Story perspectives

Bulgaria Raises VAT on Restaurants and Bread to 20%

1/2/2025

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Summary

Story summary

Starting January 1, Bulgaria will revert restaurant services and bread VAT to 20%, ending the temporary 9% rate.
The caretaker cabinet's draft budget, due January 7, suggests maintaining 0% VAT on bread for 2024.
Restaurant owners intend to absorb the VAT increase, keeping menu prices stable for New Year's celebrations.
The government anticipates the VAT hike will raise 400 million leva for the treasury, despite industry pushback.
Critics warn of significant price increases, while restaurateurs stress their vital role in tourism and ongoing support.

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Story summary

Starting January 1, Bulgaria will revert restaurant services and bread VAT to 20%, ending the temporary 9% rate.
The caretaker cabinet's draft budget, due January 7, suggests maintaining 0% VAT on bread for 2024.
Restaurant owners intend to absorb the VAT increase, keeping menu prices stable for New Year's celebrations.
The government anticipates the VAT hike will raise 400 million leva for the treasury, despite industry pushback.
Critics warn of significant price increases, while restaurateurs stress their vital role in tourism and ongoing support.