Tax Documents
Article 112. (1) "Tax document," within the meaning given by this Act, shall be:
1. the invoice;
2. the advice to an invoice;
3. the memorandum.
(2) Tax documents can be issued manually or by automated mean.
(3) In the event of theft, loss, damage or destruction of any tax documents, the registered person shall notify in writing the competent National Revenue Agency territorial directorate not later than 24 hours after learning of the relevant circumstance.
Issuing Invoices
Article 113. (1) Each taxable person who is a supplier shall be obligated to issue an invoice for a supply of goods or service effected thereby or upon receipt of an advance payment before effecting such a supply except in the cases where the supply is documented by a memorandum under Article 117 herein.
(2) The invoice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.
(3) An invoice may not be issued:
1. for any supplies in which the recipient is a non-taxable natural person;
2. for any supplies of financial services under Article 46 herein;
3. for any supplies of insurance services under Article 47 herein;
4. for sales of air tickets;
5. upon supplies effected free of charge;
6. for supplies of services under Chapter Eighteen herein.
7. (new, SG No. 108/2006) for deliveries, performed by individuals not registered under this Act, other than sole proprietors, when for the deliveries made by them:
a) a document is issued under the procedure of a special act, or
b) a receipt about the paid amounts or a document under Article 9 from the Income Taxes on Natural Persons Act is issued, or
c) the document issuance is not obligatory under the Income Taxes on Natural Persons Act.
(4) The invoice shall mandatorily be issued not later than five days after the date of occurrence of the chargeable event for the supply, and in the cases of advance payment, not later than five days after the date of receipt of the payment.
(5) Notwithstanding Paragraph (4), upon an intra-Community supply, including in the cases of advance payment, the invoice shall mandatorily be issued not later that the 15th day of the month following the month during which the chargeable event under Article 51 (1) herein occurred.
(6) When issuing an invoice is not mandatory, it shall be issued upon the request of the supplier or of the recipient, with either party being obligated to render to the other party the cooperation necessary for the issuing.
(7) The supplier may authorize in writing another person to issue invoices on behalf of the said supplier.
(8) An invoice may not be issued in the cases referred to in Article 131 (1) herein.
(9) Any taxable persons, who are not registered under this Act or are registered in pursuance of Article 99 and Article 100 (2) herein, shall not have the right to state the tax in the invoices issued thereby.
(10) Where the registered person effects a taxable supply for which the said person has received an advance payment prior to the date of registration of the said person under this Act, the said person shall issue an invoice stating therein the full taxable amount of the supply.
Requirements to Invoices
Article 114. (1) An invoice shall mandatorily state:
1. title of document;
2. sequential ten-character number, containing only Arabic numerals, based on one or more series depending on the reporting needs of the taxable person, which identifies uniquely the invoice;
3. date of issue;
4. name and address of the supplier;
5. supplier's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , where the supplier is a person not registered under this Act;
6. forename, surname and signature of the drafter;
7. name and address of the recipient of the supply.
8. recipient's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social Insurance Procedure Code, where the recipient is a person not registered under this Act, identification number for VAT purposes, where the recipient is registered in another Member State, another number for identification of the person, where such a number is required according to the legislation of the State where the recipient is established;
9. quantity and type of the goods, type of the service;
10. date on which the chargeable event for the supply occurred, or date on which the payment was received;
11. unit price net of the tax and the taxable amount of the supply, as well as any trade discounts and rebates allowed, unless included in the unit price;
12. rate of the tax and, when the rate is zero, the grounds for application of the said rate, as well as the grounds for not charging tax;
13. amount of tax;
14. amount payable, if other than the sum of the taxable amount and of the tax;
15. the circumstances which define the goods as a new means of transport: applicable to an intra-Community supply of new means of transport.
(2) Where a person effects distance selling of goods, is registered for VAT purposes in another Member State, and the place of supply under the terms of distance selling is within the territory of that other Member State, in addition to the essential elements covered under Paragraph (1), the invoice shall mandatorily state:
1. the person's identification number for VAT purposes issued by that other Member State;
2. the rate of tax applicable to the supply in that other Member State;
3. the amount of tax due on the supply.
(3) When the registered person who is an intermediary in a triangular operation documents a supply of goods effected to the acquirer in the triangular operation, the invoice shall state "Article 28a (E) (3) [of the Sixth Council Directive] 77/388/EEC" as grounds for not charging tax.
(4) Where the tax is chargeable from the recipient, the invoice shall not state the amount of tax and the rate of tax. In such case, the invoice shall expressly state that the tax is chargeable from the recipient, as well as the grounds for this.
(5) The amount in the invoice may be stated in any currency, provided that the taxable amount and the amount of the tax are stated in Bulgarian leva complying with the requirements of Article 26 (6) herein.
(6) Issued invoices may be dispatched on a paper-based medium or electronically. Invoices received electronically shall be accepted when the recipient has confirmed the receipt of the said invoices, provided that the authenticity of origin and the integrity of content are guaranteed.
Debit and Credit Advices
Article 115. (1) Upon any change of the taxable amount of a supply or upon rescission of a supply on which an invoice has been issued, the supplier shall be obligated to issue an advice to the invoice.
(2) The advice shall mandatorily be issued not later than five days after the occurrence of the relevant circumstance under Paragraph (1).
(3) A debit advice shall be issued upon an increase in the taxable amount, and a credit advice shall be issued upon a decrease in the taxable amount or upon rescission of supplies.
(4) In addition to the essential elements covered under Article 114 herein, an advice to the invoice shall mandatorily state:
1. number and date of the invoice to which the advice is issued;
2. grounds for issuing of the advice.
(5) An advice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.
(6) Upon termination or rescission of a lease contract under Item 3 of Article 6 (2) herein, the supplier shall issue a credit advice on the difference between the taxable amount of the supply under Item 3 of Article 6 (2) herein and the amount which the said supplier is withholding pursuant to such contract, net of the tax under this Act.
Adjustment of Invoices and Advices
Article 116. (1) No corrections and additions may be made in the invoices and the advices thereto. Any documents which have been erroneously drafted or corrected shall be cancelled and new documents shall be issued.
(2) Any invoices and advices thereto, in which no tax is charged even though it should have been charged, shall likewise be deemed erroneously drafted documents.
(3) Any invoices and advices thereto, in which tax is charged even though it should not have been charged, shall likewise be deemed erroneously drafted documents.
(4) Where erroneously drafted documents or corrected documents are shown in the ledgers of accounts of the supplier or the recipient, a memorandum shall furthermore be drafted on the cancellation, with a copy for each of the parties, which shall state:
1. the grounds for cancellation;
2. number and date of the document which is being cancelled;
3. number and date of the new document issued;
4. signatures of the persons who drafted the memorandum for each of the parties.
(5) All copies of the documents cancelled shall be kept with the issuer, and the said documents shall be accounted for by the supplier and the recipient according to a procedure established by the Regulations for Application of this Act.
Issuing Memorandums
Article 117. (1) A memorandum shall mandatorily be issued:
1. (amended, SG No. 108/2006) in the cases referred to in Article 82 (2), (3), (4) and (5) and Article 84 herein: by the registered person who is a recipient of the supply;
2. in the cases referred to in Article 57 herein: by the registered person who is an importer;
3. in the cases referred to in Article 6 (3), Article 7 (4), Article 9 (3), Article 142 (1) and Article 144 (4) herein: by the registered person who is a supplier.
4. (new, SG No. 108/2006) in the cases under Articles 161 and 163a - from the registered person - beneficiary under the delivery, when the supplier is a tax liable person that is not registered under the act.
(2) A memorandum referred to in Paragraph (1) shall mandatorily state:
1. number and date;
2. (supplemented, SG No. 108/2006) name and identification number under Article 94, paragraph 2 of the person referred to in Paragraph (1);
3. quantity and type of the goods or type of the service;
4. date of occurrence of the chargeable event for the supply;
5. taxable amount;
6. rate of tax;
7. grounds for charging of the tax by the person referred to in Paragraph (1);
8. amount of tax.
(3) (Amended, SG No. 108/2007) The memorandum shall be issued not later than 15 days after the date on which the tax became chargeable.
(4) Upon any change of the taxable amount of a supply or upon rescission of a supply on which a memorandum has been issued, the person shall issue a new memorandum which shall mandatorily state:
1. number and date of the initial memorandum issued on the supply;
2. grounds for issuing the new memorandum;
3. the increase/decrease in the taxable amount;
4. the increase/decrease in the tax.
(5) (Amended, SG No. 108/2007) The memorandum referred to in Paragraph (4) shall be issued not later than 15 days after the date on which the relevant circumstance under Paragraph (4) has occurred.
Cash Receipts
Article 118. (1) Any person registered and any person not registered under this Act shall be obligated to register and report the supplies/sales effected thereby at a commercial outlet by means of issuing a fiscal cash receipt printed by a fiscal device, regardless of whether another tax document has been requested, and the recipient shall be obligated to receive the fiscal cash receipt and to keep it until he or she leaves the outlet.
(2) The fiscal cash receipt (fiscal slip) shall be a paper document recording a sale/supply of goods or service at a commercial outlet which is paid for in cash, by cheque, by voucher, by bank credit or debit card, or by any other cash equivalents, issued using a commissioned fiscal device of an approved type, for which a registration certificate has been authenticated. The fiscal cash receipt (fiscal bill), issued by an Integrated Automated Commercial Activities Management System approved for the relevant commercial outlet, shall also be a fiscal cash receipt (fiscal slip).
(3) The application of this Article, as well as the terms, procedure and manner for type approval, for type cancellation, for commissioning/ decommissioning, registration, reporting and service maintenance, expert examination and control of fiscal devices (electronic fiscal memory cash registers, fiscal printers and electronic fiscal memory systems for sale of liquid fuels) the technical and functional requirements for the said devices, the procedure and manner for issuing fiscal cash receipts and the minimum for issuing of fiscal cash receipts, as well as the minimum essential elements of fiscal cash receipts, shall be established by an ordinance of the Minister of Finance.
(4) Upon operation of a fiscal device, the persons referred to in Paragraph (1) shall conclude a written contract for service maintenance and repair with service companies registered by the State Agency for Metrological and Technical Surveillance. Service maintenance during the warranty period shall be free of charge within the warranties assumed by the manufacturer.
Sales Report
Article 119. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report on the supplies for which the issuing of an invoice or memorandum is not mandatory, which shall contain consolidated information on such supplies for the relevant tax period.
(2) The sales report shall be prepared on the last day of the tax period at the latest.
(3) Optionally, the person may prepare separate sales reports for each day of the tax period and/or for each of the commercial outlets thereof.
(4) The content of the consolidated information referred to in Paragraph (1) shall be specified by the Regulations for Application of this Act.
Sales or purchases Report under Special Arrangements for Taxing
(Title supplemented, SG No. 108/2006)
Article 120. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report for every type of supply effected during the tax period for which the special arrangements for taxing under Chapters Sixteen, Seventeen and Nineteen herein are applicable, which, as a minimum, shall contain the following information:
1. quantity and type of the goods for each particular supply, or type of the service;
2. date on which the chargeable event for the supply occurred;
3. description of the invoices issued on the supply, when issuing of such invoices is mandatory;
4. the elements necessary for assessment of the taxable amount;
5. taxable amount;
6. rate of tax;
7. amount of tax;
(2) The sales report referred to in Paragraph (1) shall be prepared on the last day of the tax period at the latest.
(3) The person registered under Article 152 herein shall prepare an electronic register on the services performed under Chapter Eighteen herein, which, as a minimum, shall contain the following information on each supply effected:
1. name, address and electronic address of the customer;
2. type and quantity of the electronically supplied service;
3. date on which the chargeable event for the supply occurred;
4. number and date of the invoice issued on the supply;
5. taxable amount;
6. rate of tax as applicable;
7. amount of tax;
8. mode of payment.
(4) (New, SG No. 108/2006) For the delivery of the goods and services, for which the special procedure for taxation is applicable under chapter nineteen "a", where the suppliers are individuals, who are not tax liable persons, the recipient - the person registered under the present Act, shall draw up a report about the purchases made during the tax period, containing at least the following information:
1. quality and type of the good or type of service - for each delivery;
2. the date, on which the tax for the delivery has become executable;
3. the purchase price - for each delivery;
4. the tax rate;
5. the tax amount.
(5) (New, SG No. 108/2006) The report on the sales performed under paragraph 1 shall be drawn up not later than the last day of the tax period.

Chapter Twelve
OTHER OBLIGATIONS

Storage of Documents
Article 121. (1) Any taxable person shall ensure the storage of the tax documents issued by or on behalf of the said person, as well as of all tax documents received thereby, for five years after the expiry of the prescription period for extinguishment of the public liability which such documents certify.
(2) The authenticity of origin and the integrity of content of the tax documents, as well as the readability thereof, must be guaranteed during the entire period of storage.
(3) Paragraphs (1) and (2) shall furthermore apply in respect of the sales reports referred to in Articles 119 and 120 herein, the registers referred to in Article 123 (2) and (3), as well as the customs declarations.
Right of Access to Invoices Stored by Electronic Means in Another Member
State
Article 122. When a taxable person stores invoices issued or received thereby by an electronic means, and when the place of storage is in another Member State, the said person shall be obligated to ensure the competent revenue authorities access by electronic means to the data stored. The revenue authorities shall have the right to download and use the invoices so stored for control purposes.
Accounts
Article 123. (1) Each registered person shall keep detailed accounts sufficient for assessment of the liabilities thereof under this Act by the revenue authorities.
(2) Each registered person shall be obligated to keep a register of goods under Items 8 to 10 of Article 7 (5) and Items 8 to 10 of Article 13 (4) herein.
(3) Each taxable person shall keep a register of the goods transported thereto from another Member State by a person registered for VAT purposes in the said Member State, in connection with the supply of services involving assessment or work on movable things.
(4) The form and the essential elements of the registers referred to in Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.

