Bulgaria: Amendments to VAT law effective 1 January 2024

Deferred payments, deduction adjustments, and new registration rules

Deferred payments, deduction adjustments, and new registration rules

Amendments to the value added tax (VAT) law generally effective from 1 January 2024 include:

  • A regime for deferred payment of VAT in case of centralized clearance upon importation of goods was introduced. To apply the regime, it is necessary for the importer, a VAT-registered person, to have certain permits. The due VAT needs to be paid by the 16th of the month following the month in which the customs declaration was accepted.
  • Changes to the initial input VAT deduction rules mean that no adjustment will be required for confirmed or proven destruction, loss, or absence of goods due to events beyond the control of taxable persons, or in cases of proven or confirmed destruction leading to their irreversible disappearance.
  • New rules have been introduced for documenting supplies by taxable persons who have not fulfilled their obligation to apply for mandatory VAT registration within the prescribed terms.

Other changes include:

  • An increase in the threshold for mandatory VAT registration to BGN 166,000 from 1 January 2025
  • Extension of temporary reduced VAT rates
  • Amendments to the rules for determining the amount of additional collateral due by persons trading with liquid fuels
  • Increased administrative sanctions for omissions related to fiscal and system receipts

Read a January 2024 report prepared by the KPMG member firm in Bulgaria



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