Article 96.

(1) Any taxable person having a taxable turnover of BGN 50,000 or more for a period not exceeding twelve consecutive months last preceding the current month shall be obligated to submit an application for registration under this Act within 14 days after the lapse of the tax period during which such turnover has accrued to the said person.

Article 100.

(1) Any taxable person, whereto the conditions for compulsory registration covered under Article 96 (1) herein do not apply, shall have the right to register under this Act.

(2) Any taxable and non-taxable legal person, whereto the conditions for compulsory registration under Article 99 (1) herein do not apply, shall have the right to register under this Act for intra-European Union acquisition.

(3) Any taxable person may register under this Act, notwithstanding the amount referred to in Item 2 of Article 20 (2) herein, where the said person has notified the tax administration of the Member State where the said person is registered for VAT purposes that the said person wishes the distance selling effected thereby to have a place of transaction within the territory of the country.

(4) (Supplemented, SG No. 108/2007) Notwithstanding Paragraphs (1) and (3), a person whose registration under this Act has been terminated or refused by the revenue administration in pursuance of Article 176 herein cannot be registered before the grounds for refusal of registration or the grounds for deregistration lapse, or before the lapse of 24 months after the beginning of the month following the month of deregistration or refusal of registration.

Chapter Seventeen "a" VALUE ADDED TAX SPECIAL CASH ACCOUNTING REGIME (New, SG No. 101/2013, effective 1.01.2014)

General Provisions

 Article 151a. (New, SG No. 101/2013, effective 1.01.2014)

(1) The persons registered under Articles 96, 97 and 100 (1) may apply a value added special cash accounting regime, hereinafter referred to as "special regime", if they meet simultaneously the following conditions:

1. have a taxable turnover not exceeding the lev equivalent amount of 500,000 euro, realized for a period not exceeding the last 12 successive months before the current month; the taxable turnover shall be determined in accordance with Article 96;

2. have no effective tax assessment act under Article 122 of the Tax Insurance Procedure Code and/or for liability under Article 177;

3. have no chargeable and unpaid tax liabilities and liabilities for social-insurance contributions under effective acts, and in case of existing liabilities they have provided security or a permit for deferral or rescheduling has been granted thereto.

(2) Upon applying the special regime to supplies in respect whereof a chargeable event has occurred, the tax shall become chargeable on the date of receipt of the whole payment or of a partial payment proportionate to the required payment. The regime shall apply to all supplies of goods or services with the exception of:

1. importation of goods;

2. intra-Community acquisitions of goods;

3. intra-Community supplies of goods;

4. supplies to persons not registered under this Act;

5. tax-exempt supplies;

6. supplies with place of transaction outside the territory of the country;

7. supplies of services with place of transaction on the territory of the country in respect whereof the tax is chargeable on the recipient of the goods;

8. supplies under lease contract under Item 3 of Article 6 (2);

9. supplies in respect whereof part eight applies, except for this chapter;

10. supplies of goods and services in respect whereof the consideration is not paid via bank transfer, including credit transfer, direct debit or cash transfer effected through a payment service provider within the meaning of the Payment Services and Payment Systems Act, or via postal transfer effected through a licensed postal operator making money transfers within the meaning of the Postal Services Act;

11. supplies chargeable at the zero tax rate under chapter three;

12. supplies between related parties;

13. chargeable supplies in respect whereof the whole payment is made, including the tax for the supply, including the tax hereunder, before or on the date of occurrence of the chargeable event.

(3) For application of the special regime a permit shall be granted by the National Revenue Agency authorities.

(4) For obtaining a permit for application of the special regime the person referred to in Paragraph (1) shall submit to the competent territorial directorate of the National Revenue Agency a written request in standard form set out in the Regulations for Application of this Act. The request for application of the special regime shall be submitted in accordance with the procedure for submission of applications under Article 101.

(5) Within the time limits under Article 101 (6) and (7), the revenue authority shall perform verification and shall issue an act confirming or reasonably refusing to issue a permit for application of the special regime. The permit shall be issued on the date of serving the act referred to in Article 101 (7).

(6) The National Revenue Agency shall refuse to issue a permit under Paragraph 5 should it establish that any of the conditions referred to in Paragraph 1 has not been fulfilled.

(7) The National Revenue Agency may refuse to issue a permit under Paragraph 5 should it establish that a circumstance under Article 176 exists.

