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willowsend
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PostSubject: VAT   Fri Apr 30, 2010 3:23 pm

It looks as if the Bulgarian rate of VAT is going to increase
The subject will be discussed at a meeting between the Government, Syndicates and Employers in Sofia on Monday
If an agreement is reached the present rate of 20% will be increase to 23% or 24%, that means that everything will go up by at least 5% in the retail sector
Not good news
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PostSubject: Re: VAT   Fri Apr 30, 2010 5:12 pm

Well I would say your more than right here willowsend but I thought the vat was set by the EU? and that it was supposed to be a standard rate for all EU members?
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PostSubject: Re: VAT   Fri Apr 30, 2010 6:05 pm

I think that VAT is common for all EU states that are signed up to the Eurozone. E.G. The Euro. As Bulgaria still operates with the Leva it is still within its own rights to levy a higher rate of VAT as is the UK as well.

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PostSubject: Re: VAT   Fri Apr 30, 2010 6:17 pm

Hi Scott, VAT is certainly applied in all EU countries, but it is up to the country themselves to set the rate of VAT, it is not standard. For example, I think Ireland is 21%, France 19.6 and Bulgaria currently 20% with the UK quite low at 17.6%

I reckon they might all put up VAT as a way of gaining revenue in this economic crisis.
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PostSubject: Re: VAT   Mon May 03, 2010 5:35 pm

[size=85:3euvx46i]Regal retail 03 May 2010

VAT surprise II - at least 23%

Value added tax will increase and it more than 2 percentage points, the question is how to reach - 23 or 24%. These are figures that are discussed at expert level in the government.

Yesterday Prime Minister Boyko Borisov confirmed that on May 5, the cabinet will lift up the current rate of 20%. According to sources from Dondukov an unpopular measure, the goal is to increase revenue in the budget to be voted in parliament and fast to implement, if possible, from 1 June.

Against the increase, according to economists who will have the same step and the price - 3 or 4% up to employers and trade unions said. Analysts have identified it as a substitute for reform inefficient systems.

The government will hardly be a problem to push rates higher in parliament. Deputies of GERD, including the boss of the budget committee Mandy Stoyanova, who was her opponent, it now supported as a final step in the absence of other alternatives.

From Attack declined to comment, and phone of their leader Volen Siderov was off but now they are fully supported Borisov and no signs of change in their line. So other parliamentary forces themselves against higher VAT no chance to turn the result.

If the program maximum of managing change be implemented and take effect from 1 June, the government hopes this year to raise between 507 million and 670 million more revenue in the budget, depending on the size of the rate - 23 or 24 %.

Days before the Executive Director of the Revenue Agency Krasimir Stefanov said that by April 17 are collected EUR 600 million revenue from that tax less than the same period of 2009

"
We have a very large hole in the budget. It can only be filled if you increase revenue, but in times of crisis throughout the world decrease, or increase in VAT.

If the other 60 measures (anti-crisis, editor's note.) Defer the collection over time, as an interim measure we will raise the VAT, told BNT on Thursday Prime Minister Borisov. He added that after having felt the effects of other anti-crisis measures, the government will begin to remove back tax if GERB spend its full term, VAT will be below 20%.

Words from Borisov became clear that the only "
experts financiers"
calculated at the moment is how much to increase the rate.

Sources Dnevnik supporters increase by 4 percentage points believe it will gather enough money despite the fall in consumption and attitudes to conceal revolutions such as the expected effects of the higher rate. The arguments of experts who insist on 23%, that is as optimal tolerance for the private sector and demanded fiscal impact.

Before the day Finance Minister Simeon Djankov said: 'Raising the VAT is not prokrizisna measure but severe measure that will strike domestic consumption and therefore avoid January.

Djankov Yesterday was not reached for comment. His colleague, the Minister of Economy and Energy Traicho Traikov explained that the increase in indirect tax measure is taken not to stimulate the economy and to support the budget, when other measures are exhausted.

It is this argument, however, was criticized by lawmakers, employers, unions and economists.

Co-Chair of the Blue Coalition Martin Dimitrov said that if the government delayed the construction of sports hall in Sofia, "
the Bulgarian Louvre and other similar projects, the state can save you the same amount expected to be reunited with the release of tax .

"
Higher VAT will bring more money to the treasury, the only sure is that it will increase the informal economy,"
said Dimitrov told Dnevnik.

Former Finance Minister and MP from BSP Oresharski predicted 8 to 10 percent inflation as a result of lifting the tax and the effect of rounding of prices. According Aliosman Imamov (MRF) in the country has potential for cutting spending and further removal of liquidity from the private sector through the VAT is the last thing to do at the present moment.

Rumen Ovcharov (BSP) has criticized the government for not doing any analysis of the decline in revenue. "
We need to know who is responsible and whether the factors have an impact once or permanent. I can only heal sledsviyata must examine the reasons,"
he said.

