04 ян.



Edition 94/ 2012 of the Official Gazette adopted amendments in several Bulgarian tax laws which will take effect from 01.01.2013.

Amendments in Value Added Tax Act:

  1. A possibility to issue simplified invoices is being introduced, meaning they can include not all obligatory elements, only in cases of amounts less than 100 EUR or their equivalent in BGN.
  2. A summary invoice may be issued for a series of supplies within a given month.
  3. When electronic invoices are issued the use of electronic signature and electronic data interchange is no longer mandatory.
  4. The EUR exchange rate of the European Central Bank may be used for converting taxable base defined in EUR. Conversion with other currencies shall be based on the EUR exchange rate for each currency.
  5. The restriction on input VAT deduction for rented cars and motorcycles by individuals as well as for the goods and services for their maintenance, exploitation and repair is abolished.
  6. Gratuitously granted improvement of the leased asset is equated now with improvement granted against consideration. The client tenant is entitled to a tax credit for making the improvement, but this tax credit should be charged to the landlord on the day of the return of asset.
  7. The restriction on VAT deduction for goods and services for repairing a leased asset, even when the rental agreement term is less than three years.
  8. The term for submitting of inventory of assets and services, obtained before the date of registration under Value Added Tax Act, is amended to 45 days after the date of registration.


Amendments in Corporate Income Tax Act:

  1. From 01.01.2013 the obligation to make advance payments is bound to the net sales in the previous year. In case the sales fall below 300 000 BGN – no advance payments will be due, for sales between 300 000 and 3 000 000 BGN – advance payments will be due on a quarterly basis, for sales above 3 000 000 BGN – advance payments will be due on a monthly basis. The advance payments will be calculated on an estimated taxable profit that may be increased and/ or decreased within the year. If the income tax for a given year exceeds the advance payments by 20%, interest will be imposed on the excess amount.
  2. The term for submitting withholding tax is amended to one month following the quarter of income accrual, irrespective of whether a Double Tax Convention is in place. The current term is not more than three months following the quarter of income accrual.
  3. An obligation to submit withholding tax due is imposed even if no tax was withheld and paid. Until now only the withheld tax was declared to the National Revenue Agency.
  4. Tax on expenses will be an annual obligation, no longer a monthly one.
  5. An obligation to announce a written notification to the National Revenue Agency has been introduced when adjusting the current taxable result with accounting errors related to previous period. The National Revenue Agency shall adjust the taxable result and the tax due accordingly.

Amendments in Tax and Social Security Procedures Code:

In order to decrease the number of payments to the budget a “unified payment order” and a “unified tax and social security account” have been introduced. A payment will first cover those obligations that expire at the earliest.

Amendments in Personal Income Tax Act:

  1. The maximum monthly social security base is increased from 2 000 BGN to 2 200 BGN.
  2. The statutory interest on late security contributions will be equal to that on overdue tax liabilities (BIR + 10%)
  3. Income from interest on bank deposits will be subject to a final tax of 10%
  4. Advance contributions for PIT (personal income tax)  will be due until the 25th day of the month following the month of deduction the insurance by the employer, together with the due social and health insurance contributions for the respective month
  5. Official notes issued by payers of income from economic activity will be issued by April 15 of the year following the year of payment of the income.

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