VAT on bread, flour and restaurant services in Bulgaria restored to 20%

Starting January 1, VAT rates for bread, flour and restaurant services return to 20%. The reduced rates had been introduced during the COVID-19 pandemic and were maintained for several consecutive years.

Despite strong opposition from bakers and restaurant owners, the differentiated VAT rates expired at the end of 2024.

Preliminary estimates suggest that over 400 million BGN could be generated for the state budget from the reinstated rates.

Source: BNR

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