Amazon is one of the largest online retailers in the world. Jeff Bezos’ company operates worldwide and supplies mostly electronics, but also books and other goods. In addition, Amazon.com is a monopolist in online commerce in the United States. America is the largest and most solvent consumer of goods and services in the world and that is why it is so important for traders to sell on the US market. Amazon.com is the most visited site in America with a potential market of 328 million people.
If you are a Bulgarian manufacturer you will have the opportunity to expand your production, reach new markets and sell at a much higher mark-up if you decide to use Amazon.
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Cash on delivery made a real revolution in online commerce in Bulgaria. Customers may shop without worrying that someone may steal their debit and credit card information
Shopping online is easy, fast and convenient. At a click away, we may obtain clothes, accessories, technique, electric appliances.
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Amazon FBA, or Fulfillment by Amazon, is a business model that might seem attractive. Basically, if you decide to sell a certain product through Amazon, the deal is that you send your product to Amazon for storage and distribution, properly packaged. From then on it is your job to promote your business and find new clients, while Amazon does the practical things like handling orders and sending the products. There are, of course, fees for this service, as well as fees for storage.
But you should bear in mind that going into this line of business may bring some purely bureaucratic setback to you. There are Amazon’s strict rules to consider, there are sales tax and VAT regulations in different EU and non-EU countries, and there is personal responsibility for faulty or dangerous products.
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Is it the end of financial privacy thanks to Common Reporting Standard (CRS), FATCA and other new laws? Can a Bulgarian foundation help you?
Back in the day, financial privacy was considered a basic human right but, with the rise of cross-border terrorism, tax evasion and money laundering, the major governments of the world are fighting to bring transparency to international financial transactions. This is a noble cause and we all support it. But due to this issue, the law-abiding citizens are at the risk of their privacy being invaded. The never-ending leaks from major banks are a new challenge and do not seem to stop.
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These are the general rules for the Vat taxation of intra-EU services in accordance to the Bulgarian Value Added Tax Act (VATA).
The intra-EU goods supplies are subject to special rules. Here is the VAT taxation procedure for some of the most common intra-EU services provided:
General intra-EU supply taxation rules
The general rules for this type of supplies are listed in Chapter 5 Taxation of intra-community supplies of VATA (articles 51 to 53).
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Advance payments are a key component of the Value Added Tax Act (VATA) in Bulgaria, due to the fact that they have a direct relation to the VAT charging obligation and with the tax credit deduction rights. Here is a short overview of the types of advance payments and their relationship with invoice issuance as well as the rights for tax deduction for advance payments and the deposits made as such payments:
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In accordance with the 2006/112 EC directive from 28.12 2016 issued by the EC for the adoption of a common VAT taxation system among member states, there are set rules for issuing invoices and for the harmonization of the tax laws related to VAT including the specific requirements for their contents and conditions for issuing in Bulgaria. Any tax registered supplier is obligated to issue an invoice for the supply of services or goods for an advance payment received except for the cases when the supplies are documented otherwise.
A person who is registered under VATA for taxable supplies can take advantage of the right for tax deduction only when the services and goods provided are used for the purposes said by the registered person.
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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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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.
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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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).
Continue reading “OECD issues consultation documentation regarding the investment schemes involving misuse of residence for circumventing the Common Reporting Standard”