Chapter Thirteen
DECLARATION AND REPORTING

Ledgers of Account
Article 124. (1) Persons registered under this Act shall mandatorily keep the following ledgers:
1. a purchase day book;
2. a sales day book.
(2) (Amended, SG No. 108/2006) The registered person shall be obligated to show the tax documents issued by or on behalf of the said person, as well as the sales reports under Article 119 herein, in the sales day book for the tax period during which the said documents were issued.
(3) (Amended, SG No. 108/2006) Notwithstanding Paragraph (2), the tax documents issued in connection with an intra-Community acquisition, including such on a payment received, shall be shown in the sales day book for the tax period during which the tax became chargeable according to Article 51 herein.
(4) (Supplemented, SG No. 108/2006) The registered person shall be obligated to show tax the documents received thereby in the purchase day book not later than until the third tax period following the tax period during which the said documents were issued but not later than the last tax period under Article 72, paragraph 1.
(5) Notwithstanding Paragraph (4), the registered person shall be obligated to show the credit advices received thereby in the purchase day book for the tax period during which the said advices were issued.
(6) The type, content of and requirements for the ledgers covered under this Article, as well as the procedure and manner of showing documents therein, shall be determined by the Regulations for Application of this Act.
(7) (New, SG No. 108/2006) The registered persons that during the calendar quarter have made intercommunity deliveries of new vehicles, the recipients of which are persons not registered for VAT purposes in other Member States, shall register the deliveries performed in the register for intercommunity deliveries of new vehicles.
(8) (New, SG No. 108/2006) The type, contents and requirements to the register under paragraph 7 shall be determined by the Rules on the Implementation of the Act.
Declaration of Tax
Article 125. (1) For every tax period, the registered person shall submit a VAT return, prepared on the basis of the ledgers of account covered under Article 124 herein, with the exception of the cases referred to in Article 157 herein.
(2) A registered person, who has effected intra-Community supplies or supplies as an intermediary in a triangular operation for the tax period, shall submit a VIES return on the said supplies for the relevant tax period together with the VAT return referred to in Paragraph (1).
(3) Together with the VAT return referred to in Paragraph (1), the registered person shall submit the ledgers of account covered under Article 124 herein for the relevant tax period.
(4) A VAT return referred to in Paragraph (1) shall furthermore be submitted where there is no payable or refundable tax, as well as in the cases where the registered person has not effected or received any supplies or acquisitions or has effected any importation for the said tax period.
(5) The returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) shall be submitted on or before the 14th day of the month following the tax period to which the said returns and ledgers refer.
(6) The VIES return referred to in Paragraph (2) and the ledgers of account referred to in Paragraph (2) shall be submitted on a magnetic or optical data storage medium as well.
(7) Alternatively, the returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) may be submitted electronically under the terms and according to the procedure established by the Tax and Social-Insurance Procedure Code . Where the return and the ledgers of account are submitted electronically, Paragraph (6) shall not apply.
(8) The VAT return referred to in Paragraph (1) and the return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.
(9) (New, SG No. 108/2006) The register under Article 124, paragraph 7 shall be submitted on a magnetic or optical carrier by the 14th day of the month, following the respective calendar quarter.
Corrections of Errors Made in Declaring
Article 126. (1) Any errors made in returns submitted under Article 125 (1) or (2) herein as a result of documents not shown or shown incorrectly in the ledgers of account covered under Article 124 herein shall be corrected according to the procedure established in Paragraphs (2) and (3).
(2) Any errors detected prior to the expiry of the time limit for submission of the VAT return shall be corrected by the person making the necessary corrections and submitting again the returns referred to in Article 125 (1) and (2) herein and the ledgers of account covered under Article 124 herein.
(3) Beyond the cases referred to in Paragraph (2), errors shall be corrected by:
1. the person making the necessary corrections in the tax period during which the error was detected and including the document that has not been shown in the relevant ledger of account for the same tax period: applicable to documents not shown in the ledgers of account covered under Article 124 herein;
2. the person notifying in writing the competent revenue authority which shall take action to modify the liability of the person for the relevant tax period: applicable to documents shown incorrectly in the ledgers of account.

PART SEVEN
SPECIFIC CASES
Chapter Fourteen
SPECIFIC CASES OF SUPPLIES

Supply Effected by Person Acting in His Own Name and for Account of
Another
Article 127. (1) Where a taxable person (commission agent/mandatory) supplies goods or services in his own name and for the account of another, the person shall be presumed to have received and supplied the goods or the services.
(2) In the cases under Paragraph (1), three supplies shall be effected:
1. a supply between the commission agent/mandatary and the third party, for which the date of occurrence of the chargeable event for and the taxable amount of the supply shall be determined under the general rules of this Act;
2. a supply between the principal/mandator and the commission agent/mandatary of the goods or the services subject to the supply referred to in Item 1; the taxable amount of such supply shall be equal to the taxable amount of the supply referred to in Item 1, and the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act but may not be later than the date of occurrence of the chargeable event referred to in Item 1;
3. a supply of service between the commission agent/mandatary and the principal/mandator; the taxable amount of such supply shall be the compensation of the commission agent/mandatary, which shall include the reimbursement for the expenses incurred thereby in connection with the supply, if so agreed; the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act.
(3) Where the commission agent/mandatary is a person not registered under this Act, for assessment of the taxable amount for the supply referred to in Item 2 of Paragraph (2), the agreed price for the supply referred to in Item 1 of Paragraph (2) shall be deemed to include the tax.
(4) Where the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein differs from the taxable amount referred to in Item 1 of Paragraph (2), grounds for modification of the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein shall arise on the date of occurrence of the chargeable event for the supply referred to in Item 1 of Paragraph (2).
Ancillary Supply
Article 128. Where the principal supply is accompanied by another supply and the payment is determined as a total, it shall be deemed that there is only one principal supply.
Warranty Services
Article 129. (1) The provision of goods by a manufacturer or a person authorized thereby for the purpose of replacement or elimination of defects under the terms of agreed warranty services, which is carried out for the account of the manufacturer, shall not be considered to be a supply.
(2) The provision of a service for the elimination of defects under the terms of agreed warranty services shall not be considered to be a supply where the following conditions are simultaneously fulfilled:
1. the service is performed by a person authorized to do so by the manufacturer;
2. the manufacturer is not established within the territory of the country;
3. the warranty services are for the account of the manufacturer.
(3) The provision of goods and services for elimination of defects by a supplier, where the elimination of the defects is for the account of the said supplier in connection with amounts retains under Item 2 of Article 26 (4) herein, shall not be considered to be a supply.
Barter
Article 130. (1) When there is a supply under which the consideration (in full or in part) is expressed in goods or services, it shall be considered that there are two counter supplies, with each of the suppliers being considered to be a seller of what the said supplier gives and buyer of what the said suppliers receives.
(2) The chargeable event for both supplies referred to in Paragraph (1) shall occur on the date of occurrence of the chargeable event for whichever of the said supplies is the earlier.
Supply of Goods or Services upon Public Auction under Tax and
Social-Insurance Procedure Code or under Code of Civil Procedure or Sale
under Registered Pledges Act
Article 131. (1) In the cases of public auction according to the procedure established by the Tax and Social-Insurance Procedure Code or by the Code of Civil Procedure or upon a sale according to the procedure established by the Registered Pledges Act or by Article 60 of the Credit Institutions Act and where the debtor is a person registered under this Act, the public enforcement agent, the bailiff or the pledgee shall be obligated, within five days after receipt of the full price of the sale:
1. to pay the tax payable under the sale by crediting the bank account of the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act;
2. to prepare a document on the sale, as specified in the Regulations for Application of this Act, in triplicate: one copy for the public enforcement agent/bailiff/pledgee, one copy for the debtor, and one copy for the recipient (buyer);
3. to provide the document referred to in Item 2 to the debtor and the recipient within three days after the issuing of the said document;
4. to notify the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act of the document issued under Item 2 according to a procedure established by the Regulations for Application of this Act.
(2) In the cases under Paragraph (1), the selling price shall be deemed to be inclusive of the tax, and the said tax shall be remitted (paid) by the recipient (buyer) to the public enforcement agent/bailiff/pledgee together with the selling price.
(3) (Amended, SG No. 59/2007) Paragraph (1) shall not apply where the thing has been awarded to the execution creditor on a motion thereby in payment of the claim thereof according to the procedure established by the Tax and Social Insurance Procedure Code.
(4) (Amended, SG No. 59/2007) In the cases under Paragraph (3), the taxable amount of the supply shall be the price of the thing determined according to the procedure established by Article 250 (3) or Article 254 (7) of the Tax and Social Insurance Procedure Code and the tax shall be deemed included in the price of the said thing.
(5) (New, SG No. 113/2007) In case the competent court repeals the public auction or sale under Paragraph (1) the remitted tax on the auction/sale shall be refunded according to a procedure set out by the Regulations for Application of this Act.

Chapter Fifteen
SPECIFIC CASES OF REGISTRATION AND DEREGISTRATION

Compulsory Registration as Result of Transformation
Article 132. (1) Registration under this Act shall be compulsory for any person who acquires goods and services from a registered person in pursuance of Article 10 (1) herein.
(2) The registration referred to in Paragraph (1) shall be effected by submission of an application for registration within 14 days after the recording of the circumstance referred to in Article 10 (1) herein in the Commercial Register.
(3) The date of registration in the cases referred to in Paragraph (1) shall be the date of recording of the circumstance referred to in Article 10 herein in the Commercial Register.
(4) In the cases of registration under Paragraph (1), the registration inventory referred to in Item 3 of Article 74 (2) herein for the assets available (excluding the assets received in pursuance of Article 10 herein) shall be drawn up at the date of registration under Paragraph (3) and shall be submitted on or before the 14th day after that date.
Registration of Non-Resident who Is Not Established within Country
Article 133. (1) Any non-resident person, who has a fixed establishment within the territory of the country from which the said person carries out economic activity and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative, with the exception of branches of non-residents which shall be registered according to the standard procedure.
(2) Any non-resident person, who is not established within the territory of the country but effects taxable supplies whereof the place of transaction is within the territory of the country and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative.
(3) (Amended, SG No. 108/2007) Registration under Paragraphs (1) and (2) shall be effected according to the procedure established by Article 101 herein at the National Revenue Agency territorial directorate under Article 8 of the Tax Social-Insurance Procedure Code.
(4) Upon dissolution of the person who is an accredited representative, or upon occurrence of other circumstances which lead to an impossibility for such person to fulfil the obligations thereof under this Act, the non-resident person shall be obligated to designate a new accredited representative within 14 days after the date of occurrence of the intervening circumstances.
(5) Paragraphs (1) to (4) shall not apply to any non-resident persons supplying services under Chapter Eighteen herein.
Termination of Registration (Deregistration) of Non-Residents Registered
under This Act
Article 134. (1) The registration of a non-resident person registered in pursuance of Article 133 herein shall be terminated if the general conditions for deregistration under this Act are fulfilled.
(2) Deregistration under Paragraph (1) shall be effected according to the procedure established by Article 109 herein.
(3) Where the non-resident person fails to designate a new accredited representative within the time limit referred to in Article 133 (4) herein, the registration of the said person shall be terminated on the initiative of the revenue authority by issuing of a deregistration act.
(4) In the cases referred to in Paragraph (3), the deregistration act shall not be delivered to the person, and the date of deregistration shall be the date of expiry of the time limit referred to in Article 133 (4) herein.
(5) Upon deregistration under Paragraphs (1) and (3), the non-resident person shall be presumed to effect a supply under Article 111 herein.
Accredited Representative
Article 135. (1) (Amended, SG No. 108/2007) Only a natural person capable of performing juridical act with permanent address or permanently residing only in the country, or a local legal person which is not subject to liquidation proceeding or has not been adjudicated bankrupt and does not incur chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency may be an accredited representative of a non-resident person.
(2) The accredited representative shall represent the non-resident person referred to in Article 133 herein in all tax legal relations of the said person which arise in pursuance of this Act.
(3) The accredited representative shall incur solidary and unlimited liability for the obligations under this Act of the registered non-resident person.

PART EIGHT
SPECIAL TAXING ARRANGEMENTS
Chapter Sixteen
SERVICES TO TOURISTS

Supply of Single Service to Tourists
Article 136. (1) The provision by a tour operator or a travel agent, acting in his own name, of goods or services in connection with the journey of a tourist, for the carrying out of which goods or services for the direct benefit of the tourist are used, shall be treated as a supply of a single service to tourists.
(2) The goods and services referred to in Paragraph (1) directly benefiting the tourist shall be the goods and services which the tour operator or the travel agent has received from other taxable persons and has provided to the tourist without alteration.
Place of Transaction of Single Service to Tourists
Article 137. The place of transaction of a single service to tourists shall be the place where the tour operator or the travel agent has established the economic activity thereof or has a fixed establishment from which the said operator or agent effects the transaction.
Date of Occurrence of Chargeable Event and Chargeability of Tax
Article 138. (1) The date of occurrence of the chargeable event for the supply of a single service to tourists shall be the date on which the tourist benefits from the supply for the first time.
(2) The tax on the supply of a single service to tourists shall become chargeable on the date of occurrence of the chargeable event referred to in Paragraph (1).
Taxable Amount of Single Service to Tourists
Article 139. (1) The taxable amount of the supply of a single service to tourists shall be the margin which represents the difference, less the amount of the tax payable, between:
1. the total amount, which the tour operator or travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;
2. the amount which has been paid or will be paid for supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist, including the tax under this Act.
(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.
Zero-Rating upon Supply of Single Service to Tourists
Article 140. (1) The supply of a single service to tourists shall be liable to tax at the zero rate, if the supplies of goods and services are for the direct benefit of the tourist, shall have a place of transaction within the territory of third countries and territories.
(2) Where only part of the supplies of goods and services referred to in Paragraph (1) which are for the direct benefit of the tourist have a place of transaction within the territory of third countries and territories, only the part of the said supplies corresponding to the supply of the single service to tourists shall be liable to tax at the zero rate.
Credit for Input Tax to Tour Operator or Travel Agent
Article 141. The tour operator or the travel agent shall not have the right to deduct credit for input tax in respect of the supplies of goods and services received from other taxable persons for the direct benefit of the tourist.
Charging Tax and Documenting Supply of Single Service to Tourists
Article 142. (1) The tax on the supply of a single service to tourists shall be charged by the issuing of a memorandum.
(2) The supply of a single service to tourists shall be documented and reported according to a procedure established by the Regulations for Application of this Act.

