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Bulgaria rules out promised VAT rate cut

  • Jul 24, 2012 | Richard Asquith

Bulgaria rules out promised VAT rate cut

Simon Djankov has confirmed that Bulgaria is no longer scheduling a cut in the Bulgarian VAT rate. There had been a plan to reduce the standard Bulgarian VAT rate by 1% from 20% to 19% by 2013.

However, opposition from all parties in Parliament to the move means that the government has backed down, and will instead consider changes to the personal tax regime.

Over the past two years there have been numerous pronouncements on plans for both cuts and rises to the Bulgarian VAT rate. This has reflected the varying performance of the economy in the midst of the European and global slowdown.

Bulgaria has been one of the few countries that has been able to resist a rise to its main consumption taxes – see all EU VAT rises - in recent years. Nearby countries, including Hungary, Greece and Romania, have all had to raise their VAT rates to cope with shrinking government revenues.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.