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=====Regelgeving niet-betaling Bulgarije 2023=====
  - [[Regelgeving niet-betaling Bulgarije 2023#Aantekeningen|Aantekeningen]]
  - [[Regelgeving niet-betaling Bulgarije 2023#Regelgeving|Regelgeving]]
  - [[Regelgeving niet-betaling Bulgarije 2023#Jurisprudentie|Jurisprudentie]]
  - [[Regelgeving niet-betaling Bulgarije 2023#Literatuur|Literatuur]]

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====1.	Aantekeningen====

Dear Prof. Dr. A.J. van Doesum,

Happy New Year 2023! May it be healthy, peaceful and prosperous for all!

On our VAT bad debt relief topic, we would like to send you the recent updates for Bulgaria.

After a long and hard public discussion, as of 01.01.2023 Bulgaria has its VAT bad debt relief rules introduced in the VAT Act.

They are rather fiscally oriented, far from the best for the business but at least a step in the right direction of having such rules. In the attached file you may find the full text of the relevant new VAT Act provisions.

Here is a brief summary:

VAT bad debt relief is allowed only for receivables that have not been transferred for consideration (not ceased).
The vendor shall be able to prove that it has initiated collection actions for the respective receivables (still there is no clarity what evidences will be considered enough, we will monitor for instructions from NRA or for explicit texts in the Regulations for Application of the VAT Act).
Any receivable shall be considered bad debt, if and when any of the following occurs:
For small receivables amounting of up to BGN 600 (appr. EUR 306), passing of 365 days after the receivable has become payable;
Passing of 3 years for receivables with 3-years statute of limitation (such as the supplies with continuous supply – i.e. utility services) or 5 years for receivables with 5-years statute of limitation after the receivable has become payable;
By means of an entered into force court decision it is ruled that a receivables or a part of it is not due, whereas the receivable shall be considered bad debt only for the non-due part;
A receivable claim is extinguished by virtue of law;
After the completion of enforcement proceedings, a receivable claim has remained wholly or partially uncollected;
Bankruptcy proceedings of the client have been terminated with an approved recovery plan, in which incomplete satisfaction of the supplier's claim is provided for, and the claim is considered uncollectible up to the amount of the unsatisfied part;
The client is deleted after bankruptcy or liquidation proceedings have ended, and in the case of a partially unsatisfied receivable claim, the claim is considered to be finally uncollectible to the extent of the unsatisfied part.

4a. For customers VAT registered at the time of the initial invoice:

The vendor will have to notify the customer that he considers the relevant receivable to be uncollectible and will need to have evidence that their notification has been sent to the customer's address of business.
The VAT adjustment is on the entire amount of the uncollectible receivable, but only for receivables for which the client has exercised their right to deduct input VAT. (in practice, for VAT-registered customers who have not exercised their right to a tax credit, the vendor will not be entitled to adjustments).
The correction is carried out by issuing a credit notice within a 3-month period from the end of the month in which the relevant circumstance arose under 3 above.
For bad debt on invoices amounting to over BGN 100,000 for which the recipient has exercised the right to deduct input VAT, a credit note is issued only after written notification to the competent Territorial Directorate of the NRA within a 3-month period from the occurrence of the circumstance under i. 3 above and obtaining permission or tacit confirmation from the National Revenue Agency.

4b. For VAT non-registered customers (the vast majority of b2c customers and some b2b) having this capacity at the time of initial invoicing:

No notification is required
The correction is carried out by issuing a protocol in accordance with the procedure defined by the Regulations for Application of VATA, within 3 months from the end of the tax period during which the relevant circumstance arose i. 3 above.

VAT bad debt relief as per this new rules will be possible as of 01.01.2023 (for old periods and for welded situations, no legal order is provided - they will be decided by the court.)

Kind regards and thank you for your support during this process,

Radostina

Radostina Doneva

Tax Expert

Operations Finance Division

Mobile: +359 893 400 758

E-mail: rdoneva@yettel.bg

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====2.	Regelgeving====

* {{ :maatstaf:niet_betaling:2023_01_11_-_bulgarian_vat_bad_debt_relief_provisions_eng.docx |Regelgeving niet-betaling Bulgarije 2023}}

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====3.	Jurisprudentie====

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====4.	Literatuur====

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