What investors & companies need to know!
What tax changes will 2021 bring in Bulgaria? What should investors pay attention to in the future – and which decisions will benefit them? TPA’s experts have summarized the most significant tax news for Montenegro for you. Find out more in the Bulgaria Tax Update for 2021!
New VAT rules on distance sales of goods
On the grounds of Council Directives (EU) 2017/2455 and 2019/1995, the Bulgarian parliament amended the VAT Act with several new rules on the distance sales of goods, as well as on the telecommunication services, radio and TV broadcasting and other electronically supplied services.
A main change with regard to the distance sales of goods is the implementation of a threshold of EUR 10000 for the determination of the place of supply of the goods of EU established operators. Once this threshold is exceeded the distance sale will be deemed to take place at the member state where the transport ends. In order to avoid multiple VAT registration and facilitate the VAT compliance a one-stop-shop option for VAT registration of such operators is also provided by the amended Act. The amendments come to force as of 01.07.2021.
New tax reporting deadlines
The Bulgarian Parliament adopted changes of the reporting deadlines for Corporate Income Tax. Originally these changes has been intended to be temporary, due to the COVID19 crisis, although now the new reporting deadlines have been amended as permanent.
- The annual Corporate Tax Return shall be now filed within the period 1 March to 30 June, instead of not later than the 31 March.
- The deadline for payment of the corporate tax due for the precedent year has been extended from 31 March to 30 June of the following year.
- The deadline for payment of the tax on expenses (e.g. tax on private use of corporate assets, entertainment, etc.) has been also extended to 30 June.
- The deadlines for filing of yearly financial statements of all traders under the meaning of the Commerce Act, non-profit legal entities, as well as any other enterprises, have been extended permanently from 30 June to 30 September of the following year. This amendment concerns the Accountancy Act.
- The deadline for presentation of the Local Transfer Pricing files has been extended from 31 March to 30 June.
- With regard to personal income tax of only the individuals performing economic activity as traders under the meaning of the Commerce Act including the sole traders, the deadline for filing of the yearly income tax returns and financial statements has been defined as between the 1 March and 30 June. The due tax shall be paid by 30 June.
For other sources of income of individuals the deadline for filing of the tax return remains not later than 30 April.
New minimum salary
As of 01.01.2021 the statutory limit of the minimum monthly salary shall be BGN 650 (EUR 332).