Delchev & Partners

(ii) „Non-Union Scheme”

This scheme has been already introduced in the Bulgarian VAT law as regards electronically supplied services by providers not established in the EU. The changes to the Bulgarian VAT Act only widen the scope of the services which fall within the special regime by including telecommunication, radio- and television broadcasting services.
Right to register under the “Non-Union Scheme” has a services provider – not-established in the territory of the EU, who is not registered in Bulgaria or in another EU Member State on the grounds different from provision of the specified above services, and under the condition that he is not registered for applying the “Non-Union Scheme” in other EU Member States.

6. MOSS scheme registration procedure

The registration under the two MOSS schemes is completed electronically by submission of an electronic form to Territorial Directorate – Sofia at the National Revenue Agency through a web-based application at the NRA’s official website.
The registration takes place within 14-days’ as of submission of the application form. The supplier shall be deemed registered under the MOSS scheme as of the first date of the quarter following the calendar quarter in which the application form was submitted.
In case a supply of service has been performed prior to filing of the application form to the NRA, the date of registration under any of the two MOSS schemes shall be deemed the date on which the supply has taken place provided that the supplier has filed the application form not later than 10th of the month following the month of the first supply.

7. VAT-event, invoicing and reporting requirements under the MOSS scheme

(i) Taxable base and tax rate
The tax event date, the taxable base and the applicable VAT rate shall be determined according to the VAT law of the EU Member State of services consumption.

(ii) Issuance of invoices under the MOSS scheme

The tax documents (invoices), which the supplier issues for the services rendered to end customers should correspond to the statutory requirements of the EU Member State of services consumption.

(iii) Tax period and reporting requirements under the MOSS scheme

The tax period applicable to both “Union Scheme” and “Non-Union Scheme” is the calendar quarter. In practice the taxable person registered under the MOSS scheme in a concrete EU Member State (the Member State of identification) is obliged to file electronically an aggregate VAT return which contains information about all supplies of telecommunication services, radio- and television broadcasting services and services, supplied electronically, to nontaxable persons in all EU Member States of services consumption, and at the same time determines the total amount of VAT due for all services supplied to non-taxable persons.
The VAT returns filed under the MOSS scheme are enclosed to the general VAT return filed by the taxable person in the EU Member State as per VAT registration.
The quarterly VAT return is completed and filed electronically through a web-based application of the official website of the Bulgarian National Revenue Agency. The VAT return states the identification number of the registered person for applying the MOSS scheme. The registered person should state in the VAT return the taxable base for the taxable in the respective EU Member State of consumption and the applicable VAT rate, as well as the total amount of taxable base and due VAT for the period in each EU Member State.
The VAT return is filed by 20th of the month following the calendar quarter for which it is due, including the tax period in which no provision of services is in place, i.e. a “nil” VAT return is filed as well.

(iv) Term for payment of the due VAT

The VAT should be paid within the deadline for submission of the respective VAT return, i.e. by 20th of the month following the tax period for which it is due. The total amount of VAT should be paid in Euro to the bank account of the Bulgarian National Revenue Agency. Following the payment of the VAT the tax administration ex officio allocates the due VAT to the other EU Member States in which the taxable person has provided the respective services.

(v) Electronic register of the supplies performed under the MOSS scheme

Each taxable person applying any of the two MOSS schemes shall be obliged to keep a detailed electronic register for the data reported under the VAT returns which data should be avialable for review by the tax administration upon request. The Register should contain information about the taxable person, including the date of registration and date of deregistration under the MOSS scheme. The Register should also contain data about the supplied services, the name and address of the customer, if these are known to the supplier. The information in the electronic register should be stored for a period of ten years, starting from the end of the year in which the respective supply took place.