Name of the law amending and supplementing the law on value added tax act Name of Bill a bill amending and supplementing the law on value added tax acceptance date 17/11/2010 number/year Official Gazette 94/2010 Decree No 317

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on value added tax, passed by the National Assembly of the HLI 17 November 2010.

Issued in Sofia on 24 November 2010.

The President of the Republic: Georgi Parvanov

Stamped with the State seal.

Minister of Justice: Margarita Popova

LAW

amending and supplementing the law on value added tax (official SG. 63 06; amend., SG. 86, 105 and 108 of 2006; the Decision the Constitutional Court No 7 of 2007 – issue 37 of 2007; amend., SG. 41, 52, 59, 108 and 113 in 2007, 106/2008 and 12/23 , 74 and 95 of 2009.)

§ 1. In art. 3, al. 5, point 1, letter "m" a comma and add "as well as the provision of public works concession, for service or for harvest;".

§ 2. In art. 7, para. 5 item 5 shall be amended as follows:

"5. the supply of gas through a natural gas system situated within the European Union, or through a network connected to such a system, the supply of electrical energy or heat or cooling energy through district heating or cooling networks;".

§ 3. In art. 13, para. 4 item 5 shall be amended as follows:

"5. the acquisition of gas through a natural gas system situated within the European Union, or through a network connected to such a system, the acquisition of electric energy or the heat or cooling energy through district heating or cooling networks;".

§ 4. Article 19 shall be amended as follows:

"Art. 19. The place of performance regarding delivery of gas through a natural gas system situated within the European Union, or network connected to such a system, in the supply of electricity or heat or cooling energy through district heating or cooling networks is:

1. the place where the registered office or the permanent site of the recipient for whom the goods are supplied, and when there is not such seat or site – the permanent address or habitual residence of the recipient – trader of natural gas, of electricity or of heat or cooling energy;

2. where the goods are effectively consumed – when the recipient is a person, other than the person under item 1;

3. the place where the registered office or permanent establishment for which the goods are supplied to the recipient under item 2, and when there is not such seat or site – the permanent address or habitual residence of the recipient referred to in paragraph 2, where the total amount of gas, electricity or heat, or refrigeration energy or any part thereof are not effectively consumed by the recipient, and are subject to the subsequent supply. "

§ 5. In art. 21 the following modifications are made: 1. In para. 4 item 3 and 4 are hereby amended:

"3. the place where the event is held in fact – regarding delivery of service in providing access (for tickets or pay, providing input, including when such input is included in the subscription) to cultural, artistic, artistic, sporting, scientific, educational, entertainment or similar events (including fairs and exhibitions) and the accompanying access services, when the service is provided to a taxable person;

4. the place where the actual service provided on a non-taxable person, to:

a) services and accompanying services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar events (including fairs and exhibitions), including the work of the Organization;

b) services related to the transport processing of goods;

in the evaluation, services) expertise or work on movable property; ".

2. in the Al. 5, paragraph 2 letter "l" shall be replaced by the following:

"l) services providing access to the natural gas system situated within the European Union, or to network connected to such a system to power system, or to the district heating or cooling networks or services in the transmission or distribution through these systems or networks and the supply of other services directly linked to them;".

§ 6. In art. 26, al. 7 the words "price of the product ' shall be replaced by ' price of the commodity."

§ 7. In art. 31 11 is created:

"11. the supply of services for air traffic management and air navigation services provided to aircraft used by the air operator, operating mainly international voyages."

§ 8. In art. 39 the following endorsements are added:

1. In paragraph 1, after the words "health facilities" is added and a nursery.

2. In item 5 Finally add "by dentists or dental technicians".

§ 9. In art. 41, paragraph 1 the following endorsements are added:

1. In the text before the letter "a" after the word "qualification" is added "training for the acquisition of key competences.

2. In subparagraph (a), after the words "the law on vocational education and training" a comma and add "providers of training for the acquisition of key competences, included in the list approved by the Executive Director of the employment agency."

