19.01.2021
Innovations in taxes and insurance for 2021 (updated)
In December, several issues of the State Gazette published changes for 2021 in accounting, taxes and insurance. Below from the Consultancy Center - Berkovitsa we summarize the most important changes in a structured way.
Extended deadlines for filing returns and paying taxes
The deadlines for filing the annual tax returns of enterprises have been extended. They will be submitted from March 1 to June 30 next year. This applies to the declarations under Art. 92 of CITA and under Art. 50 of the Personal Income Tax Act for sole proprietors and registered farmers. The taxes on them will be paid in the same term.
The deadlines for publishing the annual financial statements are extended until September 30 of the following year, and for the declaration of inactivity - until June 30 of the following year. The extended deadlines also apply to the annual accounting closing for 2020.
Individuals who file their annual tax return by March 31 of the following year electronically enjoy a 5% discount on the top-up tax, provided that they have no enforceable public obligations at the time of filing the return and the top-up tax has been paid. by March 31. The total amount of the used discount cannot exceed BGN 500.
Advance payments for corporate tax
Advance payments are made on the estimated tax profit for the respective year as before, but to determine whether advance payments will be made, the net sales revenues for the year before the previous year are taken into account.
Taxpayers are required to submit a new declaration in a form for declaring advance payments within 1 March to 15 April.
The deadline for paying the last advance payment on December 1 is changed, instead of December 15. A new deadline of November 15 for submitting the declaration under Art. 88 of CITA for changes in advance payments. The admissible excess of the corporate tax over the determined advance payments is changed from 20% to 25%.
Retail Sales Management Software (SUPTO)
The use of SUPTO is entirely voluntary. Persons who use SUPTO from the list of the NRA will benefit from certain tax benefits as follows:
1) They will have the opportunity for accelerated repayment of a tax credit within 30 days from the submission of the reference-declaration (effective from 12.12.2020).
2) In case of a first violation for non-issuance of a fiscal receipt, they will not be required to apply a compulsory administrative measure “sealing of a commercial site” (in force from 12.12.2020)
3) They will be able to depreciate rapidly with the annual tax depreciation rate up to 100% the following tax depreciable assets of category VI (including when determining the tax financial result for 2020):
For those who have chosen SUPTO, it is important to note the following new VAT sanction:
A person who has chosen to use SUPTO from the NRA list in a commercial site, but who nevertheless uses other software not included in the NRA list, is fined - for individuals who are not traders, in the amount of BGN 1,000 to 3,000 ., or a property sanction - for legal entities and sole traders, in the amount of BGN 5,000 to 10,000. In case of repeated violation, the amount of the fine is from BGN 2,000 to 6,000, and of the property sanction - from BGN 10,000 to 20,000.
On cost taxes
Exemption from taxation of social expenses for contributions and premiums for additional social insurance and life insurance will be available only if at the end of the month during which the expenses are accrued, the liabilities are not reflected in the tax-insurance account or are not recorded as claimed for enforcement in the National Revenue Agency.
The tax-free amount of food vouchers has been increased from BGN 60 to BGN 80 per month, provided in the form of food vouchers to each employee.
New tax relief in connection with repairs and improvements
A new tax relief for individuals is introduced, deducting from the total annual tax base the payments made during the year for work in connection with improvements and / or repairs of a real estate in the total amount of up to BGN 2,000 when the following conditions are met:
Important: The relief is applied to income realized after 01.01.2021.
Increased tax relief for children
The amounts for the tax reliefs for children are significantly increased for 2021, as follows:
- BGN 4,500 for one child;
- BGN 9,000 for two;
- BGN 13,500 for three or more children;
- for a child with disabilities - BGN 9,000.
Until now, these dimensions were:
- BGN 200 for one child;
- BGN 400 for two;
- BGN 600 for three or more children;
- for a child with disabilities - BGN 2,000.
Important: The new amounts of benefits apply only to income realized in 2021.
Administrative relief for individuals
Natural persons who are not sole proprietors or self-insured persons will not be obliged to issue a document for their income if they have received the amounts by bank transfer, or the income is subject to final tax, or the income is exempt from taxation as received from rent, lease or other remunerative provision for use of agricultural land, or when the payer issues an "Invoice for paid amounts".
Salaries
The amount of the minimum wage for the country (minimum wage) is increased to BGN 650.
In 2021, the period of unpaid leave of up to 60 working days will be considered as insurance length of service.
Social security
The minimum monthly amount of the insurance income for the self-insured persons is increased to BGN 650 and respectively:
The minimum insurance income and the contributions to the Accident at Work and Occupational Disease Fund are changed.