(8) For the persons referred to in Paragraph 1 the National Revenue Agency shall create and maintain a special public register which is part of the register under Article 80 (1) of the Tax Social Insurance Procedure Code.

(9) The revenue authority shall record the person in the special public register under Paragraph 8 on the day of issuance of the permit for application of the special regime.

Application and Termination of the Special Regime

 Article 151b. (New, SG No. 101/2013, effective 1.01.2014)

(1) A person who has obtained a permit under Article 151a (5) shall apply the special regime from the first day of the month following the month of obtaining the permit.

(2) When the conditions under Article 151a (1) exist, the person who has obtained a permit for application of the special regime may take actions for termination of the application of the regime upon expiry of 12 months effective from the month following the month of issuing the permit.

(3) When one of the conditions under Article 151a (1) does not exist, the person who has obtained a permit for application of the special regime shall take actions to terminate the application of the regime.

(4) For termination of the application of the special regime under Paragraphs 2 and 3 the person shall submit to the competent territorial directorate of the National Revenue Agency a request for termination of the application of the special regime in standard form determined in the Regulations for Application of this Act. In the cases under Paragraph 3 the request shall be submitted within 7 days from occurrence of the circumstances.

(5) For termination of the application of the special regime under Article 109 (4) and (5) the revenue authority shall make verification and shall issue an act confirming or reasonably refusing to terminate the application of the special regime.

(6) A person who has chosen to apply the general rules for chargeability of the tax under Article 25 after the time limit under Paragraph 2 may request a permit for application of the special regime after expiry of 12 months effective from the beginning of the month following the month of termination of application thereof.

(7) Application of the special regime shall be terminated at the initiative of the revenue authority by issuing an act when:

1. it is established that any of the conditions under Article 151а (1) does not exist and the person has not fulfilled its obligation for submission of a request under Paragraph 4 within the required time limit;

2. the person has deducted a credit for input tax before occurrence of the conditions under Article 151d (1);

3. the person under Paragraph 1 has not issued or recorded the memorandum issued under Article 151c (8) for the value added tax due upon received payment for the supply of goods or services effected thereby in the reporting ledger under Item 2 of Article 124 (1) and in the VAT return under Article 125 for the period for which the tax has become chargeable.

(8) The revenue authority may terminate the application of the special regime for a person who has been granted a permit under Article 151а (5) should it establish that the circumstances under Article 176 apply.

(9) Application of the special regime shall be terminated under Paragraphs 2, 3, 7 and 8 from the day following the serving of the act of termination of the special regime.

(10) The revenue authority shall de-register the person from the special public register under Article 151a (8) on the day of the serving of the act of termination of the special regime.

Chargeable Event, Tax Chargeability and Tax Charging

 Article 151c. (New, SG No. 101/2013, effective 1.01.2014)

(1) The chargeable event of a supply in respect whereof the provisions of this chapter apply shall arise in accordance with the general rules hereunder.

(2) A person applying the special regime, on the date of occurrence of the chargeable event under Paragraph 1, shall charge the tax on the supply by:

1. issuing an invoice or notification and specifying the tax on a separate line;

2. specifying the invoice or notification under Item 1 in the sales ledger for the respective tax period and the taxable amount and the amount of the tax shall not be taken into account in the calculation of the result for the tax period.

(3) The tax on the supply under Paragraph 1 shall be chargeable on the date of receipt of the whole payment or of a partial payment on the supply and the person applying the special regime shall record and include in the sales ledger and in the VAT return under Article 125 for that tax period the amount of the tax indicated in the memorandum under Paragraph 8 in determining the result for the respective tax period.

(4) Upon received partial payment on or after the date of the chargeable event, chargeability under Paragraph 3 shall arise only for the portion of the tax charged in the invoice and/or notification under Paragraph 2, which proportionately corresponds to the amount of the partial payment made against the total amount of the payment due at the date of the chargeable event.

(5) For a partial advance payment on a supply under Paragraph 1, which is received before occurrence of the chargeable event, Article 25 (7) shall apply and chargeability shall be effected in accordance with the general procedure of this Act. Upon a partial advance payment received before occurrence of the chargeable event, Paragraph 3 shall apply to the amount of the tax on the difference between the taxable amount on the supply and the amounts paid in advance, excluding the tax hereunder.

