Tax type

Reference period

Reasons for breaks

 Energy taxes

 2008-2021

 No breaks

 Transport taxes

 2008-2021

 No breaks

 Pollution/Resource taxes

 2008-2021

 No breaks

Tax type

Discrepancy

Size of discrepancy

Reasons

The main data sources for complying environemtal taxes by economic activities are:

 Reported total revenues for each tax category: energy, transport, pollution and resource reported by National accounts in National tax list (NTL) for the reporting year.The main sources of information for the elaboration of data for taxes and social contributions by sub-sectors of General Government and NTL are:

•  execution of the consolidated state budget and state units reports;
•  additional statistical information from Ministry of Finance for taxes on accrual basis according to ESA 2010 requirements and recording the transactions based on the time-adjusted cash method (VAT, excise, Personal Income Tax, Corporate income taxation);
•  and additional statistical information from other ministries and agencies on import taxes on agricultural products, pollution, etc.

 According to Eurostat’s methodological guidance energy taxes include taxes on energy products used for transport and stationary targets, and the most important energy products for transport are petrol and diesel fuel and the stationary use includes fuel oil, natural gas, coal and electricity. These are taxes on consumption represented by the excise duties on mineral oils, electricity, coal and coke.

 In this category are included the following energy taxes:

• Excise duty on fuels from import
• Excise duty on fuels - domestic production
• Excise duty on electricity
• Excise duty on coal and coke
• Excise duty on natural gas

Excise duty on fuels from import and domestic production, excise duty on electricity, coal and coke and natural gas are leviedunder the Law on Excise Duties and Tax Warehouses. In energy taxes from 2013 year are included also greenhouse gas emissions license fees (СО2 taxes).

Distribution of the energy taxes by economic activity for 2008-2020 by NACE Rev.2 (A*64) is based on available SUT tables, Annual survey Expenditure on Fuel and energy for recpective year, National accounts final consumption expenditures of households (domestic concept) and annual administrative data from Executive Environment Agency for the revenues of the paid Greenhouse gas emissions license (permits) fees. The fees are collected annually for opening or administration of accounts in National registry under European greenhouse gas emission trading scheme (from operators of stationary installations, aircraft operators, verification bodies and legal persons owners of trading/personal accounts) according to the Tariff of fees collected in Ministry of Environment and Waters – article 5, paragraph 1 and 2.

The new energy tax - Emission Trade Permits (ETS) Revenues in 2019 was changed from NP (Acquisition less disposals of non–produced assets) to D.29 (Other taxes on production), using an average price method or a one-year time lag method as requested by Eurostat (EDP dialogue visit to Bulgaria). The revenues are from auction of stationary and aviation allowances under EU Emission Trading System on behalf of auctionner (Ministry of Environment and Waters) on the auction platform European Energy Exchange (EEX). Distribution of Emission Trade Permits (ETS) Revenues by economic activity is based entirely on information from European Transaction Log (stationary and aviation operator holding accounts with their owner, quantity of free allocated and surrendered allowances for each calendar year) and avarage price downloaded from  European Energy Exchange auction calendar.

Distribution of the transport, pollution and resource taxes by NACE Rev.2 (A*64) by economic activity for 2008-2020 is used actual data about paid environmental taxes and fees (calculations are based on annual information from Statistical survey of paid taxes and fees – section paid transport, pollution and resource taxes).

 Section Paid Transport taxes in the survey of taxes and fees covers taxes and fees related to the possession and use of motor vehicles. They include: 

• Excise duty on motor vehicles from import under the Law on Excise Duties and Tax Warehouses; (Repealed 2010 year)
• Excise duty on motor vehicles in the country under the Law on Excise Duties and Tax Warehouses; (Repealed 2010 year)
• Taxes on vehicle registration - payments for issuing and replacement of driving license documents, including registration number plates. They are  paid only once when registering the vehicles;
• Vehicle tax for legal persons -annual tax under the Local Taxes and Fees Act. Except for road vehicles, tax is paid for ships entered in the registers of Bulgarian ports, as well as for aircraft registered in the Civil aviation state register of the Republic of Bulgaria; 
• Tax on ships - Tax on the net tonnage of ships under Corporate Income Tax Act;
• Other taxes: Corporate vehicle expenditure tax - levied on expenditure associated with the operation of vehicles for carrying out management activity.

