VAT charging and tax rates

Responsibility for charging VAT

Any person registered under the Bulgarian Value Added Tax Act (VATA) is obliged to charge value added tax and issue a tax document, such as an invoice, protocol or notice with the VAT amount indicated on a separate line. The document needs to be added to the purchase ledger for the relevant period in the VAT declaration issued in accordance to Art. 86 of VATA. If a document is not issued in the required period, the VAT is due for the period when the tax becomes chargeable.

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Supply of goods – types of places in accordance with Bulgarian VAT regulations

There are different ways for determining the place of supply of goods in accordance with the Bulgarian Value Added Tax Act (VATA). This is detrimental for the type of VAT taxation regime of each supply to Bulgaria. The basic principle for VAT taxation for each supply is that it is in accordance to the local laws on the territory of the supply.

General terms

Art. 6 (2) of VATA stipulates that when the goods are not shipped or forwarded but rather their ownership is passed by handing them over – the place of supply is where they are handed over to the buyer.

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OECD issues consultation documentation regarding the investment schemes involving misuse of residence for circumventing the Common Reporting Standard

A growing number of jurisdictions are offering Citizenship by investment (CBI) or Residence by investment (RBI) schemes allowing foreign citizens to obtain local citizenship or permanent or temporary residence rights in order to take advantage of the local flat fees or in exchange for local investments. These individuals may be interested in these opportunities for a number of legitimate reasons such as taking advantage of visa free travelling, increased mobility or better job or educational opportunities, or the choice of living in an economically stable country. But at the same time the information which is released on the market and obtained by the OECD CRS public disclosure facility stresses on the various RBI and CBI misuse schemes which are aimed at circumventing the requirements for reporting under the Common Reporting Standards (CRS).

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OECD has released its latest developments regarding the BEPS implementation

OECD has announced further actions to be taken for efficient Base erosion and profit shifting (BEPS) implementation for the collaboration among the country members of the Organization and their jurisdictions of potential tax avoidance schemes which use the existing mismatches and gaps in the tax rules for shifting profits toward locations with lower or no taxes. The latest developments are targeted towards assuring certainty for both Multinational Corporations and tax administrations and require Country-by-Country (CBC) reporting.

The Inclusive Framework includes the newly approved updates to the results of the preferential regime reviews of the Forum on Harmful Tax Practices (FHTP) regarding BEPS Action 5.

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Bulgarian temporary residence permit – Questions and Answers

What are the benefits of getting a Bulgarian temporary residence permit?

  • Foreigners will get a Bulgarian ID card allowing their stay in Bulgaria and multiple entries into the country.
  • Your Bulgarian ID card can be extended for up to 5 years and foreigners can later apply for permanent residence and full citizenship.
  • Access to a simpler visa process for Schengen Zone.
  • You can take your family to Bulgaria.

What duration of living does a temporary residence permit allow me in Bulgaria?

A Bulgarian temporary residence permit allows you to stay for either 6 or 12 months. You can renew yearly for up to 5 years.

When do I become qualified to apply for a Bulgarian permanent residence permit?

To be eligible for a permanent residence permit, a person should hold a valid Bulgarian temporary residence permit for a minimum of 5 years. Foreigners can get their temporary residence permit through the trade representative office in Bulgaria. The permit is issued for a duration of one year and can be renewed annually for up to five years.

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Bulgarian Visa information guide

If you decide to travel to Bulgaria, kindly read our guide in order to acquire general information what is required.

At first, check whether a visa is required for your country.

Visa Regime for foreigners with ordinary passports for a short stay (until 90 days) – check the list.

Visa Regime for foreigners with diplomatic and service passports – check the list.

Visa types:

Visa A (for airport transit) – The airport transit visa entitles the foreigner to cross or to stay in the international transit zone of the airport in the case of a transit landing or of changing flights for the purpose of continuing travel to another state.

The following documents shall be submitted together with the application on applying for an airport transit visa:

  1. A regular foreign travel document;
  2. A photocopy of the pages the foreign travel document with the personal information and with the visas laid and/or a photocopy of the held permits for stay in the next states along the route;
  3. A recent colorful photograph (passport size);
  4. Flight booking

Before the airport transit visa is issued, the ticket and a copy thereof are presented.

Visa C (for a short stay for the purpose of transit or a planned stay) – A short-stay visa for the purposes of planned stay is issued to a foreigner who enters the country once, twice or multiple times for a total term of stay up to 90 days within each 6 months as of the date of the first entry.

The multiple short-stay visa may be with a validity term of up to twelve months or, as an exception – up to five years.

Conditions for issuance of multiple visa (any of the following):

  • business contacts with Bulgarian natural or legal persons;
  • family members of Bulgarian citizen or citizen of EU;
  • family members of foreigner residing permanently in Bulgaria;
  • driver of international road transport or a member of a crew of railway transport for passengers and goods;

Documents required:

  1. A regular foreign travel document;
  2. A photocopy of the pages of the foreign travel document with the personal information and the visas laid and/or a photocopy of the permits for stay possessed; 
  3. A recent colorful photograph – passport size;
  4. Documents substantiating the visa request as well as copies thereof;
  5. Proof of the possession of the required financial resources for subsistence amounting to a minimum of EUR 50 per day of the stay requested (at least EUR 500) or a document of prepaid tourist services;
  6. Documents certifying the possession of the required financial resources for accommodation or a document for prepaid accommodation in a tourist accommodation facility, or an invitation;
  7. Documents certifying the possession of the required financial resources to leave the country or a ticket;
  8. An insurance policy with a minimum amount of the cover EUR 30 000.

Invitation Declaration – by natural or legal person for private stay/ for business visit.

