At the end of 2017 the Value Added Tax Act (VATA) was amended by Act for Amendment and Supplement to the Tax Insurance Procedure Code
Most amendments are effective as of January 1, 2018, the ones to come into effect at a later date shall be explicitly mentioned.
1. Amendments related to the VAT registration
- Shortened term for submission of an application for mandatory registration.
Taxable persons that have reached a taxable turnover of 50,000 BGN shall file a registration within 7 days as of the expiry of the tax period in which the turnover was reached, not as hitherto stipulated – within 14 days.
- A new ground for mandatory registration has been introduced.
Taxable persons that have reached a taxable turnover of 50,000 BGN for a period not longer than 2 consecutive months shall file the application within 7 days as of the date of reaching the turnover. Non-compliance with the registration term shall result in administrative penalties
- Unincorporated entities (consortia) in which VAT registered persons participate shall submit a registration application within 7 days as of the date of formation of the unincorporated entity, not as of the effective date of the consortium formation contract.
- Revocation of the requirement for provision of collateral upon VAT registration of entities wherein one or more of the owners, managers, procurators, majority partners or shareholders are or were at the time of arising of the obligations owners, procurators, majority partners or shareholders, members of management or supervisory bodies of another company/entity that has outstanding liabilities exceeding 5000 BGN and have not paid the collateral determined by the revenue authority.
- A relieved regime for VAT registration shall enter into force as of January 1, 2019, whereby entities will be able to apply for VAT registration by submitting an application for initial registration of the entity with the Commercial Register.
2. Amendments related to the VAT deregistration
Upon winding up of a legal entity without liquidation or of an unincorporated entity or insurance fund, the entities shall no longer be required to submit an application for VAT deregistration. The VAT registration will be terminated on the initiative of the revenue authority.
3. Supplements in connection with tax credit adjustments
The provisions concerning adjustments to tax credit entitlements have been elaborated on.
4. Changes related to collaterals for liquid fuels supplies
- The scope of persons/entities that are obliged to provide a collateral upon release of liquid fuels from an excise warehouse has been reduced.
- The following shall be relieved of the obligation to provide collaterals for liquid fuel supplies: (i) registered agricultural producers; (ii) budget organizations; (iii) persons that receive fuels for their own use.
5. Revenue authorities shall have greater powers in applying the coercive administrative measure “sealing a site”.
6. As of January 1, 2018, reference declarations, VIES declarations and the accounting records shall only be submitted on paper and/or by technical means.
7. Accelerated VAT refund in connection with the implementation of projects under Operational Program “Environment” 2014-2020
Persons receiving funds for construction, management, maintenance and exploitation of Water and Sewage systems and equipment in implementation of water projects under Operational Program “Environment” 2014-2020 shall be entitled to VAT refund within a shorter term of 30 days.
24 January 2018