§ 10. In art. 58 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) point 1 shall be repealed;

b) point 2 is amended as follows:

2. goods imported by:

a) diplomatic missions, consulates, or members of their staff who qualify for exemption from customs duties on import;

(b)) the European Union, the European Atomic Energy Community, the European Central Bank, the European Investment Bank or the bodies of the European Union, to which the Protocol on the privileges and immunities of the European Union, subject to limitations and conditions of this Protocol and its implementing agreements or agreements on the premises and provided that this does not lead to distortions of competition;

in) international organizations other than those referred to in (b), recognised as such by the public authorities of the host State, or by members of such organizations, within the limits and conditions laid down in the international conventions establishing the organizations or in their headquarters agreements; "

in section 6) shall be replaced by the following:

' 6. where imports goods is followed by the intra-Community supply and where the importer provides the following data:

a) its identification number under art. 94, para. (2);

b) VAT identification number of the customer the delivered goods, issued in another Member State, or his own VAT identification number issued in the Member State in which the dispatch or transport ends;

c) proof that the imported goods are intended to be shipped or dispatched to another Member State in order, determined by the regulation for implementation of the law; "

d) point 10 shall be replaced by the following:

"10. the gas through a natural gas system or through a network connected to such a system, or powered by a vessel carrying gas, the natural gas system or network of gas pipelines before such a system, or of electricity, heat or cooling energy through district heating or cooling networks;"

e) point 11 is replaced by the following:

11. official publications issued under the control of the authorities of the country or territory of export, international organisations, public bodies and entities governed by public law established in the country or territory of export, and printed matter distributed in terms of elections for the European Parliament or in the context of national elections in the State in which the printed materials are issued by foreign political organizations officially recognized as such in the Member States in so far as such publications and printed materials are taxed in the country or territory of export and do not benefit from the exemption from tax in respect of exports; "

f) point 12 shall be replaced by the following:

"12. thoroughbred horses aged not more than 6 months who were born in a third State or territory by an animal, fertilized, and subsequently in the European Union temporarily exported for birth;"

(g) item 15) shall be repealed;

h) point 17 shall be replaced by the following: "17. goods that are returned by the individual exporter while keeping the condition in which they were exported, apart from normal wear and tear during use, when the same goods are exempted from import duties. "

2. Al are created. 14 and 15:

"(14) exempt imports of goods within the duty-free import licences when:

1. imported goods of a total value not exceeding EUR 30;

2. receive small consignments of goods of a non-commercial character sent from a third country by a natural person of another individual in the country, without the last to be paid for them, for a total of up to the equivalent in LEVs of 45 euros;

3. imported personal property received as an inheritance;

4. imported used personal property of natural persons who transfer his normal place of residence in the European Union;

5. the imports property in connection with entering into marriage;

6. imported used household effects after completion of temporary residence outside the European Union;

7. import orders, medals and honorary awards;

8. imported samples of goods of negligible value;

9. import of gifts received in the context of international relations;

10. imported goods intended for personal use by heads of State;

11. imported goods intended for victims of disasters;

12. import materials for funeral purposes;

13. import materials for protection of goods during their transport and litter, fodder and feedingstuffs for animals during transport;

14. import documentation;

15. the imported accessories, instructional learning tools and other household equipment for pupils or students;


16. import products derived from agricultural producer of properties located in third countries, which are located in close proximity to the principal place of business of the manufacturer;

17. the imported seeds, fertilizers and products for treatment of soil and crops on the property, located in a third country, processed by a farmer whose principal place of business is located in the third country concerned in the immediate vicinity of the property;

18. imported video and audio materials of an educational, scientific or cultural character which are provided by the United Nations or of any of its specialized agencies, regardless of their intended use;

19. the imported objects from collections and works of art of an educational, scientific or cultural character which are not intended for sale and are imported by museums, galleries and other institutions; the exemption shall apply only when the goods are imported free of charge or for valuable consideration is imported, if not supplied by a taxable person;

20. import of laboratory animals and biological or chemical substances intended for research;

21. imported therapeutic substances of human origin and blood-grouping reagents and tissue prosthesis;

22. import reference substances for the quality control of medicinal products;

23. imported pharmaceutical products used at international sports events;

24. imported goods from government organizations, charitable or philanthropic organisations received free of charge by them;

25. goods imported by institutions or organisations obtained from them at no charge, to assist individuals who are blind and other persons with disabilities;

26. the import of printed materials and articles for advertising purposes;

27. goods imported for consumption or use during trade fairs or similar events;

28. in order to import goods testing, analysis or study;

29. imported consignments intended for organizations for the protection of copyright or for the protection of industrial and commercial property;

30. imported editions with tourist information;

31. imported fuel and lubricants contained in the standard fuel tanks of road vehicles and in special containers;

32. imported by authorized for this purpose by the competent authority organizations for use in the construction, maintenance or decoration of cemeteries, graves and memorials to the victims of war from a third country, buried in the European Union.

