Bulgaria to Introduce 5% Reduced VAT Rate and Increase VAT Registration Threshold

According to recent reports, the Bulgarian government is planning for the introduction of a new reduced VAT rate of 5% that would apply for basic foodstuffs. Currently, Bulgaria has a standard VAT rate of 20% and a reduced rate of 9%. In addition to the new reduced rate, the government is also planning to increase the VAT registration threshold from BGN 50,000 to BGN 100,000.