They return the idea of not paying if they don’t issue us a fiscal voucher There will be a reward – 10% of the collected if we give information that someone is trying to hide taxes
Anyone who shops online during the year and keeps the receipts issued by the merchant can get a discount on the VAT paid. The amount is limited to BGN 100 per month, or BGN 1,200 per year.
This is proposed by the Ministry of Finance with a change in the Law on Taxation of Individuals. Asen Vasilev’s experts announced the package of tax laws on their website for public discussion.
The bonus is applied if several conditions are met – the buyer is of legal age as of January 1 of the tax year, the fiscal or system receipt is not attached to an invoice, they are issued by a merchant registered with the National Revenue Agency, and
the unit value of the purchase does not exceed BGN 2,000.
Another proposal provides that if a recipient of a good or service does not receive a receipt, they can refuse to pay. In the previous finance proposal, this option was written off when a receipt was not issued in a restaurant, now it is proposed to apply to all goods and merchants. The motives of the importers are that civil control of issuing fiscal bills is a workable measure to lighten the economy.
Anyone who reports tax evasion to the National Revenue Agency to receive 10% of the collected tax amount also provides for a change in the Tax-Insurance and Procedural Code.
Although the evasion of taxes and mandatory social security contributions is a problem of all developed economies, this problem is particularly significant for Bulgaria, where the collection of these public receivables is still not at the required levels, therefore all means allowed by law will be used to increase her, says the reasons of the petitioners. The Ministry of Finance reports that such regulations exist in a number of countries, with the most complete and working ones being in the USA and Great Britain. Practice has shown that most often whistleblowers are employees or partners of the offender who have inside information and access to documents.
In order to avoid speculation and abuse of this right and to prevent NRA inspectors from being bombarded with denunciations, it is intended to investigate only reports that contain specific facts and circumstances that were not known to the revenue authorities. It is also pledged
lower threshold for additional disclosed amounts
of unpaid taxes, over which the rewards will be paid – over BGN 3,000. There is also a penalty for submitting false information about the same person three times.
The proposed draft of amendments to the code also clarifies the exclusion from enforcement of employment compensation, any other remuneration for work, pension or stipend up to the minimum wage. The new text stipulates that an amount equal to the minimum wage plus 50% of the difference between the average, determined according to NSI data, will not be subject to garnishment.
Changes to the Personal Income Tax Act allow recognition of 10% of expenses in transactions with financial assets and currencies, including virtual ones. An argument for this proposal is that registrations, fees, commissions, etc. are paid for doing them.
With amendments to the Law on Local Taxes and Fees, it is envisaged that buildings with zero energy consumption will be exempt from tax. The goal is to stimulate remediation and increase energy efficiency. It is proposed to cancel the criterion “year of commissioning of existing buildings”, and the oldest ones are obliged to have at least class B.
Another amendment proposes to introduce
patent tax for collectors of seeds, mushrooms,
including truffles, fruits, medicinal and aromatic plants. They currently pay tax on their income.
The Corporate Income Tax Act foresees a 15% tax for multinational companies that have a minimum annual turnover of EUR 750 million. A change is foreseen in the system of state aid to farmers through the concession of corporate tax if they invest in land and buildings. It will apply until 31 December 2029.
Domestic beer remains subject to excise duty, they also charge vapes
Domestic beer remains subject to excise tax, it is clear from the proposed changes to the Act on Excise Taxes and Tax Warehouses. At the beginning of August, PP-DB MP Daniela Bozhinova announced that she would introduce an amendment according to which up to 100 liters of beer produced at home would not be taxed. However, this idea has not yet found a place in the changes to the law.
A reduced excise duty of 50% is proposed to apply to beer produced by independent small breweries if it does not exceed 3.5% alcohol content.
Excise duty is also imposed on heatable cigarettes, which use products from plants, fruits or herbal mixtures instead of tobacco. These are known as vapes and were not taxed until now. The rate for them is BGN 331 per kilogram from January 1, 2024, BGN 380 from 2025 and BGN 400 from 2026. An argument for the introduction of taxation for them is that they enter the market en masse and are bought mainly by young people.
Individuals may send, transfer or transport abroad tobacco products and alcoholic beverages, when the goods do not exceed the restrictions in the regulations for the implementation of the law and this is not done regularly. This means that no more than 200 cigarettes can be carried freely. The permitted quantities of alcohol are a total of 1 liter of concentrate, 4 liters of still wine and 16 liters of beer. Anyone who sends, transports or transports tobacco products or alcoholic beverages to another country in violation of the restrictions will be fined from BGN 1,000 to BGN 4,000, and in the event of a repeat violation, from BGN 3,000 to BGN 6,000.
For flour and bread, VAT is again 0%, for establishments it becomes 20%, but it can be 9% if they pass a patent
Extension of the deadline for applying a zero rate of VAT for bread and flour is proposed by the Ministry of Finance. The aim is to mitigate the impact of high prices on households, in particular on the most vulnerable groups.
This means that all other reduced indirect tax rates must be abolished from January 1, 2024. Finance Minister Asen Vasilev, however, left the door open to retain 9% for establishments if they adopt all measures against tax evasion in the sector. The basis is to switch to a patent tax. In restaurants, it will be determined according to the number of seats, and in hotels – according to the number of beds. There will also be additional zoning, so the rate will be different for a restaurant on Vitosha Boulevard in the capital and in a roadside establishment, as well as in resorts by the sea. According to the Minister of Finance, the patent tax is also more effective for planning revenues in the treasury.
The first reactions from the industry so far are that it accepts the change. The head of the Bulgarian Association of Restaurants, Richard Alibegov, for example, stated that this is how the tax system is organized in many EU countries and the patent tax is fairer, but it depends on the specific rates. Salaries only by bank transfer, strict issuance of receipts, proper accounting are also among the conditions for keeping 9% VAT for the industry.
Other changes in the law provide for the introduction of deferred payment of the tax in case of centralized registration when importing goods, i.e. if this happens at customs. There are also rules for preserving the tax credit in case of destruction or scrapping of goods. The additional collateral made by liquid fuel traders is reduced from 20 to 10%.