On 19 February 2020, the parliament approved at second (final) reading amendments to the Value Added Tax (VAT) Act. The amendments concern the transfer of greenhouse emission allowances (based on Directive 2003/87/EC of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC).
The allowances traded are included in the list of supplies to which the domestic reverse charge mechanism applies.
The amendments also provide that, in cross-border situations where a Bulgarian person is engaged in emissions trading with a supplier/recipient established in another country, the general VAT rules will be applicable.
This reverse charge regime will apply until 30 June 2022.