VAT on tourism will be reduced to 9 percent from January 1 next year. The Bulgarian Prime Minister Boyko Borissov and the representatives of the Association of Restaurants and the Bulgarian Hotel and Restaurant Association agreed on this at a meeting after two days of negotiations and bills. If their request was not complied with, the sector had promised a mass protest on May 18. The change will be a fact from next year, as the VAT rate must be changed by amending the texts of the State Budget Act.
The prime minister said he hoped the VAT cut would bring one hundred percent of the sector’s activity to light and expected good revenue for the treasury as a result of the exception made for the sector. In addition, it was agreed at the meeting that the changes in the tax ordinance for the cash registers will come into force on March 1, 2021. The agreed changes will be submitted to the parliament for voting by GERB deputies.