Due to recent cases in tax field Bulgaria plans to initiate some changes to the Value Added Tax regime to match its tax code with the EU VAT Directive in future. The above changes will come into effect on January 1, 2014, once approved.
The changes are as follows:
- Initiation of a VAT cash accounting option (instead of accruals-based reporting);
- Following the introduction of the EU’s VAT fraud rapid response mechanism the VAT reverse charge process has been initiated on the domestic supply of certain crops in August;
- Guidance for estimating the taxable amount on barter and deemed supply of certain goods.
