Fiscal subject related
General information
The Bulgarian Ministry of Finance has announced the Prime Minister's proposed tax measures for the 2025 budget. Key among these proposals is the reintroduction of the 20% VAT rate on bread and restaurant services, which had previously been reduced.
The Bulgarian government has announced plans to remove the reduced VAT rate of 9% on restaurant services as part of the 2025 draft budget. This measure, which was initially implemented in July 2020, will be discontinued starting January 1, 2025. The VAT rate on bread and restaurant services will return to 20%, reversing the temporary reduction. Other current rates for VAT, corporate income tax, and individual income tax will remain unchanged. These measures are part of the government's broader strategy to stabilize the economy and ensure consistent tax revenue. The proposed changes are set to take effect in the upcoming fiscal year.
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