Purchase and operation of FTA by a Bulgarian company in the United States

Purchase and operation of FTA
by a Bulgarian company in the United States 
 

Question:

 

Hello. A Bulgarian real estate consultant (NOT registered under VAT) wishes to invest in US-funded derivative financial instruments as our company enters into a contract with a US company authorized to trade on the stock markets in the US. For this purpose (executing transactions with financial instruments, tracking quotes, etc.) a server center is required, which is purchased by the Bulgarian company, but the Server Center in question is not transported to Bulgaria but used in the USA. We only have Invoice and bank transfer. We have the following questions:

1. Can there be any consequences for our company, given that FTA is not available in Bulgaria (we do not have a transport document for it)?

2. From the point of view of VAT, does any obligation arise for the Bulgarian company?

3. Is it necessary to register a branch of the company in the US, and if YES on what grounds?

Thanks in advance.

 

 

Answer:

 

Hello,

On the first question, we can answer that no consequences can arise from the fact that the TACs owned by you used to carry out your business are not located in Bulgaria. (This means that transport companies with a contract for servicing European transport companies only outside the territory of Bulgaria would not be able to operate) It is necessary at the end of the year to perform an inventory of the company's assets, the server center in question has been reliably proved that still exists in a certain place and is still owned by your company. (Inventory Protocols would do the job - signed by the people who work with this center). The second question will also give a negative answer - there are no obligations for your company from the VAT point of view to the acquisition of this tangible fixed asset in the United States. The third question can be answered as follows: If you need to have a branch or a representative to carry out your activity, then find out. But only because you have a server such as this does not necessitate the opening of a branch, as it will only serve your investment activity and will not be used to conduct revenue from local companies. In this case, you need to hire a place to deploy this server.

Greetings.