ET with VAT registration. Patent?

ET with VAT registration. Patent?  

Question:

Hello, my case study is as follows: My company is ET and is registered for VAT deals with retail. Now I'm going to start a new business for which they require a patent tax. The new activity is Guest House. My question is as follows and will the Guest House be VAT or it will only be with a patent tax. And what taxes will I owe in this case should I file a patent declaration? Thanks in advance!

Answer:

Hello,
Pursuant to the Local Taxes and Fees Act, only natural persons, self-employed persons and sole proprietors who carry out patent activities in cases where their turnover for the previous year does not exceed BGN 50 000 and the person is not registered under VAT (VAT registration under Article 99 and Article 100 (2) of the VATA is an exception).
If the person is registered for VAT, for the current year he will be taxed under the general procedure of the law on the personal income tax. The patent tax will be due until the end of the quarter in which the person is registered and the paid patent tax will be deducted when paying the annual income tax.

It is clear from your question that you already have VAT registration / hopefully on the grounds other than the above mentioned exceptions mentioned in the first sentence /, so that for all the exercised activities like ET you will form a taxable turnover under the CITA, as well as you are charged VAT and you will be entitled to a tax credit and the costs associated with your guest house accommodation. The difference in VAT accrual for both activities will be only in the tax rate (see Article 66 (2) of the VAT Act) if you are eligible, you have a categorization by the municipality of the lodging house for example, it will charge 9% VAT.

We hope we were useful to you.

Greetings.