Chapter Seventeen
SPECIAL ARRANGEMENTS FOR TAXING PRICE MARGIN

Supply of Second-Hand Goods, Works of Art, Collectors' Items and
Antiques
Article 143. (1) (Supplemented, SG No. 108/2006) The provisions in this Chapter shall apply to a supply effected by a taxable dealer of second-hand goods, works of art, collectors' items, antiques, supplied to the said dealer within the territory of the country (including imported) or from the territory of another Member State by:
1. a non-taxable person;
2. another taxable person as a subject of an exempt supply under Article 50 herein;
3. another taxable person who is not registered under this Act;
4. another taxable dealer applying the special arrangements for taxing the price margin.
(2) The provision of Paragraph (1) shall not apply upon an intra-Community supply of new means of transport.
(3) Taxable dealers shall have the right to apply the provisions of this Chapter also in respect of a supply of:
1. works of art, collectors' items or antiques which they have imported;
2. works of art supplied to them by their creators or by the successors in title of the said creators.
(4) (Amended, SG No. 108/2006) The right of option under Paragraph (3) shall be exercised by means of submission of a notification to the competent National Revenue Agency territorial directorate.
(5) Taxable dealers who have exercised a right of option under Paragraph (4) shall apply the special arrangements for taxing the margin for a supply covered under Paragraph (3) as from the first day of the month following the month of submission of the notification, and for a period not shorter than 24 months including the month following the month of submission of the notification.
(6) After the lapse of the time period referred to in Paragraph (5), the taxable dealer may discontinue the application of the special arrangements for taxing the margin for supplies covered under Paragraph (3) by submitting a notification to the competent National Revenue Agency territorial directorate. The application of the special arrangements for taxing the margin shall be discontinued as from the month following the month of submission of the notification.
(7) Notifications referred to in Paragraphs (4) and (6) shall be submitted in a standard form specified in the Regulations for Application of this Act.
Place of Transaction, Chargeable Event and Chargeability of Tax on
Supplies of Goods under Special Arrangements for Taxing Margin
Article 144. (1) The place of transaction of supplies covered under Article 143 herein shall be the place where the taxable dealer has the registered office or fixed establishment from which the said dealer effects such supplies.
(2) The chargeable event for the supplies covered under Article 143 herein shall occur according to the general rules under this Act.
(3) The tax on supplies covered under Article 143 herein shall become chargeable on the last day of the tax period during which the chargeable event occurred according to Paragraph (2).
(4) The tax shall charged by the issuing of a memorandum according to a procedure and in a manner established by the Regulations for Application of this Act.
Taxable Amount
Article 145. (1) The taxable amount of the supply of goods under this Chapter shall be the price margin which represents the difference, less the amount of the tax payable, between:
1. the selling price, representing the total amount which the taxable dealer has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses on packing, transport, commissions and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;
2. the amount which has been paid or will be paid for goods received by the persons under Article 143 (1) and (3) herein, including the tax under this Act, and where the goods have been imported, the taxable amount upon importation, including the tax under this Act.
(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.
Supply of Goods under Special Arrangements for Taxing Margin at Zero
Rate
Article 146. The supply of goods under the special arrangements for taxing the margin shall be liable to tax at the zero rate where the conditions established by Article 28 herein are fulfilled in respect of the supply.
Credit for Input Tax
Article 147. (1) The taxable dealer shall have the right to credit for input tax in respect of any goods and services acquired or imported thereby which the said dealer uses only for the effecting of supplies under this Chapter.
(2) The total credit for input tax referred to in Paragraph (1) used for the year may not exceed the total amount of the tax charged by the dealer for supplies covered under Article 143 herein,
(3) Where the credit for input tax used during the year exceeds the tax charged during the year, a tax to the amount of the excess shall be chargeable from the person.
(4) The excess referred to in Paragraph (3) shall be declared in the VAT return for the last tax period of the year.
(5) The taxable dealer shall not have the right to deduct credit for input tax in respect of any goods received or imported thereby to which the said dealer applies the special arrangements for taxing the margin.
Documenting Supply of Goods under Special Arrangements for Taxing Margin
Article 148. The supply of goods under the special arrangements for taxing the margin shall be documented and reported according to a procedure established by the Regulations for Application of this Act.
Taxable Turnover of Taxable Dealer from Supplies of Goods under Special
Arrangements for Taxing Margin
Article 149. The taxable turnover of a taxable dealer from supplies of goods under the special arrangements for taxing the margin shall be the sum total of the margins.
Charging Tax on Goods in Stock upon Taxable Dealer's Deregistration
Article 150. (1) The deregistration of the taxable dealer shall be effected according to the general conditions for deregistration of this Act.
(2) Upon deregistration, the taxable dealer shall be liable for a tax on the goods in stock covered under this Chapter. The amount of the said tax shall be determined on the basis of the average margin achieved by the taxable dealer during the 12 months last preceding the deregistration date.
(3) The procedure and manner for determining the average margin referred to in Paragraph (2) shall be established by the Regulations for Application of this Act.
(4) Upon deregistration, the taxable dealer shall be liable for tax under Article 111 herein, with the exception of the tax on the goods in stock referred to in Paragraph (2).
Right of Option
Article 151. (1) A taxable dealer may apply the standard procedure under this Act for taxing the supply of second-hand goods, works of art, collectors' items and antiques.
(2) The right referred to in Paragraph (1) shall be exercised by the person for each particular supply and, to this end, the invoice issued shall not state that the special arrangements under this Chapter are applied.
(3) The taxable amount of the supply shall be determined according to the procedure established by Articles 26 and 27 herein and may not be lower than the taxable amount upon acquisition of the goods or lower than the taxable amount upon importation.
(4) In the cases referred to in Paragraph (2), the right to credit for input tax in respect of the goods received or imported by the person to which the special arrangements for taxing the margin are not applied shall arise and shall be exercised during the tax period in which the tax on the subsequent supply of such goods has become chargeable.
(5) The supplies referred to in Paragraph (2) shall be documents according to the standard procedure established by this Act.
(6) Where the taxable dealer applies both the special arrangements for taxing the margin and the standard procedure for taxing the supplies, the said dealer shall be obligated to keep separate accounts for the supplies as specified by the Regulations for Application of this Act.

Chapter Eighteen
TAXING SUPPLIES OF SERVICES SUPPLIED ELECTRONICALLY BY PERSONS
WHO ARE NOT ESTABLISHED WITHIN COMMUNITY

Special Registration
Article 152. (1) Any taxable person for which the following conditions are simultaneously fulfilled shall have the right to register under this Chapter:
1. the said person effects supplies of electronically supplied services to recipients who are non-taxable persons who are established or have a permanent address, or usually reside in a Member State;
2. the said person is not established within the territory of the Community;
3. the said person is not obligated to register for VAT purposes on any other grounds within the territory of the country or within the territory of another Member State.
(2) The right referred to in Paragraph (1) shall be exercised by the person submitting, by electronic means, an application for registration to the Sofia Territorial Directorate of the National Revenue Agency.
(3) Together with the application referred to in Paragraph (1), the person shall provide the following information:
1. name, mailing address, electronic addresses, including Internet sites;
2. a national tax number, if any;
3. a statement certifying that the person is not registered for VAT purposes in another Member State.
(4) The person shall notify the territorial directorate referred to in Paragraph (2) by electronic means of any intervening changes in the information provided under Paragraph (3).
(5) Within seven days after receipt of the application, the territorial directorate referred to in Paragraph (2) shall notify the person by electronic means of the registration effected according to the procedure established by this Chapter, of the identification number referred to in Article 94 (2) herein, and of the date of registration.
(6) The first day of the month following the month of the notification referred to in Paragraph (5) shall be considered to be a date of registration.
Termination of Special Registration
Article 153. (1) The registration referred to in Article 152 herein shall terminate on the initiative of the person where:
1. the person terminates the activity thereof under this Chapter;
2. the person no longer fulfils the conditions under Article 152 (1) herein.
(2) For termination of the registration under Paragraph (1), the person shall submit an application for termination of registration by electronic means to the territorial directorate referred to in Article 152 (2) herein.
(3) The registration under Article 152 herein may be terminated on the initiative of the revenue administration where:
1. the administration ascertains that the activity of the person has been terminated, or
2. the person does not fulfil the conditions under Article 152 (1) herein, or
3. the person systematically fails to comply with the provisions of this Chapter.
(4) In the cases covered under Paragraph (3), the territorial directorate referred to in Article 152 (2) shall notify the person that his registration has been terminated, indicating also the date of termination of registration.
(5) In the cases covered under Paragraph (1), the registration shall terminate on the date of submission of the application referred to in Paragraph (2).
(6) In the cases covered under Paragraph (3), the registration shall terminate on the date of the notification referred to in Paragraph (4).
Place of Transaction of Supplies of Electronically Supplied Services
Article 154. The place of transaction of services supplied electronically by a registered person under Article 152 herein shall be the Member State in which the recipient under Item 1 of Article 152 (1) herein is established.
Taxable Amount, Date of Occurrence of Chargeable Event and Chargeability
of Tax
Article 155. The taxable amount, the date of occurrence of the chargeable event and the chargeability of tax on supplies of services under this Chapter shall be determined under the general rules of this Act.
Rate of Tax
Article 156. The rate of tax on the supplies of electronically supplied services under this Chapter shall be the rate applicable in the Member State in which the recipient referred to in Item 1 of Article 152 (1) herein is established.
Tax Period, Declaration and Remittance of Tax
Article 157. (1) The tax period for persons registered under this Chapter shall be three months and shall coincide with a calendar quarter.
(2) A person registered under this Chapter shall submit a return completed in a standard form specified in the Regulations for Application of this Act for each tax period within 20 days after the end of the period, regardless of whether any supplies of electronically supplied services have been effected during the said period. The said return shall be submitted to the territorial directorate referred to in Article 152 (2) herein by electronic means.
(3) The return shall state the identification number of the registered person, the total value, net of value added tax, of the supplies for each separate Member State, the total amount of tax for each Member State, the rate of tax applicable in the respective Member State and the total value of the tax payable for all Member States for the tax period.
(4) The values covered under Paragraph (3) shall be stated in Euro and in Bulgarian leva, and Article 26 (6) herein shall apply to the translation.
(5) The tax chargeable for the tax period shall be remitted by crediting the account of the territorial tax directorate referred to in Article 152 (2) herein within the time limit for submission of the return under Paragraph (2).
Credit for Input Tax and Tax Refund
Article 158. (1) Persons registered under this Chapter shall not have the right to credit for input tax in respect of any supplies of goods and services received within the territory of the country and from importation.
(2) Persons registered under this Chapter shall have the right to a refund of the tax paid within the territory of the country according to the procedure established by Item 2 of Article 81(1) herein.
Documentation and Provision of Information
Article 159. (1) Any person registered under this Chapter shall be obligated to keep an electronic register referred to in Article 120 (3) herein for the supplies of services effected under this Chapter in a manner enabling the tax administration of the Member States in which the recipients are established to determine whether the information stated in the return referred to in Article 158 (2) herein is full and accurate.
(2) Upon request, the information from the electronic register must be provided by electronic means to the Bulgarian revenue administration or to the competent authorities of the Member States in which the recipients are established.
(3) The information in the electronic register shall be stored for a period of not less than ten years reckoned from the end of the year during which the relevant supply was effected.

Chapter Nineteen
INVESTMENT GOLD

Supplies of Investment Gold
Article 160. (1) Supplies concerning investment gold shall be exempt where, for the purposes of this Act, the said supplies are:
1. supplies of investment gold, including: supplies of investment gold represented by certificates for allocated or unallocated gold; gold traded on gold accounts, gold loans and swaps, involving the right of ownership or claim in respect to investment gold; supplies concerning investment gold involving futures and forward contracts leading to a transfer of the right of ownership or claim in respect of investment gold;
2. services of agents who act in the name and for the account of another, in connection with supplies of investment gold.
(2) Taxable persons, who produce investment gold or transform gold into investment gold, as well as taxable persons who normally supply gold for industrial purposes, shall be allowed a right of option for taxation of the supplies covered under Item 1 of Paragraph (1). Taxable persons who perform intermediation services in respect or supplies of investment gold shall be allowed a right of option for taxation of the supplies referred to in Item 2 of Paragraph (1) when the supply in connection with which the intermediation service was provided is taxable.
(3) The right referred to in Paragraph (2) may be exercised where the following conditions are simultaneously fulfilled:
1. a person registered under this Act is a recipient of the supplies;
2. the invoice issued on the supply states that the tax is to be charged from the recipient.
Chargeability of Tax from Recipient
Article 161. (1) The tax shall be charged from the recipient who is a person registered under this Act upon:
1. supplies of gold material or semi-manufactured products of a purity of 325 thousandths or greater;
2. supplies concerning investment gold where the right referred to in Article 160 herein has been exercised and the invoice issued by the supplier states that the tax is to be charged from the recipient.
(2) The tax shall be charged by the issuing of a memorandum.
Right to Credit for Input Tax
Article 162. (1) Although the subsequent supply concerning investment gold is exempt, registered persons shall have the right to credit for input tax in respect of:
1. the tax charged from them according to the procedure established by Article 161 herein;
2. the received supply or importation of gold other than investment gold which has then been transformed into investment gold by the person or for the account thereof;
3. received services leading to a change of form, weight or purity of gold, including investment gold.
(2) Although the subsequent supply concerning investment gold is exempt, registered persons who produce investment gold or transform gold into investment gold shall have the right to deduct credit for input tax in respect of the supplies or importation within the territory of the country of goods or services related to the production or transformation of such gold.
Documenting
Article 163. (1) The supplies concerning investment gold, as well as the supplies involving gold material or semi-manufactured products of a purity of 325 thousandths or greater, shall be documented by issuing of an invoice which, in addition to the essential elements covered under Article 114 herein, must also state:
1. description of the gold sufficient for the identification thereof, as a minimum: form, weight, purity etc.;
2. date and address of the physical delivery of the gold;
3. name, address and Standard Public Registry Personal Number and/or type, number, issuer of an official identification document of the persons who prepared the document.
(2) The invoices referred to in Paragraph (1) shall be stored for a period of ten years reckoned from the end of the year during which the relevant supply was effected.

