Tourism services VAT in Bulgaria changes
The value-added tax (VAT) for hotel services will become seven per cent starting January 1 2007, according to the VAT draft law accepted in Parliament today.
The seven per cent will gradually increase to reach 20 per cent, Finance Minister Plamen Oresharski said.
Oresharski did not give the exact transition period but said the VAT for tourism packages for foreign visitors to Bulgaria will change from seven to 20 per cent starting January 1 2006.
According to the project the Cabinet will increase subsidies for the tourism sector and will offer preferential funding for resorts that attract foreign tourists.
Additional project provisions include the removal of VAT accounts starting January 1 2007. The VAT account has played its role and is no longer necessary, Parliament members said.
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