Bulgaria's Parliament extends the 0% VAT rate on bread and flour to support consumers. In a move that underscores the Bulgarian government's commitment to its citizens' economic well-being, the parliament has recently passed a decision to extend the 0% VAT rate on bread and flour until December 31, 2024. This extension is a continuation of the relief measures introduced in July 2022, which were part of an "anti-crisis package" designed to ease the economic strain on consumers.
Bulgaria extends temporary reduced rates.
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Bulgaria
Author: Kristina Dosen
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Fiscal subject related
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720
Content accuracy validation date:
08.07.2024
Content accuracy validation time:
08:07h
The initial VAT reduction was scheduled to conclude on June 30, 2024, but with the acknowledgment of persistent economic challenges, the government has opted to extend this tax relief for an additional six months. This decision is a component of a larger strategy aimed at fostering economic stability and shielding the most vulnerable groups from the escalating costs of living.
By diminishing the tax load on essential food items, the government aspires to deliver substantial relief to consumers, thereby contributing to the nation's overall economic fortitude. Furthermore, the Bulgarian parliament has sanctioned a series of additional VAT rate reductions and extensions:
- Restaurant and Catering Services: The VAT rate for restaurant and catering services will be maintained at a reduced rate of 9% until December 31, 2024. This represents a year-long extension beyond the original end date of December 31, 2023.
- Tourist Services and Sports Facilities: The preferential 9% VAT rate applicable to tourist services and the use of sports facilities will now be extended until June 30, 2024, instead of concluding at the end of 2023.
These measures reflect the government's proactive approach to alleviating the financial pressures faced by its citizens and ensuring that Bulgaria remains economically resilient during challenging times.
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