Certain amendments in the customs and tax legislation entered into force on the 1st of January 2020. They were introduced by amendments of the Tax-Insurance Procedural Code (TIPC), promulgated on the 31st of December 2019.
- Amendments in the Customs Act
The most significant amendments concern high-risk goods for the European Union’s financial interests, which are subject to increased customs controls.
- There is a new list of such goods.
The list is is published on the websites of the Ministry of Finance and the Customs Agency.
- Securing the amount of the customs duty for these goods
The customs authorities shall require the provision of a security in case it is established that the prices of the goods, as declared before the customs, are lower than the fair prices applicable to these goods in the European Union.
The security shall be provided at an amount which ensures the payment of the customs duties and other receivables that may arise on import, estimated on the basis of the fair prices of those goods at the time of declaration. A definition has been created for the term “fair prices” and the way for granting access to these prices has been specified – through the system THESEUS of the Joint Research Centre to the European Commission.
The customs formalities in this case continue after the security has been provided.
- Amendments in the Local Taxes and Fees Act
The amendments refer to:
- Vehicles acquired before their initial registration for operation in the country
These motor vehicles are exempt from taxation on the acquisition of assets through donation or for consideration.
- The accommodations with up to 20 rooms
The patent tax for such an accommodation, categorized as one or two stars or registered under the Tourism Act shall be determined per room, depending also of the site location and may vary between BGN 25.00 and BGN 250.00.
For 2020 the accommodations with up to 20 rooms registered under the Tourism Act the amount of the patent tax valid for the accommodations with up to 20 rooms, categorized as one or two stars shall apply.
- Assets acquired via donation during 2019
In case no tax was paid on the respective acquisition, taxable persons should declare this and pay the tax by the 31st of March 2020.
The transfer of real estate property, limited real rights over real estate property and motor vehicles, donations received and provided by non-profit legal entities for carrying out public utility activities, etc. shall be exempt from the above rule.
- Amendments in the Corporate Income Tax Act
The amendment concerns the determination of the tax financial result in the case of a controlled foreign company. Upon determination of the tax profit in compliance with the law the tax loss in previous tax periods:
- Shall be deducted consecutively until it is exhausted within the next 5 years as from its occurrence, subject to the legal requirements on transfer of tax loss, only from the tax profits of the same controlled foreign company or from the tax profits of another controlled foreign company in the same foreign country, from which it has originated;
- shall not be deducted from the taxable profits of the taxable person from a source in the country or other countries.
The above shall be applicable for tax losses which have occurred after the 31st of December 2018.
- Amendments in the Value Added Tax Act
It is still valid that upon application of the zero rate for intra-Community supplies, the supplier should possess:
- Documents for the delivery which documents are specified in the Rules for Implementation of the Value Added Tax Act of the Republic of Bulgaria (RIVATA); and
- Documents for the dispatch or transportation of of the goods from the territory of the country to the territory of another Member State.
The amendment concerns documents for the dispatch or transportation of goods from the territory of the country to the territory of another Member State. These are not only the documents under Art. 45a of Council Implementing Regulation (EU) 2018/1912 of 4th of December 2018, but also those referred to in the RIVATA.