Bulgaria: VAT provisions effective in February 2022

Value added tax legislative changes, effective 18 February 2022

Value added tax legislative changes, effective 18 February 2022

Value added tax (VAT) legislative changes, effective 18 February 2022, address or concern the following items.

First, the measures are intended to implement the findings from a judgment of the Court of Justice of the European Union addressing the principle of VAT neutrality and to introduce into Bulgarian VAT legislation a mechanism for making adjustments when a supply is incorrectly treated from a VAT perspective. Typical situations when the new provision may apply include:

  • Correction of VAT charged by the supplier when the recipient is denied the corresponding input VAT deduction
  • Correction of an omission by the supplier to charge output VAT, so that the recipient could deduct input VAT on the reissued invoice

Second, the measures also address food vouchers that were explicitly excluded from the scope of the VAT law. Those measures have been repealed.

Next, a zero-rate of VAT will be applied on the importation of goods by the European Commission (or other bodies of the EU) as well as to supplies of goods and services to these bodies, when the purchase is made in relation to the execution of tasks in response to the coronavirus (COVID-19) pandemic.

Lastly, a new measure addresses the VAT treatment of supplies to and from the United Kingdom.

Read a February 2022 report [PDF 103 KB] prepared by the KPMG member firm in Bulgaria


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