Transport vehicle tax includes annual tax for possession of transport vehicles regulated in Articles 52 to 61 of the Local Taxes and Fees Law. Transport vehicle tax is levied on any transport vehicles registered for operation on the road network in the Republic of Bulgaria, on any ships recorded in the registers of the Bulgarian ports, and on any aircraft recorded in the State register of civil aircraft of the Republic of Bulgaria.The taxable persons are the owners of the transport vehicles (natural or legal persons).

As regards transport taxes of households - Vehicles tax paid by households the data derive from National Accounts and are directly allocated to households from National Tax List.

The following are exempt from transport vehicle tax:

any transport vehicles owned by state and municipal bodies and public-financed organizations, which enjoy special traffic privileges, as well as ambulances and fire trucks owned by other persons;

any transport vehicles owned by diplomatic missions and consulates, on a basis of reciprocity;

the transport vehicles of the Bulgarian Red Cross, where used for the purposes of that organization;

electric cars;

any passenger cars owned by persons who have lost between 50 and 100 per cent of their working capacity, of engine capacity not exceeding 2,000 ccm and of engine power not exceeding 117.64 kW;

any deregistered transport vehicles (no tax is due as from the month next succeeding the month of deregistration);

any end-of-life transport vehicles which are subject to mandatory delivery for dismantling as provided for in a statutory instrument (no tax is due after their deregistration for operation and presentation of a certificate of delivery for dismantling).

From 01 January 2010 year excise duty on cars and import which are levied under the Law on Excise Duties and Tax Warehouses is repealed and from 2011 year this tax is excluded from the paid transport taxes section in the survey on taxes and fees.

 Pollution/Resource taxes are aimed at: environmental protection; biodiversity conservation; protection and use of environmental components; control and management of factors that damage the environment; prevention and limitation of pollution.

The survey on taxes and fees coveres all paid taxes by the Water Act fees, Waste Management Act fees, Protected and Clean Air Act fees.

• Under the Water Act are included pollution taxes which are payable in accordance with the Tariff of fees for water abstraction (for permits), for the use of water for sediment deposition and water pollution.

In the National Tax List (NTL) Water act fees have been presented in D29F total taxes for pollution. For the right distribution in the ETEA questionnaire data from 2014 for the first time D29F were separated to: taxes for pollution including paid fees for water pollution and resource taxes including fees for water extraction and using the water body for sediment deposition. There is no change in the total line ‘Total resource taxes and taxes on pollution’. Previously the data about Water act fees have been presented in D29F total taxes for pollution. This division was made for the entire time series (2008-2013).

The shares for the reporting year are calculated based on the received administrative information from Ministry of Environemnt and Waters (MOEW) and the distribution to economic activity from the survey on taxes and fees. The shares are calculated by deviding the pollution fees (revenues from water pollution fees) and resource fees (revenues from water extraction and using the water body for sediment deposition fees) to the total revenues under Water Act and Tariff of Fees. The obtained shares (coefficients) are multipled to the total Water act fees revenues recorded in NTL.

• Under Waste Management Act are included either a product fee which is paid in the Enterprise for management of environmental protection activities (EMEPA) or a license fee for waste recovery organizations. The fee is payable by legal entities placing on the market products after the use of which mass waste is generated.
• Under Clean Air Act are included fees paid by end users of boiler fuel and fuel oil with more than 1 percent of sulfur (BGN 22 per tonne) to the Enterprise for the Management of Environmental Protection Activities. This fees are repealed from Chapter 6 of the Clean Air Act from 22 December 2015 year. From 2016 year this tax is excluded from the paid pollution taxes section in the survey.

Waste collection and disposal charge is included in Other environmentally related payments to government (fees and charges) in pollution taxes. Waste collection and disposal charge is paid annually to municipalities under the Local Taxes and Fees Act. The data source for revenues of waste collection and disposal charge is Ministry of Finance.

In the section paid "Resources taxes" in the survey are included the following taxes:

• For water resources - includes taxes and fees for 1) water abstraction, 2) for use of a water body for sediment deposition from surface water, according to the Tariff of Fees.
• Protected Areas Act fees - paid for issuance of permits for using pastures, obtaining timbers and commercial gathering of forest herbs, mushrooms,  fruits and other products;
• Municipal charges for extraction of quarrying materials which are collected under the Law on local taxes and fees - paid by physical or legal entities who extract quarry materials. Fees are determined on a gross basis separately for each type of material;
• Fees for commercial fishing under the Tariff of fees under Fisheries and Aquaculture Act - Fees for the issue of a commercial fishing license by EAFA;

Hunting and fishing licenses levied on households – directly allocated to households from National Tax List.  The tax payers for resource tax ''hunting and fishing licences" (D59D) are the households. In this tax category are included taxes for amateur fishing and hunting fees.  The tax revenues for 'hunting and fishing licences" (D59D) are obtained annually in NA from EAFA (Executive Agency Fishery and Aquaculture)  and  EFA (Executive Forest Agency).                                                                                 

Amateur fishing is carried out by natural persons, who have license for amateur fishing issued by EAFA (Executive Agency Fishery and Aquaculture). The right to hunt is exercised by natural persons holding a membership card and a hunting license. The hunting licence is issued by the EFA (Executive Forest Agency).

