In view of the territorial scope of Bulgarian legislation, when examining the presence of a place of business activity outside the territory of Bulgaria, it is necessary to be taken into account the definition of this concept, which is contained in the agreements for the avoidance of double taxation between Bulgaria and the relevant country.
Continue reading “Place of business activity of a Bulgarian company in another country”
It often happens that a Bulgarian company with a VAT registration in Bulgaria also operates in another EU member state and has a VAT number from that country. If the company pays a value added tax (VAT) and a corporate tax in this country, a number of questions arise related to its tax treatment in Bulgaria:
– should invoices issued by the foreign VAT number be reflected in the financial statements under Bulgarian accounting legislation?
– should income and expenses related to activities in another EU member state be reflected in the annual tax return for corporate tax due?
When registering a branch of a foreign merchant in Bulgaria, the question arises in which country should the expenses for travel and business trips of the managers of the foreign merchant be accounted for.
I. General provisions
In view of the tax advantages that Bulgaria provides for foreign investors, and taking into account the country’s membership in the European Union, one of the often preferred forms of commercial activity in Bulgaria by traders from other countries is the establishment of a branch of a foreign trader.
The registration of a branch of a foreign trader in Bulgaria does not lead to the creation of a new legal entity, but only to a territorially and organizationally separated part of it. The branch has its headquarters, object of activity, a person who manages it, workers, etc. However, the branch does not own separate property other than that of its principal. Continue reading “Branch of a foreign trader in Bulgaria”
