Recent important amendments to the Bulgarian Law on Value Added
Tax (VAT) have become applicable as of January 1, 2017. The
amendments are related to mixed supplies of assets and immovable
property, tour operator margin scheme, obligation for VAT
registration in case of inheritance as well as changes in the rules
for supplies made by a person acting in his own name but for the
account of another person.
A new model of proportional VAT deduction for mixed supplies has
been introduced. Besides the partial deduction applicable to the
use of an asset for both taxable and tax-exempt supplies, a pro
rata deduction will be applied when these assets are used for both
business and personal purposes. Тhe proportion will be
determined on the basis of reasonable criteria for allocating
between personal and corporate use, according to the specifics of
the asset. This deduction applies to:
