Navigating Bulgarian Accounting Practices in the Logistics Sector

Bulgaria’s strategic geographic location makes the country an important player in the transit and logistics industry. As a key point of entry into Europe, the country boasts an extensive network of transport corridors and ports, linking regions from east to west and north to south.

To effectively navigate the Bulgarian logistics landscape, it is essential to have a solid understanding of the country’s accounting practices, as well as its regulatory framework. This article dives into the field of accounting within the logistics industry, drawing on valuable insights from Leinonen Bulgaria.

Regulation for International Carriage of Passengers and Cargo in Bulgaria

Bulgaria’s normative acts to road transport are in alignment with European Union regulations. These include the Road Transport Act, Ordinance № 11 of 31.10.2002 for the international carriage of passengers and goods, and Council Regulation (EEC) No 881/92 of 26 March 1992 and No 1071/2009.

Various authorities, such as traffic police, customs, and the Ministry of Transport, enforce these regulations. It is important for foreign road carriers to ensure compliance with these regulations while operating in Bulgaria.

Issuing Community licences to road hauliers in Bulgaria:

The competent authority in Bulgaria – Executive Agency “Road Transport Administration”  issue the Community licence for renewable periods of up to five years. The licence is issued on the name of the haulier and is non-transferable.

Community license shall be issued to haulers who meet the requirements for:

• reliability (reputation);
  Requirements reliabilities are met when transport managers of sole traders and companies have not been convicted for intentional offenses under the Criminal Code or deprived of a conviction the right to exercise the transport activity.

• professional competence;
  Prove for professional competence is when the transport manager has Driver Certificate of Professional Competence (Driver CPC) and minimum secondary education.

• Financial Stability – Fs ≥ 1;
  Financially stable within the meaning of the regulation is a person/entity that has sufficient resources that can guarantee the normal startup and the operation of the transport undertaking in the amount of € 9,000 for the first vehicle, for each subsequent truck – amounting of € 5,000. If the amount of own funds capital of the carrier fail to prove their financial stability, the insurance contract or bank guarantee can be concluded accordingly issued to prove their financial stability.

• Place of establishment in Bulgaria – declaration under provision of Regulation EO Nr. 1071/2009 for:
• Rent office contract if you do not own office place.
• Maintenance contract with a garage and agent to do safety inspections and repair vehicles if you do not do this yourself.

The fee to apply for a Community license is 250 EUR. The legal deadline for issuing the Community license is within 15 calendar days from the date of application.

Foreign carrier’s documents:

• EU Licence, European Conference of Ministers of Transport  (ECMT) Authorisation, Bilateral or Transit Transport Authorisation; Authorisation for non liberalised passenger transport services;
• ADR permit.

Driver’s Documents (foreign vehicles):

• Proof of ID;
• Driving permit;
• AETR record sheet, tachograph discs, digital tachograph;
• ADR training certificate;
• Employment certificate.

Foreign vehicle’s documents:

• Registration certificate (grey card);
• Regular technical inspection;
• ECMT technical certificate;
• Compulsory nationality plate;
• ADR certificate of approval;
• ATP certificate of compliance;
• Hire or leasing contract.

Transport documents on board (foreign vehicles):

• Consignment note / CMR international consignment note;
• Loading list (groupage);
• ADR transport document, consignor’s declaration, ADR security instructions;
• Container packing certificate;
• Transfrontier movement of waste document (Basel Convention)

Working force: drivers

The backbone of any successful transport company is its drivers. In Bulgaria, drivers obtain their professional driving licenses from accredited driving centers, subject to meeting specified requirements outlined in the Law for Road Transportation.

Driver qualifications are crucial, with official diplomas and certificates being recognized by transport companies, particularly in the handling of dangerous goods (ADR). Due to a shortage of professional drivers in Bulgaria, companies may consider employing drivers from neighboring countries. This process typically takes around 3 months and requires a work permit issued by the Ministry of Internal Affairs.

Accounting and payroll related to transport field.

General obligatory social fees in Bulgaria for drivers are the following:

Maximum monthly amount of the insurable income during 2023 – 3 400 BGN

Personal Income tax – 10 %

Average salary for international drivers employed in Bulgaria is around 1 500 – 2 000 EUR including paid diem, compensations and bonuses.

Accounting specific tasks:

• Industry specific Licences and certificates processing and booking
• VAT refunding from other EU countries
• Booking of assets and trucks depreciation plan
• Tracking fuel consumption
• Costs allocation  to transport rates
• Processing of prime documents for posting of drivers
• Pety-cash for drivers

In summary, Bulgarian logistics sector, with its strategic location and infrastructure, offers a promising landscape for businesses in the transport industry.

Navigating the regulatory and accounting aspects is crucial for success. By leveraging the insights from Leinonen Bulgaria, businesses can make informed decisions in this dynamic market. For tailored advice and further information, reach out to Albena Stoyanova, Country Manager at Leinonen Bulgaria.