Bulgaria: Tax administrative measures, VAT amendments effective 1 January 2021

Bulgaria: Tax administrative measures, VAT amendments

The KPMG member firm in Bulgaria has prepared a report that briefly summarizes amendments to the tax and social insurance and value added tax (VAT) laws.


The following changes generally have an effective date of 1 January 2021:

  • Repeal of interest imposed for a late provision of reason to apply an income tax treaty to address double taxation, and instead replace the interest assessment with penalties
  • Concerning overpaid amounts of tax (per a tax return), a new method allows these overpayments to be applied to other tax liabilities of the taxpayer
  • Rules concerning electronic documents, and on proof and delivery of notifications electronically
  • Special rules during tax inspections for proving facts that are outside the country and for proving market prices
  • Changes related to the statute of limitations
  • Rules for control over goods with “high fiscal risk”
  • Expanded competence of certain offices of the tax agency for operating across the whole country
  • Appointment of a temporary or special representative of legal entities against which proceedings have been instituted under the tax and social insurance procedure code
  • Expanded authority of the tax agency
  • Increased penalties for non-cooperation and new penalties for non-compliance with the obligation for recordkeeping

Read a December 2020 report [PDF 135 KB] prepared by the KPMG member firm in Bulgaria

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us