19.01.2022
LACK OF BUDGET BLOCKED FOOD VOUCHERS IN JANUARY
The lack of a voted budget for 2022 blocked the distribution of food vouchers in companies at the beginning of the year. This is clear from the explanations of the Ministry of Finance, published on Monday on its website. In them, the agency asks the companies-operators of vouchers, employers and workers to act with understanding and patience in this unusual situation.
Food vouchers that employers distribute to their employees are exempt from taxes (corporate and income) and social security, and each year the state budget law establishes an annual quota of the amount that can be provided in the form of vouchers. This quota is distributed among the licensed operators by order of the Minister of Finance, who then provide the vouchers to the companies that have concluded contracts with them.
"Currently, there is no law on the state budget for 2022, so there is no general annual quota for food vouchers. In practice, there is currently no legal basis for processing applications for individual quotas," say from the finance ministry.
The bill extending the validity of last year's budget until March 31, 2022 has not yet been adopted. The bill was voted only at first reading in plenary, to be considered at second reading by the Budget Committee this week. Only after its final adoption will the Minister of Finance start accepting applications from food voucher operators. In 2021, the quota was initially BGN 350 million, but with the update in September it was increased to BGN 390 million. Then the monthly ceiling for food vouchers that can be received by one employee was increased - from BGN 60 to BGN 80.
The Association of Food Voucher Operators in Bulgaria (AFVO) explains that for the first three months of 2022, after the extension of last year's budget is announced, they will be able to apply for 1/12 of the updated quota from 2021 with a monthly ceiling of BGN 80. They have received an assurance from the Ministry of Finance that there will be no damaged companies and workers due to the delay and the vouchers for January will be able to be distributed retroactively together with those for February.
The Minister of Finance Asen Vasilev has already announced that in 2022 he is considering significantly increasing the monthly amount that can be given to the salary in the form of vouchers - from BGN 80 to BGN 200. In addition, the government intends to allow them to buys not only food, but also to pay for utilities. The AFVO explained that negotiations are underway with vouchers to pay bills for electricity, gas, water and heating.
Employers' organizations and the tourism business are also pushing for vouchers to be extended to pay for hotel accommodation and restaurant food.
The Ministry of Finance has planned to increase the annual quota for vouchers to BGN 480 million in the 2022 Budget, BIA said. But if the monthly ceiling becomes BGN 200, this quota will be insufficient, business representatives estimate. Traditionally, the quota is exhausted every year until the beginning of autumn. Last year, even after the update in September, the limit was reached in mid-November. For years, businesses have been calling on the government to abolish the annual quota on the grounds that it does not exist in other EU countries and that these are light costs, which will certainly include VAT in the treasury. However, the position of the Ministry of Finance has always been that there should be predictability for the money that will not be taxed.
17.01.2022
UBB LAUNCHES BUSINESS LOANS FOR FREELANCERS
United Bulgarian Bank (UBB), part of the Belgian financial group KBC, is launching a full product portfolio of credit instruments specifically designed for freelancers. Package services for professionals - individuals or registered by them ST/companies include working capital loan with guarantee instruments, investment loans and overdraft.
The working capital loan is launched under relaxed collateral conditions when using guarantee instruments. Business clients can receive up to BGN 150,000 financing without material security. The product has a fast approval procedure, without the need to submit supporting documents for use, competitive price conditions and long repayment period.
Investment loans for freelance business clients have a long term of receivables and are for the purchase, construction and repair of real estate. The expert assessment of the collateral for the purchase of movable assets is free of charge and customers receive the opportunity to use a VAT credit line, explained the financial institution, which was reported by BTA.
17.01.2022
THE FIRST ROMA TELEVISION IN BULGARIA STARTS
On the day when we celebrate the Roma New Year - Bango Vasil, the first Roma television in Bulgaria started in Teteven.
"Our news will be from 6 pm. We will collect stories all day and tell them in the evening," said Biser Petkov, manager of Pronet.media TV.
17.01.2022
MOODY'S LOWERS ITS EXPECTATIONS FOR RETAIL IN 2022
Moody's lowered its expectations for retail in 2022 after strong growth in 2020 and 2021. The rating agency revised its forecast for the industry and gave it a "stable" outlook.
Analysts from the rating agency estimate the total revenue growth of 3.9% and the increase in operating profit of 2.3% in the entire industry in 2022, writes the online media Retail Dive. By comparison, expectations for 2021 are a 30% jump in operating income.
