European Commission Sent a Formal Notice to Bulgaria to Amend VAT Rules

The European commission has triggered the first step of infringement procedure against Bulgaria by sending formal notice to the Bulgarian authorities regarding the VAT rules for companies trading in fuel and for non-business use of company’s assets.

The Commission considers that national requirement for the small enterprises trading with fuel to provide significant amounts in cash, bank guarantee or in state bonds in advance to guarantee their ability to pay VAT liabilities, is not compatible with VAT rules.

Separately, the Commission asked Bulgaria to amend the rules on calculation of VAT when company’s assets are used for private purposes.

The Bulgarian government has two months to take necessary actions.