- Return of Standard VAT Rate: The draft budget for 2025 includes the reinstatement of the standard 20 percent VAT rate on bread and restaurant services, expected to generate an annual effect of BGN 400 million. However, the 9 percent VAT rate for sports facilities, mountain resorts, and inbound tourism will remain in place.
- Proposed Tax System Changes by Unions: The Confederation of Independent Trade Unions (CITUB) suggests introducing a non-taxable minimum income equal to the minimum wage, increasing the dividend tax rate to a minimum of 10%, implementing a financial transaction tax, and a digital tax. They also propose a tax on “junk food” and support for a single VAT rate with the reinstatement of temporarily reduced VAT rates for bread and restaurant services.
Source: bta.bg
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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