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
