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Flat 9% VAT for Bulgarian Tourism

Bulgaria has had to come in line with E.U demands from Brussels to have a standard flat rate of 9% VAT, and abolish the two rates of value added tax that already stands within the tourism sector of 7% for organised groups and 20% for individual tourism.

 


The response from hoteliers and tour operators has caused an outcry and called for a delay until 2012 due to holiday contract deals already being signed by clients, but when Bulgaria requested a further delay to the European Commission it
was declined.

The new law should have come in line from the beginning of 2011,however the Bulgarian government have delayed the new introduction of the tax until April 2011.

Tourism accounts for 10% of the country’s GDP, so it is an important industry to focus on building to create growth in employment and foreign income to Bulgaria, after the decline of the construction and property markets over the past few years.

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