Bulgaria considers 0% VAT on essential foods

Bulgaria’s National Assembly is reviewing a draft bill that would introduce a 0% VAT rate on essential food and beverage products. The proposal aims to ease household budgets amid inflation concerns and the country’s upcoming euro adoption.

The bill was submitted on 18 May 2026. It applies to items in Bulgaria’s official “small consumer basket”, used for inflation monitoring. Products include staples such as bread, milk, dairy, meats, and poultry. The measure follows similar VAT cuts in other countries responding to rising food costs linked to the Gulf conflict.

The proposal comes as Bulgaria prepares to adopt the euro on 1 January 2027, a move that has intensified scrutiny of consumer prices. Food price increases, driven by global supply chain disruptions and geopolitical tensions, have added urgency to the debate.