11 January 2023
Improvement in the information exchange for tax purposes within the EU
As of 01.01.2023 the Bulgarian Tax Insurable Procedure Code was amended related to the implementation of Directive (EU) 2021/514 regarding the information exchange for tax purposes. These amendments aim improvement of the information exchange rules and extend the scope of the automatic exchange of information by including the information provided by digital platform operators for the income earned by the sellers through the usage of those platforms.
More specifically, the amendments in the scope of information exchange are:
- An option is provided for information request that concerns groups of taxpayers who cannot be identified individually. The taxpayers are described on the basis of a common set of characteristics.
- Royalties are included in the categories of income subject to mandatory automatic exchange of information.
- The exchanged information can be used for correctly assessing the income tax due and for control on the administration and enforcement of indirect taxes.
The following amendments are applied in the field of the administrative cooperation:
- A Member State may request attendance of representatives of another Member State’s competent authority during administrative proceedings for carrying out particular actions in accordance with the legislative requirements of the contacted Member State.
- The competent authorities of two or more Member States may choose to conduct joint audits and checks based on a pre-agreed and coordinated manner. This possibility will enter into force as of 01.01.2024.