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Bulgarian Hospitality Industry Braces for VAT Increase; Re بيضاء от 1 януари ДДС за рестрантьорските услуги отново става 20%. Причината е, че от тази дата спира действието на по-ниското облагане с 9%, прието в Закона за ДДС още по време на ковид-кризата и многократно удължавано оттогава. По същата причина от 1 януари отпада нулевата ставка за хляба и брашното и тя отново става 20%.
In a challenging turn of events, the Value Added Tax (VAT) for catering services in Bulgaria will revert to 20% starting January 1, following the expiration of the 9% emergency measure introduced during the COVID-19 crisis. This change also reinstates a 20% VAT on bread and flour, ending the previous zero rating.
The transition may cause disruption for the industry, as Richard Alibechev, Chairman of the Bulgarian Hospitality Association, expressed concern about the sudden switch in VAT rates at the stroke of midnight on New Year's Eve. However, he assured customers that the price changes would not be immediately reflected in New Year's Eve menus or bills issued after midnight.
The reversion to the pre-crisis VAT rate has sparked criticism from the hospitality sector, which had expected the reduced VAT to continue throughout 2025. Despite the setback, Alibechev remains optimistic that Parliament will reinstate the 9% VAT rate before the end of January.
The industry has received significant support from Parliament in recent years, including special tax concessions during the COVID-19 pandemic. However, the sector is displeased with the draft budget prepared by the caretaker cabinet, as it includes measures to increase revenues by raising excise duties on alcohol and beer, as well as increasing VAT for catering services.
In a show of solidarity, over 4,000 establishments have signed a petition to impose a "sanitary cordon" on deputies who oppose the lower VAT rate, effectively banning them from entering these establishments. The hospitality association argues that the industry's contribution to the budget has increased since the VAT reduction, despite significant price increases in recent years.
As the hospitality sector navigates this challenging transition, all eyes are on the 7th-20th January period, during which the Parliament is expected to make a decision on the VAT rate for catering services.