On 30 June 2020, the Constitutional Court of Bulgaria issued Decision No. 8, confirming the constitutionality of article 102, paragraph 4 of the Value-Added Tax Act (effective as from 1 January 2018).
According to the challenged VAT provision, a taxable person is liable for VAT on all taxable supplies made after exceeding the statutory threshold for a mandatory VAT registration, regardless of whether the taxpayer has been registered for VAT purposes. Based on this provision, while performing tax audits, the tax authorities may assess additional VAT in cases where taxpayers failed to file, or failed to file on time, for a VAT registration.
The decision is accessible on the Constitutional Court's website.