In order to eliminate identified inconsistencies with EU law, a regime for deferred payment of VAT has been introduced in VAT for centralized clearance upon importation of goods.
To apply the regime, it is necessary for the importer, a person registered for VAT purposes, to have certain permits (permit for centralized processing of goods and permit for deferred payment of import duties), and the tax should be paid no later than the 16th date of the month following the month in which the customs declaration was accepted.
✓ Adjustments of used tax credit
Changes have been introduced in the provisions of Art. 79 and Art. 80 of the VAT, which aims to align our national law with the interpretation of the European norms presented by the EU Court regarding the regime for correcting the initially deducted tax credit in the event of the destruction/ scrapping of assets 1.
A tax credit adjustment will no longer be made for proven or confirmed destruction, loss or absence of goods as a result of events beyond the control of the taxable person, which he can prove were not caused by his fault. No correction will also be due in cases of proven or confirmed destruction, including disposal of goods in a way that leads to their irreversible disappearance as a result of:
- scrapping of goods which, as a result of their usual use, have become objectively unusable for the taxable person; and
- scrapping of goods that are objectively unusable for the taxable person, when they have become the subject of a taxable supply, including such under Art. 163a of VAT (as waste).
1Decision of the Court of Justice of the EU in case C-127/22, issued on a preliminary inquiry of the Bulgarian Supreme Administrative Court (commented in KPMG Tax News, May 2023 issue)