The registration of a branch of a foreign merchant in Bulgaria does not lead to the creation of a new legal entity, but only to a territorially and organizationally separated part of it.
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). Continue reading “VAT on intra-EU services”
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: Continue reading “Advance payments in accordance with VATA”
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. Continue reading “Supply of goods – types of places in accordance with Bulgarian VAT regulations”