Bulgaria VAT cash accounting

Thu 3rd Oct 2013

Bulgaria plans to introduce a number of changes to the Value Added Tax regime following a number of tax cases, and to further harmonise its tax code with the EU VAT Directive.

The changes include:

  • Introduction of a VAT cash accounting option (instead of accruals-based reporting) for suppliers to pay cash directly to the VAT authorities
  • Introduction of the VAT reverse charge mechanism on the domestic supply of certain crops following the introduction of the EU’s VAT fraud rapid response mechanism in August
  • Guidance for estimating the taxable amount on barter and deemed supply of certain goods.

Once approved, the above changes will come into effect on 1 January 2014.