The Government Reduction of VAT rate for specific industries.
Due to the COVID-19 crisis the Bulgarian government adoption at a second reading in the Value Added Tax Law (VAT) the rate for foods, recommended for babies and small children, baby diapers and baby hygienic products. Another sector that is also adopting the new rate reduction is books.
The reduced rate comes in effect from the 1st of July 2020 and will be active at least until the 31st of December 2021.
The newly reduced rate will be 9% for deliver of books on physical carriers, or on an electronic versions.
This applies also to workbooks and textbooks, children books and coloring sets.
The new rate also applies for accommodation at hotels and such establishments including also establishments for vacations.
Trailer renting and the trailer parks and caravans will also benefit from the newly elected law.
The rate also applies to all restaurant and catering services which consists of delivery of previously prepared or non-prepared food.
This we believe gives investor another incentive to register a company in Bulgaria.
This new incentives couples with one of the lowest corporate tax rates in Europe at just flat 10% from the net profit. This will provide businesses with a competitive edge over their rivals.
Using our online service we can assist you in registering your company in Bulgaria including all accounting and legal aspects of the procedure.
This comes from 22 years of experience in the field of corporate law and services.