What you must know about the Amendments of VAT Application Rules in Bulgaria
Bulgaria has emerged as one of the most exciting investment locations in Europe today. The country has an appropriate business environment for the development of entrepreneurship. Financial benefits are a significant aspect in determining the country where a company can be set up. Businesses are almost always set up with the intention of making profits, and any incentives that a government has to offer makes it all the more attractive to set up a business in a particular country. An adequate understanding of amendments in the VAT application rules can be beneficial.
Amendments in the VAT Application Rules
The Bulgarian Ministry of Finance announced new amendments to the application of VAT laws which includes compulsory deregistration of certain foreign entities for VAT. The amendments came into effect on February 21, 2012 and include the following changes:
- Deregistration for VAT, of entities and branches of foreign entities has been made compulsory for companies that have not re-registered their entities with the Commercial Register by close of calendar year 2011.
- Proposed amendments to descriptions of “permanent address” and “usual residence” for determining the individual service receiver’s place of supply have been deleted.
- The special VAT scheme for tourist services mandates tour operators to obtain a declaration from their clients which should state that the service received will not be used for further supplies specifically when the client is a taxable person
Getting expert help
It is always good to find a good and dependable local representative to successfully enter the market in Bulgaria. It is essential to select a partner with due diligence, as efforts with incomplete knowledge about foreign markets can be a real impediment when doing business overseas. A business partner with the necessary knowledge will have the required expertise to provide suitable advice. A business model with well planned strategies and execution policies can deliver promising results, and a business consultant can help in just that. You can get the necessary assistance in all areas of your business like international accounting, payroll, regulatory filings, HR etc., and also help you prepare for any impending changes that may occur on account of the changing rules and amendments. They can also help scan your business and identify the key areas which would be affected by the new VAT rules and help in making your business expansion a success.
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