(6) When before the start of application of the special regime an invoice has been issued for a partial advance payment on a chargeable supply, the chargeable event in respect whereof occurs after the first day of the month following the month of obtaining the permit for application of the special regime, Paragraph 5 shall apply.

(7) Upon termination of application of the special regime a tax in respect whereof no chargeability under Paragraph 3 has occurred shall become chargeable on the date of serving of the act of termination of the regime application and the person shall include it in the VAT return under Article 125 in the calculation of the result for the tax period in which the application of the special regime is terminated.

(8) For determination of the tax under Paragraphs 3 and 7 a memorandum shall be issued under the procedure set out in the Regulations for Application of this Act to each of the parties by the supplier - a person applying the special regime. The tax shall be due for the tax period in which it became chargeable.

Credit for Input Tax

 Article 151d. (New, SG No. 101/2013, effective 1.01.2014)

(1) For the persons under Article 151b (1) the right to deduct credit for input tax for received supply in which the supplier does not apply the special regime shall arise for the tax period in which the whole or partial payment on the supply was made to the supplier and shall be exercised within the time limit under Article 72.

(2) Paragraph 1 shall not apply for the supplies of goods or services which according to Article 151a (2) are excluded from the scope of the special regime. The right to deduct credit for input tax for such supplies shall arise and shall be exercised in accordance with the general rules of the act.

(3) For the persons under Article 151b (1) the right to deduct credit for input tax on a supply for which the supplier applies the special regime and in the invoice is written "cash accounting" shall arise for the tax period in which the whole or a partial payment was made on the supply to the supplier and shall be exercised within the time limit under Article 72.

(4) Upon a partial payment made on or after the date of the chargeable event the right to deduct credit for input tax under Paragraph 1 shall arise for the portion of the tax charged in the invoice and/or notification at the date of the chargeable event, which proportionately corresponds to the amount of the partial payment made against the total amount of the payment due at the date of the chargeable event.

(5) Upon a partial advance payment made prior to occurrence of the chargeable event the right to deduct credit for input tax shall arise in accordance with the general rules of the act. For the tax stated in the invoice and/or notification issued at the date of the chargeable event, determined on the difference between the taxable amount on the supply and the amounts paid in advance, excluding the tax hereunder, Paragraph 1 shall apply.

(6) A person terminating the application of the special regime under the procedure of Article 151b shall have the right to deduct credit for input tax for the tax in respect whereof the said right has not been exercised as a result of the application of Paragraph 1. The right shall arise on the date of serving of the act for the termination of the regime application and shall be exercised within the time limit under Article 72.

(7) For a person terminating the application of the special regime the right to deduct credit for input tax on a supply for which no tax chargeability has arisen in respect of a supplier - a person applying the special regime and in the invoice is written "cash accounting" shall arise in accordance with the procedure of Article 68 (6).

(8) To determine the amount of the tax credit under Paragraphs 1 and 6 a memorandum shall be issued by the recipient - a person under Article 151b (1) in accordance with the procedure set out in the Regulations for Application of this Act. No memorandum shall be issued by the recipient for supplies in respect whereof the supplier has applied Article 151c (8) and in the invoice is written "cash accounting".

Documenting the Supply

 Article 151e. (New, SG No. 101/2013, effective 1.01.2014)

(1) The effected supplies for which chargeability of the tax under Article 151c (3) has not occurred shall be documented by stating "cash accounting" in the invoice and in the notification thereto.

(2) Paragraph 1 shall not apply to goods which are excluded from the scope of the special regime in accordance with Article 151a (2).

(3) Documenting and reporting of supplies under the special regime shall be effected in accordance with a procedure set out in the Regulations for Application of this Act.

§ 1a. (New, SG No. 95/2009, effective 1.01.2010) This Act shall transpose the provisions of:

7. (New, SG No. 98/2013, effective 1.01.2014 - amended, SG No. 104/2013, effective 1.12.2013) Council Directive 2013/43/EU of 22 July 2013 amending Directive 2006/112/ЕC on the common system of value added tax, as regards an optional and temporary application of the reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud (ОJ, L 201/4 of 26 July 2013).

Article 114. (1) An invoice shall mandatorily state:

(4) (Amended, SG No. 94/2012, effective 1.01.2013) Where the tax is chargeable from the recipient, the invoice shall not state the amount of tax and the rate of tax. In such case, recorded in the invoice shall be "reverse charge", as well as the grounds for this.