Moody's analysts say the strong growth of the past two years "will be much harder to achieve due to growing challenges, including the omicron variant of coronavirus, supply constraints, labor shortages and rising investment costs."
Just as 2021 was destined to be a much better year than 2020, tremendous demand growth cannot go on indefinitely.
The increase in demand this year was so sudden and so powerful that it blocked much of the global supply chain. After ocean carriers stopped ships due to stagnation in 2020, many shippers this year cannot find containers and have to pay extra.
Ports around the world are also operating at maximum capacity, as are trucks and air freight.
The continued proliferation of COVID-19 at key points in the supply chain and labor shortages add to the problems.
All of the above is combined to push the supply of goods in general, fueling inflation.
"The increase in margins in 2021 was supported by lower inventory levels, which encouraged a more favorable promotional environment and higher prices," said Moody's analysts. "Retailers are now struggling with a shortage of certain key inputs. This is worsening the availability of the final product, increasing costs and reducing the ability of retailers to meet consumer demand," the analysis said.
This pressure, as well as the natural leveling of demand, will normalize the situation for retailers next year, according to Moody's.
Wider penetration of coronavirus vaccines and revaccinations may also alter consumer dynamics.
Delayed demand for goods and services, which we saw in 2021, is also likely to subside as consumers increase their mobility and are likely to shift more spending to travel and entertainment, the Moody's report added.
17.01.2022
ELECTRONIC APOSTILLE (E-APOSTILLE)
Electronic Apostille (e-Apostille) - from June 15, 2020. The National Center for Information and Documentation (NACID) provides an opportunity to issue e-Apostille educational and certification documents issued by the education system (by universities, by institutions in the system of pre-school, school and vocational education and training and by the Ministry of Education and its units) in apostille.bg
The electronic system includes two components - issuing an e-Apostille in electronic format with a digital certificate and maintaining a Register of issued Apostilles (e-Register). The innovation was made thanks to the linking of all documents in the registers of secondary education (since 2007) and higher education (since 2012), which have been scanned and stored electronically. The procedure is fully digitalized from the submission of the application, through the payment of the service to the receipt of the certified documents, as the placement of the electronic apostille is one-time, unlike the paper version.
The new electronic service reduces the time and cost of issuance, guarantees the origin and authenticity of documents, eliminates the possibility of forgery, facilitates authentication of both paper and e-Apostille in electronic environment.
By mid-November 2021, more than 2,671 electronic apostilles had been issued, both to certify educational documents for Bulgarian citizens to apply to foreign universities and to legalize the diplomas of foreign citizens who graduated in Bulgaria.
The introduction of e-Apostille is currently applied in only a few countries in the world, with Bulgaria being the first in the EU.
17.01.2022
INFORMATION DAY UNDER PROCEDURE BG05M2OP001-3.019 "SUPPORT FOR VULNERABLE GROUPS FOR ACCESS TO HIGHER EDUCATION"
The Managing Authority of the Operational Program "Science and Education for Smart Growth" 2014-2020 invites stakeholders to participate in an online information day on the grant procedure BG05M2OP001-3.019 "Support for vulnerable groups for access to higher education "Priority Axis 3" Educational environment for active social inclusion "of the Operational Program" Science and Education for Smart Growth "2014-2020. The main objective of the procedure is to support vulnerable groups for social inclusion by providing access to education and training for better realization on the labor market.
Eligible candidates and partners in the cited procedure are secondary schools and non-profit legal entities (NPOs) operating in the public interest, registered under the Non-Profit Legal Entities Act (Non-Profit Legal Entities), and eligible partners are secondary schools, higher schools and non-profit organizations operating in the public interest, registered in accordance with the Non-profit Legal Entities Act.
The information day will be held through the Zoom platform on Thursday, February 3, 2022, from 10:00 AM. If you are interested, please register up to two representatives of one organization/institution at the following link, by February 2, 2022:
https://us02web.zoom.us/meeting/register/tZckce-tpj0vGdanCKinkoQLLp4dPCmmFl0I
The registration form will play the role of an attendance list from the meeting, therefore, where possible, the information in it should be filled in Cyrillic. The obligatory information that requires registration is name, surname, e-mail address, institution / organization you represent, as well as the role you play in it. After filling in the registration form, you will receive a link to the e-mail address indicated by you in the registration, with which you will be able to enter the meeting.
