31.07.2020
SOURCES FOR FINANCIAL SUPPORT OF BUSINESS IN BULGARIA
FINANCING UNDER THE OPERATIONAL PROGRAM "INNOVATION AND COMPETITIVENESS" 2014-2020
CURRENT PROGRAMS
Objective: to provide operating capital for Bulgarian medium-sized enterprises to deal with the consequences of the COVID-19 pandemic.
Budget: BGN 156,000,000. Minimum grant amount per project: BGN 30,000, maximum: BGN 100,000.
The procedure has a deadline for submitting project proposals at 16:30 on August 24, 2020.
Objective: to provide operational capital for Bulgarian micro and small enterprises to deal with the consequences of the COVID-19 pandemic
Budget: BGN 173,000,000
Amount of grant for a project: minimum BGN 3,000, maximum: BGN 10,000
The procedure has a deadline for submission of project proposals 16:30 on 15.06.2020. The provision of additional funds due to the great public interest is being discussed.
UPCOMING PROGRAMS
BG16RFOP002-2.067 "Digitalization of small and medium enterprises"
Objective: Development of management capacity and growth of SMEs by promoting the use of information and communication technologies and services.
Budget: BGN 58,674,900
BG16RFOP002-1.030 „Stimulating the introduction of innovations by existing enterprises“
Objective: Providing focused support to Bulgarian enterprises to increase innovation in the thematic areas of the Innovation Strategy for Smart Specialization (ISIS), as the implementation of projects supported by the procedure should lead to the introduction of product innovation (good or service) or to the implementation of innovation in business processes aimed at the production of goods and provision of services. The implemented innovations should be in the priority areas of the thematic areas of ISIS.
Budget: BGN 85,000,000
GOVERNMENT MEASURES TO RETAIN STAFF AND COMPENSATION FOR EMPLOYEES
- Payment of compensation to employers
As of March 31, 2020, the Employment Agency opened a procedure for applying of employers for payment of compensations under the procedure of Article 1 of Decree № 55/30.03.2020 for determining the conditions and procedure for payment of compensations to employers in order to maintain of the employment of employees in the emergency situation.
- Granting interest-free loans
Bulgarian Development Bank guarantees the granting of interest-free loans up to BGN 4,500 for workers who are on forced unpaid leave. The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months grace period.
- Parents on unpaid leave will receive BGN 375 one-time assistance
The Ministry of Labor and Social Policy allocates BGN 20 million for one-time assistance in the amount of BGN 375 to parents of children under 12 who have been on unpaid leave for at least 20 days due to inability to work from home during the state of emergency. From May 5, the scope of the target groups with the right to receive one-time assistance is expanded - parents of students up to 7th grade, who have reached 14 years of age, as well as families in which one or both parents have lost their jobs but are not entitled to unemployment benefits, will also be able to receive a one-time assistance of BGN 375. The application is to the Social Assistance Agency under the existing procedure for receiving a one-time assistance.
- Hiring workers on unpaid leave on a second employment contract from other companies
Workers who are on unpaid leave due to the suspension or contraction of their enterprises due to a state of emergency may be employed on a second contract by other employers whose activities have not been affected.
- Conclusion, samples and electronic submission of employment contracts under Art. 114a of the LC
Registered farmers and tobacco growers can electronically apply for new models of employment contracts for short-term seasonal agricultural work (under Article 114a of the Labor Code) - for more than one day without prior payment of social security contributions.
- Compensation of BGN 290 per month to maintain the employment of employees
Employers and self-employed persons from the transport, hotel and restaurant and tourism sectors, whose incomes have decreased by not less than 20% for a certain period, will be able to receive compensations in the amount of BGN 290 per month to maintain the employment of workers and employees. According to the Decision of the Council of Ministers, the compensations will be paid for a whole calendar month, as of 01.07.2020, but for not more than six months, as the funds are from OP “Human Resources Development” in the amount of BGN 40 million.
