Category Archives: VAT act

VAT registration of an entity, whose manager has outstanding tax liabilities exceeding 5 000 BGN

It is a common case where the commercial activity of an entity requires VAT registration of a newly established company. However, it would be an obstacle if the manager has outstanding liabilities to the budget exceeding 5,000 BGN (which originate … Continue reading

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VAT in case of commissions paid on Booking.com by a non-VAT-registered Bulgarian company

Many Bulgarian companies use the services of Booking.com to sell their hotel and guest house accommodation services. Some of these companies are small and are not registered under the Bulgarian Value Added Tax Act (VATA). Booking.com is a foreign company, … Continue reading

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VAT effects related to contribution in-kind

Under Value Added Tax Act (VAT Act), the contribution in-kind is treated as a “non-delivery”. I.e. the transfer of an asset from one company (X) to another (Y) via contribution in-kind does not lead to VAT accrual.

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Is VAT due for advance payments before the Company is VAT registered?

Value Added Tax Act (VATA) treats advance payments received before VAT registration of the Company as a specific case for VAT accrual.

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What are the complications associated with the VAT “cash accounting” regime?

Since the beginning of 2014, the Value Added Tax Act (VATA) introduced an alternative VAT treatment regime– i.e. “cash accounting” regime. In a few words, this regime allows the supplier to pay VAT to the budget only following receiving the … Continue reading

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Loans, interests and partial VAT credit

It is a well-known fact that when a company performs both VAT taxable and non-taxable sales under the meaning of the Value Added Tax Act (VAT Act), for all purchases which cannot be assigned to one of these categories of … Continue reading

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Tomatoes and the VAT credit

“Can I use the tax credit for this …?” or “Will this … be recognized as a of the company?” are frequently asked questions.

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Marketing tricks, related with VAT, sell cars

Probably everyone has come across car dealers’ advertisements, claiming that the advertised cars all tax (VAT) credit to be used by the buyers. Since the tax credit right is a great marketing message, traders also save the client the other … Continue reading

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Can physical persons get VAT registered under the VAT Act?

Years ago it was quite unpopular physical persons to be registered under the Value Added Tax Act (VAT Act), but a legal requirement for natural persons to get VAT registered under certain conditions does exist. This used to be so … Continue reading

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Downpayments – a VAT credit right in case of registration under the VAT Act

I will neither comment on the general conditions of the VAT credit right nor the overall procedure of using a VAT credit in case of registration under the VAT Act. I will only review the possibility of a VAT credit … Continue reading

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