An amendment to Bulgaria's VAT Act has been adopted
concerning the provision of supplies in stages. If an agreement
for a supplier to deliver in stages specifies so, then each
completed stage will be considered a separate supply. This
amendment applies to the supply of services as well as to
goods.
In another change, the deadline for submitting an
application for mandatory VAT registration upon reaching the
BGN 50,000 ($31,700) taxable threshold has been reduced to
seven days. If the threshold is reached for a period of not
more than two consecutive months, the application must be
submitted within seven days after the date on which the
threshold was reached.
In cases where a party is obliged to submit an application
for mandatory VAT registration but fails to do so within the
statutory deadline, that party is liable for the VAT on taxable
supplies that exceed a value of BGN 50,000. Businesses should
be aware that VAT is due for the period from the date the
threshold is exceeded until the date of the VAT registration or
the date on which the grounds for VAT registration cease to
exist. Also reduced to seven days is the deadline for applying
for the mandatory VAT registration of a party acquiring goods
from a VAT-registered party following a reorganisation, the
transfer of a going concern, or a capital contribution
in-kind.
From January 1 2018, the submission of a list of assets will
no longer be required in cases where a party wishes to refund
VAT credit for goods available and/or purchased at the moment
of VAT registration. The VAT refund will simply be reported in
the purchase ledger via the respective invoices.
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| Petar Varbanov |
Petar Varbanov (petar.varbanov@eurofast.eu)
Eurofast Global
Website: www.eurofast.eu