The Ministry of Finance has launched a public consultation on proposed amendments to the Value Added Tax Act. The main suggested changes are the following:
- introduction of VAT bad debt relief and related requirements for its application;
- application of a special procedure for declaring the supply of goods dispatched or transported outside the territory of the European Union by a supplier not established in the EU;
- introduction of an obligation for providers of payment services in relation to cross-border payments to keep an electronic register of the recipients and of the payments in connection with the payment services they perform for each calendar quarter of the supply of goods and services; and
- proposal for persons registered for VAT purposes, at the initiative of the tax authorities, to be allowed to deduct input VAT as of the date of the effective VAT registration.
The full text of the proposal, issued on 5 September 2022, is available here (in Bulgarian only).