VAT rate changes to combat rising inflation
Bulgaria has been deploying a range of fiscal measures to combat spiralling inflation in the country. In the past few months, Bulgaria has extended reduced rates and applied zero-rate VAT on certain products to reduce the burden on taxpayers. The Bulgarian government has acknowledged the effect of rising inflation on taxpayers and has responded accordingly with an anti-crisis fiscal package. Significant fiscal measures within the package include:
- VAT on bread reduced to 0%;
- VAT on heating, hot water and natural gas for household consumers to 9%;
- An increase in the VAT threshold registration - from BGN 50,000 to BGN 100,000.
- 1st January 2023: BGN 100,000 (c. 51,300 Euros)
- 1st January 2024: BGN 166,000 (c. 85,000 Euros)