- Package "Employment x 3" - new measures to preserve jobs and reduce unemployment
The Ministry of Labor and Social Policy has launched three measures to preserve jobs and reduce unemployment. The "Employment x3" package includes the new version of the measure 60/40, the measure to support the transport and tourism sectors with BGN 290 to keep a job, as well as a new scheme for hiring the unemployed.
Detailed information on each of the measures:
Decree of the Council of Ministers no. 151/2020 - The new 60/40
- Employers receive funds from the state to maintain employment after June 30, 2020.
For each employee the enterprises will be able to receive funds in the amount of 60 percent of the insurance income for May 2020 and 60 percent of the insurance contributions due by the employer, according to a decree adopted by the Council of Ministers. The funds will be paid for no more than three months in the period from July 1 to September 30, 2020. Applications for payment must be submitted to the Labor Office Directorate, which serves the territory of the place of work, accompanied by the documents necessary to determine the amount of funds.
As of March 31, 2020, the Employment Agency opened a procedure for applying to employers for payment of compensations under the procedure of Article 1 of Decree № 55/30.03.2020 for determining the conditions and procedure for payment of compensations to employers in order to maintain of the employment of employees in the emergency situation.
- Socio-economic measures for over BGN 1 billion in response to the COVID-19 pandemic
The government's new socio-economic measures amounting to BGN 1.162.9 billion are aimed at supporting those fighting on the front lines against the spread of COVID-19 and helping those most affected by the pandemic. The source of expenditures is the national budget, with social measures amounting to BGN 731.5 million and economic ones BGN 431.4 million.
14.07.2020
In connection with inquiries about the employment opportunities offered by the state budget and the HRD OP, the Consultancy Center - Berkovitsa published brief information and useful links.
“EMPLOYMENT x 3” PACKAGE
THREE WAYS TO KEEP EMPLOYMENT
The main change is that employers applying for compensation are no longer required to cease operations.
The extension of the extended scheme 60/40 of 03.07.2020 aims to support the recovery of the business after the period of activity restrictions and already represents subsidized employment, covering part of the salary costs of staff who are no longer employed. on leave, but works and produces products or provides certain services. The aim is again to maintain employment, as in the context of a slow recovery and reduced revenues or a postponement of the start of some economic activities, the risk of redundancies has not been overcome.
Eligible are employers who:
Which employees can apply for:
Employers who have used the current measure 60/40 will be able to continue using it in the next 3 months and after resuming their activities.
Employers may apply for compensation for their employees insured in all economic sectors, except for those explicitly specified in Art. 1, para. 4 of the Decree - Agriculture, forestry and fisheries, Financial and insurance activities, Public administration and Education (excluding activities in pre-school education, driver training, etc.), Human health and social work activities (excl. of dentists, day care for young children in the private sector), Activities of extraterritorial organizations and services.
Compensation can be received for employees who in the period 13.03.2020 - 30.06.2020:
The insurance income, which is considered as a basis for calculating the compensations, is for the month of May 2020.
In the hotel and restaurant sector, the measure is also applicable to workers employed after March 13, 2020. For this sector, the amount of compensation can reach up to 80 percent of the insurance income. For the employees after 01.06.2020, the employer should pay remuneration in the amount not less than the amount of the minimum insurance income for the position and pay the due insurance contributions.
What period can be applied for: For the whole period or for a part of the period from 1 July to 30 September 2020.
Samples of the documents and information about the application procedure can be found on the website of the Employment Agency under the heading "Financial incentives for maintaining employment".
For the new version of the measure, employers can submit applications electronically through the System for secure electronic delivery or through a licensed postal operator, as well as on site at the relevant Directorate "Labor Office". If the employer has more than one site in different settlements, he may submit a joint application to a labor office on the territory of which at least one of them is located.
With the new version of the measure, about 300 thousand people are expected to keep their incomes.
In the previous three months, more than 160,000 workers remained in their jobs, according to the press center of the social department.
The funds paid under 60/40 so far are over BGN 153 million to 20,225 companies.
Total budget BGN 40 million
It expects at least 22,000 employees to be included.
The duration is until 31.12.2021.
