Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 9% |
The local name for VAT in Bulgaria is ”Danak varhu dobavenata stoinost” (DDS) There are basically 3 VAT rates in Bulgaria:
- Standard VAT rate is 20%
- Reduced VAT rate is 9%
- A VAT zero-rate (0%)
Recent developments
- Bulgaria Clarifies Application of 9% VAT for Newspapers and Magazines
- Bulgaria Extends 9% VAT on Tourism and Restaurants Until 2024
- Bulgaria Extends 9% VAT Rate Reduction on Select Goods and Services until 2024
- Bulgaria Extends Temporary VAT Reduction for Restaurants, Tourism, and Gyms until 2024
- Bulgarian Parliament Votes to Extend 9% VAT for Restaurants Until 2024
For more information about (recent) rate change developments in Bulgaria, please click HERE.
Standard rate: 20%
This rate applies for all transactions that take place in Bulgaria, unless the reduced rate applies, a zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT.
Zero rate (0%)
No goods and services are subject to specific 0% VAT rate besides the ”exemptions” laid down in the EU VAT Directive, such as intra-Community and export supplies of goods and services. Domestic supplies of goods and services relating to international trade. Domestic supplies to international organizations, sea vessels and aircraft and related goods/services, services to goods and goods under customs control, and supplies of monetary gold to central banks.
Reduced rate: 9%
The reduced VAT rate of 9% generally applies to
- hotel accommodation
- larger categories of tourist accommodation
The reduced VAT rate is also temporarily from July 1, 2020 till December 31, 2021 applicable to:
- books/e-books
- restaurant and catering services
- baby foods and baby diapers
- beer and wine (if they are part of restaurant and catering services)
- tour operator services
- the use of sports facilities
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on January 2, 2024
Sources
Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