Reverse charge mechanism for VAT is applied on supplies of cereals and industrial crops as follows :

Annex No. 2 to Chapter Nineteen "a" (New, SG No. 108/2006, effective 1.01.2007, amended, SG No. 98/2013, effective 1.01.2014, SG No. 101/2013, effective 1.01.2014, SG No. 104/2013, effective 1.12.2013, SG No. 109/2013, effective 1.01.2014)

I.(Amended, SG No. 101/2013, effective 1.01.2014)

Part One: 

II. (Effective 31.12.2015 - SG No. 98/2013, effective 1.01.2014 – amended, SG No. 104/2013, effective 1.12.2013, SG No. 109/2013, effective 1.01.2014)

Part Two: 

SPECIAL TAXING ARRANGEMENTS

Supply of Single Service to Tourists

Article 139.

(1) The taxable amount of the supply of a single service to tourists shall be the margin which represents the difference, less the amount of the tax payable, between:

1. the total amount, which the tour operator or travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;

2. the amount which has been paid or will be paid for supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist, including the tax under this Act.

(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.

SPECIAL ARRANGEMENTS FOR TAXING PRICE MARGIN

Supply of Second-Hand Goods, Works of Art, Collectors' Items and Antiques

Article 143.

(1) (Supplemented, SG No. 108/2006, amended, SG No. 95/2009, effective 1.01.2010)The provisions in this Chapter shall apply to a supply effected by a taxable dealer of second-hand goods, works of art, collectors' items, antiques, supplied to the said dealer within the territory of the country or from the territory of another Member State

TAXING SUPPLIES OF SERVICES SUPPLIED ELECTRONICALLY BY PERSONS,WHO ARE NOT ESTABLISHED WITHIN THE EUROPEAN UNION

Special Registration

Supplies of Investment Gold

Article 160.

(1) Supplies concerning investment gold shall be exempt where, for the purposes of this Act, the said supplies are:

1. supplies of investment gold, including: supplies of investment gold represented by certificates for allocated or unallocated gold; gold traded on gold accounts, gold loans and swaps, involving the right of ownership or claim in respect to investment gold; supplies concerning investment gold involving futures and forward contracts leading to a transfer of the right of ownership or claim in respect of investment gold;

2. services of agents who act in the name and for the account of another, in connection with supplies of investment gold.

INVESTMENT PROJECTS

Special Arrangements for Charging Tax upon Importation

Article 164.

(1) Notwithstanding Article 56 herein, the tax upon importation of goods may be charged by the person registered under this Act if the said person holds a permission issued according to the procedure established by Article 166 herein and imports goods (with the exception of excisable goods) according to a list approved by the Minister of Finance.

Article 9.

(1) "Supply of services" shall be any performance of services.

(2) The following shall also be considered supply of services:

1. the sale or transfer of rights to intangible property;

2. the assumption of an obligation not to perform any acts or not to exercise any rights;

3. any manual and intellectual work, including treatment in the sense of production, construction or assembly of a tangible asset using raw and prime materials placed by the client at the disposal of the service provider;

4. the performance of services by a tenant/user for repair and/or improvement of an asset hired out or allocated for use.

(3) The following shall also be considered supply of services effected for consideration:

1. the provision of services for the private use of the taxable natural person, of the owner, of the factory and office workers or of third parties, the performance of which involves use of goods upon the production, importation or acquisition whereof credit for input tax has been wholly or partly deducted.

2. the provision, free of charge, of services for the private use of the taxable person, of the owner, of the factory or office workers or of third parties.

(4) Paragraph (3) shall not apply upon:

1. the provision, free of charge, of transport services from the place of residence to the place of work and back, by an employer to the factory and office workers thereof, including such under management contracts, where for the purposes of the economic activity of the person;

2. the performance, free of charge, of services by a tenant/user for repair of an asset hired out or allocated for use in the cases where the said asset was hired out or allocated for use to the tenant/user and has been actually used on a continuing basis for a period of not less than three years;

3. the performance, free of charge, of services by a concessionaire for improvement of an asset allocated for use, where this is a condition and/or obligation under the contract of concession;

4. the performance, free of charge, of services of negligible value for advertising purposes.