Varieties of the distance selling of goods from 01.07.2021

From 01.07.2021 the following types of distance selling of goods are introduced in the national VAT legislation: intra-Community distance selling of goods; distance selling of goods imported from third countries or territories; domestic distance selling of goods; delivery of goods, which is facilitated by an electronic interface.

Intra-Community distance selling of goods is the dispatch or transport of goods by the supplier or on his behalf from the territory of a Member State other than that in which the dispatch or transport of the goods to a non-taxable person, including a taxable person and a non-taxable legal person carrying out an exempt intra-Community acquisition ends. The goods must have been produced in the EU or have already been released for free circulation. The rules on intra-Community distance selling of goods do not apply to the following categories of goods: new vehicles; goods that are mounted and / or installed by or at the expense of the supplier; goods subject to a special price margin procedure for second-hand goods, works of art, collectors’ items and antiques.

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Important changes regarding the acquisition of Bulgarian citizenship

Important changes regarding the acquisition of Bulgarian citizenship have been adopted in the Bulgarian Citizenship Act. First of all, the amendments to the law optimize the opportunities for acquisition of Bulgarian citizenship by naturalization by foreigners who have received permanent residence in Bulgaria, based on investments made by them, as well as by their spouses. Long-term investments and job creation are encouraged for the purpose of acquisition of Bulgarian citizenship upon shortened periods of residence.

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Change in the grounds for family reunification of a foreigner with a residence permit in Bulgaria

The grounds for reuniting the family of a foreigner with a permitted residence in Bulgaria are legally changed. A foreigner, with a residence permit of not less than one year on the territory of Bulgaria, can submit an application for obtaining the right of temporary residence (prolonged-stay) from a member of his/her family, if any of the following grounds exist in relation to his/her family member:
– if there are grounds for granting him/her permanent residence;
– if he/she is a member of the family of a foreigner who has received a permanent or temporary residence (prolonged-stay) permit, as well as of a foreigner who has received international protection – when the documents certifying family ties and the right to maintenance are recognized or admitted for execution under Bulgarian law;
– if he/she is a member of the family of a foreigner with granted asylum, temporary protection or humanitarian status – when the documents certifying the family ties and the right to maintenance are recognized or admitted for execution under the Bulgarian legislation;
– if he/she is a member of the family of a long-term resident foreigner – he/she may obtain a long-term residence permit for a period of one year with the possibility of renewal, without exceeding the permitted period of residence of the holder;
– if he/she is a member of the family of a holder of a permit for a person transferred during an intra-corporate transfer – he/she may obtain a temporary residence (prolonged-stay) permit for the period of residence of the holder.

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Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)

From the beginning of 2021, the deadline for filing annual tax returns (ATR) for corporate tax (until March 31) has been changed, and the new deadline is now from March 1 to June 30. The same applies to the deadline for payment of corporate tax, which has been changed by 3 months and is now until June 30.

The deadline for paying tax on expenses has also been changed by three months and is now until June 30.

The change in the deadlines optimizes the preparation of the annual tax returns of the companies and improves the process of annual accounting closing. Systematic and predictable consistency in the fulfillment of the obligations for declaring and submitting information to the National Revenue Agency is also achieved. Continue reading “Changes in the deadlines for filing annual tax returns (ATR) and for publishing annual financial statements (AFS)”

The term for re-registration of non-profit legal persons is prolonged with 2 years

Non-profit legal persons entered in the register of non-profit legal persons to district courts are obliged to submit an application for re-registration until 31 December 2022. In this way the term for re-registration is prolonged with 2 years. Continue reading “The term for re-registration of non-profit legal persons is prolonged with 2 years”

Cross-border supplies of goods between the EU and the United Kingdom and VAT refunds from 01.01.2021

As of the end of the transition period (31 December 2020), the EU rules in the field of VAT, and in particular Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax and Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State, no longer apply to and in the United Kingdom. This has in particular the following consequences concerning the treatment of taxable transactions of goods and VAT refunds:

I. VAT RULES FOR CROSS-BORDER SUPPLIES OF GOODS

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Responsibility of the providers of intermediation online services and providers of online search engines

In the Electronic Marketing Act there are accepted amendments, which have as purpose to ensure the implementation of Regulation (EU) 2019 / 1150 of the European Parliament and of the Council of 20 June 2019 on promoting fairness and transparency for business users of online intermediation services.

The ratified in 2019 Regulation (EU) 2019 / 1150 is aimed at preventing potentially harmful practices and bad-faith marketing behaviour within the relations between online platforms and business users of intermediation services, which these platforms provide. The Regulation also aims to warrant a predictable, stable and reliable online business environment within the EU’s Unified Market and to provide transparency and trust within the relations between the companies in the economy of online platforms. Continue reading “Responsibility of the providers of intermediation online services and providers of online search engines”

Why accounting outsourcing is appropriate for small, medium and large enterprises?

Accounting outsourcing for large enterprises
The Bulgarian legislation considers for large enterprises, enterprises that as of December 31 of the current calendar year exceed at least two of the following indicators: book value of assets – BGN 38,000,000; net sales revenues – BGN 76,000,000; average number of staff for the reporting period – 250 people. They often have own accounting department. In turn, it may consist of different units in depending on the size, divisions and activities of the company: commodity unit, financial and accounting, payments to staff, stocks, capital assets, tax and excise unit, etc. Continue reading “Why accounting outsourcing is appropriate for small, medium and large enterprises?”

Who are self-employed individuals?

Self-employed individuals are those who perform employment activities such as:
– persons registered as practicing a free profession and / or craft activity;
– persons practicing labor activity as sole traders, owners or partners in commercial companies;
– natural persons – members of impersonal companies;
– natural persons – traders within the meaning of the Commercial Law, but not registered as sole traders;
– registered farmers and tobacco growers. Continue reading “Who are self-employed individuals?”

Some advantages of outsourced accounting

When an individual starts a business and wants to be in the light of his activity, he must do everything possible to have accountants who handle correctly and professionally the financial and accounting issues of his/her company.

Each company has two options for keeping its accounts in order: a special department to deal with declarations, insurance, taxes and others, or hiring a company for outsourced accounting. The second option is often far more appropriate. Continue reading “Some advantages of outsourced accounting”