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.

By |June 15th, 2017|