The project provides support to enterprises and self-insured persons in the hotel and restaurant sector, transport and tourism, by providing compensation for part of the salary and due tax and social security contributions at the expense of the insurer and the insured person in the amount of BGN 290.
The employment of supported employees, as well as the activities of self-employed persons, should be maintained for the entire period of payment of the compensation, as well as for an additional period equal to half of the period for which the compensation was paid.
Employers who have declared a decrease in sales revenue by not less than 20 percent in the month preceding the month of submission of the application for payment of compensations, compared to the same month of the previous calendar year, may apply.
Total budget BGN 160 million, of which BGN 50 million are set aside for priority support to employers in the “Hotels and Restaurants” sector and “Travel agency and operator activities; other travel and reservation activities"
It expects at least 70,000 unemployed people to be included.
The duration is until 31.12.2021.
The aid is in “de minimis” mode.
The project aims to support employers in hiring unemployed people by providing a subsidy for full-time or part-time employment (at least 4 hours) for a period of up to 3 months.
The employer is obliged to keep the employment of 75% of the supported persons for the period equal to the period of the subsidized employment.
Employers registered under the Commercial Act, the Cooperatives Act, the Non-Profit Legal Entities Act and the National Chitalishte Act from all sectors, except fisheries and aquaculture, are eligible.
The START-UP NATION ROMANIA programme
The program aims to provide "consulting and specialized support to newly established companies, but also to those who go through various expansion / transformation processes.”[1]
Details of the funding are provided on the program website, the eligibility criteria to be met by those who want to participate in the program,[2]
The ROMANIA START-UP PLUS programme
The program "is a line of financing for those who want to develop a business in the urban environment." It is a program dedicated to "entrepreneurial development and setting up new businesses". Its purpose is to stimulate entrepreneurship and create jobs. Mainly, “it provides European funds for:
In Romania various companies and organizationsoffer training courses for those who want to start a business or whoa want to develop their entrepreneurial skills. Please find below a list with some of these:
BusinessAcademy
Address: 39-41 Academiei Street, floor 2, Sector 1, Bucharest
Monday - Friday: 08:00 - 20:00, Saturday: 09:00 - 13:00
Registration Department: Tel .: +40 (314) 326 163;
Mob .: +40 (74) 9161 610, +40 (74) 5040 199
BusinessAcademy "is an international school for business education" that has a long tradition in Romania, since 2010 BA established two branches, one in Bucharest and another in Timisoara. From an organizational point of view, it is part of the "international company LINK group, was established in 1998, with headquartered in Belgrade". BA opened branches in several countries in the Balkan Peninsula. The BusinessAcademy operates through the Cambridge University Department of International Examinations.
BA's mission is to help "those who want to become completely independent financially, by building their own business or a successful career" and their work is part of the vision: "A world of happy, rich and independent people ”.
The Entrepreneurship Academy
EA-The Entrepreneurship Academy - Bucharest, Romania
Address: 4-6 Semilunei Street, Sector 2, 020053, Bucharest, Romania
Phone: +40 318 142 927 | email: info@entreprenation.ro
Monday - Friday 09:00 a.m. - 8:00 p.m.
The Entrepreneurship Academy is a higher education institution in Romania, “administered by the EntrepreNation Foundation, established by the three founding organizations. The mission of the foundation is the development of entrepreneurship in Romania. The university is the main project of the EntrepreNation Foundation. ” ING Bank is the first Founding Partner of The Entrepreneurship Academy.
Regarding the educational model, “the learning process EA - The Entrepreneurship Academy is oriented towards students and towards achieving clear and achievable academic, professional, personal and financial objectives, and is structured in the form of a bachelor programme with a duration of 4 years . "
Also, in July 2019, at national level, the National Agency for Employment (ANOFM) organized 169 professional training programmes, in which 2,742 persons enrolled, approximately 50% of the proposed professions / occupations: addressing individuals who do not have a professional qualification after graduating a high school and/or university. In cross-border counties, the following data were reported[4]:
[1] Start-Up Nation Romania, Mision, Https://Start-Upnation.Eu/Misiune/.
