June 2022 / Bulgaria

June 3 2022

Bulgaria Launches Consultation on Documentation Requirements of Zero-Rated Supplies

The Ministry of Finance has launched a public consultation on proposed amendments to regulations for application of the Value Added Tax (VAT) Act. The main amendments are the following:

  • new requirements for evidencing certain zero-rated supplies;
  • further clarifications concerning the new VAT rules for e-commerce applicable as of 1 July 2021; and
  • introducing of details regarding the rules for adjustments of incorrectly issued invoices even when a tax audit assessment notice has entered into force.

The full text of the proposal, issued on 30 May 2022, is available here (in Bulgarian only).

The public consultation will be open until 29 June 2022. Further developments will be reported as they occur.

June 13 2022

Increase in Exports from Bulgaria by over 27% up until April

In the first four months of the year, Bulgaria's exports outside the European Union increased by 27.5% compared to the same period in 2021 and amounted to BGN 9.224 billion. Bulgaria's main trade partners are Turkey, Serbia, USA, North Macedonia, United Kingdom, China and Egypt, which account for 52.6% of exports to third countries.

As expected, part of the growth is due to higher production prices as a result of inflation. Data from the National Statistical Institute for April show an increase in production prices of 40%.

The largest growth was in the sectors "Mineral fuels, oils and related products" (198.3%) and "Fats, oils and waxes of animal and vegetable origin" (141.8%), and a decrease - in the sector "Goods classified mainly by type of the material" (14.4%).

Imports from January to April grew more - by 58.3% on an annual basis and amounted to BGN 14.385 billion. The largest is the value of goods imported from Russia, Turkey, China and Ukraine. Russia has traditionally held the leading position in data on imports due to natural gas, the supply of which, however, was suspended in late April.

During the four months, the highest growth of imports is again in the two sectors, where the highest growth is in exports - "Mineral fuels, oils and related products" (151.3%) and "Fats, oils and waxes of animal and vegetable origin "(138.7%). No decline was observed in any of the sectors.

Bulgaria's foreign trade balance with third countries in the period January - April 2022 was negative and amounted to BGN 5.160.3 billion.

In the period January - April 2022, a total of BGN 28.781 billion worth of goods were exported from Bulgaria (including the EU), which is 33.6% more than in the same period of 2021.

Imports for the four months totaled BGN 32.678 billion, or 40.5% more than in the same period of 2021.

The total foreign trade balance is negative and amounts to BGN 3.897 billion.

Novinite

June 3 2022

Bulgaria Launches Consultation on Amendments of Excise Duties Act

The Ministry of Finance has launched a public consultation on proposed amendments to regulations for application of the Excise Duties and Tax Warehouses. The main amendments are the following:

  • clarifications regarding certain exemptions from excise duties for goods used by armed forces;
  • details on refunds of excise duties in the cases of performed distance sales of goods;
  • requirements for registration of certified consignors and consignees, including in the cases of temporary certification; and
  • clarifications regarding the requirements for containers for transportation used in road and water transport.

The full text of the proposal, issued on 30 May 2022, is available here (in Bulgarian only).