Chapter Nineteen "a"
(New, SG No. 108/2006)
DELIVERYDEDELIVERY OF GOODS AND SERVICES ACCORDING TO APPENDIX No 2 WITH
A PLACE OF EXECUTION THE TERRITORY OF THE COUNTRY, WHERE TAX IS
EXECUTABLE BY THE RECIPIENT

Tax event and executable tax
Article 163a. (New, SG No. 108/2006) (1) The tax event of the goods and services delivered, specified in appendix № 2, shall occur according to the general rules of the present Act.
(2) The tax for the supplies under paragraph 1 shall be executable by the recipient - a person registered under this Act, regardless of whether the supplier is a tax liable person or not.
(3) The tax for the supplies under paragraph 1 shall become executable according to the procedures of Article 25, paragraphs 5 and 6.
Tax accruing by the recipient
Article 163b. (New, SG No. 108/2006) (1) Tax shall be accrued by the recipient via the issuance of:
1. a protocol under Article 117, paragraph 2 within the deadline set in Article 117, paragraph 3 - when the supplier is a tax liable person.
2. a general protocol of all supplies, for which tax has become executable in during respective tax period - when the suppliers are natural persons that are not liable for tax; the protocol shall be issued on the last day of the respective tax period.
(2) The protocol under paragraph 1, sub-paragraph 2 must contain:
1. a number and a date;
2. the name and the identification number under Article 94, paragraph 2 of the person, who issues it;
3. a tax period;
4. a description of the goods and services;
5. the total amount of the purchase prices of the goods and services under item 4 for the tax period;
6. accrued tax for the period.
Documenting the supplies
Article 163c. (New, SG No. 108/2006) When the supplier is a tax liable person, the supplies of goods and services, specified in appendix № 2, shall be documented by the issuance of an invoice, in which "Article 163a, paragraph 2" shall be indicated as grounds for not accruing tax.

Chapter Twenty
INVESTMENT PROJECTS

Special Arrangements for Charging Tax upon Importation
Article 164. (1) Notwithstanding Article 56 herein, the tax upon importation of goods may be charged by the person registered under this Act if the said person holds a permission issued according to the procedure established by Article 166 herein and imports goods (with the exception of excisable goods) according to a list approved by the Minister of Finance.
(2) The importer shall exercise the right thereof under Paragraph (1) by:
1. declaring in the customs declaration as submitted that the importer will use this arrangement;
2. declaring that at the time of effecting the importation the importer is a person registered under this Act and does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency.
(3) Where the importer has exercised the right thereof under Paragraph (1), the customs authorities shall admit the release of the goods without the tax being effectively remitted or secured.
(4) The importer shall charge the tax referred to in Paragraph (1) according to the procedure established by Article 57 (3) herein.
(5) The importer shall have the right to credit for input tax in respect of the tax charged under Paragraph (4) under the terms established by Articles 69 and 73 herein.
Shortened 30-Day Period for Tax Refund
Article 165. Any person registered under this Act shall have the right to refund the tax referred to in Article 88 (3) herein within 30 days after submission of the VAT return where the conditions referred to in Article 92 (4) are fulfilled.
Issuing Permission
Article 166. (1) A permission to apply the special arrangements for charging tax upon importation and for refund of the tax within 30 days shall be issued to any person who simultaneously satisfies the following conditions:
1. the person implements an investment project approved by the Minister of Finance;
2. the person is registered under this Act;
3. the person does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency;
4. (amended, SG No. 86/2006, No. 113/2007) the conditions for grant of minimum aids under Regulation (EC) No. 1998/2006 of the Commission on the Application of Articles 87 and 88 of the Treaty to de minimis aid exist.
(2) The investment project shall be approved by the Minister of Finance where the following circumstances simultaneously exist:
1. the time limit for implementation of the project does not exceed two years;
2. the amount of investment exceeds BGN 10 million for a period not longer than two years;
3. more than 50 new jobs are created;
4. the person is capable of financing the project, as well as of constructing and maintaining facilities ensuring the implementation of the said project, such as:
(a) agreements on credit and commercial loans;
(b) financial lease contracts;
(c) bank and other guarantees;
(d) letters of commitment to finance the project by the equity owners;
(e) own funds;
(f) the projected cash inflows are true, correspond to market conditions and are sufficient to cover the investment and current costs of the project.
(3) A permission shall be issued for a period of up to two years on the basis of a request in writing whereto the following documents shall be attached:
1. designs, elaborations and plans for construction and maintenance of facilities and a business plan for economic stability and profitability of the investment project;
2. an analysis of the financial position, confirmed by a registered auditor or a specialized audit enterprise within the meaning given by the Independent Financial Audit Act , in case the person has operated for more than one year; the full annual financial statements for the periods analysed shall be attached to the said analysis;
3. documents certifying the capabilities to finance the project under Item 2 of Paragraph (2);
4. a list of the goods which the person is to import in implementation of the investment project; the said list shall mandatorily contain information on the quantity, value, code under the Combined Nomenclature of the Republic of Bulgaria, and the number of the contract for the supply of the goods;
5. certificates on the circumstances covered under Items 2 and 3 of Paragraph (1);
6. (amended, SG No. 113/2007) a declaration by the persons of the amount of the received minimum aids, irrespective of their form and source, for the last three tax years; received minimum aids for the period shall not exceed the lev equivalent of EUR 200,000 at the official BGN/EUR exchange rate at the date of the permission; for undertakings carrying out road transport activity the total amount of the minimum aid shall be the lev equivalent of EUR 100,000 at the date of the permission; these thresholds shall apply irrespective of whether the aid is financed in full or in part with resources of the European Community.
(4) (New, SG No. 113/2007) To determine the maximum admissible intensity of the aid introduced by a National Regional State Aid Map (OB, No. C 73 of 30 March 2007), the minimum aid under Item 6 of Paragraph (3) shall be added to another state aid received for the same investment project, approved by a decision of the European Commission or in respect of which Article 9 of the State Aids Act applies.
(5) (Amended, SG No. 86/2006, renumbered from Paragraph 4, No. 113/2007) The Minister of Finance shall issue permission within one month after receipt of the request if the requirements covered under Paragraphs (1) and (2) are fulfilled. Where notification of the European Commission is required according to the State Aids Act and the Regulations for Application thereof, the permission shall be issued within one month after the date of the decision of the European Commission whereby the grant of the aid is authorized.
(6) (New, SG No. 113/2007) The permission under Paragraph (5) shall not be issued where on receipt of the minimum aid under this Article the maximum admissible intensity of the aid fixed in the National Regional State Aid Map is exceeded.
(7) (New, SG No. 113/2007) The permission under Paragraph (5) shall specify the amount of the minimum aid for the approved investment project.
(8) (Renumbered from Paragraph 5, SG No. 113/2007) A permission shall be issued or refused by a written order of the Minister of Finance.
(9) (Renumbered from Paragraph 6, amended SG No. 113/2007) Within six months after the issuing of the permission under Paragraph (5), it shall be permissible to issue a new permission on goods which are to be imported or acquired additionally in implementation of the investment project as already approved. Adjustments to a permission already issued shall be inadmissible.
(10) (Renumbered from Paragraph 7, SG No. 113/2007) A refusal to issue a permission shall be appealable according to the procedure established by the Administrative Procedure Code.
Withdrawal of Permission
Article 167. (1) A permission issued shall be withdrawn in the following cases:
1. where the person ceases to satisfy the conditions covered under Article 166 (1) herein;
2. upon the lapse of the period referred to in Article 166 (3) herein.
(2) Where the relevant competent authority ascertains that the conditions under Article 166 herein are not fulfilled, the said authority shall forthwith notify the Minister of Finance.
(3) The permission shall be withdrawn by an order of the Minister of Finance, which shall be appealable according to the procedure established by the Administrative Procedure Code.
(4) The Minister of Finance shall provide the customs administration with information on the permissions issued and revoked, as well as with the lists referred to in Item 4 of Article 166 (3) herein.

Chapter Twenty-One
SPECIAL ARRANGEMENTS REGARDING NEW MEANS OF TRANSPORT

Special Arrangements for Intra-Community Supply and Intra-Community
Acquisition of New Means of Transport
Article 168. (1) Any person not registered under this Act, who effects an intra-Community acquisition of a new means of transport referred to in Article 13 (2) herein or effects an incidental intra-Community supply of a new means of transport referred to in Article 7 (2) herein, shall be obligated to declare the intra-Community acquisition or the incidental supply as effected within 14 days after the expiry of the tax period during which the tax on the acquisition or the supply became chargeable under Articles 63 or 51 herein.
(2) Declaration shall be effected by the submission of a return at the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.
(3) The return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.
(4) The tax due on the intra-Community acquisition shall be remitted according to the procedure and within the time limits established by Article 91 herein.
(5) In the cases of effecting of an intra-Community acquisition under Paragraph (1), credit for input tax paid on the acquired means of transport shall become refundable in respect of the person if the following conditions are fulfilled:
1. the person:
(a) holds an invoice satisfying the requirements of Article 114 herein: where the means of transport has been purchased within the territory of the country, or
(b) holds a customs declaration: in the cases of importation, or
(c) the person has submitted a return under Paragraph (2) on the intra-Community acquisition: in the cases of intra-Community acquisition under Paragraph (1);
2. the tax on the intra-Community acquisition or on the importation has been remitted to Executive Budget Revenue according to the procedure and within the time limits established by Articles 90 and 91 herein.
(6) The right to refund of the tax under Paragraph (5) shall be exercised by stating the amount of the input tax claimable in the return referred to in Paragraph (2).
(7) The amount of the tax refundable under Paragraph (5) may not exceed the tax which would have been chargeable from the person if the supply was not liable to tax at the zero rate.
(8) Where a natural person who is not a sole trader effects an incidental supply referred to in Paragraph (1), the said person shall issue a document which contains the essential elements covered under Items 3 to 15 of Article 114 (1) herein.

PART NINE
MISCELLANEOUS PROVISIONS
Chapter Twenty-Two
INFORMATION

Public Information
Article 169. (1) Public information shall be the information on the registration under this Act which includes:
1. business name, identification number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , identification number referred to in Article 94 (2) herein, and mailing address of the person;
2. date of registration and termination of registration;
3. date of posting of the circumstances referred to in Items 1 and 2.
(2) The information covered under Paragraph (1) shall be accessible and shall be posted on the Internet site of the revenue administration.
(3) The information covered under Paragraph (1) may alternatively be provided by the revenue administration upon a person's written request.
(4) The circumstances covered under Paragraph (1) shall be presumed known to bona fide third parties as from the date of posting of the information under Item 3 of Paragraph (1).
Exchange of Information with Customs Administration
Article 170. (1) The customs administration shall provide the revenue administration with information, by electronic means, on the accepted customs declarations and the received payments of tax upon importation within 14 days after the end of every calendar month.
(2) Such information shall be supplied under terms and according to a procedure established by an order of the Minister of Finance.
Exchange of Information with Tax Administrations of Other Member States
Article 171. (1) The revenue administration shall be free to exchange information relating to the levy of value added tax with the tax administrations of other Member States, provided that such information will be used only for assessment of the tax liabilities of persons and/or in the course of appealing the amount of such tax liabilities.
(2) The information received according to the procedure established by Paragraph (1) from other Member States may be used as evidence for assessment of liabilities under this Act, as well as in administrative and court procedures.
(3) Paragraphs (1) and (2) shall furthermore apply in the cases where the information is exchanged by electronic means.

Chapter Twenty-Three
APPLICATION OF INTERNATIONAL TREATIES AND REFUND OF TAX TO PERSONS NOT
ESTABLISHED WITHIN TERRITORY OF COUNTRY

Importation Exempted by Virtue of International Treaties and Importation
of Goods by Armed Forces of Other States
Article 172. (1) Exemption from tax shall be granted in respect of importation of goods for which a law or an international treaty, ratified and promulgated according to the relevant procedure, provides for exemption of the importation from taxes, levies or other charges (payments, duties) having an effect equivalent to an indirect tax, including where such treaties are financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.
(2) (Supplemented, SG No. 113/2007) Exemption from tax shall be granted in respect of importation of goods imported by the staff/headquarters of the North Atlantic Treaty Organisation or by the armed forces of other States which are parties to the North Atlantic Treaty for the use by such armed forces or by the civilian staff accompanying them, or for supplying their messes or canteens, where such forces take part in the common defence effort of the North Atlantic Treaty within the territory of the country.
(3) The procedure for application of Paragraphs (1) and (2) shall be established by the Regulations for Application of this Act.
Supplies Exempted by Virtue of International Treaties
and Supplies in Which Recipients Are Armed Forces of Other
States or Institutions of European Union
Article 173. (1) Any supplies, which are exempted from value added tax by virtue of international treaties, agreements, accords conventions or other such whereto the Republic of Bulgaria is a party, which are ratified and promulgated according to the relevant procedure, shall be liable to tax at the zero rate, including on the part of the supply which is financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.
(2) For application of the zero rate, the supplier shall be obligated to request in writing an opinion as to the grounds for such exemption from the competent National Revenue Agency territorial directorate. Documents proving the grounds for application of the exemption, specified by the Regulations for Application of this Act, shall be attached to any such request.
(3) The restrictions of the right to credit for input tax under Article 70 herein shall not apply in respect of goods or services which are used only for the effecting of supplies referred to in Paragraph (1).
(4) The supplies of goods and services, in which the recipients are the persons referred to in Article 172 (2) herein and the institutions of the European Union, shall be liable to tax at the zero rate.
(5) For application zero tax rate under Paragraph (4), the supplier shall be obligated to possess documents specified by the Regulations for Application of this Act.
Refund of Tax to Diplomatic Missions, Consular Posts, Missions of
International Organizations and Members of Staff Thereof
Article 174. (1) The tax charged on supplies in which the following are recipients shall be refunded:
1. diplomatic missions;
2. consular posts;
3. missions of international organizations;
4. members of the staff of the recipients referred to in Items 1, 2 and 3.
(2) The terms and the documents required for refund of the tax under Paragraph (1) shall be determined by an ordinance of the Minister of Foreign Affairs and the Minister of Finance.