Tax Name/ESA Code

Source data for compiling tax revenue by payer

Energy taxes

 Excise duty on fuels from import / Fuel D2122C C02

National Tax list, Annual survey Expenditure on fuel and energy, COFOG function of state budget, National accounts data for final consumption expenditure of households (domestic concepts)

Excise duty on fuels - domestic production/ Fuel D214A C02

National Tax list, Annual survey Expenditure on fuel and energy, COFOG function of state budget, National accounts data for final consumption expenditure of households (domestic concepts)

 Excise duty on electricity D214A C06

 National Tax list, Annual survey Expenditure on fuel and energy

 Excise duty on coal and coke D214A C07

 Excise duty on natural gas D214A C09

 National Tax list, Annual survey Expenditure on fuel and energy

 Greenhouse gas emissions license fees D29F C06

National tax list, Administrative data from Executive Environmental Agency for the paid greenhouse gas emissions license fees by economic activity

The revenue of emission traiding petmits D29H C07

National tax list, Reporting table - Emission (ETS) permits/allowances, Information about issued and surrendered allowances by enterprise (operator holding accounts) from European Union Transaction Log - EUTL (DG CLIMATE) and Annual avarage price from Auction calendar from European Energy Exchange (EEX)

Transport taxes

 Excise duty on motor vehicles from import / Cars D2122C C05

 Excise duty on motor vehicles in the country / Cars D214A C05

 National Tax list, Annual statistical survey of paid taxes and fees - Excise duty on cars

 State taxes on registration of motor vehicles D214D C01

 National Tax list, Annual statistical survey of paid taxes and fees - Taxes on vehicle registration Eco-tax on registration on motor vehicles

 Motor vehicles tax paid by producers D29B C01

 Corporate vehicle expenditures tax D29H C02

 National Tax list, Annual statistical survey of paid taxes and fees - Vehicle tax for legal persons

National Tax list, Annual statistical survey of paid taxes and fees - Corporate vehicle expenditures tax

 Tax on the net tonnage of ships D29H C04

 National Tax list, Annual statistical survey of paid taxes and fees - Tax on the net tonnage of ships under Corporate Income Tax Act

 Vehicles tax paid by households D59F C01

 National Tax list and National accounts data

Pollution taxes

 Water Act fees D29F C01

 National Tax list, Annual statistical survey of paid taxes and fees - paid fees for water pollution under Tariff of fees and Water Act, Administrative data from Minisrty of Environemnt and Waters - Total tax revenues for water pollution and by River Basin Directorates

 Waste Management Act fees D29F C02

 National Tax list, Annual statistical survey of paid taxes and fees - product fees under Waste Management Act

 Clean Air Act fees D29F C04

 National Tax list, Annual statistical survey of paid taxes and fees - air pollution fees under Clean Air Act

Resource taxes

 Water Act fees D29F C01

 National Tax list, Annual statistical survey of paid taxes and fees - paid fees for 1) use of water resources - for water abstraction and 2) for using the water body for sediment deposition from surface waters under Tariff of fees and Water Act, Administrative data from Minisrty of Environemnt and Waters - Total tax revenues on water abstraction and for using water body for sediment deposition and by River Basin Directorates

 Municipal taxes on extraction of quarry materials - Local Taxes and Fees Act D29E C02

  National Tax list, Annual statistical survey of paid taxes and fees - paid taxes on extraction of quarry materials under Local Taxes and Fees Act

 Fees for commercial fishing D29E C02

 Hunting and fishing licenses D59D C01

  National Tax list, Annual statistical survey of paid taxes and fees - Fees for commercial fishing under Fisheries and Aquaculture Act

 National Tax list and annual National accounts data for hunting and fishing licenses paid by households (Revenues are obtained  from EAFA (Executive Agency Fishery and Aquaculture)  and  EFA (Executive Forest Agency).

