VAT registration for import of goods from England and their sale in Bulgaria

VAT registration for import of goods from England and their sale in Bulgaria

 

Question:
Hello!

Will you be able to explain to me whether VAT registration is mandatory for a company that imports goods from England and sells them in the country. What is the situation with VAT. If you are registered under Article 97a, the law prohibits you from charging VAT, as well as exempting you from filing a purchase journal. In addition, you neither withdraw nor pay VAT. Does this mean that I do not have to pay VAT on the company's turnover.

And one last question I have goods that were purchased before the registration of the company, do I need to get anything for them.

Thanks!

 

Answer:

Hello,

We will start from the fact that VAT registration is done in 4 main cases:

1. Optional - even if you do not meet any of the criteria for mandatory registration, you can voluntarily register for VAT.

2. Upon reaching a turnover of BGN 50 thousand for the previous 12 months. i.e. if within 12 months (or earlier) you reach a turnover of BGN 50,000. You have the obligation to register for VAT.

3. Upon reaching intra-community supplies in the amount of BGN 20 thousand for the current year. An intra-Community supply is a transaction for the purchase of goods by a member of the European Union (such as England, which you are currently setting an example with).

4. Upon receipt and / or provision of a service by a legal entity outside Bulgaria (or Article 97a cited by you). If in connection with the purchase or sale of goods you receive transport, insurance, advertising or any other service from a person who is located outside the territory of Bulgaria, you are required to register under this paragraph.

Regarding the procedures for declaring and paying VAT. In the cases of item 1 and item 2, you are obliged to charge VAT in your income invoices, but you will be able to receive the VAT charged in your expense invoices and you will have to pay the difference monthly. In the case of item 3 you will only have to charge and pay VAT on intra-Community supplies (goods purchased by you from persons from the European Union). You do NOT charge VAT on your income, nor do you use VAT on your expense invoices. In the case under item 4 You are only obliged to charge and pay VAT on the services received by you again. You do NOT charge VAT on the income, nor do you use VAT on your expense invoices.

Also keep in mind that the deadlines for registration in different cases are different, as the deadlines under item 3 and item 4 are up to 7 days BEFORE the moment when the obligation for VAT registration arises.

Regarding your last question, about the goods you have already bought. Once these goods were purchased before the registration of the company by you, the logical conclusion is that they were purchased by an individual. In order for the already registered company to trade in these goods, the individual must sell them to the company. If there is a connection between the natural person who bought the goods and the company (most likely the owner of the company is the real natural person who bought the goods), then this sale must be with a profit made by the natural person. At the end of the year, the individual will have to declare this profit and pay the tax due.

We hope we have been helpful.

Greetings!