EC Pursues Infringement against Bulgaria on VAT Rules

novinite.com

The European Commission has issued an official request to Bulgaria to change its VAT legislation in order to ensure equality among entities working within the country and in the EU.

Bulgaria has two months to bring laws in line with European Union legislation, after which the Commission will bring the matter to the European Court of Justice.

According to the EC, the rules in Bulgaria on the conditions for refunding VAT to taxable persons subject to a tax audit discriminate against persons involved in intra-Community transactions.

Bulgarian legislation distinguishes between taxable persons operating only within Bulgaria and those carrying out transactions with other EU Member States, which is incompatible with the EU VAT Directive and with the principle of proportionality.

Under Bulgarian legislation, taxable persons who undergo a tax audit are refunded VAT at the end of the audit procedure. However, the time limits for audits are twice longer for entities involved in transactions within the EU, than those for entities working solely in Bulgaria.

By issuing the Reasoned Opinion on the matter Thursday, the European Commission has completed the last step in the infringement procedure before referring Bulgaria to the ECJ.

Bulgaria Says No to New EU Taxes

Bulgaria has taken a stand against a European Commission proposal for the introduction of new taxes across the European Union, including a financial-transaction levy and a new value added tax.

“Bulgaria doesn’t support the introduction of new taxes because it will impose an extra burden on EU citizens and companies,” it said in a statement.

“The introduction of the financial transactions tax on an EU level will put in danger the competitiveness of financial hubs in the EU because there is yet no agreement to introduce it on a global level.”

According to the ministry the idea for a new EU value added tax will practically take over the functions of the separate nations in imposing the levy.

Bulgaria will insist on raising funds for the Cohesion policy and extending its scope in a bid to avoid a two-speed Europe.

Investments in roads, highways, sewage plants are key to Bulgaria, according to the finance ministry.

The country will also demand more funds to increase the control of external borders and illegal migration.

The European Commission is expected to propose next week a sweeping new EU taxes that would apply to “all types of financial instruments” used by European investors.

The levy is said to be imposed on all trades in derivatives, bonds and shares, as well as a limited number of currency transactions.

source: novinite.com

Starting Thursday, the minimum monthly wage in Bulgaria grows from BGN 240 to BGN 270 (EUR 137).

According to the country’s Finance Minister Simeon Djankov, the minimum wage rise will cost its state budget approximately BGN 15 – 20 M. However, the private sector’s expenses will be much higher, the Dnevnik daily points out.

Some 120 000 Bulgarians officially receive minimum wage in Bulgaria, according to the country’s National Statistical Institute. A total of 20 000 of them are on a state payroll.

Also starting Thursday, the retirement allowances for widows and widowers in Bulgaria increase from 20% of the deceased spouse to 26.5%.

According to a recent study conducted in the Sofia-based University of National and World Economy Bulgaria will need 41 years to reach the minimum wage rates of EU’s most advanced countries.

Currently, the minimum wage in the country is nearly half of the amount of money deemed by the National Statistical Institute as necessary for an individual to survive a month in “normal” conditions.

source: novinite.com

Source: novinite.com