New VAT registration in force from 01.01.2015.

New VAT registration in force from 01.01.2015.

From the beginning of the next year, according to the place where the recipient is established, all deliveries for electronic and telecommunication services as well as for radio and television broadcasting will be taxed. In order to properly tax the listed services, obligated businesses from within and outside the EU will have to determine the status of their customer (taxable or non-taxable person) as well as where the recipient is located (inside or outside the EU).

Thus, the suppliers of those services are in practice obliged to register VAT in each EU Member State in which they supply to non-taxable persons any of the services listed above.

In order to avoid such administrative inconvenience, a special regime for declaring VAT due to other EU Member States for services provided to non-taxable persons is provided for. The new VAT registration will be through the special MOSS (Mini-One-Stop-Shop) information system. Bulgarian suppliers will register under the special regime in Bulgaria. Thus, they will be identified for VAT purposes for the purposes of the special scheme, will file tax returns and will pay the tax due only in our country.

MOSS registration applications are submitted from the beginning of October this year, with the VAT registration under the special regime coming into force on 01.01.2015. Submission of applications and subsequent periodic returns can be made electronically, via an electronic signature on the NRA website.

Changes do not apply to the listed cases where the final customer is established on the territory of Bulgaria. Other cases where the new regime is not applicable are:

- supply of goods (including distance sales) in cases where the electronic system is used only to make the order

- supply of services other than electronic and telecommunications services, as well as radio and television broadcasting.