Tax Alert – Changes to Excise Legislation 2016 (EN)





V. EXCISE EXEMPTION FOR DENATURED ALCOHOL

Taxable persons who use specially denatured alcohol for producing goods not intended for human consumption will be entitled to a an immediate excise exemption for the denatured alcohol instead of applying for its subsequent refund, as before. The excise exemption shall apply to persons registered as excise-exempt end consumers.

VI. MANDATORY REGISTRATION FOR CERTAIN CATEGORIES OF PERSONS

The following new categories of persons shall be subject to mandatory registration under the Excises Act:

a) Persons who sell own electrical energy produced from renewable energy sources in a power plant with a total installed capacity up to 5 MW to consumers for household and/or business purposes;

b) Persons consuming own electrical energy produced from renewable energy sources in a power plant with a total installed capacity up to 5 MW for their own needs, with the exception of household consumers of own electrical energy;

c) Persons producing biogas for business purposes, as well as persons who produce and consume biogas for their own needs, with the exception of household consumers of own biogas;

d) Persons who import or receive in the territory of Bulgaria, consume own or sell compressed or liquefied natural gas, as well as persons who carry out natural gas liquefaction or re-gasification.

VII. OTHER CHANGES 

Any other significant Excises Act amendments include:

a) Excise goods with duty stamps could now be moved from one tax warehouse to another tax warehouse belonging to the same authorized warehousekeeper under duty suspension arrangements following a permission from the Customs Agency director.

b) Excise subject to refund and unduly paid excise would be now refunded within shorter 7-day time limits (as opposed to 14 days under the former rules) following the entry into force of the refund act.

c) The Customs Agency Director has been expressly authorized to issue obligatory guidance letters to the officials within the Customs Agency in order to ensure the harmonized enforcement of the excise legislation, after obtaining a preliminary opinion of the Minister of finance, similarly to the National Revenue Agency director who issues such guidance on the tax legislation application.

d) The excise documents and the notes thereto shall be kept for a period of 5 years which shall no longer run from the end of the tax period which the documents refer to but instead from 1-st January of the following year.

e) For the purposes of excise goods control the customs authorities will be entitled to stop road vehicles and check the driving licenses and the documents for their cargo.

 

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.