The Bulgarian authorities recently published, in the Bulgarian official gazette, new amendments for applying the Value-Added Tax (VAT) with immediate effect.
These amendments include:
1. The proportion of deductible input VAT incurred by a business.
- Criteria should have a time-based or quantity-based or a combination of both, which include the use of business assets.
- In case of an initial registration or re-registration, news rules have been introduced.
- Guidelines are provided for reporting invoices in the VAT purchase ledger.
2. Adjusting the period in which input VAT for new traders can be deducted.
- Specifications have been given for a one-off adjustment.
- New procedures are introduced for making an annual adjustment for the proportion of deductible input VAT and for standard revisions in case supplies are cancelled.
3. Revising the VAT pro-rata coefficient.
- Unrelated real estate charges and supplies of long-term business assets that are not normally used for the taxable activity must be excluded.
- When calculating the VAT pro-rata coefficient, the basis shall be the usage of the asset rather than the total pro-rata coefficient for the year.
4. Among other changes, they are amendments relating to VAT exemptions for supplies that involve international transportation and a VAT regime for single tourist services.