Dimov&Tashev Law Firm

August 13, 2012 | Recent Changes in the Excise Duties and Tax Warehouses Act

On July 17th, 2012 the Act for amendment and supplement of the Excise duties and Tax warehouses Act (AASEDTWA) has been adopted (promulgated SG - 54/2012). The AASEDTWA introduces some new principles aimed at implementing the concept of control of liquid fuels by setting up an Information System of "Customs" Agency and Information System "Control of fuel" of the National Revenue Agency (NRA). The objective is to develop an integrated information system covering all excisable goods - Bulgarian excise centralized information system (BECIS).


The amendments of the Excise Duties and Tax Warehouses Act (EDTWA) allow taxpayers to submit electronically applications, requests, notifications, reports for banderols and others. The Act provides also for an obligation on persons to submit electronically excise tax documents and notices thereto, as well as related documents demonstrating use of excise products to which the reduced excise rates apply. Additional fields allowing the revenue authorities to track the purpose and place of supply of excise goods released for consumption are included in the mandatory requisites of the excise tax documents. Tax documents are supposed to be issued on paper only in cases where due to exceptional circumstances, the information system of the Agency "Customs" does not work.


The Transitional and Final Provisions of AASEDTWA also provide for amendments in the Value Added Tax Act - i.e. they introduce obligation for any taxable person - provider or recipient of supplies of liquid fuels to submit electronically to the NRA data for delivered/received amount of liquid fuel, whereas such information obtained in the NRA will be submitted to the "Customs" Agency. The obligation to submit data does not apply to persons performing supplies/sales by issuing fiscal receipts and those suppliers, issuing tax documents under EDTWA.


With regard to positive rate of excise duty on natural gas (effective June 1, 2012) the scope of persons subject to compulsory registration under the Act has been extended, namely - those engaged in the sale of natural gas for fuel. Also, Registration Certificate requirements to be met by individuals have been determined. Depending on the utilization purpose the Act introduces the terms gas for "household" and "business needs" which, in turn, imply different excise rates.


Amendment of another legislative provision (Article 108a EDTWA) has also been envisaged - it aims at reducing the amount of fines and financial penalties for persons selling cigarettes without valid permit in this regard. These are sanctions imposed on individuals and entities offering and selling tobacco products without trade authorization. It is further expanded by virtue of Article 123, Para 6 EDTWA establishing penalties with respect to offenses relating to alcoholic beverages or tobacco products labelled "DUTY FREE".