"
What will really get to replace making reform inefficient systems with ... finding ways to increase revenue. The best and most neutral is in the VAT, told Darik radio Krassen Stanchev President of the Institute for Market Economics.

"
It's easy, but it is more correct, because it means they will not make any reforms,"
said President and CEIBG Ivo Prokopiev, co-publisher of Dnevnik daily.

He recalled that the idea of anti-crisis package agreed between Government, employers and trade unions was to be applied to no increase in taxes. "
And now efforts should focus on implementing the package and not opened again for discussion of the VAT increase,"
said Prokopiev.

"
The principal item of BIA is that it must resort to the lifting of VAT, but to exploit the potential of anti-crisis measures. It is necessary to emphasize spending cuts and measures to support fiscal, told Dnevnik Dimitar Brankov, vice president of BIA. That is the position and the unions.

"
Any increase in the tax burden has a distorting effect on the behavior of traders and consumers. This means that there is much more likely not to receive benefits. The same is received after the closing of duty free shops and the tightening of customs procedures,"
commented analyst Unit "
Industry Watch"
.

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PostSubject: Re: VAT   Mon May 03, 2010 9:48 pm

The good news for us is if they intend to put up VAT,then they will not be going into the Euro
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PostSubject: Re: VAT   Mon May 03, 2010 9:57 pm

I cannot see them going into the Eurozone for about 5 years yet. Maybe never g

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PostSubject: Re: VAT   Mon May 03, 2010 10:08 pm

That would be good Tony
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PostSubject: Re: VAT   Wed May 05, 2010 12:46 pm

[size=55:2xvrupet]novinite 05 May 2010

Bulgaria Decides on VAT Hike after Series of U-Turns

Bulgarias government is expected to decide on Wednesday whether to temporarily raise Bulgaria's 20% flat-rate value added tax (VAT) by up to 4% in a bid to plug a budget gap that has thwarted the new EU member's efforts to join the euro in the near future.

The VAT increase has been a thorny issue in Bulgaria in the last few months with the cabinet changing their mind numerous times and several versions tossed around, ranging from 22% to 24%.

In the latest twist, Finance Minister Simeon Djankov offered Monday firm guarantees that taxes will not be raised by the end of the year, saying that otherwise he would resign.

The VAT hike is part of a package of new austerity measures, which also include the introduction of a luxury tax, floating minority stakes in state-owned companies and a possible bond issue.

While the so-called luxury tax has been widely slammed as a purely populist measure, thanks to the VAT hike the cabinet expects to collect at least BGN 540 M of revenues by the end of the year, which accounts for one third of the sum, needed to shore up the budget.

Politicians, analysts and trade unions however have taken a firm stand against the hike, citing a long line of negative repercussions an increase in the inflation rate, an expansion of the grey sector, a slow-down in the economic growth, in short a boost for the impact of the crisis.

Representatives from all business sectors have cautioned that the hike in the value-added tax in Bulgaria should be a last-ditch measure, introduced only together with an overhaul in government expenditure and structural reforms.

It is also still not clear whether the tourism sector will be affected by the measure. For years on end the sector has relied on a lower, 7% value-added-tax and it is only natural to expect that the hike will hit here as well.

Bulgaria has the lowest personal and corporate income tax in the EU at 10%, which was introduced at the beginning of 2008, replacing the previous system, which combined several different tax rates - between 20 and 24%, depending on income.

The plan for a VAT increase runs counter to the promises the centre-right government made after coming into office, when it voiced intentions to cut the tax from the current 20% to 18% in 2010 and by a further 2% by the end of its term.

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PostSubject: Re: VAT   Wed May 05, 2010 1:02 pm

[You must be registered and logged in to see this link.] wrote:
[size=85:bm8qb59b]novinite 05 May 2010

Bulgaria Decides on VAT Hike after Series of U-Turns

Bulgaria’s government is expected to decide on Wednesday whether to temporarily raise Bulgaria's 20% flat-rate value added tax (VAT) by up to 4% in a bid to plug a budget gap that has thwarted the new EU member's efforts to join the euro in the near future.

The VAT increase has been a thorny issue in Bulgaria in the last few months with the cabinet changing their mind numerous times and several versions tossed around, ranging from 22% to 24%.

In the latest twist, Finance Minister Simeon Djankov offered Monday firm guarantees that taxes will not be raised by the end of the year, saying that otherwise he would resign.

The VAT hike is part of a package of new austerity measures, which also include the introduction of a luxury tax, floating minority stakes in state-owned companies and a possible bond issue.

While the so-called luxury tax has been widely slammed as a purely populist measure, thanks to the VAT hike the cabinet expects to collect at least BGN 540 M of revenues by the end of the year, which accounts for one third of the sum, needed to shore up the budget.

Politicians, analysts and trade unions however have taken a firm stand against the hike, citing a long line of negative repercussions – an increase in the inflation rate, an expansion of the grey sector, a slow-down in the economic growth, in short a boost for the impact of the crisis.

