The Tourism Industry in Bulgaria is Worried About a New Chaos in the Sector

Tourism | April 9, 2019, Tuesday // 09:59|  views

The tourism business, or at least a part of it, that is not in the gray sector can be exported abroad, and those who continue to work in Bulgaria have to provide thousands for new investments, says Travel Bulgaria News.

All this is because of chaos with a new tax regulation "H-18", which regulates electronic shops and sales management software - STUDO. All participants in the tourism business must register their own SOFTWARE, whether they have their own product or sell a foreign one, or the payment is made through the software. The investment is also for small travel agents, with only commission from selling foreign products and air plane tickets.

 From September 30th, the Ordinance enters into force, and they will not have access to tour operator platforms, and if they only use Excel, as has been the case for decades, they will have to find licensed software to connect to cash registers , although they sell from a foreign name and for someone else's account.

This situation could lead to a massive withdrawal from the business, comments travel industry representatives.

The software used must necessarily have a Bulgarian interface, as according to the NRA there is no way to learn to check programs in different languages, and a large number of tour operators and agents use foreign products that large world companies probably will not translate due to the small Bulgarian market.

 None of the companies offering such software compatible with the requirements of the NRA is willing to obtain a tax license. One reason is that it has to share some of the source code that is a matter of intellectual property, and a big company would not risk its data and know-how base for Bulgaria.

 Experts from the NRA fail to answer what would happen if no company did. In this case you should talk to your partners and make them, explain state officials.

If only one company risks being licensed, it earns 100% of the market by law, and the state regulates the monopoly with a normative act, complementing the tourism sector.

 Businesses face a problem when a hotel offers several services and they are managed by different companies, it is unclear from the text of the Ordinance how to generate a single sales software.

With electronic stores, the chaos is even bigger, because they have to register by the end of June. If a Bulgarian hotel works with a foreign reservation system, it does not need to be licensed, it is enough notification, but if it is Bulgarian it must have a license and a cash register. If a hotel operates with 10 systems, it must also have 10 different cash registers that are connected and must issue notes with a unique number for each device.

The situation is compounded if an outside company manages electronic shops at 200 hotels, then 200 cash registers will need to be registered, even when the payment is via a virtual terminal and systems.

 NRA commented that, according to the BNB regulation, payment via a virtual terminal is assimilated to a cash payment and therefore a cash receipt should be issued, even though the customer buying a holiday online is located on the other end of the world. Such a difficulty may cause businesses simply to register a company outside of Bulgaria and instead of a revenue agency, the NRA will become costly from the point of view of the state budget.

 If the NRA tries to put a border on the Internet, the result will be tax migration, explained representatives of the tourism sector.

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