Bulgaria Seeks to Ease Burden on Tax, Social Security Debtors

Politics » DOMESTIC | September 11, 2013, Wednesday // 17:58| Views: 1529 | Comments: 0
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Bulgaria: Bulgaria Seeks to Ease Burden on Tax, Social Security Debtors Bulgaria’s government has also proposed the introduction of reverse-charge VAT mechanism in grain trade in a bid to curb VAT fraud. Photo by Sofia Photo Agency

Bulgarians who have outstanding debts for taxes or social security will now be able to pay the balance first and then the interest accrued on the balance, the government has decided.

The step will stop the accrual of interest and prevents the accumulation of new debts, the government argued as it approved the changed to the Tax Procedure Code on Wednesday.

The government rejected proposals by the business and trade unions to keep separate the social security and health insurance contributions.

Bulgaria’s government has also proposed the introduction of reverse-charge VAT mechanism in grain trade in a bid to curb VAT fraud.

Finance Ministry data shows that large-scale fraud schemes occur most often in the grain trade sector.

Former Bulgarian Finance Minister Simeon Djankov was also a proponent of reverse-charge VAT, but the mechanism was never applied during his term in office.

The move has been made possible due to amendments to the EU VAT Directive.

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Tags: VAT, taxes, social security, Bulgaria
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