The Revenue and Customs Administration reminds taxpayers of the Law on Value Added Tax, which introduces a reduced VAT rate of 7% for turnover of food and specific non-alcoholic drinks in restaurants and catering establishments starting from January 1, 2024. The law clearly defines the types of turnover eligible for the reduced rate and specifies the establishments where it applies. Alcoholic beverages, sugary carbonated drinks, and coffee-added beverages remain taxed at the standard rate until the end of 2023. From 2024, only non-alcoholic non-carbonated drinks specified in the Rulebook will qualify for the reduced rate in approved restaurants and catering establishments. Bottled water sales continue to be taxed at the standard rate of 21%.
Source Fiscal Requirements
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