site.btaFinance Ministry Plans to Reinstate 20% VAT Rate for Restaurants

Finance Ministry Plans to Reinstate 20% VAT Rate for Restaurants
Finance Ministry Plans to Reinstate 20% VAT Rate for Restaurants
Finance Minister Vassilev at a news briefing at the Council of Ministers (BTA Photo)

Reinstating the 20% VAT rate for restaurant business is envisaged in a package of legislation, drawn up by the Finance Ministry. The package will be published for public consultation on Tuesday or Wednesday, said Finance Minister Assen Vassilev. He spoke to journalists after his participation in a traditional business breakfast hosted by AmCham on Tuesday. 

"The tax rates for businesses and individuals remain the same. The only change is the reinstatement of the pre-COVID VAT rate of 20% for restaurants,” said Vassilev. The minister said that the executive met with representatives of the restaurant business last week, who said that they will prepare measures for bringing the sector out of the grey economy and increase insurance levels in the industry above the minimum working wage. 

Vassilev said that the 9% VAT rate for restaurants can remain if the economic effect of the formalization of the sector is greater than the increase of the VAT rate.  

Also, the introduction of a business tax is being mulled for the restaurant industry, said Vassilev. He added the business tax is a viable option in sectors where tax enforcement and collection are poor. 
Vassilev said that as Parliament won’t work until November 8, it won’t be able to adopt the package of financial legislation in October and the adoption of the budget will be postponed slightly. 
Vassilev also said that the Finance Ministry is currently preparing the macro-frame of the budget and that from next week talks will be launched with the separate ministries on their individual budgets.

/PP/

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By 04:10 on 30.11.2023 Today`s news

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