Excise Tax Services

Excise Tax Services

Bulgarian governments traditionally rely on excise taxation for their fiscal policies.

Bulgarian governments traditionally rely on excise taxation for their fiscal policies.

Following Bulgaria’s EU accession in 2007, the income from excise duties continues to be among the major tax revenues for the Bulgarian budget along with the proceeds from VAT and social contributions, a trend which will likely continue in the near future.

According a EUROSTAT study published in 2014, Bulgaria is the EU Member State most reliant on indirect taxation with such taxes having a share of 55.3% of the total taxation in 2012. Bulgaria is also the country with the highest share of tax revenues from excise duties amounting to 18.4% (5.1% of the domestic GDP) compared to an EU average level of 6.8 % (Eurostat, Taxation Trends in the European Union, 2014 ed.).

Managing excise duties properly

Bulgaria’s EU membership has brought forward new regulations and procedures regarding domestic and international trade, production and storage of excise goods. Irrespective of this, there are still numerous rules and aspects which are specific for Bulgaria and are sometimes inconsistently interpreted by the customs authorities and courts. 

Transactions with excise goods, however, also entail various optimisation opportunities for economic operators. Potential savings, delays in excise liability or refunds of excise duties can significantly improve the cash flow, competitiveness and profits of businesses.

How we can help you

The Indirect Taxes team of KPMG in Bulgaria can assist you in interpreting the applicable excise legislative framework and advise you on specific processes or business models, whether your seek a greater level of compliance or savings opportunities. The excise treatment would usually not be isolated, but would come within a wider framework of VAT and customs implications of commercial transactions.

Our assistance includes:

  • Analysis and advice of transactions based on the European and domestic excise, VAT and customs legislation and involving review of local administrative and court practices
  • Planning of international operations with excise goods
  • Review for compliance of excise treatments and records
  • Advice on possible refunds of excise duty and exemptions from excise liability
  • Assistance during administrative audits, checks, refund claims and registrations
  • Hands-on support in appeals and litigation
  • Use of KPMG’s global Indirect Tax network for assistance in foreign jurisdictions 

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