As of January 1st, 2021, amendments to the Local Taxes and Fees Act (LTFA) will enter into force. The amendments have been promulgated in the State Gazette issue as of December 8th, 2020, introduced by the Law for Amendment to the Value Added Tax Act.
Among the changes of the LTFA, the essential amendments regard:
Real estate tax
These amendments to the LTF aim to reduce the administrative burden on taxpayers. For this purpose, it is no longer necessary to provide a certificate issued by the Agency for Geodesy, Cartography and Cadastre (AGCC) for taxation of newly constructed buildings or parts of buildings.
As a piece of evidence for completion of a construction it is enough to provide only:
- a habitation certificate under the Spatial Planning Act (SPA); and
- a use permit under the SPA.
Motor vehicle tax
The second major amendment introduces new cases where taxes for acquisition of motor vehicles is not due. Thus, acquisition of motor vehicles is tax-free if acquired:
- before initial registration in Bulgaria;
- by an individual located abroad, if there no subsequent movement certification in Bulgaria is required;
- after the registration of the vehicle is terminated due to total damage.