VAT Fraud Probe Underway at Major Retail Chains in Bulgaria
The National Revenue Agency is inspecting major retail chains in Bulgaria, according to Finance Minister Petar Chobanov.
Chobanov participated Tuesday in a forum titled "Restarting the Economy" which brought together representatives of the government and the business sector.
Prime Minister Plamen Oresharski admitted that retail chains contributed substantially to the development of the Bulgarian economy, adding that they also engaged in worrying practices.
He drew attention to the problem of unequal treatment of domestic and foreign producers and suppliers.
"We will not tolerate the nonpayment of VAT and evasion of tax legislation," Oresharski declared, according to reports of the Bulgarian Telegraph Agency (BTA).
Oresharski pointed out that retail chains bought import goods via Bulgarian traders and not directly, implying that the practice involved VAT evasion.
"I cannot figure out why big global retail chains buy import goods via Bulgarian sole traders. It smells of VAT fraud and it is a widely used practice. If you believe that reducing the administrative burden means that we will tolerate evasion of legislation and non-payment of VAT, it will not happen," Bulgaria's Prime Minister stated.
"I really do not see what role the sole trader plays in the trade between two multinationals," Oresharski underscored, pledging an uncompromising stance against fraud.
Deputy Prime Minister Daniela Bobeva noted that big retail chains did not present annual reports to the Registry Agency.
"Pursuant to the requirements of the European Commission, the government is working on reducing the administrative burden and will introduce a unified mechanism for loyal commercial practices," she added.
- » Only 34% of Bulgarian Companies Actively Use Social Networks
- » 82% of the Wealth Generated in 2017 has Gone to the Hands of 1% of People
- » IMF: "It's Time to Discuss Bitcoin Globally"
- » 1/4 of the Purchases of Properties in Sofia are For Investment Purposes
- » Facebook Wants to Open Special 'Community Skills Hubs' in Europe and Train a Million People
- » The Cheapest Holiday Destination for 2018? Bulgaria.
Richie, thank you for a breath of fresh air and intelligence on this forum - something sorely missing.
Have grown accustomed to only seeing the daily posts by the 3 idiots: the Stalin/USSR lover, the Ottoman/Muslim/West/Gyspy (self) hater and the idiot who only talks about how good emerging markets are (LOL -especially comical when everyone is disinvesting from those markets and they are slowly collapsing before our eyes, i.e. Kazakhstan's 20% devaluation of the Tenge in one day this week!)
Please do post more often, we need some actual intelligent debate and opinions on this forum!
"I cannot figure out why big global retail chains buy import goods via Bulgarian sole traders": I can. I t is quite normal practice for companies to enter foreign markets by giving exclusive rights to traders representing them in those markets, so that anyone, including big retail chains, have to buy their products through those exclusive representatives. This is to ensure that the business is attractive to those representatives, and that after working hard marketing the products for that foreign company, they will not find that local customers buy directly from the foreign companies behind their backs. That will probably be the result of the inspection, buy I guess we will not read that news on the front page of Bulgaria's newspapers...