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Implementation of the EU VAT "quick fixes" in Bulgaria


On 6 December 2019, amendments to the Bulgarian Value Added Tax Act were published in State Gazette. The main changes are related to implementation of the "quick fixes" for intra-Community trade in the European Union as provided in Council Directive (EU) 2018/1910 of 4 December 2018 amending Directive 2006/112/EC as regards the harmonization and simplification of certain rules in the value added tax system for the taxation of trade between Member States. Below is an overview of the implemented rules that will be applied from 1 January 2020.

Changes to the required evidence for application of the 0% VAT rate for intra-Community supplies

As of 1 January 2020, suppliers should obtain a document for the supply (e.g. invoice, protocol) as well as documents evidencing dispatching/transporting the goods to other EU Member State as provided in Art. 45a of Regulation 282/2011 in order to apply a 0% VAT rate on an intra-Community supply. Other mandatory conditions for applying the 0% VAT rate on intra-Community supply will be:

- the recipient should provide to the supplier its VAT number issued by an EU Member State (different from Bulgaria);

- the intra-Community supply should be reported correctly in the VIES return (EC Sales List) of the supplier.

Introduction of call-off stock simplification rules and new reporting requirements in this respect

Currently, the call-off stock simplification is possible in Bulgaria, under certain conditions, based on interpretation of the general rules of the Value Added Tax Act. According to these interpretations, it is considered that an intra-Community supply and acquisition are taking place when the goods arrive at the warehouse of the recipient. As of 1 January 2020, the new EU call-off stock simplification rules will be applied, and it will be considered that an intra-Community supply/acquisition are taking place when the goods are removed from the warehouse by the recipient. Specific rules are introduced for the cases of changing the recipient or when the goods are stored in the warehouse of the recipient for more than 12 months. Also, new reporting requirements are introduced for persons involved in a call-off stock simplification as well as penalties for non-compliance with these requirements.

New rules for successive supplies (chain transactions) between EU Member States

Changes are introduced for successive supplies (chain transactions) within the EU with the purpose to set rules for determining the transaction which should be considered as intra-Community supply subject to 0% VAT rate in the cases where an intermediary operator dispatches or transports the goods either himself or through a third party acting on his behalf.

In addition to the above rules, other amendments to VAT Act were also published in State Gazette. For more details and previous reporting, see our report from 21 November 2019.


What are the next steps?

Companies involved in intra-Community supplies, call-off stock simplification and successive supplies of goods within the EU are strongly advised to review the existing procedures, processes and documentation in relation to these transactions in order to identify what needs to be changed/implemented in order to be compliant with the new requirements. As the new rules will be applied as of 1 January 2020, it is recommended to act as soon as possible in order to be compliant with the new requirements.

How we can help?

We are helping multinational and local companies operating in Bulgaria with the following services in relation to the new EU VAT “quick fixes”:

  1. Review of the current documentation and contractual arrangements available in relation to intra-Community supplies/acquisitions in order to determine the approach that should be applied as of 1 January 2020.

  2. Analysis of the current processes and procedures in order to identify what needs to be changes in order to secure compliance with the new rules.

  3. Review of the current call-off stock simplification arrangements applied in Bulgaria and assistance with implementation of the new rules and compliance requirements as of 1 January 2020.

  4. Review of successive supplies of goods performed and analysis of the impact of the new rules with identification of the changes that need to be applied.

  5. Delivering training events in relation to the new EU VAT “quick fixes” suitable not only for tax and finance professionals but also for sales, procurement and logistics teams.


If you have questions or you need help with implementation of the EU VAT “quick fixes”, we will be glad to have a discussion on the topic.

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