VAT on basic foodstuffs and the Tourism sector to be reduced to 9% from January 1, 2021. Therefore, the representatives of the Association of Restaurants in Bulgaria, the Bulgarian Hotel and Restaurant Organisation and the Prime Minister Boiko Borisov shook hands during a working meeting, reported by the government information service.
The Prime Minister pointed out that the decision is a political risk, but it is also support against losses in the restaurant industry as a result of the COVID-19 pandemic.
“We make an exception for you, because with our order the sector is closed, figuratively speaking. And so it is all over the world. This can be a measure that will subsequently give good results and be lasting. It’s all in our hands.”
Borisov stressed that with the changes discussed in this way with the reduced VAT, it means that the turnover and activity of restaurants and hotels must be 100% in the light.
“In this regard, we have a duty to live up to our commitments. The Minister of Finance is very much against it, but I want to refute it at the end of the year with more revenue.”
The meeting also agreed to postpone the entry into force of the amendments to Ordinance H-18 for a period of one year, as a result of which it will come into force on March 1, 2021.
During the meeting it was also commented that the preparation of an crisis plan will be assigned, including the provision of loans and grants by the Bulgarian Bank of Development with the participation of experts from the tourism sector. The abolition of the criterion of no debt to the state only for 2020 when applying for measures to deal with the economic consequences of the coronavirus was also discussed.
Today, GERB’s General Assembly will submit to the National Assembly the agreed changes during the meeting with the Prime Minister.
