Taxes in Bulgaria, Taxation in Bulgaria, Taxes system in Bulgaria
On the tax system consists of:
Taxes nationwide include:
a / direct taxes - from individuals and from companies
b / indirect taxes - VAT and excise duty
Local taxes include:
- Property taxes,
- Taxes on inheritance
- Taxes on donations,
- Taxes on transport,
- Road tax.
PIT linear 10%. The tax on profits of companies CIT is 10%, and in many areas of high unemployment, even 0%, which, given the relatively small, as the conditions of the European average wage at about 200 euros, affects the low labor costs. Low corporate tax rate to encourage foreign capital to invest in Bulgaria. There is no tax on interest on bank deposits,
Tax dywident - 7%. The tax on capital income: a diverse and fluctuates within 15%, including leasing and factoring.
20% VAT on tourist services 7%
Real estate tax depends on tax valuations / lower than the market /, for example Sofia of 0.15%.
Bulgaria is one of the lowest taxes in Europe.
The reimbursement of value added tax on the price of goods and services purchased in Bulgaria might try to Polish entrepreneurs, who are active VAT payers. However, to claim a refund of the Bulgarian VAT, must meet a combination of several conditions set out in Regulation No H / 11 / 24 August 2006 on the VAT refund to foreign entities. The trader shall:
- Must be registered in one EU country VAT group active, engaged in business activities regardless of its purpose or results,
- Can not have resident in Bulgaria, a branch, the permanent establishment or the resident representative,
- Can not make delivery of goods or providing services in Bulgaria in the period to which the application for refund of VAT, except for transport services and involved in international transport and delivery of goods and services, for which the tax is uiszczającym recipient
- Should link the acquired goods and services from business taxation.
Those conditions must be met in time, to which the application for VAT refund.
The procedure for applying for a VAT refund begins with completing the form. You can download it / in English or Bulgarian / from http://www.nap.bg/ospage?id=517&lang=en
As in most countries of the EU proposal may be submitted independently or help with your tax representative. The choice belongs to the entrepreneur. If you choose to recover the VAT paid abroad through a representative, must give a written power of attorney. The original must accompany the application. In this case, the request must be signed by a person who is entitled to represent the trader. It is worth remembering that in his application to enter the amount to be refunded in the currency of the Bulgarian / BGN.
Deadline of submission is 30 June of the year following that in which the existence of a right to a refund. Do not submit a claim within the deadline makes it an automatic rejection. Extension of the deadline is not possible.
An entrepreneur who decides for how long shall submit an application for a refund. However, the application must include at least three consecutive months of the year /, for example, from 1 January to 31 March / and may not exceed one calendar year. The payback period may be shorter than three months, if it applies to the last months of the year /, for example, from 1 November to 31 December.
The application may refer to invoices or import documents not covered by previous applications, the transaction finalized during the calendar year. Therefore, if a trader has accounts that are not put in the previous application, and finalized it in during the calendar year, can place it in the next proposal. It is not acceptable tax refund from the invoices from the previous year.
Each application shall be accompanied by a set of documents trader. These are:
- Original invoices, import documents, bills, receipts, bills or documents to customs clearance,
- Original power of attorney, together with copies of documents confirming the authorization - when an entrepreneur is represented by the tax
- The original declaration of non-resident entrepreneur, certifying that he had no office or not to undertake transactions subject to tax in Bulgaria at the time for submission of application, and that the expenses borne solely for purposes related to run a company
- An original certificate issued by the Polish tax authority, confirming the status of VAT in Poland must translate it into Bulgarian; applying for a certificate to that effect, please contact the appropriate due to the head of Polish entrepreneurs established the Revenue /; operator shall present the original certificate , whose validity is one year from date of issue.
Need may also be evidence of payment for invoices, paid in the form of cashless followed. You can also submit a written contract / if any / on which invoices were issued with the Bulgarian taxpayer whose return comes entrepreneur.
Bulgarian tax authorities may also require other - than those mentioned earlier - the documents.
Not every expense right to return
The entrepreneur can count on the VAT refund, but not from each expenditure. It can not apply for a refund of input tax on purchases of non-economic activity. Not subject to a refund of VAT on purchases:
- Leaded and unleaded petrol,
- Alcoholic beverages,
- Tobacco products
- Cars, yachts, boats and recreational sports,
- Entertainment services,
- Services related to the use of cars / restriction does not cover leased vehicles.
VAT will go to a bank account
Requests for refund of VAT Bulgarian tax authorities consider, in principle, according to the date of their receipt, within six months of the lodging / with all necessary attachments.
When the Bulgarian authorities grant a tax refund, the amount is passed by the Department of the State Tax Agency in Sofia. Recovery takes place in the Bulgarian currency / BGN / indicated by the applicant's bank account in the form / open in Bulgarian Bulgarian bank or foreign bank subsidiaries. Bank transfer costs paid by the applicant.
The rejection decision may be appealed
In case of refusal to return the Bulgarian tax authorities provide the reasons for rejection. Since the refusal taxpayer may appeal. It has 14 days from the date of notification issued by the tax authority. Of appeal must be accompanied by all documents and evidence. When an appeal proves unsuccessful, the operator may apply to the court.
Tax refund is possible if the amount is equal to or higher than 400 BGN / for periods during the year / or 50 BGN / if the request concerns the whole year or the last two months of the year. VAT refund can not be claimed when the request relates to a smaller amount than 50 BGN.
Where to send the request for reimbursement of the Bulgarian VAT
The completed application for reimbursement of the Bulgarian VAT should be sent to the Director of the National Directorate for Territorial Taxation Agency
21 Aksakov Str
1000 Sofia, Bulgaria,
Tel: +359 2 98 59 38 01
The application must be completed in the Bulgarian capital letters or typed. Name and address of the applicant must be given both in Bulgarian and in the official language of the applicant. Conclusion can not be completed electronically.