With effect from 1 July 2019, Bulgaria will apply the so-called deferred accrual of VAT (or reverse-charge mechanism) on imports of certain goods (pursuant to art. 211 of the EU VAT Directive). The newly introduced rules will be applicable to certain categories of taxable persons and will cover the importation of the goods listed in Appendix No. 3 to the VAT Act. The list of goods includes ferrous and non-ferrous metals, ores, organic and non-organic chemical products (i.e. the goods referenced in Chapters 25, 26, 28, 29 and Chapters 72–80 of the Combined Nomenclature).
The importers who are entitled to apply the deferred accounting of VAT should meet all of the following conditions:
The right to input VAT deduction is applied through the monthly VAT return submitted by the importer by including the import customs declaration and the protocol for VAT reverse charge in the monthly VAT sales and purchase ledgers. Thus, the importer is entitled to enjoy input VAT deduction without the import VAT being effectively paid to the customs office upon importation of the goods.
Following the latest amendment to the Implementing Regulation to the VAT Act, the conditions which should be cumulatively fulfilled so that the triangulation simplification applies are as follows:
The Vouchers Directive (EU) 2016/1065 of 27 June 2016 was implemented in Bulgarian VAT law as of 1 January 2019. The newly adopted provisions introduce the terms ‘single-purpose voucher’ and ‘multi-purpose voucher’ and establish the rules for their VAT treatment.
The new rules will apply for vouchers issued after 31 December 2018.
The Global VAT Newsletter focuses on changes in compliance duties in various EU and non-EU countries
If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.