Chapter Twenty-Four
POWERS OF MINISTER OF FINANCE

Powers of the Minister of Finance
Article 175. (1) The Minister of Finance shall issue rules Regulations for Application of this Act.
(2) The Minister of Finance shall issue the ordinances referred to in Article 81 (2), Article 118 (3) and Article 174 (2) herein.
(3) The Minister of Finance may determine, where necessary, by an order:
1. special arrangements for documenting and reporting certain types of supplies for which the application of the standard procedure presents practical difficulties;
2. the information collected under this Act which is public;
3. the information collected under this Act which may be provided to the tax administrations of other States;
4. the list of coins which constitute investment gold;
5. the procedure, manner and form for exchange of information with the persons not established within the territory of the Community for the purposes of levy of tax on the supplies of electronically supplied services.
(4) The orders covered under Paragraph (3) shall be promulgated in the State Gazette.

Chapter Twenty-Five
POWERS OF REVENUE AUTHORITIES AND PREVENTION OF TAX FRAUD

Refusal to Register or Termination of Registration in Connection with
Tax Violations
Article 176. Any competent revenue authority may refuse to register or may terminate the registration of a person who:
1. cannot be reached at the mailing address named thereby according to the procedure established by the Tax and Social-Insurance Procedure Code ;
2. changes the mailing address thereof and does not provide notification according to the established procedure;
3. fails systematically to fulfil the obligations thereof under this Act;
4. incurs tax liabilities whereof the total value exceeds the value of the assets thereof less the liabilities thereof.
Registration upon Security
Article 176a. (New, SG No. 108/2007) (1) The competent revenue authority shall refuse registration to a person having failed to provide, within the specified time period, security in cash, in government securities or in unconditional and irrevocable bank guarantee for a term of one year and on which data exist that one or more of its owners, managing directors, procurators, majority partners or shareholders:
1. are or have been, at the time of occurrence of the liabilities, owners, procurators, majority partners or shareholders, members of managing or controlling bodies of persons with unsettled value added tax liabilities exceeding BGN 5,000, or
2. have unsettled value added tax liabilities exceeding BGN 5,000 in the capacity as natural persons, or
3. are persons against whom penal proceedings have been initiated or have been convicted for offenses against the tax system.
(2) Paragraph (1) shall not apply to the persons subject to registration under Article 99 (1).
(3) The competent revenue authority shall terminate the registration of a person registered under the terms of Article 132, which has failed to provide, within the specified time period, the security for a term of one year, where the transformation, confiscation or in-kind contribution is performed by a person with unsettled value added tax liabilities exceeding BGN 5,000.
Security Requirements and Amount
Article 176b. (New, SG No. 108/2007) (1) The competent revenue authority shall require provision of the security by a written request which shall specify:
1. the grounds for requiring the security;
2. the amount of the security;
3. the time period in which the person shall submit evidence of the provided security, which shall not be less than 7 days.
(2) The amount of the security shall be equal to the sum total of unsettled liabilities in respect of which the security is required. In the cases under Item 3 of Article 176a (1) the amount of the security shall be BGN 250,000 where the amount of the liabilities is not established at the date the security is required.
(3) The security may be released or reduced prior to expiry of the one year time period if after the registration of the person the grounds on the basis of which the amount of the required security is determined are removed or changed.
(4) The revenue authority which has established existence of the grounds for release or reduction of the security under Paragraph (3) shall notify the bank that the security may be released or reduced up to a specific amount.
Persons' Liability in Case of Abuse
Article 177. (1) Any registered person who is the recipient in a taxable supply shall be liable for the value added tax due and unremitted by another registered person insofar as the former person has exercised a right to deduct credit for input tax related directly or indirectly to the due and unremitted tax.
(2) The liability referred to in Paragraph (1) shall be enforced where the registered person knew or was obligated to know that the tax will not be remitted, and this is proved by the auditing authority according to the procedure established by Articles 117 to 120 of the Tax and Social-Insurance Procedure Code.
(3) For the purposes of Paragraph (2), the person shall be presumed to have been obligated to know where the following conditions are simultaneously fulfilled:
1. the tax due under Paragraph (1) was not effectively effected as paid in as a net tax for a tax period by any of the previous suppliers under a taxable supply whereof the subject are the same goods or services, regardless of whether in the same, modified or processed form, and
2. the taxable supply is simulated, circumvents the law, or is at a price which significantly departs from the market price.
(4) The liability referred to in Paragraph (1) shall not be contingent on the obtaining of a specific benefit from the non-remittance of the tax due.
(5) Any preceding supplier of the person who owes the unremitted tax shall also incur liability under the terms established by Paragraphs (2) and (3).
(6) In the cases under Paragraphs (1) and (2), the liability shall be enforced in respect of the person who is the direct recipient of the supply on which the tax due has not been remitted, and where the collection fails, the liability may be enforced in respect of any succeeding recipient in the order of supplies.
(7) Paragraph (6) shall apply, mutatis mutandis, in respect of the preceding suppliers as well.

Chapter Twenty-Six
COERCIVE ADMINISTRATIVE MEASURES AND ADMINISTRATIVE PENALTY PROVISIONS
Article 178. Any taxable person under this Act who is obligated but fails to submit an application for registration or an application for termination of registration within the time limits established under this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 5,000.
Article 179. (Amended, SG No. 108/2007) Any person registered under this Act, who while obligated to do so, fails to submit a VAT return referred to in Article 125 (1) herein, a return referred to in Article 125 (2) herein, the ledgers of account referred to in Article 124 herein, a return referred to in Article 157 (2) herein, or fails to submit the said returns and ledgers in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.
Article 180. (1) (Amended, SG No. 108/2007) Any registered person who, while obligated to do so, fails to charge tax within the time limits provided for in this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of the uncharged tax but not less than BGN 500.
(2) Paragraph (1) shall furthermore apply where the person has failed to charge tax because the said person has failed to submit an application for registration and has not registered under this Act in due time.
(3) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has charged the tax in the period following the period during which the tax should have been charged, the fine or the pecuniary penalty, as the case may be, shall amount to 25 per cent of the tax but not less than BGN 250.
(4) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraphs (1) and (2), the amount of the fine or the pecuniary penalty shall be equivalent to the uncharged tax but not less than BGN 5,000.
Article 181. (1) (Amended, SG No. 108/2007) Any registered person, who fails to submit information from the ledgers of account or who submits information on a magnetic or optical data storage medium departing from the information stated in the ledgers of account, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.
(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be BGN 1,000 or exceeding this amount but not exceeding BGN 20,000.
Article 182. (1) (Amended, SG No. 108/2007) Any registered person, who fails to issue a tax document, or to show a tax document issued or received in the ledgers of account for the relevant tax period, which leads to an assessment of the tax in a smaller amount, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, in the amount of the smaller tax amount but not less than BGN 1,000.
(2) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has issued or shown a tax document for the tax period following the tax period in which the said document should have been issued or shown, the fine or the pecuniary penalty, as the case may be, shall be in the amount of 25 per cent of the smaller tax amount but not less than BGN 250.
Article 183. (1) (Amended, SG No. 108/2007) Any person, which is not registered under this Act and who issues a tax document stating therein tax, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of tax stated in the document but not less than BGN 1,000.
(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1) the amount of the fine or the pecuniary penalty shall be the double amount of the uncharged tax but not less than BGN 5,000.
Article 184. (1) (Amended, SG No. 108/2007) Any person, who fails to submit a return referred to in Article 168 (2) herein or who fails to submit the said return in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000.
(2) (Amended, SG No. 108/2007) Upon a repeated violation, the fine or the penalty under Paragraph (1), as the case may be, shall be BGN 5,000 or exceeding this amount but not exceeding BGN 20,000.
Article 185. (1) Any person, who fails to issue a fiscal cash receipt (fiscal slip) or who breaches the procedure and manner for type approval, registration or commissioning/decommissioning, or reporting, or service maintenance of fiscal devices, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500, applicable to natural persons who are not merchants, or to a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 10,000, applicable to legal persons and sole traders.
(2) In the cases under Paragraph (1), the natural person who is actually obligated to issue a fiscal cash receipt (fiscal slip) and has accepted payment without issuing such a receipt, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500.
(3) Upon a repeated violation under Paragraph (1), the fine shall be BGN 500 or exceeding this amount but not exceeding BGN 2,500, and the pecuniary penalty shall be BGN 500 or exceeding this amount but not exceeding BGN 20,000.
(4) Any person, who fails to fulfil the obligation thereof to keep the fiscal cash receipt (fiscal slip) until he or she leaves the commercial outlet, shall be liable to a fine of BGN 5, which shall be collected on the spot, against a receipt.
Article 186. (1) The coercive administrative measure of sealing an outlet for a period of up to one month, notwithstanding the fines or pecuniary penalties provided for, shall be imposed on any person who:
1. fails to observe the procedure or manner for:
(a) issuing the relevant document on sale (fiscal slip, cash receipt from a receipt book or a sales certifying mark), printed and issued according to the established procedure for supply/ sale;
(b) commissioning or registration of fiscal devices;
(c) daily reporting of sales turnovers, where this is mandatory;
2. uses a re-designed or modified fiscal device.
(2) In the cases under Item 2 of Paragraph (1), the re-designed or modified fiscal device shall be confiscated by the revenue authority and shall be destroyed. The expenses shall be for the account of the person.
(3) The coercive administrative measure referred to in Paragraph (1) shall be applied by a reasoned order of the revenue authority or by an official empowered by the said authority.
(4) Any order referred to in Paragraph (3) shall be appealable according to the procedure established by the Administrative Procedure Code.
Article 187. (1) Upon application of the coercive administrative measure referred to in Article 186 (1) herein, the person shall furthermore be barred from the outlet or outlets, and the merchandise in stock at the said outlets and at the warehouses thereto appertaining shall be removed by the person or by a person authorized thereby. Such measure shall be applied in respect of the outlet or outlets where violations have been ascertained.
(2) Where such removal involves substantial difficulties for the revenue authorities and/or significant expenses for the person, the authority who decreed the sealing may order that the goods at the outlet or outlets be left to the person for safekeeping. Such order shall not apply to any goods which are the subject of violation referred to in Item 2 of Article 186 (1) herein.
(3) In the cases under Paragraph (1), where the person has failed to remove the goods within the prescribed time limit, the revenue authority shall remove the said goods, placing them in front of the outlet, without any obligation to guard the said goods, and shall not be held liable for their damage, waste or loss which shall be for the account of the person.
(4) The coercive administrative measure shall be terminated by the authority who applied the said measure at a request of the person on whom the administrative sanction has been imposed and after the said person proves that the file or pecuniary penalty has been paid in full. The person shall be obligated to cooperate upon the unsealing.
Article 188. The coercive administrative measure referred to in Article 186 (1) herein shall be subject to anticipatory enforcement under the terms established by the Administrative Procedure Code.
Article 189. (1) Any taxpayer under Article 91 (1) to (3) herein, who fails to remit the chargeable tax in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 2,000.
(2) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be equivalent to the unremitted tax but not less than BGN 4,000.
Article 190. (1) Any revenue authority, who fails to refund a tax within the time period as provided for, where the conditions for refund of the said tax under this Act are fulfilled, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.
(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.
Article 191. (1) Any customs authority, which, while obligated to do so, fails to charge tax under this Act, or who charges tax in a lower amount, or releases goods from customs control without payment of the tax due, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.
(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.
Article 192. Upon ascertainment of any violations covered under Article 185 herein, committed by manufacturers, importers or service maintenance providers of fiscal devices, the Chairperson of the State Agency for Metrological and Technical Surveillance or a person empowered thereby:
1. issue mandatory prescriptions in connection with the powers vested therein;
2. shall cancel the fiscal devices type approval or the approval of an Integrated Automated Commercial Activities Management System;
3. shall terminate the registration of the service maintenance provider upon systematic violations of Article 185 herein.
Article 193. (1) The ascertainment of violations of this Act and of the statutory instruments on the application thereof, the issuing, appeal and execution of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act.
(2) The written statements on violations shall be drawn up by the revenue authorities, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official empowered thereby.

