Reduced VAT rate of 9% will apply to the following goods and services: Restaurant and catering services, Books, Baby foods and diapers.

The temporary reduction of the VAT rate as a relief measure in response to the coronavirus (COVID-19) pandemic and intends to support the affected businesses sectors.

The reduced VAT rate will apply until 31 December 2021.

Restaurant and catering services

The reduced VAT rate applies to restaurant and catering services consisting of prepared and unprepared food supplied at the supplier’s premises (restaurants, buffet foods, food courts). The reduced VAT rate will not apply for alcoholic beverages (beer, wine, and spirits). Furthermore, the reduced VAT rate would not apply to carry out food and other supplies of foods.  All supplies of alcoholic drinks, including beer and wine and carry out of food will be taxed with the standard 20% VAT rate

Books and textbooks

The reduced VAT rate applies to supplies of books supplied in hardcopy or electronically. The reduces rate apply also to textbooks, books without text (coloring books and books with illustrations). The reduced rate will not apply to marketing and advertising materials and to publications with video and audio content. Periodicals, newspapers and magazines are also excluded from reduced rate.

Baby foods and diapers

This group covers baby foods, diapers, and other similar hygiene items, listed in the new Appendix N 4 of the VATA.


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As from 1 January 2020 the following conditions became also mandatory for the application of the 0% VAT rate to Intra community supplies:

  • The customer must provide its VAT number;
  • The intra community supply must be correctly reported in the respective EC Sales List declaration; and
  • The suppliers must have a document, such as an invoice, for the intra community supply and a document evidencing the transport of the goods to the other EU Member State.

From January 2016, all VAT-registered companies in Bulgaria have to declare the amount of VAT for the private usage of business assets with submission of monthly VAT returns and purchases and sales ledgers to the NRA. The guide for application of this system was adopted by NRA.

Where the purchase of an asset it is known that it will be used solely for personal purposes and for the purchase of those goods VAT credit was not used, then it is not expected by NRA that the companies will charge VAT for such usage.

In cases where the goods will be used for both business and private purposes, there are two options:

·        Full VAT deduction, with VAT to be charged for personal usage of the goods;

·        VAT to be deducted in proportion corresponding to the ratio of private-business usage of the goods.

On 15 July 2019, it was found that there had been an unauthorized access to about 3% of the information contained in Bulgarian NRA’s databases. Personal data and tax and social security information about domestic and foreign individuals and legal entities have been unlawfully leaked.

NRA Bulgaria: We assure you that the Agency has taken all the necessary measures to ensure that the security of its information systems is improved. We reiterate our apologies for the situation created.

Based on the monthly reports of first-level spending units, a deficit of BGN 406.4 million (0.5% of the projected GDP) is reported under the Consolidated Fiscal Programme (CFP) as of end-November 2015. It is formed by a national budget deficit of BGN 82.5 million and a deficit of EU funds of BGN 323.9 million. For comparison, the CFP budget balance at end-November 2014 was a deficit of BGN 1,600.7 million (1.9% of GDP), i.e. the budget stance, as a relative share of GDP, has improved by 1.4 percentage points.

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