site.btaHospitality Sector Representatives Plan Nationwide Protests if Demands for 9% VAT Not Accepted

Restaurant and hotel industry organizations plan a nationwide protest if their demands for a 9% VAT rate for the sector are not accepted. At a press conference on Monday at the BTA National Press Club in Sofia, Emil Kolarov, chairman of Bulgarian Restaurant Association, said that the organizations are still waiting to meet with the head of the governing coalition and leader of GERB Boyko Borissov to discuss the topic.

Representatives of the Bulgarian Hotel and Restaurant Association (BHRA), the Association of Establishments in Bulgaria (AEB), the Bulgarian Association of Establishments (BAE), and all regional branches of these organizations attended the press conference. The organizers stated that it was possible they might look for support from other sectors too.

As the VAT rate returned to 20% in January 2025, the restaurant sector warned prices would increase between 15 and 20%, or even more. The change in the VAT rate will affect the competitiveness of the sector, increase the gray sector, and thus the end of year outturn of the state budget will not be met. The increased VAT rate will lead to bankruptcy in the sector, its representatives warned.

Bulgaria will be the only tourist state in Europe with a 20% VAT rate, the sector warned and reiterated their demand for a 9% VAT rate for food in restaurants to become permanent in unison with European practices.

Over the weekend at 9:00 p.m. establishments around the country symbolically switched off the lights and music for nine minutes, under the motto Politicians, Save Bulgarian Tourism. The slogan of the protest action is 9 Minutes of Darkness for 9% VAT. On Monday industry representatives stated that this form of protest would continue until the adoption of the 2025 state budget by Parliament.

The return of the VAT rate for restaurateurs to its pre-Covid level happened in phases. The elimination of the reduced 9% VAT rate for tourist services and the use of sports facilities after June 30, 2024, and for restaurant and catering services after December 31, 2024, will have a total budgetary effect of BGN 371.5 million in additional revenues for 2025, the updated medium term budget forecast for 2025-2028 foresees, according to a report on the website of the Ministry of Finance.