SUPPLEMENTARY PROVISION
§ 1. For the purposes of this Act:
1. "Territory of the country" shall comprise the geographic territory of the Republic of Bulgaria, the continental shelf and the exclusive economic zone.
2. (Amended, SG No. 108/2007) "Territory of a Member State" shall be the area of application of the Treaty establishing the European Community, as defined in respect of each Member State in Article 299 of the said Treaty, with
(a) the following territories being excluded from the said territory:
(aa) for the Federal Republic of Germany: the Island of Heligoland and the territory of Bтsingen;
(bb) for the Kingdom of Spain: Ceuta, Melilla, and the Canary Islands;
(cc) for the Republic of Italy: Livigno, Campione d'Italia, and the Italian waters of Lake Lugano;
(dd) for the French Republic: the overseas departments;
(ee) for the Hellenic Republic: (Mt Athos);
(ff) for the Republic of Finland: Ahvenanmaa (the Oland Islands).
(gg) (new, SG No. 108/2007) for the United Kingdom of Great Britain and Northern Ireland: the Anglo-Norman Islands;
(b) the supplies originating in or intended for:
(aa) the Principality of Monaco being treated for the purposes of this Act as supplies originating in or intended for the French Republic;
(bb) the Isle of Man being treated for the purposes of this Act as supplies originating in or intended for the United Kingdom of Great Britain and Northern Ireland.
(cc) (new, SG No. 108/2007) The sovereign base areas of the United Kingdom of Great Britain and Northern Ireland in Akrotiri and Dhekelia - for the purposes of this Act they shall be treated as supplies originating in or intended for Cyprus.
3. "Community" and "territory of the Community" shall be the territory of the Member States.
4. "Third territory" or "third country" shall be any territory other than the territory of the Member States.
5. "New buildings" shall be any buildings:
(a) which are in a state of completion "rough construction work" at the date on which the tax on the supply of the said buildings became chargeable, or
(b) in respect of which the tax on the supply thereof became chargeable before the lapse of 60 months from the date on which a use permit was granted according to the procedure established by the Spatial Development Act.
6. (Amended, SG No. 108/2006) "Adjacent site" shall be the amount of the built up area in the meaning of the Spatial Development Act and the area around the built up area, determined on the base of a distance of 3 m from the external outlines of each of the surrounding walls on the first overground floor or the semi underground floor of the building, within the regulated land estate.
7. "Activities or supplies effected by the State, the state bodies and the local bodies in their capacity as central or local government authorities" shall be such activities or supplies effected by a person created by virtue of a law, where:
(a) such activities or supplies are effected in exercise of the powers vested therein arising from a statutory instrument and which may not be effected by a merchant, unless such duty is imposed thereon by a law;
(b) a fee has been established by a statutory instrument.
8. A supply effected "free of charge" shall be any supply effected without consideration or such in which the value of the benefit provided exceeds manifold the value of the benefit received.
9. "Goods of negligible value" and "services of negligible value" shall be any goods or services whereof the open market value does not exceed BGN 30 and whereof the supply is not part of a series of supplies in which the recipient is one and the same person.
10. "Fixed establishment" shall be a representative office, a branch, an office, a bureau, a studio, a plant, a workshop (factory), a retail shop, a wholesale storage facility, an after-sales service establishment, an assembly project, a construction site, a mine, quarry, prospecting drill, oil or gas well, a water spring or any other place of extraction of natural resources, a fixed place (whether owned, rented, or allocated for use) or a fixed base wherethrough a person carries out economic activity within the territory of a country, whether wholly or partly.
11. "Person established within the territory of the country" shall be any person who has a registered office and address of the place of management within the territory of the country or who has a fixed establishment within the territory of the country.
12. "Person established within the territory of the Community" shall be any person who has a registered office and an address of the place of management within the territory of the Community or who has a fixed establishment within the territory of the Community.
13. (Amended SG No. 41/2007) "Electronic communications services" shall be electronic communications services within the meaning given by the Electronic Communications Act. Electronic communications services shall furthermore include a transfer or cession of a right to use the capacity for conveyance, emission, transmission or reception or the provision of access to global information networks.
14. "Electronically supplied services" shall be:
(a) providing personal presence on the Internet, delivery of digitized content on the Internet (website and webpage hosting), online and distance maintenance of programmes and computer equipment;
(b) online accessing or downloading of software plus updates;
(c) accessing or downloading of images, writing and information and granting access to databases by electronic means;
(d) online accessing or downloading of music, films and games, including lotteries, games of chance and games giving cash prizes and merchandise awards, as well as of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events;
(e) supply of distance teaching by electronic means.
When the service provider and a customer thereof communicate by electronic mail, this does not imply by itself that the service provided is electronically supplied.
15. (Amended, SG No. 113/2007) "Subsidies and investment grants directly linked to a supply" shall be such subsidies and investment grants whereof the allocation is directly dependent on the price of the goods or services provided. Subsidies and investment grants directly linked to a supply shall exclude any subsidies and investment grants intended solely for:
(a) cover of losses;
(b) financing of expenses, including the acquisition or liquidation of assets.
16. "Open market value" shall be the price within the meaning given by Item 8 of § 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code , determined according to the methods for determination of open market values within the meaning given by Item 10 of § 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.
17. "New means of transport" shall be:
(a) any vessels exceeding 7.5 metres in length (with the exception of such intended for the transport of persons or goods, for navigation, for the purpose of commercial, industrial or fishing activities, for rescue or assistance at sea), where one of the following conditions is fulfilled:
(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or
(bb) the date of the chargeable event has occurred before they have sailed for more than 100 hours;
(b) aircraft the take-off weight of which exceeds 1,550 kilograms, intended for the transport of persons or goods (with the exception of such intended for airlines operating on international routes), where one of the following conditions is fulfilled:
(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or
(bb) the date of the chargeable event has occurred before they have flown for more than 40 hours;
(c) motorized land vehicles the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7.2 kilowatts, intended for the transport of persons or goods, where one of the following conditions is fulfilled:
(aa) the date of the chargeable event has occurred within six months after the date of their first entry into service, or
(bb) the date of the chargeable event has occurred before they have travelled more than 6,000 kilometres.
18. "Passenger car" shall be any automobile designed to seat no more than five persons (excluding the driver). Any light-duty cargo truck intended to carry goods or any passenger car with permanently in-built technical equipment for the purposes of the activities carried out by the registered person shall not be treated as passenger car.
19. "Second-hand goods" shall be any used tangible movable property that is suitable for further use as it is or after repair, which can be used for the purpose for which it was made. The following shall not be second-hand goods:
(a) works of art;
(b) collectors' items;
(c) antiques;
(d) precious metals and precious stones in whatever form.
20. "Works of art" shall be:
(a) pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas;
(b) original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process;
(c) original sculptures and statuary, in any material, provided that they are executed entirely by the artist; sculpture casts the production of which is limited to eight copies and supervised by the artist or by artists authorized thereby;
(d) tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more than eight copies of each;
(e) individual pieces of ceramics executed entirely by the artist and signed thereby;
(f) enamels on copper, executed entirely by hand, limited to eight copies bearing the signature of the artist or the seal of the studio, excluding articles of jewellery and goldsmiths' and silversmiths' wares;
(g) photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes included.
21. "Collectors' items" shall be any postage or revenue stamps, franked or if unfranked not being of or being intended for use as legal tender, as well any collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest.
22. "Antiques" shall be any objects other than works of art or collectors' items, which are more than 100 years old.
23. "Taxable dealer of second-hand goods, works of art, collectors' items and antiques" shall be a taxable person who, in the course of his economic activity, purchases or acquires or imports with a view to resale, second-hand goods, works of art, collectors' items or antiques, whether that taxable person is acting [for himself or] as a commission agent within the meaning given by the Commerce Code.
24. "Investment gold" shall be:
(a) gold, in the form of a bar or a wafer of weights accepted by the bullion markets, and of a purity equal to or greater than 995 thousandths;
(b) gold coins designated by an order of the Governor of the Bulgarian National Bank and the Minister of Finance, where the following conditions are simultaneously fulfilled:
(aa) they are of a purity equal to or greater than 900 thousandths;
(bb) they are minted after 1800;
(cc) they are or have been legal tender in the country of origin;
(dd) they are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 per cent.
25. "Standard software" shall be any software product recorded on a physical medium, which is intended for common use and which does not take account of the specifics in the activity of a concrete user.
26. "Handling of goods in transit" shall be services for unloading, loading, reloading, stowage and securing of the goods, provision of containers, as well as other services provided directly in connection with the transport.
27. "Taxable dealer of natural gas and electricity" shall be a taxable person whose economic activity is related to purchases of natural gas or electricity and subsequent resale of such products.
28. (Amended, SG No. 108/2007) "Handling of a vessel" shall be all operations concerning the admission, stay and departure of a vessel performed by the port within the territory of the country.
29. "Handling of an aircraft on international service" shall be the ground servicing of an aircraft within the meaning given by Item 18 of § 3 of the Supplementary Provisions of the Civil Aviation Act , with the exception of the services for which stamp duty is payable under the Ordinance on Public-Transport Airport Charges and Air Navigation Charges in the Republic of Bulgaria (promulgated in the State Gazette No. 2 of 1999; amended in No. 15 of 2000, Nos. 9 and 62 of 2001, No. 19 of 2002, No. 16 of 2003, Nos. 32 and 71 of 2004, Nos. 15 and 96 of 2005, No. 22 of 2006).
30. "Handling of railway rolling stock on international service" shall comprise the following operations: shunting for the purpose of moving wagons to and from the points of loading and unloading; stay of the wagon during loading and unloading; weighing of empty wagons by a wagon weighbridge prior to loading; weighing of loaded wagons by a wagon weighbridge; disinfection, elimination of harmful insects and rodents of wagons intended for loading of goods, where this requirement is according to the Bulgarian State Standard; maintenance of controlled temperature during loading and transport of goods, which require such controlled temperature; carrying out customs and other administrative formalities related to the carriage of goods intended for import and for export; providing or withdrawing wagons, inter alia sorting wagons from and for a rail ferry; switching of wagon wheel sets with different track gauges.
31. "Repair" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which do not lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.
32. "Improvement" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.
33. "Cash equivalents" shall be:
(a) receipts for purchases;
(b) gift vouchers or gift coupons;
(c) metal or plastic tokens.
34. "Connected persons" shall be the persons within the meaning given by Item 3 of § 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.
35. "Repeated violation" shall be any violation committed within one year after the entry into effect of a penalty decree whereby the offender was penalized for a violation of the same kind.
36. "Free zone", "free warehouse", "goods in temporary storage", "customs procedure", "suspensive arrangement", "non-Community goods" shall be the terms within the meaning given by customs legislation.
37. (Supplemented, SG No. 108/2006) "Tourist", "hotelier", "tour operator", "travel agent", "main tourist services" and "package tour" shall be the terms within the meaning given by Items 1, 3, 8, 10, 12 and 14 of § 1 of the Supplementary Provision of the Tourism Act.
38. "Importer" shall be the person liable to pay the import duties, as well as the person who has received goods within the territory of the country from third countries or territories which form part of the customs territory of the Community.
39. (Supplemented, SG No. 108/2007, No. 113/2007) "Excisable goods" shall be the goods covered under Items 1, 2 and 3 of Article 2 of the Excise Duties and Tax Warehouses Act except for natural gas supplied through transfer pipelines and electricity.
40. "Fiscal device" shall be a device for registration and reporting of sales of goods or services by means of issuing of fiscal cash receipts and for storage of data on the registered turnovers in a fiscal memory.
41. "Commercial outlet" shall be any place, premise or facility (for example: tables, stalls and other such) situated outdoors or under sheds, whereat or wherefrom sales of goods or services are effected, regardless of the fact that such premise or facility may concurrently serve for other purposes as well (for example: an office, a dwelling or other such), may be part of owned corporeal immovable (for example: a parking garage, a basement, a room or other such), or may be a manufacturing warehouse or a means of transport wherefrom sales are effected.
42. "Systematic violations" shall be any violations committed within one year after the entry into effect of a penalty decree whereby the offender was penalized again for a violation of the same kind.
43. "Work on goods" shall be treatment, processing or repair of goods.
44. "VIES (Value Added Tax Information Exchange System) return" shall be a consolidated return used for the purposes of control and exchange of information among the Member States.
45. (New, SG No. 108/2006) "Accommodation" means basic tourist services in the meaning of sub-paragraph 12 from the additional provision of the Tourism Act.
46. (New, SG No. 108/2006) "Waste production" is every activity as a result of which waste is generated.
47. (New, SG No. 108/2006) "Waste processing" is any activity associated with the collection, storage, sorting and mechanical processing of waste without any changes to its chemical composition.
48. (New, SG No. 108/2006) "Waste treatment" is any activity, which changes the properties or composition of waste, transforming it into recourses for the production of end products or into end products.
49. (New, SG No. 108/2007) "Small vessel" is a vessel with the size set out in Article 34 (2) of the Merchant Shipping Code.
50. (New, SG No. 108/2007) "Large vessel" is a vessel with the size set out in Article 34 (3) of the Merchant Shipping Code.
51. (New, SG No. 108/2007) "Majority partner or shareholder" is a person holding more than 33 per cent of the participating interest or shares, as the case may be, in the company.
52. (New, SG No. 108/2007) "Unsettled liabilities" are the established chargeable liabilities of the person except for the fully secured, rescheduled and deferred liabilities.
53. (New, SG No. 108/2007) "Active implantable medical device" is a device within the meaning of Item 1 of § 1 of the supplementary provisions of the Medical Devices Act.

