August 2020 / Bulgaria

August 11 2020

COVID-19 Pandemic: Bulgaria Extends Scope of Reduced 9% VAT Rate

On 11 August 2020, the Bulgarian government officially extended the scope of the products for which the value added tax (VAT) rate is temporarily reduced to 9% for the period from 1 August 2020 to 31 December 2021. The new products include:
  • beer and wine provided as part of restaurant/catering services;
  • the use of certain sports facilities; and
  • tour operators' services, including the organization of excursions by tour operators and travel agents with occasional transportation.
For the text of the gazetted Bill, see here (in Bulgarian only).
August 6 2020

COVID-19 Pandemic: Bulgaria Extends Reporting Deadlines under DAC2 and DAC6

On 4 August 2020, Bulgaria amended the Tax and Social Security Procedure Code by extending the deadlines for DAC2 (CRS) and DAC6 reporting frameworks. The DAC2 (Common Reporting Standard (CRS)) reporting deadline for financial institutions in respect of information concerning the taxable period 2019 is extended from 30 June 2020 to 30 September 2020. The DAC6 reporting deadlines are extended as follows:
Reporting time framework Deadline
mainstream reporting (30-day period to report new cross-border arrangements) the period commences on 1 January 2021 (currently, 1 July 2020)
historical reporting (reportable arrangements from 25 June 2018 to 30 June 2020) 28 February 2021 (currently, 31 August 2020)
first periodic reporting of marketable arrangements (reportable arrangements between 1 July 2020 and 31 December 2020) first reporting by 30 April 2021 (currently, the law requires recurrent reporting after every 3 months)
  The extension is based on Directive (EU) 2020/876 that amends the Directive on Administrative Cooperation (DAC) allowing EU Member States an option to defer the time limits for DAC2 and DAC6 reporting.   For the text of the Bill, see here (in Bulgarian only).