Bulgarian tour operators and travel agents are hoping the new parliament will reconsider the decision to revert to the higher VAT (20%) for the industry as of 1 July. They are insisting that tourist packages be subject to 9% VAT until the end of 2024, as has been the case for restaurant operators.
“Unless that happens we shall have to pay hundreds of thousands of leva to make up for the difference up to 20% because the tourist packages were sold last year, budgeting for a VAT rate amounting to 9% and we cannot update prices now,” said Dimitrina Goranova, chair of the Association of Bulgarian Tour Operators and Travel Agents in an interview with the Bulgarian news agency BTA.
A lower VAT rate was introduced three years ago as a temporary measure during the Covid pandemic but tour operators say they have not yet reached 2019 levels, and are insisting that the 9% VAT rate for the industry remain in place.
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