The amendments to the Excise Duties and Tax Warehouses Act (EDTWA) have been gazetted on 6th December 2016. An overview of the amendments is given below:
Administrative simplifications of various procedures
Starting from 1st January 2017, a certificate declaring that all tax and social security accountability have been settled will no longer be needed if a certificate has been issued saying that end customers are free from excise duty or if a tax warehouse license has been issued or in the case of mandatory registration under the EDTWA by persons importing, acquiring or trading in cokes, coal, electricity and natural gas or in the case of registered consignee or consignor status.
Decision of excise duty exemption
Presently, entities applying for an exemption certificate from excise duties for end customers are informed in writing that exemption is denied due to the requesting company’s non-compliance. From 1st January 2017, a tacit decision of refusal of the exemption will be applied if no written decision has been got by the entity within the terms defined under the EDTWA.
Amendments in the excise duty rates for cigarettes
The specific excise duty rate per 1,000 cigarettes will be increased from BGN 70 to BGN 101 and will be effective from 1st January 2017. On the other hand, the proportional excise duty rate is decreased from 40% to 27% of the selling price for 2017 and from 42% to 28% of the selling price for 2018.
Refund of excise duties on alcohol
Under the Court of Justice for the European Union (ECJ), the excise duty on alcohol used for the cleaning of facilities for the production of medicines will be suitable for refunding. As from 1st January 2017, no refunds will be permitted for excise duties on additives for lubricating oils containing petroleum oil or oils obtained from bituminous materials, or any other chemical products used for purposes other than motor or heating fuel.
New requirements for foreign traders
Entities listed as traders in the European Union or European Economic Area (EEA) will have the right to apply for a certificate for an end customer to be exempt from excise duties if it has a registered branch in Bulgaria. Besides, EU and EEA entities registered as specialized small distilleries and/or small wine producers under the EDTWA must do such activities via a branch established in Bulgaria. This rule also applies to entities which are obliged to register under the Excise Duties and Tax Warehouses Act for concluding transactions involving coals, as well as for the production, import or entry of coals in/into Bulgaria. EU and EEA-registered entities licensed under the Energy Act and selling electricity and/or natural gas for household and industrial purposes have the opportunity to perform such activities through a branch or a tax representative under the VAT Act. The tax representative has joint and several liability for the liabilities of the foreign person.
New option for selling tobacco products from motor vehicles
At present, the EDTWA regulates only the sites explicitly allowed to be used for trading tobacco products. The use of motor vehicles for such trade has not yet been governed under the EDTWA. The amendments give that licensed traders of tobacco products will have the option to perform such trade from motor vehicles without being required to make a primary request, but after providing identification information regarding the motor vehicles to the customs authorities.
Requirements for controlling technical devices installed on vehicles
Extra requirements for controlling GPS devices installed on motor vehicles and vessels for transportation of energy products for heating purposes will be applied. In this respect, entities operating such vehicles will be needed to ensure and monitor the functioning of GPS devices and that of other devices for controlling and measuring purposes on a regular basis. If the customs authorities establish that the above requirements have not been satisfied, the operator may lose its certificate for each approved transportation vessel.
