27.09.2013

The Deputy Minister of Finance Lyudmila Petkova presented today to the Public Council for Reduction and Prevention of Informal Economy the proposals for amendments to tax legislation aimed at reducing the informal economy. The meeting was held within the project \"Limitation and Prevention of Informal Economy\" implemented by the Bulgarian Industrial Capital Association under Human Resources Development Operational Programme. Mrs. Petkova, who chairs the Public Council, paid attention on three key measures. \"The draft Law amending the Tax and Social Insurance Procedure Code regulates the exercise of fiscal control over the movement of high fiscal risk goods on the territory of the country to be exercised by the NRA authorities and shall not apply to goods subject to customs regime\", she announced. The second measure planned in the Law amending the VAT Law constitutes a reverse charge mechanism for cereals and technical crops and is envisaged to become effective as from 1 November 2014, said the Deputy Minister of Finance. The draft Law amending the VAT Law also proposes the introduction of \"Cash Accounting of VAT\" regime which is voluntary and it can be applied by VAT-registered companies with an annual turnover of up to EUR 500,000. Mrs. Lydmila Petkova explained that this regime would support SMEs that encounter difficulties in paying VAT in the cases where they have not received an invoice payment from their clients for the supplies of goods and services. The measures proposed by the Ministry of Finance were supported and rated positively by the participants in the Public Council.

Proposals for amendments to enactments aimed at limitation and prevention of grey economy agreed with the social partners and ideas for amendments to enactments drafted in cooperation with the industry organisations were also made and discussed within the round table.