Bulgaria to introduce a new lower reduced rate of VAT

[June 10, 2019] The Bulgarian Parliament introduced a new bill on the 5th June 2019 that includes various proposed changes to the Bulgarian Value Added Tax Act. Included among the changes is a new lower VAT reduced rate of 5%, which would come into effect from 1st January 2020. Under the current proposed language, the new rate would apply to certain staple foodstuffs including meat, milk, eggs and flour. In addition, starting on 1st January 2020, the bill would also include an extension of the existing 9% reduced VAT rate on certain specified medicinal products. Finally, the bill proposes an increase in the compulsory VAT registration threshold from 50,000 to 100,000 lev, effective at the same time as previously stated. The introduced version of this bill from the Bulgarian Parliament can be seen on the Republic’s National Assembly website.