5 Major developments in Bulgaria

Highlights – All effective as of Jan 1, 2023

• VAT rate of 9% on accomodation, newspapers, magazines, baby diapers, ….
• Implementation of Bad Debt Relief
• Implementation of DAC7
• Increase of Intrastat thresholds
• Increase in VAT Registration Threshold

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Bad debt

• Bill to Harmonize VAT Rules With EU Directives, Court Decisions, and allow VAT bad debt claims
• Bulgaria Approves Rules for VAT Bad Debt Relief
• Bulgaria to Introduce VAT Bad Debt Relief
• Bulgaria to offer VAT relief on bad debts
• Bulgarian Government proposes VAT bad debt relief

DAC7

• Bulgaria Gazettes Law Implementing DAC7 EU Directive on AEOI for Digital Platform Operators
• Bulgaria Publishes Law for Implementation of DAC7
• Bulgarian Government Submits Draft Bill for Implementation of DAC7

ECJ Cases

• ECJ C-1/21 (Direktor na Direktsia „Obzhalvane i danachno-osiguritelna praktika“) – Judgment – A Member State can impose its own rules with regard to joint…
• ECJ C-620/21 (Momtrade Ruse) – AG Opinion – VAT exemption for social services to natural persons in other member states

E-Commerce

• Bulgaria Assembly Considers Bill to Implement EU Directive on AEOI for Digital Platform Operators

Fiscalization

• Homologation procedure of fiscal device in Bulgaria

Intrastat

• Bulgaria raises Intrastat thresholds 2023

Other

• MOF Seeks Comments on Bill to Harmonize VAT Rules With EU Directives, Court Decisions
• The adoption of the euro currency in Bulgaria

Rate

• Tax relief for consumer energy products in Bulgaria
• VAT rate of 9% due on hotels, renting out places for camping sites or caravans, …
• VAT rate of 9% due on newspapers, magazines and books on physical media or done electronically, or both
• VAT rate of 9% due on supplies of food suitable for babies, baby diapers and similar baby hygiene articles

Registration

• Bulgaria Confirms Increase in VAT Registration Threshold from January 2023
• Council Implementing Decision Published Authorizing Bulgaria to Increase VAT Registration Threshold
• European Commission authorizes Bulgaria to exempt VAT taxable persons if turnover is not exceeding EUR 51.130
• European Commission approves implementation of VAT exemption on small businesses
• From January 1, 2023, the threshold for registration under the VAT Law will be raised to BGN 100,000
• Proposal by the European Commission – Bulgaria may exempt from VAT Taxable Persons whose annual turnover does not exceed EUR 51,130

Reporting

• A new portal for electronic services has been introduced in Bulgaria
• Update No. 4 for 2022 of a software product (under Windows) for generating reporting registers, reference-declaration for VAT and VIES…

VAT Guide

• Bulgarian VAT Guide
• VAT Guide: VAT in Bulgaria

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