BG Tax News

VAT on business assets which are used for personal needs also

From January 2016, all VAT-registered companies in Bulgaria have to declare the amount of VAT for the private usage of business assets with submission of monthly VAT returns and purchases and sales ledgers to the NRA. The guide for application of this system was adopted by NRA.

Where the purchase of an asset it is known that it will be used solely for personal purposes and for the purchase of those goods VAT credit was not used, then it is not expected by NRA that the companies will charge VAT for such usage.

In cases where the goods will be used for both business and private purposes, there are two options:

· Full VAT deduction, with VAT to be charged for personal usage of the goods;

· VAT to be deducted in proportion corresponding to the ratio of private-business usage of the goods.

Consolidated fiscal programme performance data as of 30/11/2015

Based on the monthly reports of first-level spending units, a deficit of BGN 406.4 million (0.5% of the projected GDP) is reported under the Consolidated Fiscal Programme (CFP) as of end-November 2015. It is formed by a national budget deficit of BGN 82.5 million and a deficit of EU funds of BGN 323.9 million. For comparison, the CFP budget balance at end-November 2014 was a deficit of BGN 1,600.7 million (1.9% of GDP), i.e. the budget stance, as a relative share of GDP, has improved by 1.4 percentage points.

Bulgaria joins EU states calling for VAT fraud measures

Bulgaria has confirmed it is joining four other countries calling for the widespread introduction of the domestic reverse charge to help fight VAT. In addition to Bulgaria, the countries backing the measure include: Austria; Hungary, Slovakia and the Czech Republic.

It is anticipated that Germany will join the group as it has already sat in attendance on a number of the meetings so far.