Bulgaria Publishes Turnover Calculation Rule for VAT Registration

Bulgaria - Turnover - VAT Registration - Taxscan

The National Revenue Agency of Bulgaria has announced the changes to be applied to the calculation of turnover for the VAT registration threshold. The new rules are applicable to the homogeneous transactions or activities between both related and unrelated parties in an agreement.

If two or more of the following are same or identical, it is considered to be a homogeneous activity:

  • Assets used
  • Products or services provided
  • Staff
  • Trademark of the establishment
  • Name of the establishment
  • Customershttps://www.taxscan.in/tag/trademark/
  • Suppliers

If the activities are interrupted for more than a month, they will not fall under homogeneous activities.

Under the new rules for turnover, a calculation to see if the threshold (BGN50,000) is met for VAT registration, when the activities between the related or unrelated parties are homogeneous and with a commercial interest, then the turnover of each subsequent party will include the turnover of the prior party involved.

Earlier, the Bulgaria Finance Ministry was thinking about bringing in some amendments to the VAT turnover threshold of BGN50,000. The proposal was that the threshold applies only to the residents and the non-residents will have to register before the first commercial supply is made.

The new rules for the calculation of threshold are expected to prevent non-compliance of VAT registration.

taxscan-loader