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Bulgaria VAT Changes Include Supply of Goods, Registration

Bulgaria made several changes to its value-added tax law that will take effect Jan. 1, including implementing the European Union’s “quick fixes” reform, amendments to VATs for supply of goods and changes to VAT registration, according to a Dec. 16…

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KPMG alert. Along with the quick fixes (see 1912120015), which were approved by the EU earlier this year and are aimed at simplifying trade between member states, Bulgaria will extend the “notion” of “supply of goods” to cover “the transfer of any right to dispose with goods as owner.” In these cases, “no VAT taxable supply will be deemed to take place upon construction … of state or municipal-infrastructure,” KPMG said, and the supplier should “deduct input VAT on the incurred expenses related to the infrastructure under the general rules of the law.” In another change, foreign people or companies not established in Bulgaria “and performing domestic taxable supplies” will have to register for VAT purposes prior to “performing their first taxable supply, irrespective of the taxable turnover generated,” the alert said.