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Hungary - Transfer Pricing - 12/23/08
(Dec 23, 2008)
Hungary - Transfer Pricing - 12/23/08 Hungary introduced transfer pricing legislation in 1992 in Section 18 of the Corporate Income Tax ... Read more
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JOB DEMAND The ongoing development of the international economic scenes on which our organisation operates and the constant growth in business of the Pasut Group inevitably means a search for additional experts on international taxation with a degree in economics ... Read more
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Bulgaria - Proposal of changes in the VAT Act - 02/02/2007

The Government has proposed changes to the VAT Act with the aim to curb VAT frauds. Another objective of the new VAT Act is to reduce customs and tax formalities to a minimum. The most common form of fraud involves deliveries of goods within the EU and trade deals within the EU. A particular serious fraud causing heavy losses to state budgets is the so-called “chain fraud”, where an invoice is issued over and over again for the same goods among traders registered in different EU member states.
In consideration of the lack of customs control and the long time it takes for information to be exchanged about internal trade, the amendments to the VAT Act will introduce a mechanism requiring guarantees before persons deemed as “risky” by the administration can be registered.
The revenue agency will refuse registration to people who do not deposit a one-year-long unconditional and irrevocable bank guarantee. Registration will be also be refused if one or more of the owners, managers or shareholders are holding a similar position in companies owing more than 5000 leva in unpaid VAT. Finally registration will be declined if a person has been convicted of or charged with offences against the tax administration system.
There has also been a change of the time frames for an audit which will now be up to six months from the delivery of the order for inspection. The term may be extended by two months, instead of the current one month.
As far as the regular information exchange of data declared in the VIES system is concerned, the information on a specific three months period has to be submitted at the end of the next three months period.
The amendments to the act have also established tougher administrative sanctions. If a declaration is not filed on time, a fine between 500 and 10,000 leva will be imposed. The same sanctions will apply to registered persons who do not give information to the accounting register or give the information in electronic form different from that used by the register.


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