As of 1st July 2019, Bulgaria is introducing the option for businesses importing certain goods into Bulgaria to use a postponed accounting scheme.
This means that qualifying importers will be able to account for the import VAT in the subsequent Bulgarian VAT return via a reverse charge mechanism.
Under the current rule, companies importing goods into Bulgaria have to pay the customs duties and import VAT due at the time of importation, before the goods are released. Then, they may deduct that import VAT in their subsequent VAT return.
The new measure will apply, subject to certain conditions and requirements, to imports of certain goods listed in the Bulgarian VAT Act, if their import value exceeds BGN 50,000. The list includes aluminium, nickel, sulphur, tin, lead, zinc and organic chemical products.
This simplification scheme is used widely throughout the EU since it benefits businesses by removing the need to make cash payments.
If you have any questions on the above, please do get in touch.