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Bulgaria cuts taxes for restaurants and catering services

Europe Materials 10 June 2020 15:17 (UTC +04:00)
Bulgaria’s parliament on Wednesday approved government plans to cut value added tax (VAT) on food provided by restaurants and catering services
Bulgaria cuts taxes for restaurants and catering services

Bulgaria’s parliament on Wednesday approved government plans to cut value added tax (VAT) on food provided by restaurants and catering services to 9% from 20% from July to help an industry hit hard by the coronavirus crisis, Trend reports with reference to Reuters.

The cut would run through 2021 as a temporary measure to help the sector recover. It would not affect alcoholic drinks bought in restaurants and provided by caterers, which will still attract a 20% VAT rate.

The country sees its economy shrinking by 3% in 2020, while the European Commission expects it to contract by 7.2% this year.

VAT, set at 20% for all goods and services except hotels, is the main revenue source for the country, which keeps income and corporate taxes at 10% - among the lowest in the European Union.

The deputies also voted to cut VAT on books, some baby foods, and diapers to 9% from July until the end of next year.

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