Substantiation of the purpose of the journey:

  • Private visit
  • Business visit
  • Cultural exchange
  • Sport
  • Medical treatment
  • Tourism

 

Visa D (for a long stay) – up to 6 months and a right to stay of up to 180 days.

Conditions for issuance of multiple visa (any of the following):

  • work
  • commercial activities
  • foreign specialists
  • parents of Bulgarian citizens
  • commercial representatives
  • medical treatment
  • mass-media correspondents/ journalists
  • pensioners/ retired persons
  • family members of Bulgarian residents
  • students
  • Settlement visa
  • Investment Incentive visa
  • dependants and family members of diplomatic, consulate officials or commercial representative
  • Trade visa
  • Non commercial activity visa
  • family members of the Bulgarian citizen

Visa D entitles the holder to multiple entries in the territory of Bulgaria within its validity term.

Visa application form – Download

Documents required:

  1. Visa application form
  2. A regular foreign travel document
  3. Copies of the pages of the foreign travel document with the personal information and the visas laid and/or copies of the permits for stay possessed
  4. Recent passport-size color photograph
  5. Original documents and two copies thereof substantiating the application for a long stay visa under the Foreigners in the Republic of Bulgaria Act and the Regulation on its implementation, and of the financial resources possessed for subsistence and accommodation.

In order to obtain long-stay permission the person must comply with additional conditions. The procedure has its own specifics and a good knowledge of the legal base is necessary. For that reason Global Consult Europe advises you to contact our experts.

 

Transport license in EU

Community license for international road haulage

Registration of transport company

How to get transport license in Bulgaria?

It is necessary to have a registered company (regardless of the legal form – LTD., JSC., etc.) and its scope of activity is specified for the carriage of goods against payment. Registration of company which carries out transport activity has its own peculiarities, therefore you can count on our qualified legal assistance in registration of transport company.

What documents are needed for Community license for international road haulage?

There are specific requirements for the head of the company’s activity:

Certificate of conviction of the person who manages the transport activity – should not be convicted or deprived of the right to exercise transport activity;

Certificate of professional competence, issued to the person who manages the transport activity – cannot manage more than two transport companies ;

Contract for the appointment of the person who manages the transport activity;

Regarding the company itself must be submitted:

Information for financial stability – it depends on how many vehicles will operate; For the first vehicle the company must have the equivalent in BGN of 9000 EUR and for each additional – the equivalent in BGN of 5000 EUR. Proof of financial stability can be achieved by deposition of the amount in the company’s capital, bank guarantee in Bulgarian bank or conclusion of insurance contract for a insured sum in the same amount.

Notification to the National Revenue Agency;

Declaration that the trader who applies for a license does not have an open procedure of bankruptcy;

Declaration of existence of own or leased garage area with exactly specified address in Bulgaria;

The license shall be issued within 30 days of submission of the documents.

The transport license is not unlimited, it is issued for a period of 5 years. Renewal is possible before the expiry date.

The transport company must comply with the requirements of the law not only when applying for a license but also during the entire period while exercising transportation. Companies which perform carriage of goods without required license shall be subject to large fines.

The requirements for obtaining a license should be carefully observed, therefore Global Consult Europe advises you to contact our team of professionals.

Certifications and legalizations

If you plan to start a business in Bulgaria by company registration or commercial representation of your foreign business, it may be necessary to provide documents from abroad, subject to certification and legalization. This text will help you understand what is apostille, when and for which countries it is mandatory to be used and where it is issued.

For a document issued by a foreign state to be recognized by Bulgarian institutions, it shall be arranged in a way which depends on whether the respective state is a party to the Hague Convention, whether between the two states there is a Legal Aid Agreement that is still in force or whether this state does not fall in any of the first two groups.

Requirement for apostille

All documents issued in a foreign state which is party to the Hague Convention shall have an apostille from the Ministry of Foreign Affairs.

List of the parties to the Hague Convention – CHECK HERE.

List of institutions issuing apostille in different countries – with addresses and contact details.

Example of apostille

Apostille

(Convention de La Haye du 5 octobre 1961)

1. Country: ………………………………………….

This public document

2. has been signed by ……………………………

3. acting in the capacity of …………………….

4. bears the seal/stamp of …………………….

Certified

5. at …………………….  6. the …………………….

7. by ………………………………………………………

……………………………………………………………….8. No. …………………….

9. Seal/stamp:         10. Signature:

…………………….          …………………….

Translation in Bulgarian

Documents with apostille need to be translated in Bulgarian in one of the two ways below:

1/ by a consular or diplomatic official in the country where the document is issued;

2/ by a translation agency authorized by the Ministry of Foreign Affairs of the Republic of Bulgaria.

Certification of the translation

The translation of the document shall be certified in Bulgaria.

STATES WITH WICH THE REPUBLIC OF BULGARIA HAS BILATERAL LEGAL AGREEMENTS

For states with which the Republic of Bulgaria has bilateral legal aid agreements with provisions for exempting the documents from legalization with apostille, documents issued by the foreign state must bear the stamp of the respective authorized institution as per the bilateral agreement. The thus issued document is recognized by the Bulgarian institutions and it only needs its Bulgarian translation which shall be certified.

List of the states with which the Republic of Bulgaria has bilateral legal agreements – CHECK HERE.

FOR ALL OTHER STATES

In case the documents have no or cannot have any apostille, in order to trigger actions on the territory of Bulgaria, they need to be certified (legalized) in line with the generally accepted practice:

  • The document is required to be certified by the Ministry of Foreign Affairs of the state that issues it;
  • The stamp of the Ministry of Foreign Affairs of the foreign state shall be certified/ legalized by the Bulgarian diplomatic or consular mission in that state.

Source: mfa.bg

Global Consult Europe will advise you on any questions and assist you for the legalization of documents in Bulgaria – just contact us.