(15) is exempt imports from third territories of goods whose imports from third countries would be released on the basis of para. 14. "§ 11. In art. 65, para. 2 make the following amendments and additions:

1. In paragraph 2, the words "article. 58, para. 1 "shall be replaced by" art. 58, with the exception of imports of goods under art. 58, para. 1, item 6.

2. In paragraph 3 it finally puts a comma and add "European Atomic Energy Community, the European Central Bank, the European Investment Bank or the bodies of the European Union, to which the Protocol on the privileges and immunities of the European Union, subject to limitations and conditions of this Protocol and its implementing agreements or agreements on the premises and provided that this does not lead to distortions of competition".

§ 12. In art. 66 para. 2 shall be amended as follows:

"(2) the tax rate for accommodation provided by hotelier, is 9 percent."

§ 13. In art. 71, item 3 and 4, the words "customs declaration" shall be replaced by "customs import document in which".

§ 14. In art. 82, para. 2, item 1 the words "supply of natural gas via pipelines or of electric power" shall be replaced by "the supply of gas through a natural gas system situated within the European Union, or through a network connected to such a system, the supply of electrical energy or heat or cooling energy through district heating or cooling networks".

§ 15. In art. 92 following amendments and supplements shall be made:

1. In paragraph 8. 1, item 4, the words "other exigible and unpaid tax liabilities or obligations for insuring instalments" is replaced by "due public claims".

2. in the Al. 2, the words "other exigible and unpaid tax liabilities and obligations for insuring instalments" is replaced by "due public claims".

3. in the Al. 5, the words "exigible and unpaid tax liabilities and obligations for insuring instalments" is replaced by "due public claims".

4. in the Al. 6, after the words "the national health insurance fund" the Union "and" shall be replaced by a comma and add "and other public debts, collected by the National Revenue Agency.

5. in the Al. 9 the words "three days" are replaced by "five days".

§ 16. In art. 108, para. 1, item 4, the words "compulsory deregistration" is replaced by "compulsory registration".

§ 17. In art. 113 Al is created. 11:

"(11) memo to an invoice or an invoice in the name and for the account of the supplier – the taxable person may issue and the recipient of the delivery, if there is a prior written agreement between the two countries. The conditions and procedures for the acceptance of each invoice by the taxable person supplying the goods or services, shall be determined by the regulation for implementation of the law. "

§ 18. In art. 114, para. 3 the words "art. 28c (E) (3) 77/388/EEC ' shall be replaced by "art. 141 2006/112/EC ".

§ 19. In art. 121, para. 3 the words "customs declaration" shall be replaced by "customs import documents".

§ 20. In art. created 125 al. 11: "(11) where a declaration is made under para. 2 this statement, declaration under para. 1 and accounting registers under para. 3 must be submitted electronically under the conditions and by the order of the tax-insurance procedure code. When the reference-Declaration, VIES-declaration and accounting registers are filed electronically. 6 does not apply. "

§ 21. In art. 131 al. 1 shall be amended as follows:

' (1) in the case of public sale by the order of the tax-insurance procedure code or civil code or sale under the law of pledge or of art. 60 of the law on credit institutions and when the owner of the property (debtor, zalogodatelât, respectively, the owner of the mortgaged property) is a person, registered under this law, the public performer, the bailiff or založniât the lender is obliged within 5 days from the receipt of the full sale price:

1. to translate the tax payable on the sale to the bank account of the competent territorial Directorate of the National Revenue Agency, where the owner of the property is registered under this Act;

2. to draw up a document for sale, determined by the regulation for implementation of the law, in three copies for the public – artist/bailiff/bet creditor for the owner of the property and for the recipient (buyer);

3. to provide the document referred to in paragraph 2 of the owner of the property and to the consignee within three days of its issue;

4. notify the competent territorial Directorate of the National Revenue Agency, where the owner of the property is registered under this Act, to the document under item 2 in the order, determined by the regulation for implementation of the law.

