Bulgaria published the Law Amending and Supplementing the 2022 Budget Law in the Official Gazette on 5 July 2022, including measures for the previously announced anti-crisis package to help mitigate the effects of inflation. The tax policy measures include:

• An exemption from excise duty (0% rate) on qualifying electricity (generally from renewable sources), liquefied petroleum gas, and natural gas until 30 June 2025);
• The introduction of a reduced VAT rate of 9% on central heating and natural gas supplies for one year;
• The introduction of a zero VAT rate on the supply of bread and flour for one year;
• The withdrawal of the reduced VAT rate of 9% on beer and wine supplies as part of restaurant and catering services from 1 July 2022, with such supplies reverted to the standard 20% rate; and
• An increase in the amount of personal income tax relief (deduction) for children with retroactive effect from 1 January 2022 as follows:
  • one child - increased from BGN 4,500 to BGN 6,000 per year
  • two children- increased from BGN 9,000 to BGN 12,000 per year
  • three or more children- increased from BGN 13,500 to BGN 18,000 per year
  • children with disabilities - increased from BGN 9,000 to BGN 12,000 per year

The measures of the law are generally effective from 1 July 2022.