Bulgaria's National Revenue Agency (NRA) has published a clarification on the extension of the reduced 9% VAT rate to books. The rate was temporarily extended to books and certain other supplies with effect from 1 July 2020 to 31 December 2021.
The clarification provides that the 9% VAT rate applies for books supplied on physical media, supplied electronically, or both, including textbooks, cognitive books and teaching aids, children's illustrated books for drawing or coloring, and printed or handwritten music. The reduced tax rate does not apply to publications that are wholly or mainly intended for advertising, or for publications that are wholly or mainly composed of video content or audio-music content, which are subject to VAT at the standard 20% rate. Further, the reduced rate does not apply for paper books without content (i.e., notebooks), posters, maps, brochures, leaflets, board games, puzzles, or books that are considered antiques.
Lastly, the clarification provides that the reduced tax rate for books applies to deliveries/sales in Bulgaria, imports to Bulgaria, and intra-community acquisitions, and where the service of providing books electronically is considered performed in Bulgaria.
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