Bulgaria Curbs Cash Payments at 5,000 levs, Tightens VAT Rules for Company Cars
Thursday, 12 November 2015
Bulgaria’s parliament on Wednesday tightened tax rules for company-registered cars and lowered the ceiling for cash payments.
Under draft amendments to the Corporate Income Tax Act adopted on first reading, companies will be able to reimburse only up to 70% of VAT on the purchase price of a vehicle if they use it for personal travel during weekends.
Companies that buy cars priced at more than 5,000 levs (2,500 euros) will be required to submit additional statements to the National Revenue Agency to prove they are using the vehicles only for the purposes of their business.
The change aims to prevent the registration to companies of motor vehicles that are not predominantly used for business purposes.