[2] START-UP NATION ROMANIA, Beneficiaries, https://start-upnation.eu/beneficiari/.
[3] Ibidem, p.4.
[4] National Employment Agency (ANOFM), Course program July 2019,
17.06.2020
OPPORTUNITIES IN BULGARIA AND THE LATEST FUNDING PROGRAMS
Each crisis provides unexpected opportunities for entrepreneurs - sectors and businesses, which until recently were on the periphery of the field of view of experts and investors, reported staggering growth during this period.
Opportunities for the enterprising:
Online business
It is difficult to identify a business that is not online at all. Many business sectors rely on their presence on the Internet and social networks to function. In the current situation, their inherent ability to quickly reorient and adapt has helped them shoot up and generate multiple growth in their customer base and revenue. Such are most companies providing services in online training, digital marketing and others. According to 'Business Matters'' magazine, sectors such as film and video streaming (eg Netflix) as well as video games are also growing.
The work from home, which many companies have introduced, has led to a legendary growth of video conferencing services such as "Zoom" and other similar platforms (Investopedia).
Home deliveries
Around the world, companies such as Amazon have been tested to the limit due to the increased demand for all kinds of goods and products and their delivery to customers' homes due to social distancing. In Bulgaria, online payments at eMag increased by 180%, FoodPanda - 170%, according to Forbes magazine. The adaptability of the Bulgarian entrepreneur was manifested in the catering sector - many restaurants and bars, even a large chain of confectioneries reoriented to home delivery, which not only survived but also strengthened its relationship with customers.
The sphere of services
Health services - yoga, fitness, etc. they left the halls and moved to social networks. Many instructors began to do classes in front of the camera for their followers. This undoubtedly leads to a number of advantages: instructors provide value, connect with more clients and strengthen their relationships with them.
The Bulgarian entrepreneur and the opportunities today
It is obvious that the flexible and fast will overcome this storm as well. In order to make the most of the opportunities that open up for business in today's atypical environment, funds are needed to finance innovative and adaptive business approaches.
Funding programs, especially from the EU, are often the subject of all sorts of speculation and misconceptions. Often the reason for this is their ignorance and / or misunderstanding, as well as vicious practices that have become the subject of media interest and criminal investigation. However, the opportunities provided by the programs should not be underestimated and should be used optimally to support business entrepreneurship. In general, funding programs are:
Grant programs
They have a longer implementation period (between 4 and 8 months from announcement to receipt of funds); require own participation from 30% to 65% of the project value; they are bound by strict requirements for the economic sector, the history of the enterprise and the way of investment. They are suitable for well-established businesses that can wait and want to make investments with a long horizon and lower returns.
The most current of them at the moment are:
BG05M9OP001-1.054 - SUPPORT FOR SUSTAINABLE BUSINESS - open until 31.03.2021. The applicants are: start-ups, social and self-employed persons, supported by operations under OPHRD 2014 - 2020 or by measures under the Employment Promotion Act. They can apply for amounts up to BGN 5,000 for services aimed at successful development of the enterprise;
BG16RFOP002-2.073 - Support for micro and small enterprises to overcome the economic consequences of the COVID-19 pandemic - the most current support procedure. Applicants must be a micro or small enterprise with economic activity in 2019, with reported at least BGN 30,000 "net sales revenue" in the Annual Tax Return for 2019, to have a registered decrease of at least 20% in turnover for the month of April 2020 compared to the average monthly turnover in 2019, as well as as of December 31, 2019 not to be in difficulty. In this case, they can apply for up to 10% of the turnover in 2019, but not less than BGN 3,000 and not more than BGN 10,000.
Digitalization of small and medium enterprises - an upcoming program with funding of up to 70% of the project value. Applicants must have completed three financial years, be traders or cooperatives and have realized a certain minimum of net sales revenue according to their category (micro, small, medium) in the economic sectors defined by the procedure. They can apply for grants from BGN 50,000 to 391,166 with projects for development of management capacity through the use of information and communication technologies and services.
