until the end of 2025, and the activation of reversed compensation for fuel," he added. Alibegev believes that a VAT increase for restaurants would be detrimental to the industry.
When asked about the impacts of various increases, Alibegev stated, "I’m not sure which should be calculated first – the rise in fuel, gas, and bread prices, the VAT increase for restaurants, or the rise in the minimum wage. The draft budget also includes tax increases on alcohol and beer. The good news is that fuel compensation should be extended with the adoption of the Budget Law. There’s also a majority to extend the lower VAT rate for bread."
Alibegev revealed that the current salary for a waiter in Sofia is around 1,000 to 1,500 levs, with the addition of a tip. "Waiters mainly rely on tips. We want it to be legalized so people can use this money without paying tax," he said. Alibegev also emphasized that minors under 18 are not allowed to consume alcohol or smoke in their establishments.
