The Parliament passed amendments to the Value Added Tax (VAT) Act with 95 votes 'for', none 'against', and 57 abstentions. The amendments, introduced by the Council of Ministers (CoM), introduce special schemes for small enterprises established in the country and in other member states of the European Union (EU).
Scheme for small enterprises in the country:
- Applies to taxable persons making supplies of goods and services with a place of performance in Bulgaria.
- Annual turnover must not exceed the national threshold (51,130 euros).
- According to Directive (EU) 2020/285, exemption up to this threshold is provided.
- No distinction is made between established and non-established taxable persons in the country.
Scheme for small enterprises in the EU:
- Applies to taxable persons making supplies in other member states.
- Allows exemption from VAT in the member states where they are not established.
- Condition: the annual turnover in these member states must not exceed the national threshold and the annual turnover in the Union must not exceed 100,000 euros.
- Taxable persons from other member states can also benefit if their annual turnover in the Union does not exceed 100,000 euros and the annual turnover in Bulgaria does not exceed 51,130 euros.
Choice of scheme:
- The special schemes are not mandatory.
- Taxable persons can choose between the general VAT scheme and the special scheme for small enterprises.
- Firms with an annual turnover in Bulgaria below the national threshold have the right to choose, regardless of whether the Union threshold is exceeded.
- VAT registration enables the application of the scheme for small enterprises in the EU only in other member states.
Reactions:
- Martin Dimitrov (PP-DB): Supported the directive but expressed concerns about texts introducing additional requirements for tax credit. Re-proposed the restoration of the national threshold for mandatory VAT registration of 166,000 leva.
- Alexander Koychev ("Vazrazhdane"): Expects the results of the new schemes, expressing concerns about the thresholds.