Mid-Year Tax Update
At the end of July 2023 the Bulgarian Parliament adopted the long-overdue 2023 State Budget Act and the 2023 State Social Security Budget Act together with some changes to the tax and social security legislation, many of which aim at tackling the grey economy and battling tax evasion. The 2023 budget acts were published in the Bulgarian State Gazette No. 66 dated 1 August 2023. Repeal of the zero excise on LPG, natural gas and electricity As of August 1, 2023 the zero excise rate on the following products was repealed: • LPG and natural gas used as motor fuels; … Continue reading
Tax Measures for Tackling the Increasing Energy Prices in Europe: An update from Austria, Bulgaria, Germany, Poland, Sweden, and the United Kingdom
In the wake of the energy crisis, the European Union and national governments have implemented various fiscal measures to relieve the strain on economies and help EU industries and citizens deal with rising energy prices. Tax is one of the most effective short-term solutions to level the playing-field whenever energy prices soar. By the end of 2022, the EU had introduced several temporary measures such as a “solidarity contribution” levied on the “surplus taxable profits” of companies in the oil, gas, coal, and refinery sectors; as well as a revenue cap on companies generating low-cost electricity from wind, solar, and … Continue reading
New permanently reduced VAT rates and extension of certain temporary reduced rates in Bulgaria as of 01.01.2023
Introduction of new permanently reduced VAT rates and extension of certain temporary reduced rates in Bulgaria as of 01.01.2023 At the end of 2022 the Bulgarian Parliament extended the period of the reduced VAT rates on certain supplies of goods and services and transformed some of the temporarily reduced VAT rates into a permanent measure. The amendments to the Value Added Tax Act were published in the Bulgarian State Gazette No. 102 on 23 December 2021 and come into force on 1 January 2023. Supplies subject to reduced 9% VAT rate What was initially adopted as a … Continue reading
Higher VAT registration turnover for businesses established in Bulgaria in 2023
Higher VAT registration turnover for businesses established in Bulgaria in 2023 As of 1 January 2023 taxable persons established in Bulgaria will be subject to a mandatory VAT registration when they reach a taxable turnover of BGN 100 000 (EUR 51 130) for a period encompassing the current month and 12 consecutive month prior to the current month. The VAT registration turnover doubles compared to the BGN 50 000 (EUR 25 565) threshold which applied before the amendment. The significant increase in the turnover requiring a VAT registration is designed as a tax relief measure for SMEs which now … Continue reading
A Glimpse at Taxation and Investment in Bulgaria 2022
Tax and Investment Facts A Glimpse at Taxation and Investment in Bulgaria 2022 A concise guide to doing business in Bulgaria and to the Bulgarian tax system. Have all tax and investment facts at a glance. This Tax Alert has been prepared by DELCHEV & PARTNERS for information purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Readers should not act upon this without seeking professional counsel.
Tax Measures for Tackling the Increasing Energy Prices in Bulgaria
Tax Measures for Tackling the Increasing Energy Prices in Bulgaria In the wake of the energy crisis which caused the skyrocketing of fuel prices in Bulgaria the Bulgarian Parliament in its final hours before its probable adjournment and impending new elections adopted a number of tax measures aiming at reduction of consumer energy products prices. The measures are all intended to apply for limited periods of time. Reduced 9% VAT rate on central heating and natural gas A reduced VAT rate of 9% shall apply from July 9, 2022 until July 1, 2023 to the following supplies: Central … Continue reading
Introduction of Reduced VAT rate on Certain Supplies as a Temporary Tax Measure
Introduction of Reduced VAT rate on Certain Supplies as a Temporary Tax Measure Following the temporary reduction of the VAT rate on certain supplies of goods and services due to the Covid-19 pandemic, the scope of the reduced rates was further expanded to encompass certain basic goods in an effort to overcome the effects of increased consumer prices and inflation. The measure is intended to apply for a limited one-year period. Supplies subject to reduced 9% VAT rate A reduced VAT rate of 9% shall apply to the following supplies: Central heating; Natural gas. Supplies subject … Continue reading
DLC – Vertical in the spotlight: Wrap-up – The new VBER regime in a nutshell (EN)
WRAP-UP: THE NEW VBER REGIME IN A NUTSHELL Since December 2021, the Distribution Law Center has been publishing a weekly countdown newsletter on the expected changes of the Vertical Block Exemption Regulation (the “VBER”) and the Vertical Guidelines (the “VGL”). Now that the new VBER and VGL have been adopted and enter into force on 1 June 2022, it is time for us to wrap up our DLC countdown. This last countdown provides an overview of the main topics that we discussed during the past weeks and indicates for each of these topics how they found their way in … Continue reading
DLC – Countdown 23 – Vertical in the spotlight: Bans on use of price comparison services (EN)
“VERTICAL” IN THE SPOTLIGHT: BANS ON THE USE OF PRICE COMPARISON SERVICES GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE WHAT? Price comparison services, such as price comparison websites or apps, are used as catalogues in which consumers can search for various goods, find out information about them and, in particular, find the cheapest online store. However, price comparison services do not only benefit consumers. Retailers can use them to increase their visibility and secure better sales. Price comparison services (as opposed to online marketplaces) usually do not offer sale and purchase functionality. Their role is … Continue reading
DLC – Countdown 22 – Vertical in the spotlight: E-Commerce online marketplace bans (EN)
“VERTICAL” IN THE SPOTLIGHT: E-COMMERCE: RESTRICTING THE USE OF ONLINE MARKETPLACES / ONLINE MARKETPLACE BANS GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE WHAT? An “online marketplace” is an e-commerce site that offers multiple products from many different sellers which connects merchants and potential customers with a view to enabling direct purchases. Over the last decade online marketplaces (such as Amazon and eBay) have become an important sales channel for both suppliers and retailers selling their products online. Despite the significant benefits that result from online marketplaces in facilitating the ability of retailers to sell their … Continue reading