Voucher scheme for the provision of information and communication technology services (ICT services) to micro, small and medium-sized enterprises (SMEs) - aimed at facilitating access to digital know-how and technology and thus promoting the use of new ICT-based businesses models and to intensify the digitalization of SMEs, which will contribute to the development of their business. The requirements for the candidates are similar to those of the previous procedure. Businesses can apply for a type 1 voucher - for websites and mobile applications - worth up to BGN 5,000; or for a type 2 voucher - for ICT services for digital marketing, process optimization and / or providing cyber and information security worth BGN 20,000. The procedure is forthcoming.
Financial instruments
They are specialized funding schemes co-financed by EU funds, the national budget and additional borrowings from the private and public sectors. They are aimed at projects that could potentially become self-sustaining, provide investment support through loans, guarantees or equity participation. In Bulgaria they are managed by the „Fund Manager of Financial Instruments in Bulgaria“ EAD. It contains the financial instruments of four of the operational programs, as of interest to the Bulgarian entrepreneur are:
Under the Operational Program "Innovation and Competitiveness" 2014-2020:
- “Innovation Accelerator Bulgaria“ AD Acceleration and Initial Funding Fund with a budget of BGN 30.5 million, aimed at innovative business ideas in the fields of healthcare, education, care for the elderly, transport and logistics, light industry, digitalization and etc.
- Venture Capital Fund New Vision 3 with a budget of BGN 53.4 million stimulates high-tech companies with a strong team and a proven business model.
- „Morningside Hill“ OOD Venture Capital Fund with a budget of BGN 67 million for investments in high-tech companies in the field of production of goods using new technologies that allow reducing unit costs; high technology, software and hardware; e-commerce; products or services introduced in other countries but not yet present in the region, etc.
Under the Operational Program "Human Resources Development" 2014-2020:
- Microcredit with shared risk - provided by three investment intermediaries - SiS Credit AD, „Microfund“ AD and First Investment Bank AD/ Fibank. The provided loans amount to BGN 5,000 to BGN 48,895, and the repayment period of the loans is up to 10 years with the possibility of a 2-year grace period and are used for acquisition of assets, working capital for development and expansion of the activity, training and others.
For starters: Venture capital and crowdfunding
The programs and financial instruments described above require a Bulgarian entrepreneur to have come a long way to take advantage of them - to have established business and experience in developing ideas and products, as well as sales already realized. However, if you have a brilliant idea and a strong team, you can contact various private venture capital funds and apply with a short but strong presentation.
You can also seek support from the countless internet crowd and attract crowdfunding on platforms such as kickstarter.com and indiegogo.com.
If you are interested in the topic, you can read this or visit the site crowd.bg or the cleantech.bg platform.
17.06.2020
Financing with BGN 5,000 and BGN 15,000 for tourist business projects from the North-West
From BGN 5,000 to BGN 15,000 will receive the best projects in a competition under the Tourism Development in Northwestern Bulgaria Program, announced by the America for Bulgaria Foundation. The competition is aimed at legal entities with a tourism profile, small and medium-sized businesses offering tourist products or services, national and nature parks, museums, galleries, community centers, NGOs and consortia of organizations.
The application deadline is July 15, 2020.
Projects must be completed within 2 years of the grant, and the applicant must provide a minimum of 20% of the total project funding.
The call is open to applicants from all over the country, but the project activities must be carried out in Northwestern Bulgaria, on the territory of at least one of the municipalities in the districts of Vidin, Vratsa or Montana. Projects of organizations operating in at least one municipality in the three districts will have priority.
With the Tourism Development in Northwestern Bulgaria Program, the America for Bulgaria Foundation seeks to create opportunities for the development of cultural and natural sites, to support local communities to improve their image and to offer their products on the tourist markets. The development of this type of tourism unites and breathes life into the communities and contributes to the development of the local economy, reads the The invitation to the competition.
