Bulgaria proposes 1% VAT cut to 19%

28 December 2011

The Bulgarian finance minister, Simeon Djankov, has suggested that Bulgaria would be in a position to reduce its VAT rate from 20% to 19% by 2013.

There have been regular suggestions of a 2% VAT cut in the past, based on relatively strong federal revenues.  However, following the 2008 global credit crunch and subsequent recession, these plans were put back.  It now seems likely that the economy will not support a full 2% VAT reduction.  Bulgarian VAT is the largest contribution to the state revenues, partly due to improved revenue collections.

Click here if you would like to read more about Bulgarian VAT compliance.