For the timely start of the meeting and for the purpose of checking the persons (whether they are registered in advance) who will join, it is necessary for all participants to enter the room in the period from 9:30 am to 9:50 am on 03.02.2022 as they will initially be located in the so-called 'Waiting room' and the host will allow them after an inspection.
For additional clarifications and questions regarding the meeting, you can contact Maya Lashova, State Expert in the Directorate "Programming, Monitoring and Evaluation", EA PO, e-mail: m.lashova@mon.bg.
Additional information on procedure BG05M2OP001-3.019 "Support for vulnerable groups for access to higher education" can be found on the website of OPNOIR, section "Procedures", section "Procedures open to applications", as well as in the Information System for Management and Monitoring UMIS 2020 - https://eumis2020.government.bg/bg/s/Procedure/Active and the Single Information Portal of the European Structural and Investment Funds: https://www.eufunds.bg/bg/opseig/node/9096.
17.01.2022
FUNDING FOR PROJECTS FOR PEOPLE WITH DISABILITIES IS EXPANDING
The minimum threshold for financing projects related to the construction of affordable housing is removed. This is provided by the National Program for Affordable Housing and Personal Mobility, uploaded for public discussion.
It aims to build an accessible environment in existing residential buildings and adjacent spaces for people with disabilities and to provide personal mobility for their social inclusion, taking into account their specific needs.
The scope of eligible activities related to ensuring personal mobility is being expanded.
For example, funds will be provided for a change in the construction of a motor vehicle, including the installation of an auxiliary equipment / device for loading and unloading a wheelchair in a motor vehicle, for the purchase of a car with a change in the design and/or for training for acquiring the right to drive a motor vehicle, in the absence of such.
The program for affordable living environment is implemented in two components:
A person with a permanent disability may apply within the year for both components under para. 1, but separately - with two separate applications.
A person with a permanent disability can apply for funding under the Program with an individual needs assessment prepared in accordance with the Law on People with Disabilities.
17.01.2022
THE TERM FOR CHANGING THE INSURANCE EXPIRES
Until January 31, self-insured persons can change the type of insurance, reminded by the National Revenue Agency. The self-insured persons are compulsorily insured in the Pension Fund of the State Social Insurance (SSI), and at their choice they can also be insured in the General Sickness and Maternity Fund.
Self-insured persons who choose to pay social security contributions to the General Sickness and Maternity Fund can also benefit from all insured social risks (excluding accidents at work and occupational diseases and unemployment) of the State Social Insurance.
The other option is to pay social security contributions at a lower rate only in the Pension Fund of the State Social Insurance (for disability due to general illness, old age and death).
In this case, however, the NRA reminds, the self-insured are not entitled to cash benefits for temporary incapacity for work due to general illness, pregnancy and childbirth and for raising a child under 2 years of age, etc., paid by the State Social Insurance.
The type of insurance of self-insured persons may be changed for each calendar year, if a declaration has been submitted in an approved form by the Executive Director of the NRA. The deadline for submitting the document is January 31 of the respective year.
The declaration is submitted according to an approved form in an office of the National Revenue Agency at a permanent address or through the e-services of the Revenue Agency with a personal identification code (PIC) or electronic signature (QES).
In case of interruption and resumption of the respective labor activity, as well as in case of commencement of another labor activity by the self-insured person during the calendar year, the already selected and declared type of insurance may not be changed.
More information and advice on filling out tax and social security declarations can be obtained by phone: 0700 18 700 (at a price according to the telephone operator's tariff).
17.01.2022
THE UN EXPECTS 4% GROWTH OF THE BULGARIAN ECONOMY
The UN predicts that Bulgaria's economy will grow by 4% in 2022 and by 3.5% in 2023.
The inflation expectations of the UN analysts for Bulgaria are the rate of price increase to be 1.9% this year and next.
However, in a report released late Thursday, the UN Department of Economics said there would be a slowdown in global economic growth as a whole - an increase of 4 percent in 2022 compared to a rate of 5.5 percent in 2021 and an even greater slowdown in 2023 - up to 3.5 percent, amid new waves of COVID-19, labor market problems, supply chain tensions and accelerating inflation.
On January 11, the World Bank forecasts 3.8% real growth of the Bulgarian economy in 2022 and 3.6% next year. The bank's outlook for the Bulgarian economy in 2022 was improved by 0.5% compared to its forecasts from July last year.