17.06.2020
Bulgaria's largest trading partner in the Balkans is Romania
The obligatory quarantine for Bulgarian citizens entering Romania has already been abolished. The Romanian side has temporarily suspended the passage of people and cars at the border checkpoints adjacent to the Bulgarian Nikopol, Svishtov, Kaynardzha, Krushari and Kardam. Transit trucks can cross the Bulgarian-Romanian border only through the joint Ruse-Giurgiu border checkpoint and the Vidin-Calafat border checkpoint. Trucks transporting goods to and from Romania can also pass through other functioning points on the Bulgarian-Romanian border.
A total of 608 km of border separates Bulgaria and Romania - along the Danube and then through Dobrudzha. Two bridges connect the two sides - near Ruse and near Vidin.
Bulgaria's largest trading partner in the Balkans is Romania. In the last ten years, trade has been growing. And the best thing is that the trade balance is positive for Bulgaria. Last year, we exported products to our northern neighbor for 2.60 billion euros or an increase of 8.3%, and imports amounted to 2.41 billion euros - an increase of 9.2 percent. This also affects trade between the two countries, which increased by 8.7% to 5.01 billion euros.
Among the leading goods in exports are rods of iron or non-alloy steel, tractors, machines and devices for harvesting or threshing crops, medicines, corn, wheat and a mixture of wheat and rye, fertilizers.
Imports are dominated by petroleum oils and oils from bituminous minerals, sunflower seeds, even crushed, petroleum gas and other gaseous hydrocarbons, copper waste and scrap, flat-rolled products of iron or non-alloy steel and others.
Tourism is the most dynamically developing branch in the bilateral trade and economic relations in recent years. There is a great interest on the part of Romanian tourists in both the sea and mountain resorts of Bulgaria. And in the last four years, more than a million Romanian tourists are vacationing in Bulgaria. At the same time, Romania ranks among the first places as a preferred tourist destination by Bulgarian citizens. More than half a million Bulgarians visit Romania.
Many small and large companies operate in both countries through joint ventures or their own offices. Among the registered Romanian companies in Bulgaria are: Rompetrol - a chain of gas stations (over 30) and Petrom OMV; Polycolor - owner of Orgachim - Ruse, Romstal, E-mag, Ocean Fish - Verdana, TotalSoft, Budmax (Arabesque).
Among the Bulgarian companies in Romania are: "Prista Oil", "Bella Bulgaria", "Eurohold Bulgaria", "Kaolin", "Monbat", "Euroins", "Technomarket", "RBL Food", "Sis Industries", Fikosota and others.
We have invested EUR 186.3 million in Romania. This is logical given the closeness between the countries and therefore the low transport costs. Both the availability of raw materials and labor, as well as the large market of our northern neighbor Romania attract Bulgarian entrepreneurs.
16.06.2020
What do we need to know when starting an online business in Bulgaria?
In 2019, online sales worldwide were worth nearly $ 3.46 trillion. And this in turn is an 18% increase over the previous year.
In Bulgaria, e-commerce is growing even more - 30%, as more than 1.5 million Bulgarians have decided to make a purchase online.
And while more and more businesses are turning to online sales, lured by the ability to easily reach many potential customers, the question is: what does it take to do this business legally?
This article is aimed primarily at small and start-up businesses. We will look at a few key points related to online business, about which we often receive questions.
The announcement of online stores in the NRA system
It is good to know how to enter the market in the right way, so as not to create headaches with the institutions later.
Which stores should be announced? The answer is that if you are selling through a site that has a consumer basket functionality, the NRA requires you to register as an online store. On the other hand, if your site is just a kind of product catalog, without the option to order online, there is no need to register.
Registration is a purely technical matter. The required information includes data such as the name and domain of the store, standard information about the company, what type (by nomenclature) goods are sold. It is required to describe how the goods are sold - whether platforms such as "Amazon" or "eBay" are used, or the applicant has its own website.
Accordingly, it is important for the NRA to know how this site is maintained, where the databases are stored, what software is used for the platform, etc.
All this is declared before you start an activity. You can also personally register your store, for which you will need an active electronic signature as a merchant.
