AmCham Tax Committee Takes Part in Food Vouchers Agreement

A discussion on the tax treatment of food vouchers took place on Friday, October 19th, 2018, between the Ministry of Finance, The Association of Food Voucher Operators, Trade Unions, and the American and French Chambers of Commerce.

During the discussion, an agreement was reached to keep the current tax treatment of food vouchers where VAT is charged when the vouchers are used in restaurants and supermarkets. Charging VAT on the issuance of the vouchers would have made the social benefit, which is currently preferred by a majority of employers and employees in Bulgaria, very difficult to administer in supermarkets and restaurants.

Representatives of AmCham’s Tax Committee who attended the meeting supported the position of the Food Voucher Association. Vouchers are a preferred benefit by both international and Bulgarian employers who consider them an important motivation tool and part of their social responsibility programs.