An adopted amendment in the VAT Act in Bulgaria concerns supplies in stages. If an agreement for delivery in stages specifies so, then each completed stage shall be considered as a separate supply. The amendment applies to the supply services as well as goods.
An additional change is the fact that the deadline for submitting an application for mandatory VAT registration upon reaching BGN 50,000 taxable threshold has been reduced to 7 days. If the threshold is reached for a period of not more than 2 consecutive months, the application shall be submitted within 7 days after the date on which the threshold was reached.
In case a person is obliged to submit an application for mandatory VAT registration but delays to do so within the statutory deadline, that person is liable for the VAT on the taxable supply with which BGN 50,000 was exceeded. Businesses should be aware that VAT is due from the date of exceeding the threshold until the date of the VAT registration or the date on which the grounds for VAT registration have ceased to exist. The reduction to 7 days affects the deadline for applying to mandatory VAT registration of a person that acquires goods from a VAT-registered person upon reorganization, transfer of going concern or capital contribution in-kind.
From 1 January 2018, the submission of a list of assets shall not be required any longer incase when a person would like to refund VAT credit for goods available and/or purchased at the moment of the VAT registration. The VAT refund shall be simply reported in the purchase ledger via the respective invoices.
For more information, feel free to contact:
Head of Legal, Compliance & Tax
Eurofast Global Bulgaria
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