site.btaCommission Calls on Bulgaria to Fully Transpose Directive on VAT Rates

The European Commission (EC) decided to open infringement procedures by sending a letter of formal notice to seven Member States (Bulgaria, Belgium, Greece, Spain, Lithuania, Portugal and Romania) for failing to communicate the full transposition of the Directive on rates of VAT (Directive 2022/542). Member States had to communicate on the full transposition of this Directive into national law by the end of 2024.

The Directive on rates of VAT allows for a wider use by Member States of reduced rates, including the use of zero rates for essential products such as food, pharmaceuticals and products intended for medical use. Furthermore, country-specific VAT rates called derogations were opened to all Member States, thus ensuring equal treatment across the Union.

Bulgaria now has two months to respond, complete its transposition and notify its national measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.