site.btaRestaurant Associations to Block Intersections, Key Roads in Protest against Higher VAT Rate

All restaurant associations and their structures in the country are preparing a national protest, the Association of Restaurants in Bulgaria said on Tuesday. By blocking dozens of road junctions and busy intersections in over 30 settlements on Wednesday, the restaurant industry will express its disagreement with the lack of dialogue with the Government and the return of the 20% VAT rate on their services.

The protest comes after numerous calls from the restaurant industry for representatives of the ruling majority to meet to discuss proposals on increasing tax collection, as well as the businesses' arguments for keeping the VAT rate at 9%. The sector has repeatedly said that the VAT rise will lead to bankruptcies, increase the grey sector, and will not help achieve the revenue projected in the 2025 State Budget Bill, the press release said.

The VAT rate for restaurant and hotel services was reduced to 9% during the COVID-19 pandemic. It was returned to its pre-COVID rate of 20% in July 2024 for tourist services and in January 2025 for restaurant and catering services, with the Finance Ministry expecting the measure to generate BGN 371.5 million in additional revenues for 2025. On Monday, restaurant and hotel industry organizations announced plans for a nationwide protest unless the VAT rate is reduced to 9%.