 Protected Areas Act fees D29F C03

 National Tax list, Annual statistical survey of paid taxes and fees - Protected Areas Act fees

Estimates about the allocation of energy taxes for 2008 – 2013 are based on Supply-Use tables for the respective years proportionaly to the Intermediate Consumption and Final Consumption of respective energy products from SUT.

For the period 2014 to 2021 energy taxes are allocated using the structure of expenditure for each type of energy products, for which energy taxes have been paid - fuel, coal and electricity based on the annual survey “Expenditure on fuel and energy” proportionaly to the expenditure for fuel and energy for each energy product, levied with excise by economic activites. The share of Housholds is obtained by using National accounts estimates for Households Final Consumption Expenditures by COICOP groups. Expenditures for energy products covered by the budget are allocated by function.

Distribution of the environmental tax based on Greenhouse gas emissions license (permits) fees by economic activities for the period 2013 to 2021 have been done on the basis of the structure of the fees payed by economic activities. Data for the fees by enterprises are obtained from Executive Environment Agency (ExEA).

Data about residents purchases of emissions allowances from auctions (stationary installations operators - EUA and aviation operators - EUAA) for 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 are based on information about issued (free allocated)and surrendered allowances from bulgarian enterprises under EU ETS. If company (operator) surrendered more allowances in the calendar year than it was issued, then it was assumed that the difference is bought from auction platform EEX. Those bought emission allowances are multiplied with average price and allocated to respective NACE.  Information about issued and surrendered allowances from stationary and aviation operator holding accounts, account number and their status (opened/closed), unified identification code (UIC) for assaigning code of economic activity (NACE) is taken directly from European Union Transaction Log ( https://ec.europa.eu/clima/ets/allocationComplianceMgt.do?languageCode=en ) from Compliance Reports. Code of economic activity is assaigned to every operator holding account. Average annual price of the EUA/EUAA is obtained from Annual Emission Spot Primary Market Auction Reports  published on webpage of European Energy Exchange (EEX) ( https://www.eex.com ) and also the publically available summary information on auctioned sales of greenhouse gas emission allowances and revenues generated by them by Ministry of Environment and Waters (https://www.moew.government.bg/bg/informaciya-za-osustestvenite-trujni-prodajbi-na-kvoti-za-emisii-na-parnikovi-gazove-i-generiranite-ot-tyah-prihodi-prez-2018-g/). The data is allocated in the new mandatory sheet ‘ETS CO2 taxes’.

Allocation of transport, pollution and resource taxes by NACE Rev.2 activities is made by using the shares of the NACE activities obtained from survey for paid taxes and fees and applying them to National Accounts total revenues of paid environmental taxes by type recorded in NTL.  Full coherence of environmental tax data by economic activity and total environmental tax revenues is provided on the basis of the National Tax List.

 The estimation procedure of the share of NACE activities for the mandatory years (2008-2021) includes the following steps:

Allocation of transport, pollution and resource taxes by NACE Rev.2 activities is made using the shares obtained from the survey carried out for the reporting 2011 year. The shares were applied to the available totals of corresponding groups of environmental taxes for 2008-2011. But as this approach did not take into account the structural changes between economic activities during the years and in order to take into account these structural changes as weights was used the number of employees by respective economic activity for the corresponding year.

Data for 2012 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the same survey carried out in 2012 year. As weights was used the number of employees by respective economic activity for the corresponding year 2012.

Data for 2013 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2013 year. As weights was used the number of employees by respective economic activity for the corresponding year 2013.

Data for 2014 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2014 year. As weights was used the number of employees by respective economic activity for the corresponding year 2014.

Data for 2015 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2015 year. As weights was used the number of employees by respective economic activity for the corresponding year 2015.

Data for 2016 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2016 year. As weights was used the number of employees by respective economic activity for the corresponding year 2016.

Data for 2017 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2017 year. As weights was used the number of employees by respective economic activity for the corresponding year 2017.

Data for 2018 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2018 year. As weights was used the number of employees by respective economic activity for the corresponding year 2018.

Data for 2019 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2019 year. As weights was used the number of employees by respective economic activity for the corresponding year 2019.

Data for 2020 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2020 year. As weights was used the number of employees by respective economic activity for the corresponding year 2020.

Data for 2021 year allocated to transport, pollution and resource taxes NACE Rev.2 activities were done using shares obtained from the survey carried out in 2021 year. As weights was used the number of employees by respective economic activity for the corresponding year 2021.