11 August 2023
Оn 01.08.2023 were promulgated the State budget act of the Republic of Bulgaria for 2023 (SBARB) and the Act for the budget of the state social security for 2023 (ABSSS).
With the SBARB the following amendments were adopted in the tax laws:
Value added tax act (VATA):
üA new requirement is implemented for the enterprises under the Accounting Act which are registered for VAT purposes as follows:
When in the end of the calendar quarter the total amount of:
-available money in cash;
-the amount of the receivables (including loans provided) from the owners who are individuals and
-the amount of the receivables (including loans provided) from workers, employees and individuals working under management contracts and accountable persons
-exceeds BGN 50000, the liable tax payers shall report separately for the respective calendar quarter the data from their current accounting reporting by filing of declaration under art. 55 para. 1 from the PITA and art. 201 para. 1 from the CITA by the end of the month following the quarter. The first quarter for which a declaration should be filed is the third quarter of 2023 and the deadline for submission is 14 November 2023.
- The conditions and requirements with regards to the implemented at the beginning of the year option for reduction of the tax base and the charged VAT upon bad dept are widened.
Personal income tax act (PITA) – Considering the amount of the tax deduction for children and for disabled children remains unchanged for 2023, the legislation also allows applying the tax deduction on monthly or quarterly basis in case all requirements are fulfilled.
Corporate income tax act (CITA) – Food vouchers on electronic bearer are implemented as of 01.01.2024 whereas for the period until 30.06.2024, the employers may choose whether to distribute food vouchers on paper or on the electronic bearer. After this date, the food vouchers providers will issue only food vouchers on the electronic bearer.
Tax insurance procedure code (TIPC):
- Requirements for preliminary reporting upon transportation of goods of high fiscal risk are implemented.
- A rule is being adopted that the interest on public receivables shall be covered by the statute of limitation with the expiration of the deadline for the main receivable regardless of the way the principal is settled.
According to the ABSSS:
- As of 01.08.2023, the minimum monthly insurable income for slefinsured individuals, farmers and tobacco producers is increased from BGN 710 to BGN 780 and thus being equalized to the minimum salary for Bulgaria. The amount of the minimum monthly insurable income by main business activities and qualification group of professions also changes.
- As of 01.01.2023 the compensation for raising a child up to 2 years and for a father raising a child up to 8 years is also equalized to the minimum monthly insurable income of BGN 780.