If at any time you change the platform, type of activity or products, or add something new, the changes must be declared within 7 days.
If you already have an online store, but have not yet registered, you better hurry to declare it to avoid negative consequences for institutions.
As with other types of business in Bulgaria, all income and expenses must be supported by tax documents. Invoices for expenses, fiscal notes from the cash register or issued invoices for income received by bank transfer - all this, together with the bank statements, is reported at the end of the year (or monthly, if you are registered under VAT) to obtain correctly calculated taxes to the budget.
When trading remotely
Another interesting point of the online business, which is often questioned, is related to distance trading. Global Internet connectivity means that businesses can much more easily (and cheaply) reach potential customers not only locally but also internationally. This has its advantages, but also additional factors that we must take into account.
First of all, it is leading where the goods are transported and where they go. It is important to monitor your turnover against local VAT thresholds to avoid violations of the relevant tax laws.
The marginal turnover for registration under the VAT Act is different for all countries. If your online business has an outlet in Germany, for example, you should know that if the turnover exceeds 100 thousand euros, you are subject to mandatory VAT registration.
In Bulgaria, the threshold for VAT registration is BGN 50,000. However, you may not know that this applies to a period of 12 consecutive months before the current one. A common confusion is that this turnover must be made for the calendar year - this is not true.
Ads on platforms like Facebook or Google
You register your online store, start selling and decide that you want to give an extra boost with a little paid advertising. While Facebook and Google are just free entertainment tools for billions of users, they are essentially two huge advertising platforms that earn billions by selling businesses highly targeted customer attention.
This is great for your online business, but when focusing on Facebook and Google advertising, you should know that your business will most likely need to be registered under the VAT Act.
We explain why - by advertising on their platforms, you actually receive a service from these companies. A special requirement under Article 97a of the VAT Act states that all recipients of this type of service who are not registered on a general basis under the VAT Act are obliged to register as such.
VAT registration for a start-up business sounds discouraging, but keep in mind that this is a special registration where there will be no value added tax on your sales. You will continue to monitor taxable turnover in accordance with the law (whether you do not pass the local thresholds), and you will not have VAT on sales. But you will charge VAT on the invoices you receive from these contractors (Facebook, Google).
Registration under the VAT Act would not be necessary if these technology giants issued their invoices to you from the United States. But since for Europe they operate from their specialized branches registered under the VAT Act in Ireland, the said Art. 97a is in force.
Please note that upon registration under Art. 97a you cannot use the accrued VAT for a tax credit. On the other hand, if your company is registered in the general order, you are in fact already charging VAT on these services (advertising invoices) and you are also entitled to a tax credit.
We emphasize this point, mainly because of start-up online retailers, who are often unaware of this requirement. It is good to inform this in due time to the accounting, as the registration under art. 97a must occur within 7 days before the first invoice.
Online business, like any other type of business, brings with it specifics that can be difficult to navigate in the beginning. Ask about anything you don't understand and don't hesitate to discuss your future business plans.
12.06.2020
SEARCHED, SEEKERS ...
The labor market was literally overturned by the pandemic. Whereas before it, qualified candidates received many job offers when the labor market was booming, now millions are out of line and in line for the coveted job.
"The job market is facing serious challenges", said Vicki Salemi, a career development expert at Monster. "There are many job seekers at the moment and the influx is in many industries at once."
Sudden change and an uncertain economic climate can make it difficult for jobseekers to navigate the new job market.
Here are some tips on how to be more successful when applying for a job given the current situation, published by CNN Business:
12.06.2020
HOW TO REGISTER THROUGH THE COMPUTER AT THE LABOR OFFICE
You must submit an electronic application for unemployment benefits
The submission of applications for unemployment benefits electronically to the National Social Security Institute (NSSI) may contain several different technological steps.
Depending on the technical supply of the insured persons and their level of access to the systems, they must perform a certain set of actions in order to be able to complete the desired operation.
For holders of personal identification code (PIC) of NSSI
When they already have the NSSI PIC, the persons must visit the NSSI website, section "E-services/Administrative services" and after filling in and verification submit their application for unemployment benefits.