Representatives from all business sectors have cautioned that the hike in the value-added tax in Bulgaria should be a last-ditch measure, introduced only together with an overhaul in government expenditure and structural reforms.

It is also still not clear whether the tourism sector will be affected by the measure. For years on end the sector has relied on a lower, 7% value-added-tax and it is only natural to expect that the hike will hit here as well.

Bulgaria has the lowest personal and corporate income tax in the EU at 10%, which was introduced at the beginning of 2008, replacing the previous system, which combined several different tax rates - between 20 and 24%, depending on income.

The plan for a VAT increase runs counter to the promises the center-right government made after coming into office, when it voiced intentions to cut the tax from the current 20% to 18% in 2010 and by a further 2% by the end of its term.

Will the increase make much difference to the purchasing power of the ex-pats/foreigners because six months ago the British pound (£1.00) would only buy between 2.08 to 2.12 leva, today you can get around 2.24 to 2.28 leva and the pound is also improving against the Euro
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PostSubject: Re: VAT   Wed May 05, 2010 2:39 pm

Boyko Borisov: VAT will not go up
5 May 2010 | 12:28 | FOCUS News Agency

. VAT will not go up. We decided to do so that all instruments of government to be involved and not to take money from people, Prime Minister Boyko Borisov said at a press conference at the Council of Minister, a reporter of FOCUS News Agency announced.
Bulgarian is frugal by nature and keeps everything in banks, Borisov said. Since the beginning of the year over BGN 5 billion have been deposited in the banks by the Bulgarians. This money goes to support the economy and saving.
Borisov said that reforms are in all areas where needed - health, pension, education, army, etc. The reform with the entry of specialized courts will also give good results.
The Prime Minister said he had recently heard enough interpretations.
From the excise on cigarettes, alcohol, fuel and construction iron we will collect BGN 500 million more by the end of the year.
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PostSubject: Re: VAT   Wed May 05, 2010 2:59 pm

[You must be registered and logged in to see this link.] wrote:
Boyko Borisov: VAT will not go up
5 May 2010 | 12:28 | FOCUS News Agency

. VAT will not go up. We decided to do so that all instruments of government to be involved and not to take money from people, Prime Minister Boyko Borisov said at a press conference at the Council of Minister, a reporter of FOCUS News Agency announced.
Bulgarian is frugal by nature and keeps everything in banks, Borisov said. Since the beginning of the year over BGN 5 billion have been deposited in the banks by the Bulgarians. This money goes to support the economy and saving.
Borisov said that reforms are in all areas where needed - health, pension, education, army, etc. The reform with the entry of specialized courts will also give good results.
The Prime Minister said he had recently heard enough interpretations.
From the excise on cigarettes, alcohol, fuel and construction iron we will collect BGN 500 million more by the end of the year.
:Howdy:Well spotted varnagirl and it's doubled your Karma points
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PostSubject: Re: VAT   Tue Sep 07, 2010 8:48 am

[size=55:kiogj8ru]novinite 07 September 2010

Bulgaria to Up Some Taxes to Boost 2011 Revenue

The Bulgarian Ministry of Finance has published proposals for adjustments in the tax system in a bid to increase revenue for the 2011 state budget.

The proposals, posted at the Ministry's website, do not involve an overall increase in taxation rates, but introduces greater levy burdens for some cases.

Key proposed innovations include a unified VAT for the tourist sector, a new offshore tax, as well as increases in the rates for fuels and some tobacco products.

Some of the amendments to the tax legislation are motivated by the Ministry of Finance with the need to harmonize Bulgarian regulations with EU norms.

This includes the tourism VAT rate, which at present is 7% for organized groups and a regular 20% rate for self-organized tourists. The proposal is for a 14% unified rate for all tourist transactions, which will guarantee equality for all tourists.

The increase in fuel excise also follows an agreement with the EU. The proposal for regular gasoline is BGN 710 per 1000 l instead of the current BGN 685.

The excise for cigarettes will also be adjusted, with cigarettes up to 8 cm (filter excluded) taxed at the regular rate, cigarettes 8-11 cm taxed at a double rate, and products 11-14 cm at a triple rate.

A 10% tax will be levied at the source for offshore transactions to reduce tax evasion and money laundering.

A major innovation is proposed in the field of depreciation (amortization), which sees the speed of depreciation of assets decreased. This will increase the value of companies' assets and so the amounts taxable.

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PostSubject: Re: VAT   Tue Sep 07, 2010 2:57 pm

but surely the house is the main company asset of a non working company
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PostSubject: Re: VAT   Tue Sep 07, 2010 5:45 pm

[You must be registered and logged in to see this link.] wrote:
but surely the house is the main company asset of a non working company




ok ...whats so funny about that quote you have lifted from the other site ?? ( out of context ,i might add ) do share.. : s
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