Bulgaria: VAT and “mixed use” assets | KPMG | GLOBAL

Bulgaria: VAT and “mixed use” assets; business and private use

Bulgaria: VAT and “mixed use” assets

Draft amendments to the Bulgarian value added tax (VAT) law concern the “mixed use” (business and private use) of company vehicles and immovable property. In light of the draft changes, businesses could encounter certain challenges and may want to consider certain steps to prepare for these changes.


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The new rules to be introduced in the VAT law, to be effective in 2016, refer mainly to purchases of vehicles and immovable property. The amendments proposed by the Ministry of Finance in relation to the mixed use of company assets would include:

  • New restrictions on the right to deduct VAT
  • Requirements to disclose “mixed use” assets
  • A methodology for allocating direct costs related to private and business use
  • Penalties for failing to disclose the assets and for non-compliance with the methodology

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