What is the VAT rate for renting an apartment

What is the VAT rate for renting an apartment

 

Question:
Hello!

We have an apartment in Bansko, which we will rent for overnight stays through the Booking platform, through EOOD, with which we have a management and rental agreement, and it will register the apartment in the municipality and the Ministry of Tourism, according to the requirements. road. Does the EOOD have to have a cash register for this activity and at what tax rate will it be taxed (excluding the tourist tax)? No snacks or minibar are available in the apartment.

Thank you very much.

 

Answer:

Hello,

If your customers pay only by bank transfer, then the Company does not need to have a cash register.

Regarding the tax rate, you may have in mind value added tax (VAT). In your case, if the Company has a VAT registration pursuant to Art. 96 or Art. 100 of the VAT Act, you will have to charge 9% VAT on your sales. However, if you are registered for VAT on the basis of Art. 97a of the VAT Act, then you will not charge VAT on your sales. You will only charge and owe 20% VAT on the amount of services received outside Bulgaria (in your case the commissions from Booking).

 If you are talking about an annual profit tax - then the rate is standard - 10% on the realized profit.

We hope we have been helpful to you.

Greetings!