TRANSITIONAL AND FINAL PROVISIONS
§ 2. This Act shall supersede the Value Added Tax Act (promulgated in the State Gazette No. 153 of 1998; corrected in No. 1 of 1999; amended in Nos. 44, 62, 64, 103 and 111 of 1999, Nos. 63, 78 and 102 of 2000, No. 109 of 2001, Nos. 28, 45 and 117 of 2002, Nos. 37, 42, 86 and 109 of 2003, Nos. 53, 70 and 108 of 2004, Nos. 28, 43, 76, 94, 95, 100, 103 and 105 of 2005, Nos. 30 and 54 of 2006),
§ 3. (Effective 4.08.2006) (1) The Minister of Finance shall issue the Regulations for Application of this Act and the ordinances under this Act within three months after the promulgation of the said Act in the State Gazette.
(2) The Regulations and the ordinances referred to in Paragraph (1) shall enter into force as from the day of entry into force of this Act.
§ 4. (1) All persons registered under the Value Added Tax Act as hereby superseded at the date of entry into force of this Act shall be presumed registered under this Act as well. In such cases, the identification number referred to in Article 94 (2) herein and the registration certificate referred to in Article 104 herein shall be issued ex officio.
(2) Any registration or deregistration procedures that have been initiated and have not been concluded at the date of entry into force of this Act shall be completed according to the procedure established by this Act.
(3) Notwithstanding Paragraph (2), when grounds for termination of registration in respect to a registered person have arisen during the last tax period prior to the date of entry into force of this Act, such person may remain registered under this Act if the grounds for optional registration under this Act exist.
(4) The tax charged on assets available in connection with termination of registration prior to the entry into force of this Act shall be remitted within 30 days after the date of termination of registration.
(5) Where the time limit for submission of the registration inventory referred to in Article 68 or Article 70 of the Value Added Tax Act as hereby superseded expires after the entry into force of this Act, the said inventory shall be submitted within three days after the date of registration under the Value Added Tax Act as hereby superseded.
§ 5. (1) The VAT return for the last tax period prior to the entry into force of this Act shall be submitted not later than the 14th day of the month following the month to which the said return refers, and all rights and obligations under this Act shall accrue in respect to the net tax (input tax claimable or output tax payable) stated therein.
(2) The annual VAT return referred to in Article 101 (1) of the Value Added Tax Act as hereby superseded shall be submitted not later than the 15th day of April 2007, and the net tax stated therein shall not be included in the deduction procedure under this Act but the tax shall be remitted or recovered within three months after the submission of the said return.
§ 6. (1) For registered persons in respect of whom the three-month deduction procedure for input tax claimable under the Value Added Tax Act as hereby superseded has been initiated and has not been concluded at the date of entry into force of this Act, the deduction procedure shall continue according to the procedure established by Article 92 (1) of this Act.
(2) All nine-month deduction procedures for income tax payable under the Value Added Tax Act as hereby superseded which have not been completed at the date of entry into force of this Act shall be concluded at the last day of the month preceding the month of entry into force of this Act.
(3) In the cases referred to in Paragraph (2), the balance of the input tax claimable shall be declared by the persons in the VAT returns for the last tax period prior to the entry into force of this Act, and the said balance shall be set off and refunded by the revenue authority within 45 days after the submission of the said VAT return.
(4) Any balance of the input tax claimable under Item 4 of Article 77 (1) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within 45 days after the submission of the VAT return wherein the said balance is stated.
(5) Any tax refundable in pursuance of Article 77 (2) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within the relevant time limits referred to in Article 77 (2) of the Value Added Tax Act as hereby superseded.
§ 7. (1) Where an advance payment has been received in connection with an exempt supply within the meaning given by the Value Added Tax Act as hereby superseded, which is a taxable supply within the meaning given by Article 12 (1) (excluding zero-rated supplies) of this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by issuing an invoice stating therein the full taxable amount for the said supply. The said supply shall be subject to the tax treatment effective at the date of the occurrence of the chargeable event for the supply under this Act.
(2) Where an advance payment has been received in connection with a taxable supply within the meaning given by the Value Added Tax Act as hereby superseded, which is an exempt supply within the meaning given by this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by cancelling the invoice issued on the advance payment and issuing a new invoice, stating therein the full taxable amount for the said supply. A memorandum under Article 116 (4) of this Act shall furthermore be issued on the said cancellation. The said supply shall be subject to the tax treatment effective at the date of occurrence of the chargeable event for the supply under this Act.
§ 8. (1) Where the chargeable event for a supply has occurred prior to the entry into force of this Act and the tax document on the supply is to be issued after the entry into force of the said, the supply shall be documented by issuing an invoice under Article 114 of this Act, and upon the issuing the said invoice, the tax treatment effective at the date of occurrence of the chargeable event for such supply shall apply.
(2) Where, after the entry of this Act into force, grounds arise for modification of the taxable amount of a supply which has been actually effected and documented prior to the entry into force of this Act, the taxable amount shall be modified by issuing a tax advice under Article 115 of this Act, and upon the issuing of the said advice, the tax treatment effective at the date of occurrence of the chargeable event for the supply as effected and documented shall apply.
§ 9. (1) Where goods have actually been supplied under the terms of a financial lease contract prior to the date of entry into force of this Act, each subsequent payment (instalment) under such contract due after the entry into force of this Act shall be considered a separate supply for which the chargeable event shall occur on the earlier of the date of payment and the date on which the said payment became due.
(2) Paragraph (1) shall apply only where the taxable person who is the supplier submits an inventory, which shall mandatorily contain the following information, to the National Revenue Agency territorial directorate whereat the said person is registered within one month after the entry into force of this Act:
1. recipient under the contracts referred to in Paragraph (1);
2. number and amount of instalments under each contract on which a tax document has been issued but which have not been received;
3. number and amount of instalments under each contract for which the chargeable event referred to in Paragraph (1) will occur after the entry into force of this Act.
(3) For any contracts which are not included in an inventory submitted according to the procedure established by Paragraph (2), the person shall be presumed to effect a supply under Item 3 of Article 6 (2) herein on the date of entry into force of this Act, whereof the taxable amount is equal to the sum total of the instalments due after the entry into force of this Act, net of tax due on the said instalments.
§ 10. Where goods have actually been supplied by a principal/mandator to a commission agent/mandatary and the said goods have not been delivered by the commission agent/mandatary to a third party prior to the entry into force of this Act, the chargeable event for such supply of goods between the principal/mandator and the commission agent/mandatary shall be presumed to occur on the date of occurrence of the chargeable event for the supply of the goods to the third party.
§ 11. The provision of Article 50 of this Act shall furthermore apply in cases of supplies of goods or services for which a right to deduct credit for input tax in pursuance of Article 65 (1) of the Value Added Tax Act as hereby superseded did not exist.
§ 12. Any tax documents issued prior to the entry into force of this Act and complying with the requirements of the Value Added Tax Act as hereby superseded shall be deemed compliant with the requirements of this Act.
§ 13. The right to deduct credit for input tax, which has accrued in pursuance of the Value Added Tax Act as hereby superseded and which has not been exercised until the date of entry into force of this Act and for the exercise of which the time limits under Articles 67 , 69 and 71 of the Value Added Tax Act as hereby superseded have not expired, may be exercised in any of the three tax periods following the tax period during which the said right has accrued.
§ 14. (1) Importation shall furthermore refer to the completion of customs formalities in respect of declaring for free circulation of any goods for which the circumstances under Annex V, Chapter 4 "Customs Union," of the Protocol to the Treaty concerning the Accession of the Republic of Bulgaria to the European Union exist.
(2) In the cases referred to in Paragraph (1), the chargeable event shall occur and the tax shall become chargeable according to the procedure established in Article 54 (2) of this Act.
(3) The taxable amount in the cases referred to in Paragraph (1) shall be determined according to the procedure established in Article 55 (1) to (4) of this Act.
(4) The tax shall be charged according to the procedure established in Article 56 of this Act.
(5) The provisions of Articles 60 and 90 of this Act shall apply to the remittance of the tax.
(6) Until occurrence of the chargeable event referred to in Paragraph (2), security shall be provided in respect of the tax according to the procedure and in the amounts specified in Article 59 of this Act.
(7) (New, SG No. 113/2007) Notwithstanding Paragraph (1), no tax shall be due on the performance of customs formalities for declaring vehicles for free circulation where the following conditions exist simultaneously:
1. as of 31 December 2006 inclusive the vehicles are under temporary import regime with full exemption from customs duties;
2. the vehicles are acquired in or imported from another Member State, including Romania;
3. at the time of declaring the free circulation the vehicles are under temporary import regime with full exemption from customs duties;
4. the date of the first registration of the vehicles is not later than 31 December 1998 inclusive;
5. the amount of the tax does not exceed BGN 100 inclusive.
§ 15. (Amended, SG No. 108/2006) (1) The VAT accounts in the meaning of Article 20, sub-paragraph 17 of the repealed Value Added Tax Act, on which no funds are available, shall be closed at the request of the title-holders or ex officio by banks as at 31 January 2007.
(2) If there are funds available in the VAT account, by 31 January 2007 the account holder may specify an account, to which the funds to be transferred and the VAT account shall be closed.
(3) If within the deadline under paragraph 1 the holder of the VAT account in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act does not specify an account, to which the available amounts to be transferred, they shall be transferred as at 31 January 2007 ex officio by the bank to another account of the holder in the same bank, and if the holder does not have another account with the bank - to a current account opened by the bank ex officio in the name of the holder, whereas the VAT account shall be closed.
(4) The frozen funds in the VAT accounts in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act may be transferred only to an account of the same holder, whereas the imposed freezing shall remain in force, including with regard to its imposition date.";
§ 15a. (New, SG No. 108/2006) (1) When in 2006 reasons have occurred for an adjustment to a tax credit used according to the procedures of Article 81, paragraph 4 from the repealed Value Added Tax Act, the person shall accrue and pay tax to an amount, determined under the procedures of Article 76 from the repealed Rules for the Implementation of the Value Added Tax Act (promulgated in State Gazette No 19 from 1999; amended No 55 from 1999, amended No 9 from 2000; amended No 15 from 2000, amended No 12 from 2001 - Ruling № 404 from 2001 of the Supreme Administrative Court under administrative file № 1581 of 2000; amended No 15 and No 58 from 2001, No 43 and No 63 from 2002, amended No 29 from 2003, amended No 26 from 2004, amended No 32 from 2005, amended No 9 from 2006; repealed, State Gazette No 76 from 2006).
(2) The adjustment under paragraph 1 shall be made by issuing a protocol under Article 117 of the present Act during the first tax period of 2007. The protocol shall be registered in the sales journal for that tax period as the tax, accrued under the act in other cases.
§ 16. The Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended in Nos. 21 and 153 of 1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111 of 1999, Nos. 105 and 108 of 2000, Nos. 34 and 110 of 2001, Nos. 45, 61, 62 and 119 of 2002, Nos. 42 and 109 of 2003, Nos. 18, 53 and 107 of 2004, Nos. 39, 88, 91, 102, 103 and 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:
1. (Effective 4.08.2006) In Article 16 , Paragraph (1) shall be amended to read as follows:
"(1) For the purposes of this Section, fair market value shall be determined according to the methods for determination of market prices within the meaning given by Item 10 of § 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ."
2. In Article 36a , Item 6 of Paragraph (1) shall be repealed.
3. (Effective 4.08.2006) In Article 55 , a new Paragraph (5) shall be added to read as follows:
"(5) Taxes withheld at source from non-resident persons which do not carry out economic activity through a permanent establishment or a fixed base within the territory of the country shall be set off and refunded by the territorial directorate referred to in Paragraph (1)."
4. Article 66 shall be amended as follows:
(a) in Paragraph (1), the words "Article 136" shall be replaced by "Article 183";
(b) in Paragraph (2), the words "Article 137" shall be replaced by "Article 185".
§ 17. (Effective 4.08.2006) In the Waste Management Act (promulgated in the State Gazette No. 86 of 2003; amended in No. 70 of 2004, Nos. 77, 87, 88, 95 and 105 of 2005, Nos. 30 and 34 of 2006), in Item 27 of § 1 of the Supplementary Provisions , the words "Item 5 of Article 20 of the Value Added Tax Act" shall be replaced by "Item 8 of § 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ."
§ 18. (Effective 4.08.2006) The Excise Duties and Tax Warehouses Act (promulgated in the State Gazette No. 91 of 2005; amended in No. 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:
1. In Article 4 :
(a) in Item 8, after the words "30 litres" there shall be added "of ethyl alcohol (rakiya)";
(b) Item 10 shall be amended to read as follows:
"10. "Dual use energy product" shall be a product which is used both as heating fuel and for purposes other than as motor fuel and heating fuel; the use of energy products for chemical reduction and in electrolytic and metallurgical processes shall be regarded as dual use.";
(c) in Item 18, the figure "5,000" shall be replaced by "15,000".
2. In Article 9 , a new Item 3 shall be added to read as follows:
"3. obtained from distillation and potable, containing other products, whether in solution or not."
3. In Article 14 , the words "Section VI and of Chapter Eight" shall be deleted.
4. In Article 21 :
(a) in Item 2 of Paragraph (1), the word "at importation" shall be deleted;
(b) there shall be inserted a new Paragraph (2) to read as follows:
"(2) Where excise duty has not been paid on the goods referred to in Items 1 and 3 of Paragraph (1), exemption shall be granted by a refund.";
(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.
5. In Article 22:
(a) Paragraph (1) shall be amended to read as follows:
"(1) Completely denatured ethyl alcohol shall be exempted from levy of excise duty.";
(b) there shall be inserted a new Paragraph (2) to read as follows:
"(2) The excise duty paid on ethyl alcohol, which is both expressly denatured and used for the manufacture of products not for human consumption, shall be refunded.";
(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.
(d) the existing Paragraph (4) shall be renumbered to become Paragraph (5) and shall be amended to read as follows:
"(5) The excise duty paid under Paragraphs (2), (3) and (4) shall be refunded after the sale of the manufactured products referred to in Paragraphs (2) and (3) or, respectively, after the use thereof under Paragraph (4)."
6. In Article 24 (2) :
(a) in Item 1, the words "other than being used as motor fuel or heating fuel" shall be deleted;
(b) there shall be added a new Item 4 to read as follows:
"4. used for purposes other than as motor fuel and heating fuel."
7. In Article 32 :
(a) in Paragraph (2), the text before Item 1 shall be amended to read as follows: "The excise rate on motor fuel used for tillage of agricultural land by agricultural producers approved for financial assistance under the Agricultural Producers Support Act, shall be as follows:";
(b) there shall be added new Paragraphs (3), (4), (5) and (6) to read as follows:
"(3) The rates of excise duty referred to in Items 1 and 2 of Paragraph (2) shall be applied by means of reimbursement of the difference between the relevant rate under Paragraph (1) and the rate under Paragraph (2) for a quantity calculated on the basis of an annual fuel consumption rate of 73 litres per hectare of registered arable agricultural land.
(4) Not later than the 1st day of July of each year, the Minister of Agriculture and Forestry shall provide the Director of the National Customs Agency with the following information from the Register of Agricultural Producers:
1. identification particulars of the agricultural producer;
2. legal form of business organization, name (business name), permanent address (registered office and address of the place of management), telephone, fax, electronic mail address;
3. data on the agricultural land farmed (in hectares) according to the agricultural land parcel identification.
(5) The right to reimbursement shall be exercised by the agricultural producers on a single occasion in respect of the motor fuel purchased thereby during the current year. A request for reimbursement shall be submitted from the 1st day of July until the 31st day of December in the current year,
(6) Reimbursement under Paragraph (3) shall be effected within two months after submission of the request according to a procedure established the Regulations for Application of this Act."
8. In Article 33 (1), the words "used" and "and household purposes" shall be deleted.
9. In Article 34 , the words "Article 32, Paragraph 2 and" shall be deleted.
10. In Item 5 of Article 47 , the words "of the tax or customs legislation" shall be replaced by "under this Act".
11. In Item 5 of Article 51 (1) , the words "and tax number" shall be deleted.
12. In Item 3 of Article 54 (2) and Item 2 of Article 56 (2) , the words "and tax number" shall be deleted.
13. In Article 57 , Item 5 of Paragraph (3) shall be amended to read as follows:
"5. a copy of BULSTAT Register identification card, certified by the person;".
14. In Article 59 (1), after the word "including" there shall be inserted "extraction, recovery and".
15. In Article 60 , Paragraphs (5) and (60 shall be repealed.
16. In Article 65 (2) , Item 2 shall be amended to read as follows:
"2. have been released for free circulation with simultaneous placing under an excise duty suspension arrangement;".
17. In Article 66 , there shall be added new Paragraphs (3) and (4) to read as follows:
"(3) Authorized warehousekeepers shall be obligated to use measuring instruments complying with the requirements of the Measurements Act and the statutory instruments on the application thereof.
(4) The specific requirements and the control over the measuring instruments referred to in Paragraph (3) shall be determined according to the procedure established by Article 61 (2) herein."
18. In Article 67 , Item 3 shall be amended to read as follows:
"3. Transportation of excisable goods, released for free circulation with simultaneous placing under an excise duty suspension arrangement, to a tax warehouse."
19. In Article 77 (2) at the end, there shall be placed a comma and there shall be added "with the exception of the cases referred to in Article 78 (3) herein."
20. In Article 78 :
(a) there shall be inserted a new Paragraph (3) to read as follows:
"(3) The amount of the security for a tax warehouse for production and storage of excisable goods may not exceed BGN 30 million.";
(b) the existing Paragraph (3) shall be renumbered to become Paragraph (4).
21. In Article 88 (4) , the words "the Tax Procedure Code" shall be replaced by "the Tax and Social-Insurance Procedure Code".
22. In Article 94 , Paragraph (2) shall be repealed.
23. In Article 97 (1) , the word "Denaturing" shall be replaced by "Complete denaturing".
24. In Article 106 (1) , the word "tax" shall be replaced by "revenue".
25. In Article 125 , there shall be added a new Paragraph (4) to read as follows:
"(4) The sanctions referred to in Paragraphs (1), (2) and (3) shall furthermore be imposed on any agricultural producer which uses motor fuel at reduced rates in violation of Article 32 herein."
26. The Transitional and Final Provisions shall be amended and supplemented as follows:
(a) in § 2 :
(aa) Paragraph (1) shall be amended to read as follows:
"(1) Any proceedings for the establishment and collection of excise duty liabilities, initiated on or before the 30th day of June 2006, as well any proceedings for reimbursement of excise duty initiated until the said date, shall be completed by the National Revenue Agency authorities.";
(bb) Paragraph (2) shall be amended to read as follows:
"(2) The excise duty charged on or before the 30th day of June 2006 shall be declared and remitted according to the procedure and within the time limits established by the Excise Tax Act and the Regulations for Application thereof.";
(cc) there shall be added new Paragraphs (3) and (4) to read as follows:
"(3) The provisions of the Excise Tax Act shall apply to any excise duty liabilities which have arisen on or before the 30th day of June 2006, and the said liabilities shall be established, secured and collected by the National Revenue Agency authorities according to the procedure established by the Tax and Social-Insurance Procedure Code.
(4) The security furnished under the Excise Tax Act, furnished on or before the 30th day of June 2006, shall be released or utilized by the National Revenue Agency according to the procedure and under the terms established by the Excise Tax Act and the Regulations for Application thereof.";
(b) there shall be inserted § 2a and § 2b to read as follows:
"§ 2a. (1) Authorized warehousekeepers shall have the right to reimbursement of the excise duty paid until the 30th day of June 2006 on:
1. ethyl alcohol (alcohol-containing raw materials) used in the production of alcoholic beverages;
2. gases intended for processing, falling within CN codes 2901 24 100, 2711 14 000, 2901 22 000 and 2901 21 000, which have undergone specific or chemical processing into excisable finished products;
3. heavy oils intended for processing, falling within CN codes 2710 19 710 and 2710 19 750, and for heavy fuel oils, falling within CN codes 2710 19 510 and 2710 19 550, which have under undergone specific or chemical processing into excisable finished products;
4. naphtha used in the production of ethylene;
5. ethylene used in the production of ethylene dichloride.
(2) Reimbursement shall be effected after release for consumption of the excisable goods in which the goods covered under Paragraph (1) are used or, respectively, after the sale of the ethylene dichloride, but not later than the 1st day of July 2007.
§ 2b. The annual fuel consumption rate, referred to in Article 32 (3) herein, for 2006, shall be 44 litres per hectare of registered arable agricultural land.";
(c) in § 5 , the words "Article 21, Paragraph 2" shall be replaced by "Article 21, Paragraph 3";
(d) in § 12 :
(aa) Item 1 shall be amended to read as follows:
"1. the provisions of Articles 1 to 31, Article 32, Items 2, 4, 5 and 6 of Article 33 (1) and Article 33 (2), Articles 34 to 46, Articles 59 to 128, § 1 (1) regarding the repeal of the Excise Tax Act, as well as § 1 (3), which shall enter into force as from the 1st day of July 2006;".
(bb) there shall be added a new Item 3 to read as follows:
"3. The provisions of Items 1 and 3 of Article 33 (1), which shall enter into force as from the 1st day of January 2007."
§ 19. (Effective 4.08.2006) The Tax and Social-Insurance Procedure Code (promulgated in the State Gazette No. 105 of 2005; amended in Nos. 30, 33 and 34 of 2006) shall be amended and supplemented as follows:
1. In Article 30 (3) , the words "Article 29 (8) or (9)" shall be replaced by "Article 29 (6), (7) and (8)".
2. In Article 140 (3) , the figure "139" shall be replaced by "138".
3. In Article 143 , there shall be added a new Paragraph (4) to read as follows:
"(4) Upon receipt of a request for exchange of information under Paragraph (1) from another country and on a basis of reciprocity, the Minister of Finance or a person authorized thereby may approach the court for disclosure of information constituting a bank secret within the meaning given by Article 52 of the Banking Act, a secret within the meaning given by Articles 71 and 133 of the Public Offering of Securities Act or within the meaning given by another provision of Bulgarian legislation on safeguarding the confidentiality of pecuniary funds, financial assets and other property, where the facts set forth in the request for exchange of information make clear that the said request is made in compliance with the requirements for exchange of information in the relevant international treaty."
4. In Article 157 (3) , the words "and Paragraph (8)" shall be deleted.
5. In sentence one of Article 183 (11) , the words "Article 148 (1)" shall be replaced by "Article 184 (1)", and sentence two shall be deleted.
6. In Article 189 , the heading shall be amended to read as follows: "Rescheduling and Deferral in Bankruptcy Proceedings".
7. In Article 202 (1) and in the heading of Article 228, the words "and persons connected therewith" shall be deleted.
8. In Item 1 of Article 251 (3) at the end, the words "and address" shall be replaced by "address and certificate of current status."
9. In Article 252:
(a) in Paragraph (6), after the word "same" there shall be inserted "highest";
(b) In Paragraph (7), the words "non-attending bidders" shall be replaced by "bidders and at least one of them is not present at the review of the offers".
10. In Article 254 (2) :
(a) a new sentence two shall be inserted, to read as follows: "If the second highest price has been offered by two or more participants, the public enforcement agent shall determine the succeeding buyer through a draw of lot.";
(b) the existing sentence two shall become sentence three.
11. In Article 255 , the words "the interest and the principal" shall be replaced by "the principal and the interest".
12. In § 6 of the Transition and Final Provisions , there shall be added a new Paragraph (7) to read as follows:
"(7) Upon appointment to civil service at the National Customs Agency to a position whereof the functions are directly related to administration and control of excise duties, Article 10 (1) of the Civil Servants Act shall not apply if the candidates are in employment relationships with the National Customs Agency and with the National Revenue Agency."
§ 20. (Effective 4.08.2006) In the Banking Act (promulgated in the State Gazette No. 52 of 1997; supplemented in No. 15 of 1998; amended in Nos. 21, 52, 70 and 98 of 1998, Nos. 54, 103 and 114 of 1999, Nos. 24, 63, 84 and 92 of 2000, No. 1 of 2001, Nos. 45, 91 and 92 of 2002, No. 31 of 2003, Nos. 19, 31, 39 and 105 of 2005, Nos. 30, 33 and 34 of 2006) Article 52 (5) shall be amended and supplemented as follows:
1. There shall be inserted the following new Item 2 to read as follows:
"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".
2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively.
§ 21. (Effective 4.08.2006) In the Public Offering of Securities Act (promulgated in the State Gazette No. 114 of 1999; amended in Nos. 63 and 92 of 2000, Nos. 28, 61, 93 and 101 of 2002, Nos. 8, 31, 67 and 71 of 2003, No. 37 of 2004, Nos. 19, 31, 39, 103 and 105 of 2005), Article 71 (6) shall be amended and supplemented as follows:
1. There shall be inserted a new Item 2 to read as follows:
"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".
2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively.
§ 22. (Effective 4.08.2006) In the Personal Income Tax Act (promulgated in the State Gazette No. 118 of 1997, modified by Constitutional Court Judgment No. 6 of 1998, promulgated in No. 35 of 1998; amended in Nos. 71 and 153 of 1998, Nos. 50, 103 and 111 of 1999, No. 105 of 2000, No. 110 of 2001, Nos. 40, 45, 61 and 118 of 2002, Nos. 42, 67, 95 and 112 of 2003, Nos. 36, 37, 53, 70 and 108/2004, Nos. 43, 102, 103 and 105 of 2005, No. 17 of 2006) in Article 20 (7) , the words "Paragraph (5)" shall be replaced by "Paragraph (6)".
§ 23. (Effective 4.08.2006) In the Accountancy Act (promulgated in the State Gazette No. 98 of 2001; amended in No. 91 of 2002, No. 96 of 2004, Nos. 102 and 105 of 2005, No. 33 of 2006) Article 7 shall be amended and supplemented as follows:
1. In Item 3 of Paragraph (1), after the word "address", the comma shall be deleted and the words "BULSTAT Code and number in the national tax register" shall be replaced by "and identification under Article 84 of the Tax and Social-Insurance Procedure Code".
2. There shall be added new Paragraphs (5) and (6) to read as follows:
"(5) The address referred to in Item 3 of Paragraph (1) shall be:
1. the permanent address: applicable to natural persons;
2. the address of the place of management: applicable to legal persons;
3. the mailing address under the Tax and Social-Insurance Procedure Code: applicable to persons who do not have an address of the place of management.
(6) A sole trader shall identify himself or herself only through a BULSTAT Register single identification code."
§ 24. (Effective 4.08.2006) The Financial Support for Culture Act (promulgated in the State Gazette No. 103 of 2005; amended in Nos. 30 and 34 of 2006) shall be amended as follows:
1. In Article 11:
(a) in Paragraph (3), Item 5 shall be repealed;
(b) in Item 1 of Paragraph (5), the words "tax registration number" shall be deleted.
2. In Annex No. 1, in "I. Applicant Data", the words "number of tax registration" shall be deleted.
3. In Annexes Nos. 2 and 3, the words "Tax registration number" shall be deleted.
§ 25. The Integration of Persons with Disabilities Act (promulgated in the State Gazette No. 81 of 2004; amended in Nos. 28, 88, 94, 103 and 105 of 2005, Nos. 18, 30, 33 and 37 of 2006) shall be amended as follows:
1. In Article 35 (2) , the words "and from value added tax" shall be deleted.
2. In Article 44, Paragraph (2) shall be repealed.
§ 26. This Act shall enter into force as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, with the exception of § 3, Items 1 and 3 of § 16, § 17, 18, 19, 20, 21, 22, 23 and 24 herein, which shall enter into force as from the day of promulgation of the Act in the State Gazette.
This Act was passed by the 40th National Assembly on the 21th day of July 2006 and the Official Seal of the National Assembly has been affixed thereto.
Annex No. 1
to Article 32 (1)
(Previous Annex to Article 32 (1),
SG No. 108/2006, effective 1.01.2007)

