Bulgaria: Corporate income tax, VAT changes

Bulgaria: Corporate income tax, VAT changes

Changes in the corporate income tax law, generally effective in 2017, include:

Related content

  • Requirements for the electronic submission of tax returns• New rules for the correction of errors relating to previous year’s returns
  • An election for newly incorporated taxpayers related to the tax treatment of corporate assets

 

Read a December 2016 report [PDF 135 KB] prepared by the KPMG member firm in Bulgaria: New provisions in the CITA and LTFA

VAT amendments

Value added tax (VAT) changes that generally are effective 1 January 2017 concern:

  • A new regime for a proportional input VAT deduction on acquisition of non-current assets intended for “mixed use” (i.e., business and private use) by taxpayers
  • An annual adjustment to the input VAT deduction for non-current assets
  • An adjustment of input VAT as a one-off upward adjustment of partially deducted or not deducted input VAT 
  • A possible alternative method for calculating the partial input VAT deduction 
  • Correction of input VAT deduction on advance payment invoices for canceled supplies
  • Correction after de-registration
  • Specific rules for the contribution in kind of a consortium partner (not a VAT-able supply)

 

Read a December 2106 report [PDF 153 KB] prepared by the KPMG member firm in Bulgaria: Promulgated amendments to the VATA

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