The National Council for Trilateral Cooperation (NCTC) did not reach unanimity on proposed changes to the Law on Amendments and Supplements to the Law on Value Added Tax.
One of the suggestions is extension of the deadline until June 30, 2024 for applying a zero tax rate for the supply of bread and brano related to the need to mitigate the impact of high bread prices on households, in particular the most vulnerable. As a measure to “lighten up the gray economy” a possibility has been proposed that the consignee of a delivery may not pay the value of the same when the supplier did not issue a receiptannounced at the end of September by the Ministry of Finance, when the public discussion of the project was underway.
At today’s meeting of the NSTS, the Association of Industrial Capital in Bulgaria (AIKB) expressed “a certain skepticism” in relation to the addition, which enables the recipient not to pay for the goods or services received in case of non-issuance of a fiscal document for a sale. The association does not support the extension of the reduced tax rate for the supply of bread and flour. AIKB supports the elimination of the reduced tax rate VAT rate for restaurant and catering services and sports facilities They propose to provide for an opportunity in the VAT law for a tax preference for the purchase of electric cars.
The Bulgarian Chamber of Commerce (BCC) indicated that support the extension until June 30, 2024, the period for applying the zero rate for bread and flour.
The Bulgarian Chamber of Commerce and Industry (BCCI) noted that refrain from support and do not expect any particular effect of the proposed change regarding the possibility that, in the case of an unissued fiscal receipt, the recipient has the right to refuse to pay for the good or service. They expressed support for the maintenance of the measure of zero rate of tax on supplies of bread and flour and did not support the maintenance of reduced tax rates for restaurant and tourism services and insisted on the return of the standard rate of 20 percent.
Regarding non-payment in case of non-receipt of receipt from the Confederation of Employers and Industrialists in Bulgaria (KRIB) believe that it will not produce real results. According to the confederation, dropping the reduced rate for restaurants and hotels would rather be pro-inflationary and rather the reduced rates should continue.
The Union for Economic Initiative (SSI) believes that problems may be caused between the buyer and the seller, especially when the seller provides some kind of note that does not qualify to be a receipt, buyers will be required to know all the possible details and be able to react whether the note qualifies or not. They propose a one-year extension of the reduced VAT rate for hotels and restaurants and sports venues.
Luboslav Kostov from KNSB said that the Confederation supports all changes that are related to the need to synchronize the law of Bulgaria with that of the European Union and aim to improve the efficiency of VAT collection. Regarding the extension of the reduced rates of flour and bread – we do not support this, he pointed out. And he reminded that the reduced rates were introduced because of COVID-19, but the pandemic has already passed, added Kostov.
Statistics show that reduced rates do not cause prices to fall, said Atanas Katsarchev, Chief Economist of KT Podkrepa. He emphasized that the tax system is not the social one, in order to make reliefs through it. On the fiscal bond idea, he said it was “frivolous.”
2023-10-25 14:56:00
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