Value added tax (VAT) is creating increasing challenges to businesses in terms of its impact on cash and administrative burden.
Despite being harmonised with the EU VAT legislation, the Bulgarian VAT rules are still specific and provide for a number of procedures and reporting requirements. The Bulgarian revenue authorities exercise strict control, while the administrative courts have their own and diverse interpretations of the EU VAT rules and the judgments of the Court of Justice of the European Union.
VAT may account for a substantial share of a company’s turnover and may raise significant risks for all businesses. The Bulgarian filing and payment deadlines are very short. Corrections of past periods are quite cumbersome, if allowed at all. Severe penalties may be imposed for delays in issuing or reporting invoices. Input VAT deductions may be challenged on the basis of insufficient evidence or vendor’s omissions.
The customs and excise duties are administered by the Customs Agency usually exercising strict and formal control over applicable regimes and procedures.
KPMG’s Indirect Tax team is devoted to provide you with a practical approach to various business situations and help you efficiently implement it in the Bulgarian environment.
We are able to review your company’s current VAT, customs and excise duty position, provide relevant advice and planning ideas, and help you with your administrative obligations and discussion with administrative authorities.
We are equipped with technology solutions to extract and analyse data from your ERP systems to identify errors, irregularities or overpayments.
We use a proprietary software, designed by the KPMG Tax team, to prepare Bulgarian VAT and Intrastat returns on the basis of data provided by your ERP system.
Our Bulgarian practice works closely together with Indirect Tax professionals in other EU and non-EU countries. For more information, please visit KPMG’s Global Indirect Tax website.
We have vast experience in supporting businesses in various indirect tax matters.
Indirect tax planning and advice
- Planning of complex transactions and investments in terms of VAT, customs and excise effects
- Providing strategic advice on cross-border projects, supply chain transactions, contract structures, property investments, infrastructure projects
- Providing ongoing and timely support in VAT, excise and customs matters
Outsourcing VAT Compliance
VAT compliance is known as the process of preparing and filing VAT returns. In Bulgaria, it takes more than that.
Read more about it and how KPMG in Bulgaria can help on this specialised page.
- Advising foreign insurers on the Insurance Premium Tax monthly liability and process IPT payments
- Preparing and filing quarterly IPT returns
Tax litigation and tax audit assistance
- Assisting in VAT, excise and customs audits and in handling communications with the inspectors
- Appealing VAT, excise and customs assessments and related administrative penalties
- Providing full support in VAT, excise and customs litigation processes
- Representing clients before the Revenue and Customs offices in defending specific business positions and obtaining written answers
Technology services and tax reviews
- Assisting businesses in setting up ERP systems and internal controls
- Analysing data from ERP systems to identify errors, irregularities or overpayments
- Reviewing internal procedures and controls affecting the VAT reports
- Reviewing the VAT and excise compliance status of companies
Excise Tax Services
Read more about excise tax in Bulgaria and how KPMG in Bulgaria can help on this page.