A non-VAT registered company buys goods from England

A non-VAT registered company buys goods from England

 

Question:

Hello,

I have a baby goods company that is not registered under the VAT.
I bought goods from England from a store that has no direct delivery to Bulgaria. I used a shipping company from England to Bulgaria. Transport is at the expense of my company. I was issued an invoice for purchased baby goods without VAT.
Do you think VAT should be charged and will there be any penalties for me as a payee if I have not paid VAT in England or Bulgaria?

Thanks!

 

Answer:

Hello,

In general, since you are not registered for VAT, in general you can neither charge VAT nor use VAT charged to you. In your case, however, there are 2 other issues that need to be clarified.

1. In the VAT Act there is a concept of GP (Intra-Community Acquisition). Generally speaking, GP is any purchase of goods by a person registered for VAT in a Member State of the European Union (other than Bulgaria). In your case, you, as a Bulgarian company, buy the goods from an English company, which is most likely registered for VAT and that goods arrived in Bulgaria. Accordingly, you have done the GP. If during the current calendar year the value of the GPs made by you exceeds BGN 20 thousand, then you are obliged to register for VAT. The VAT registration deadline in this case is 7 days before the turnover of BGN 20 thousand is reached.

2. The important thing is to specify which company provides your transport service. If the transport company that provided you the service is VAT registered in a Member State of the European Union (other than Bulgaria), you are required to register for VAT, the deadline being at least 7 days before receiving the service for the first time. . This applies to any type of service received from companies registered for VAT in a European Union country. In the supply of services, unlike in the supply of goods (GP), there is no turnover that must be achieved in order to incur a VAT registration obligation.

To summarize - if the goods you purchased from England are worth more than BGN 20 thousand and / or the transport is carried out by a company from England or another EU Member State, then you have an obligation to register for VAT and you are in violation of the law because you have expired (which is 7 days before receiving the goods or service). If the value of the purchased goods from England does not exceed BGN 20 thousand and the transport was performed by a Bulgarian company, you are currently not obliged to register for VAT. However, in the future, if you continue to purchase goods from England or another Member State of the European Union, you will need to monitor the VAT registration conditions in items 1 and 2.

We hope we have been helpful.

Greetings!