Description of Goods
Combined Nomenclature of Republic of Bulgaria Code

Tin
8001

Copper
7402

7403

7405

7408

Zinc
7901

Nickel
7502

Aluminium
7601

Lead
7801

Indium
ex 811291
ex 811299

Cereals
1001 to 1005
1006: unprocessed rice only
1007 to 1008

Oil seeds and oleaginous fruit
1201 to 1207

Coconuts, Brazil nuts and cashew nuts
0801

Other nuts
0802

Olives
0711 20

Grains and seeds (including soya beans)
1201 to 1207

Coffee, not roasted
0901 11 00
0901 12 00

Tea
0902

Cocoa beans, whole or broken, raw or roasted
1801

Raw sugar
1701 11
1701 12

Rubber, in primary forms or in plates, sheets or strip
4001
4002

Wool
5101

Chemicals in bulk
Chapters 28 and 29

Mineral oils (including propane and butane, also including crude petroleum oils)
2709
2710
2711 12
2711 13

Silver
7106

Platinum (palladium, rhodium)
7110 11 00
7110 21 00
7110 31 00

Potatoes
0701

Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified
1507 to 1515

Annex No. 2
to Chapter Nineteen "a"
(New, SG No. 108/2006, effective 1.01.2007)
1. Household waste under the Waste Management Act.
2. Production waste under the Waste Management Act.
3. Construction waste under the Waste Management Act.
4. Hazardous waste under the Waste Management Act.
5. Services associated with the production, processing or treatment of
waste under sub-paragraphs 1 - 4.

Contact us and receive free initial legal advice

Full Name: Email: Phone: Question/Comment: Your question Sending... Please Wait... Your mail has been sent. Thank you. Send another

Contact Solicitor Bulgaria Phone numbers:  (UK) 020 8123 5542  00359 2 9871133  00359 888 660 591  00359 878 660 591 Email: info@solicitorbulgaria.com Web site: www.solicitorbulgaria.com Office address: Coutry: Bulgaria City: Sofia Street Address: Region Sredets, 7 Slaveikov Square, Entrance B, Floor 2, Ap. 19 Post Code: 1000 View Map