4. Influence of the differentiated value added tax rates on the competitiveness of bulgarian tourism

The main objective of the study is to present the characteristics of differentiated Value Added Tax (VAT) rates in tourism and to analyze the effect of their application on the long-term sustainability and competitiveness of this important for Bulgaria economic sector.
The study focuses on the assessment of the economic importance of tourism in Bulgaria and the need for preferential tax policy for its existence. The effect of the lower VAT rate on the sustainable and competitive development of the sector is also analyzed. Finally, the research is trying to clarify the specifics of administrating the VAT in various tourist services in the country.