Before that with the Personal Identification Code they have to do (if they do not already have one) registration in the Secure electronic service system SESS of the State Agency for Electronic Government and through it submit their application for registration as unemployed in Employment Agency.
For those with a standard qualified electronic signature (QES)
When individuals have a standard QES (not cloud/mobile) recorded on a technical media, the steps are identical.
With the QES, they create a profile in SESS. Through it, they submit electronically an application for registration as unemployed with the Employment Agency, and then submit the application for granting unemployment benefits through the NSSI website (section "E-services/"Administrative services").
For persons who have neither a PIC nor a QES
If the persons do not have either a Personal Identification Code of the National Social Security Institute or the QES, the steps taken to submit their applications electronically are different.
First, they need to get a cloud/mobile qualified electronic signature (QES) issued by a certification service provider online. After installing it on their mobile phone, they register in the SESS of State Agency for Electronic Government and submit an application for registration as unemployed to the Employment Agency.
After that, through their newly created profile in SESS they submit an application to the NSSI for issuance of a Personal Identification Code (PIC). Passes a procedure for filing the application with the National Social Security Institute, issuing a Personal Identification Code, serving it through the SESS and activating, at the earliest on the next working day.
With the Personal Identification Code of the National Social Security Institute received through SESS, the actions already described follow - access to the electronic services on the institute's website, section "E-services/"Administrative services" and submission of an application for unemployment benefits to the National Social Security Institute.
All clients should know that the registration with the National Social Security Institute is not possible with a Personal Identification Code issued by the National Revenue Agency NRA.
Everyone who wants information or consultation on the topic of interest can contact the Consultancy Center for Disadvantaged People in Berkovitsa by phone 0890943741 or by e-mail: berkpro.robg@abv.bg
12.06.2020
WHAT COMPENSATION DOES THE COMPANY OWE TO US IN THE EVENT OF A REDUCTION
The employer owes compensations to employee when he terminates the employment contract on the grounds of art. 328, para. 1, item 2 (reduction of the staff) or art. 328, para. 1, item 3 of the Labor Code (reduction of the volume of work).
On both grounds, the termination of the contract is with notice and if the employer does not comply with the notice, there is a right to compensation under Art. 220, para. 1 of the LC (for non-compliance with the notice).
In case of unemployment, as a result of the termination, a right to compensation arises under Art. 222, para. 1 of the LC.
The compensation is paid by the employer to the employee who has lost his/her job or started working after the termination with a lower salary.
The compensation is in the amount of the gross remuneration of the employee for the time during which he has lost his job, but for not more than 1 month.
An act of the Council of Ministers, a collective labor agreement or an employment contract may provide for compensation for a longer period. If within this period the employee has started working with a lower salary, he/she is entitled to the difference for the same period. By the order and under the conditions of art. 224 of the Labor Code, the employer owes compensation for unused paid annual leave.
If you are laid off under both articles of the law, you are entitled to full compensation from the Labor Office. It amounts to 60% of your average monthly salary for the last 24 months.
The sum of your last 24 salaries for the last 24 consecutive months is divided by 24 to get the average monthly salary.
This amount is then divided into 21 business days to find your average daily salary for that period.
For example - If you received a monthly salary of BGN 1,100.00 each month (including length of service, all insurances and tax), then for the last 24 months the amount of your salaries will be BGN 26,400, and your average monthly salary for the period - BGN 1,100.
Your average daily salary for this period will be: BGN 1,100. / 21 days = BGN 52.38
The daily unemployment benefit is 60% of your average daily wage (or your average daily insurance income, but not more than the maximum insurance income of BGN 3,000.00), on which contributions for the Unemployment Fund have been paid (or are due) for the last 24 calendar months preceding the month of termination of your insurance.
Everyone who wants information or consultation on the topic of interest can contact the Consultancy Center for Disadvantaged People in Berkovitsa by phone 0890943741 or by e-mail: berkpro.robg@abv.bg