In determining the tax base art. 27 does not apply. "

§ 22. In art. 164, para. 2, item 1, the words "the submitted customs declaration ' shall be replaced by" the submitted customs import document ".

§ 23. In art. 168 following amendments and supplements shall be made:

1. In paragraph 8. 1, after the words "under this Act" there shall be added "and any registered under art. 97 (a), para. 1 and 2 and art. 99 person ".

2. in the Al. 5, paragraph 1, point (b), the words "customs declaration" shall be replaced by "customs import document".

§ 24. In art. 170, para. 1 the words "customs declaration" shall be replaced by "customs import documents".

§ 25. In art. 173 following amendments and supplements shall be made:

1. Paragraph 5 shall be amended as follows:

"(5) are supplies of goods and services against payment with a place of performance on the territory of the country worth over EUR 400, for which recipients are the institutions of the European Union, the European Atomic Energy Community, the European Central Bank, the European Investment Bank or the bodies of the European Union, to which the Protocol on the privileges and immunities of the European Union, subject to limitations and conditions of this Protocol and its implementing agreements or agreements on the premises and provided that this does not lead to distortions of competition. For the application of the zero rate the supplier shall be obliged to have written documents showing contractual relationships with relevant institutions of the European Union. "

2. Al are created. 6 and 7:

"(6) For taxable supplies of goods and services against payment with a place of performance on the territory of the State shall apply a zero rate of tax, when both the following conditions are met:

1. recipients are:

(a)) command/headquarters of the North Atlantic Treaty Organization;

b) armed forces of other States which are parties to the North Atlantic Treaty;

c) diplomatic and consular representations and members of their staff;

d) international organisations recognised by the public authorities of the host State, or the members of such organizations, within the limits and conditions laid down in the international conventions establishing the organizations or in their headquarters agreements;

2. the Republic of Bulgaria is not a host country of the persons referred to in paragraph 1.

(7) the documents certifying the existence of the circumstances under para. 6 shall be determined by the regulation for implementation of the law. "

§ 26. In art. 174 a, para. 1 the words "art. 173, para. 4 "shall be replaced by" art. 173, para. 4 and 5 ".

§ 27. In art. 176 a, para. 2 the words "art. 99, para. 1 "shall be replaced by" art. 97 (a) and article. 99, para. 1. "

§ 28. In the additional provisions the following amendments and additions:

1. In paragraph 1:

a) point 27 shall be replaced by the following:


"27." trader of natural gas, electric power or heat or cooling energy "is a tax liable person, whose economic activity is related to the purchase of natural gas, electric power or heat or cooling energy and the subsequent sale of those products and whose own consumption of these products is negligible. ';

(b) in paragraph 37), the words "and" an organized trip "shall be deleted and the words" § 1, item 1, 3, 8, 10, 12 and 14 shall be replaced by the words "§ 1, item 1, 3, 8, 10 and 12;

in the 39) the words "pipelines" are replaced by "a natural gas system situated within the European Union, or by any other network connected to such a system";

(d)) that is created 64:

"64." air traffic management "and" air navigation services "means services within the meaning of § 3, item 44 and 48 of the additional provisions of the law on Civil Aviation, provided by air navigation service providers in:

a flyover of the controlled) airspace;

(b) conducting flights in) areas and areas at airports. "

2. In paragraph 1 (a) shall create item 3 – 5:

"3. Directive 2009/162/EU of 22 December 2009 amending various provisions of Directive 2006/112/EC on the common system of value added tax (OJ, L 10/04 of 15 January 2010).

4. Directive 2009/69/EC of 25 June 2009 amending Directive 2006/112/EC on the common system of value added tax in respect of the tax on imports (OJ, L 175/12 of 4 July 2009).