The following are saved:
New sanction in the TSSPC related to the application of DTT without grounds
Effective from 01.01.2021, which does not pay or pays a smaller amount of tax in accordance with the Corporate Income Tax Act or the Personal Income Tax Act within the established deadline for payment of the tax, without certifying the grounds for application of DTT, shall be punished by a fine - for natural persons, or by a property sanction - for legal entities and sole traders, in the amount of 5 per cent of the amount of unpaid tax, but not more than BGN 15,000. natural persons or property sanction for legal entities and sole traders in the amount of 10 per cent of the amount of the unpaid tax, but not more than BGN 30,000.
Food and VAT
The reduced VAT rate of 9% also applies to home delivery of food from 01.12.2020 to 31.12.2021.
Distance sales under VAT
in force from 01.07.2021
In connection with Directive (EU) 2017/2455 and Directive (EU) 2019 / 1995B, new rules and regimes are introduced in the VAT Act, concerning supplies to recipients of non-taxable persons in the EU. Briefly the following:
1) Intra-Community distance sales of goods within the EU (Article 14, paragraph 1)
Until 31.12.2020, this is a distance selling mode.
2) Distance sales of goods imported from third countries or territories (Article 14, paragraph 3)
The goods are dispatched or transported from third countries or territories from the supplier to the consignee (non-taxable person) in a Member State.
3) Domestic distance sales (Art. 14a, para. 5, item 3)
The goods are dispatched or transported to the territory of the same Member State by a taxable person not established in the territory of the European Union.
4) Deliveries facilitated by an electronic interface (Article 14a)
An electronic interface is a device or program that allows communication between two independent systems or a system and an end recipient and may include a website, portal, platform, application interface, and other similar means.
5) Rules for import of goods under a special regime for distance sales of goods imported from third countries or territories and a special regime for declaration and deferred payment of import tax shall also be introduced. They refer to consignments with an intrinsic value not exceeding the BGN equivalent of EUR 150, excluding excise goods, for non-taxable persons who are established, have a permanent address or habitual residence in a Member State, including in the country.
There are also changes in the Non-Union Regime and the Union Regime, as their scope from 01.07.2021 is extended to all other services provided to non-taxable persons established in the EU. The regime in the Union includes, in addition to the supply of services, intra-Community distance selling of goods and domestic distance selling of goods.
With the extension of the scope of supplies, individuals will declare and pay VAT in only one Member State, regardless of where the tax is due. This eliminates the obligation to track turnover for distance selling and the corresponding registration in another Member State.
Taxable persons who are registered to apply a non-Union and non-Union regime may continue their registration for a Union or non-Union regime by submitting an application electronically to update the data in the initial application for registration submitted. , from 1 April 2021 to 30 June 2021
A threshold of EUR 10 000 is introduced to determine the place of performance for supplies of intra-Community distance sales of goods and supplies of telecommunications services, radio and television broadcasting services and electronically supplied services to non-taxable persons. , if the provider, including who manages the electronic interface, is established, has a permanent address or habitual residence in the territory of only one Member State.
Until this threshold is reached, deliveries shall take place in the supplier's Member State. After exceeding the threshold - deliveries have a place of performance in the country of consumption. The condition that the total value excluding VAT of supplies does not exceed in the current calendar year and did not exceed in the previous calendar year EUR 10,000 or their equivalent in the national currency of the Member State in which the supplier is established.
Brexit
After 31.12.2020, the date of expiry of the transitional period under Article 126 of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, the VAT identification numbers of UK traders starting with prefix “GB” will not be valid for the purposes of intra-Community trade and it will not be possible to verify their validity through the European Commission's VAT number verification site here.
As of 1 January 2021, traders in Northern Ireland who trade in goods within the European Union under the Ireland / Northern Ireland Protocol will be issued with VAT identification numbers beginning with the prefix "XI". The validity of these numbers can be checked on the website of the European Commission.
After the end of the transitional period - 31.12.2020, the provisions of Union law in the field of VAT will no longer apply to the United Kingdom or its territory, and from 01.01.2021 the Kingdom is a third country. Under certain conditions, the supply of goods to and from Northern Ireland will be treated as GP, respectively APR. There are special clauses for the treatment of persons from the United Kingdom of Great Britain and Northern Ireland, who are registered under Art. 97b of the VAT Act in connection with registration under Art. 96, para. 9 or deregistration, the refund of VAT, as well as the treatment of the supplies for which the transport starts before 01.01.2021 and ends after this date.
