The Amendments in the Rules on Application of the Value Added Tax Act (“RAVATA”) intend to synchronies the provisions of the Regulations with the amendments in the Value Added Tax Act (“VATA”) (promulgated SG, issue 94 of 30. 11. 2012), in force since – 01. 01. 2013
1. Several amendments are introduced in the deadlines for submission of documents for tax refund for available assets and services prior to the registration date or before the date of re-registration. There are similar changes in the provisions that determine the terms of the right of deduction of a tax refund for available assets and services received prior to the date of registration, as well as the right of tax refund in cases of succession and others. The period changes from 7 days to 45 days.
2. Some new provision are added to the adjustments for tax that the right of tax refund is not exercised.
Article 67 of RAVATA is amended, which concerns tax adjustments when neither the deduction nor tax refund is used in case that the taxable persons change their intended purpose and use of taxable transactions is amended. The Act specifies how the amount of tax refund is determined and the procedure that this right exists or exercised.
3. Two new requirements for invoices and notifications are introduced.
The guarantee of the authenticity of origin, the integrity of content and the readability of the invoice or the notification under LVAT can be provided through other technology or procedure. It is envisaged that that the adoption of the bill by the recipient except in writing may be done through acquiescence (through handling or payment of invoices received and notification to invoices)
4. А number of provisions regarding self-billing are amended (issuing a invoice or a notice to the invoice on behalf and on the expense of the supplier). 4.1 Regarding the cases under Art. 113, para 11 (all cases where there is an obligation to issue an invoice) when the supplier and the recipient are taxable persons established on the territory of the country, they may perform self-billing if:
- A preliminary agreement (oral or written) about this matter between both sides;
- The terms of the preliminary agreement and the procedure of acceptance of the invoice shall be determined by both parties;
- The provider explicitly confirms to the recipient the acceptance of the issued under self-billing invoice or notice to the invoice;
4.2. Regarding the cases where the recipient and the supplier are taxable persons, one of whom is established on the territory of the country and the other one the territory of a Member State, documenting the delivery of goods, services or intra acquisition is carried out by the rules of the Member State where the place of execution of the supply is.These changes provide more opportunities for the business that works with international suppliers, they give more flexible terms for agreement and management of their document flow. This way taxpayers get an easier norm and the ability to negotiate discounts, also they will be able to agree on the issuance of credit notices by themselves on behalf of their suppliers. This feature helps to promote trade relations with partners from abroad and – effective management of financial affairs.
This opportunity helps to ease the trade relations with partners from abroad, as well as the more effective management of financial affairs.
5. Changes to Article 3, paragraph 6 of RAVATA, which regulates that the supply of services between a person established on the territory of a Member State and its branches or structural units established on the territory of the country, and vice versa are considered internal turnover and not a taxable supply. Thus, the changes in RAVATA and LVAT seek to unificate the national laws and the practice of the Court of Justice of the European Union (“CJEU”).