October 2018 / Bulgaria

On 11 April 2019, the National Revenue Agency published, on its website, the 2019 version of the manual on personal income taxation. The manual provides a detailed overview of the applicable legislation and numerous examples with comments from the authorities. The manual can be found here.

On 19 April 2019, amendments to the Value Added Tax Act were published in the State Gazette. The amendments clarify that calendar years in which assets are not used must be excluded for the purpose of calculating the periods at the end of which no adjustments for input VAT deduction are required (20 years for immovable property and 5 years for other qualifying assets and services). An adjustment must be made when the asset is no longer used for business purposes. Effective 13 July 2019, the term for the adjustment of input VAT deducted will be interrupted and suspended for each calendar year during which the movable goods or the immovable property, respectively, are not used for business purposes.

Report from our correspondent Dr Svetlin Krastanov, Tax Manager, PwC Bulgaria

On 3 October 2019, the director of the National Statistical Institute issued an order regarding the Intrastat thresholds and their statistical values for 2020. Thresholds for Intrastat reporting are:

• BGN 290,000 (currently BGN 280,000) for dispatches; and
• BGN 470,000 (currently BGN 460,000) for arrivals.

Thresholds for declaring statistical value are:

• BGN 15,800,000 (currently 14,400,000) for dispatches; and
• BGN 7,600,000 (currently BGN 7,400,000) for arrivals.

The threshold for simplified reporting of single low-value transactions will remain the same, i.e. BGN 390.