5. Directive 2009/132/EC of 19 October 2009 determining the scope of article 143 (b)) and c) of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods (OJ L 292/5 of 10 November 2009). "

Additional provision

§ 29. In other texts of the law the word "community" shall be replaced by ' European Union ' and the words ' within the community or outside it "shall be replaced by ' within the European Union or outside it".

Transitional and final provisions

§ 30. (1) For the delivery of public works concession, for service or for extraction under contracts concluded before 1 January 2011, the tax regime applicable to the occurrence of the tax event, as determined by the procedure of art. 25, para. 4. In these cases, it is considered that the tax is not included in the wage concessions.

(2) where an advance payment has been received in the Al. 1 until 31 December 2010, including the chargeable event shall occur after this date, the supplier shall document the delivery by issuing an invoice specifying the entire tax base of the delivery.

(3) Koncedentite on the public works concession contract, for a service or for mining are entitled to a tax credit for the resulting supply of goods and/or services during the period from 1 January 2007 – 31 December 2010 which are used or will be used for deliveries under art. 3, al. 5, point 1, letter "m" of this law.

(4) the right referred to in paragraph 1. 3 shall be exercised by:

1. December 31, 2011, of the supplies of goods and services for the period from 1 January 2007 to 30 June 2008, 2. 31 December 2012, for the resulting supply of goods and services for the period from 1 July 2008 to 31 December 2009, and 3. 30 June 2013 – the resulting supply of goods and services for the period from 1 January 2010 until 31 December 2010.

In these cases do not apply the provisions of art. 126.

(5) where the persons referred to in para. 3 have exercised the right to tax credit deduction before the entry into force of this law, it is believed that this right is exercised lawfully.

(6) paragraph 5 shall also apply to the nepriklûčilite at the date of entry into force of this law the administrative and judicial proceedings.

(7) Koncedentite – registered persons under the law, to which there is in force an individual administrative act on the basis of which has not been recognized the right to tax credit deduction for the supply of goods and/or services for which the conditions referred to in paragraph 1. 3, can exercise their right to deduct tax credit nepriznatiâ in terms of the Al. 4. § 31. Of the assets and property under § 29 of the transitional and concluding provisions of the law amending the law on waters (official SG. 47 of 2009; amend., SG. 95 by 2009), including for Iraqi until 31 December 2010, shall not make adjustments of the used tax credit under art. 79 in connection with supplies for removal from the balance sheet.

§ 32. (1) where an advance payment has been received by 31 December 2010, including for the supply of a good or service for which this Act has changed the tax treatment in respect of the amount of the bet, the place of performance of delivery, adjustment of the supply of a taxable under art. 69, para. 2 and for which the chargeable event occurs after this date, the supplier shall document the delivery by issuing an invoice specifying the entire tax base of the delivery. For delivery shall be applied the tax regime by the date of occurrence of the tax event of the delivery under the law.

(2) where an advance payment has been made by 31 December 2010, including for the supply of goods or services, for which the chargeable event occurs after this date and the tax is exigible from the recipient in accordance with the law, the registered person recipient is required to charge tax on the entire tax base of the delivery, including the advance payment.

§ 33. For deliveries under art. 130, for which the tax event of the earlier delivery has occurred until 31 December 2010 inclusive, and the tax event of the second delivery occurs after this date, for the second delivery is applied the tax regime by the date of occurrence of the tax event for her.

§ 34. Civil Aviation Act (promulgated, SG. 94 of 1972; amend., SG. 30 of 1990, no. 13 of 1997, no. 85 of 1998, 12/2000, no. 34 and 111 since 2001, and 52/70 by 2004, no. 88 and 102 of 2005, no. 30, 36, 37, 105 and 108 of 2006. , PC. 10, 41 and 109 from 2007, PCs. 36, 66 and 67 of 2008, PCs. 35, 47, 82 and 102 of 2009 and PCs. 63 and 73 by 2010.) in art. 120, para. 7, after the words "where the Al ' is added. 2. "

§ 35. The law shall enter into force on 1 January 2011, with the exception of § 12, which shall apply from 1 April 2011, and § 7, § 28, paragraph 1, point (d) and § 34, which shall apply from 1 January 2012.

The law was adopted by 41-Otto National Assembly on 17 November 2010 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

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