BULGARIA’S PARLIAMENT EXEMPTS DONATED FOODS FROM VAT

Donated foods will not be subject to Value Added Tax as of 1st of January 2017, Bulgarian Parliament decided on 27tth of October. The donation is required to be made no earlier than 30 days before the end of the expiry date of the food products. They should be marked with the text “Donation, not for sale”.

So far, potential food donors did not have much motivation to donate foods, because disposal was cheaper than the tax on donated foods.

In order to avoid tax frauds, traders will be allowed to donate products worth no more than half a percent of their annual turnover.

Bulgaria’s ombudsperson Maya Manolova also called for tax exemption on donated foods. She has said that about 700,000 tonnes of foods get destroyed annually instead of feeding the hungry.