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State Gazette highlights

March 19, 2020

State Gazette highlights

 

In issue 18 dated 28 February 2020, the following have been promulgated:

1. Law on amendment and supplement to the Independent Financial Audit Act

The changes are related to achieving more complete compliance of the national legislation in the field of independent financial audit with the European Union law.

The transitional and final provisions amend the following laws and codes:

2. Taxation and Insurance Procedure Code

         A supplement has been made to the provision regarding the disclosure of data constituting taxation and insurance information, and it is envisaged that upon the request of the Minister of Finance, data may be provided on the amount of public debt of budget organizations;

3. Corporate Income Taxation Act

         An edition has been made to the provision on the admissibility of remission of tax for entities employing disabled persons in the section on planning, expenditure and reporting of funds, which will be done in accordance with rules of the national representation organisations of and for disabled persons, as approved by the Minister of Labour and Social Policy /previous wording: with ordinances of the national organisations of and for disabled persons, as approved by the Minister of Finance/;

         Paragraph 22, Para 1, item 1 of the TFP of LAS to CITA on the condition to state as a standalone tax depreciated asset of unrecognized costs for construction, enhancement or repair of technical infrastructure, an omission has been fixed in the provision’s text, by adding costs for repair (the previous wording only stated costs for enhancement, not for repair);

4. Local Taxes and Charges Act

         A supplement has been made to the provision on chargeability of tourist tax, adding a criterion to determine the amount of the registration tax pursuant to the Tourist Act;

         For 2020, for accommodation registered under the Tourist Act, the amount of the tourist tax set for 2020 in the respective Municipal Council Ordinance shall be applied, for accommodation categorized with one star;

5. Individual Income Taxation Act

         A new provision has been added according to which the taxable income from employment relations excludes travel and accommodation allowances covered by the European Union, an international organization or the receiving party and are set and provided in accordance with the rules thereof in relation to posting of employees and workers at budget entities by the employer;

6. Excise and Tax Warehouses Act

         To the group of energy products have been added the products within CD code 3814 – composite organic solvents, not mentioned or included elsewhere;  paint or lacquer removal products;

         To the energy products exempt from excise have been added the products within CD codes 3814 and 3403 – lubricants (including oils used in cutting, preparations to reduce cut friction, anti-corrosion preparations and cast removal lubricant-based preparations), and textile, leather and other materials lubrication preparations, with the exception of those whose main component’s weight is petroleum oils or bituminous minerals exceeding 70%.

7. Value Added Tax Act

Provisions have been introduced related to the transfer of greenhouse gas emission quotas – new Art. 163e and new Section Three in Appendix No 2 to Chapter 19a, to be effective as from 30 June 2022:

 

  • For supplies of transfer of greenhouse gas emission quotas under Appendix 2, Section Three, in which the recipients will be entities not incorporated on the territory of the country, the general provisions of the law shall be applied;
  • For supplies of transfer of greenhouse gas emission quotas under Appendix 2, Section Three on the territory of the country, in which the suppliers are entitled with VAT registration in another member state, the general provisions of the law shall be applied;
  • Section Three has been added to Appendix No 2 to Chapter 19a “Supplies of transfer of greenhouse gas emission quotas”;
  • When before the effect of this law an advance payment has been received for supplies of transfer of greenhouse gas emission quotas under Appendix 2, Section 3 of the Value Added Tax Act, for which the tax treatment has been changed for the tax paying entity and for which the tax event occurs after the date of effect of this law, the supplier shall annul the advance payment invoice and issue a new invoice, stating the whole tax base of the supply. For the annulling, a protocol shall be prepared in accordance with Art. 116, Para 4 of the Added Value Tax Act. The recipient – an VATA-registered entity, is in this case obliged to charge tax on the whole tax base of the supply, including the advance payment made.

 

8. Measures against Money Laundering Act

 

The law is effective as from 28 February 2020, with exceptions.

 

 

Go to full issue 18 dated 28 February 2020:

http://dv.parliament.bg/DVWeb/broeveList.faces

 

 

Official Journal

From issue L 062 dated 02 March 2020 of the Official Journal of the EU, Official section

1. Council Regulation (EU) 2020/283 of 18 February 2020 amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in order to combat VAT fraud

2. Council Directive (EU) 2020/285 of 18 February 2020 amending Directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises and Regulation (EU) No 904/2010 as regards the administrative cooperation and exchange of information for the purpose of monitoring the correct application of the special scheme for small enterprises

 

From issue С 068 dated 02 March 2020 of the Official Journal of the EU, Information and Notices

1. Case C-707/18: Judgment of the Court (Eighth Chamber) of 19 December 2019 (request for a preliminary ruling from Tribunalul Timiș — Romania) — Amărăști Land Investment SRL v Direcția Generală Regională a Finanțelor Publice Timișoara, Administrația Județeană a Finanțelor Publice Timiș (Reference for a preliminary ruling — Taxation — Common system of value added tax — Directive 2006/112/EC — Taxable transactions — Deduction of input tax — Purchase of immovable property not registered in the national land register — First-registration costs incurred by the purchaser — Recourse to specialist third companies — Participation in a supply of services or investment expenditure carried out for the purposes of an undertaking)

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