The World Bank report also highlights Bulgaria as one of the few countries in Europe and Central Asia that still provides fiscal support against the pandemic. Most countries have withdrawn budget support by the end of 2021, said the international lender, which groups Bulgaria with Kazakhstan, Northern Macedonia and Russia.
The World Bank expects global growth to slow by 2023 as the spread of COVID-19 variants, along with inflation, debt and inequality, exacerbates uncertainty.
14.01.2022
ENTREPRENEURSHIP: THE MOST COMMON MISTAKES IN CORPORATE ACCOUNTING
Accounting is a pen of every business, which is not just necessary, but absolutely mandatory. Accounting is an integral part of the development of a successful company. The financial part of the business should be calm and be a source of reliable information that can be used to develop your business.
Financial reporting implies a relatively high risk of error, as accounting involves taking on large responsibilities and working under high pressure, meeting deadlines and strict procedures, resolving cases on a daily basis and wandering through the tax and accounting regulatory jungle.
However, the desire to save in important aspects such as accounting would certainly be a bad joke for any young entrepreneur. See the most common mistakes that most small business owners and growing businesses tend to make.
Self-management of your accounts
When your business is small, with limited income, keeping accounts at home may seem like an attractive alternative. But instead of saving you some money, this option often leads to unforeseen costs. A professional accountant would cost you more, but it would also save you a lot of money - from tax breaks that you don't know about, to avoiding mistakes that you wouldn't otherwise notice but are easy to identify by a professional.
Trusting an unqualified accountant
Delegating accounting responsibilities and activities to employees and associates without the necessary accounting knowledge can become a huge problem. For a growing business, sometimes outsourcing (accounting services outsourcing) to an accounting firm can help you focus on other important business endeavors.
Doubtfully cheap services
Choosing the cheapest services is not very good. Quality work costs money. Remember that accountants are qualified experts who are constantly updating their knowledge, because tax regulations and laws change frequently. If you invest more money in professionals who keep quality accounting, you will probably soon start making profits.
Proximity to your office is not a factor
Don't trust an accounting firm just because it's close to your office. The opportunity to have an accountant very close to you is really tempting, but it narrows your circle of potential companies whose services you could use. Such tactics are not recommended, because in this way you really limit your choice and opportunities to get quality and effective accounting services.
Accounting services have certain prices
Don't be fooled by the prices of accounting services. There are many unscrupulous companies that allow themselves to deceive their customers solely for profit. Find out in detail how the prices for the services are calculated and how flexible the offered packages are. Accounting firms usually have a basic package of accounting services and any change in it must be reflected in the price.
After finding the right accountant
When you find a qualified accountant, you need to take the time to incorporate it into the intricacies of working specifically for your company. Without proper knowledge of your accounting procedures, any seemingly minor mistake can lead to a loss of serious income. No less important is the existence of an internal control system to reduce the risk of human error or professional fraud.
However, if you yourself have the necessary knowledge and ability to personally deal with the accounting of your company, you should keep in mind some major mistakes made in the process of work.
- You do not issue invoices on time for the due payments and when preparing tax reports you find yourself overwhelmed with a bunch of undescribed customer payments and income statement, which makes no sense;
- Do not keep information and receipts for expenses incurred, which in turn can lead to a number of tax, accounting and other problems;
- You do not report payments made in cash and forget about them, which can cause many inaccuracies and errors;
- You postpone keeping records for later, which can lead to inspections, increased debts that will never be paid, and errors in invoices that will be difficult to prove at a later date;
- You make mathematical mistakes such as entering numbers in the wrong place, inability to correctly round numbers or errors in incorrectly transferred data;
- You allow discrepancies between bank statements and accounting records, and from time to time small expenses and amounts that you do not think about remain outside the records;
- Genuine omissions in the recording of small transactions, especially in retail sales, where multiple payments are made in cash and when small amounts go unnoticed;
- You start working on projects without determining the maximum costs you can afford, which is due to gaps in setting budgets for your individual projects;
You assume that sales are the equivalent of cash flow, but this is not correct, as it distorts the real state of your business and can mislead you and your business partners.
If your accounting budget is still really limited, you can always take advantage of automated accounting sites that make tedious processes more accessible. They give you the opportunity to enter documents yourself and make inquiries in real time. In this way you ensure a monthly closing on time and at a significantly lower price.
