March 24 2020

Amendments to regulations for application of VAT Act – clarifications published

Source: IBFD Tax Research Platform News

On 23 March 2020, the National Revenue Agency (NRA) published on its website clarifications regarding the amendments to regulations for the application of the VAT Act that were promulgated in the State Gazette on 20 March 2020. Below is a summary of the clarifications.

Changes to VAT reporting documents

The amendments to the regulations for the application of the VAT Act introduce changes to the VAT return and other VAT reporting documents. The first tax period for which the updated versions should be used will be April 2020 and in this respect the NRA informs that these versions will be published in April 2020.

The NRA Agency clarifies that the amendments to VAT reporting documents are related only to the introduction of the call-off stock arrangements from 1 January 2020. In this respect, the tax administration mentions that only taxable persons involved in call-off stock arrangements will be required to update their VAT reporting documents and other taxable persons will not be obliged to do so and can continue to use the current versions of their VAT return and other VAT reporting documents.

Other amendments

In the clarifications, the NRA outlines also other amendments which are considered important:

  • amendments to the rules for documenting intra-Community supplies - it is now required that the VAT number of the recipients issued by other EU Member States is to be on the invoice issued by the Bulgarian supplier;
  • changes to application forms for VAT registration/deregistration; and
  • amendments to input VAT adjustment rules in the cases of subsequent expenses related to improvements of fixed assets.

The clarifications (in the Bulgarian language) are available here.