Bulgaria‘s restaurant owners threaten protests if VAT on food and non-alcoholic drinks returns to 20%
Restaurant owners in Bulgaria are prepared to stage protests if parliament voting sees the return of a 20% VAT on food and non-alcoholic drinks. This stern warning comes from Elena Yaneva, deputy chair of the Bulgarian Hotel and Restaurant Association (BHRA), as reported by BNT.
With over 20 years in the industry, restaurateur Julyan Alexiev expresses concern over the potential reimplementation of the 20% VAT. "When profits start to dip, even with a long-standing, traditional business that’s heavily invested in, there are tough decisions to be made – like cutting expenses, personnel, and operating hours," he أكسيد.
Similar challenges loom for many restaurant owners in the country, with Elena Yaneva warning that increasing costs could lead to businesses operating in the gray market, price hikes, or mass personnel cuts.
How will customers react to price increases? Opinions vary. While some patrons understand the necessity for increased charges, others call for stricter control over what restaurants prepare in-house.
Industry representatives point to neighboring EU countries, namely Romania (5% VAT) and Greece (13% VAT for food and non-alcoholic beverages), to emphasize their concerns.
BHRA is currently in talks with legislators, having submitted a clear and concise memorandum to the National Assembly. Elena Yaneva hopes that Bulgaria’s newly elected parliamentarians will make the "right decision" to maintain a 9% VAT rate for restaurants as a fixed measure.
