The Bulgarian tax authority has implemented a new system/declaration for tracking of transportation of high tax risk goods through amendments of Tax and Social Insurance Procedure Code. The goal of implementing this system is to reduce tax evasion, reduce the VAT gap and prevent illegal trade.
From 1st October 2023, mandatory declaration of transport of high tax risk goods to the National Revenue Agency is introduced in the following cases:
- In case of intra-community purchases;
- In case of intra-community deliveries.
From 1.01.2024, mandatory reporting obligations will be extended in the following cases:
- Between two locations within Bulgaria;
- In case of imports;
- In case of export exports;
- Relating to intra-community transactions where goods are in transit in Bulgaria.
The road vehicle categories to be monitored in the Bulgarian system are those with a maximum load capacity at least 3.5 tons, shipping of high tax risk goods between different legal entities. Monitoring is related to high tax risk goods intended of delivery for each individual commercial transaction with a weigh up to 500 kg and/or the value of the goods is up to BGN 5,000 excluding VAT.
A person who fails to fulfill an obligation under Art. 127i, para. 1 – 5, shall be punished with a fine – for individuals, or with a pecuniary sanction – for legal entities and sole traders in the amount of 40 percent of the tax base of the transported goods in the sense of VAT, but not less than BGN 5,000.
