VAT rate on baby foods drops to 9% due to Peevski, Karaday and Tsonev’s amendments

Delyan Peevski, Mustafa Karadayi and Yordan Tsonev (L-R).

The Value-Added Tax (VAT) drops from 20% to 9% on baby milk, puree and diapers. The lawmakers of the Committee on Budget and Finance at the National Assembly adopted amendments to the Value-Added Tax Act at second reading. These amendments were proposed by MP of the Movement for Rights and Freedoms (MRF) and publisher of Telegraph Media Delyan Peevski along with his colleagues MRF Chairman Mustafa Karadayi and MRF deputy floor leader Yordan Tsonev.

This rate cut will be valid for baby foods and foods for children below the age of three, as well as for baby diapers and similar pharmaceutical products.

A new Annex will be elaborated to the VAT Act. It will specify which children’ foods and pharmaceuticals will be subject to reduced VAT rate.

Pursuant to the draft Annex, the above products will include adapted infant formulas, powder-like paps for babies or small children, homogenised vegetable or fruit purees in containers of a net content not overweighing 250 g. Meat, fish, vegetable, fruit or nut purees weighing up to 250 g will be also included.

The VAT rate reduction will make children’ food and pharmaceuticals more available for all families. "We are obliged to the society to provide the children - our future - with full conditions for upbringing and development, regardless of the situation we are in," the MRF MPs wrote when submitting the proposal.

Reduction of the VAT rate for books and E-books from 20% to 9% was also voted by the lawmakers of the Committee on Budget and Finance. The same low rate will be applied to the supply of restaurant and catering services offering ready-made and unprocessed food.

The new reduced VAT rate will enter into force on 1 July 2020. It is a temporary measure, which will be valid until the end of 2021.

 

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