Amended Bulgarian VAT act have been published by Bulgarian tax office which are in effect since January 1, 2014. The changes are- the reporting point is to be treated as the end of the month for recurring monthly intra-community supplies, free promotional goods and supplies even for the staffs is now taxable. A new simplified system for VAT cash accounting is to be introduced which helps small size businesses with annual turnover less than €500,000 to pay or regain VAT only when cash transactions are actually made. One can reclaim input VAT on assets purchased up to 12 months prior to becoming VAT registered. Production of VAT invoices for vending goods are no more obligatory and situations where taxable supplies occur when the value of the lease payments equal to or more than current market value of the goods are now under a change to the basis for supply of goods for leasing agreements.
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