VAT Fraud Cost Bulgaria BGN 3 B in 5 Years - Tax Agency

NRA head Krasimir Stefanov says Bulgaria faces grave VAT fraud issues in the oil and grain trade sectors. Photo by BGNES

VAT fraud costs Bulgaria about BGN 750 M per year, according to a study of the National Revenue Agency.

Thus, official estimates show that in 2005-2009, Bulgaria lost over BGN 3 B from VAT fraud, National Revenue Agency head Krasimir Stefanov told Dnevnik Wednesday.

Stefanov stressed that the most problematic sectors as far as VAT fraud is concerned are the oil and grain wholesale trade.

In his words, the Bulgarian estimates of VAT fraud losses roughly correspond with the estimates of the European Commission which put them at 12% on average for the EU.

"The largest VAT fraud attempts in Bulgaria occur in deals between Bulgarian firms and their partners in Greece and Romania. That is why a year ago we started correspondence with the tax authorities of these countries. We have already made an agreement for faster tax data exchange with Romania but the talks with Greece are going more slowly because of the developments there," Stefanov explained.

He said the problems with VAT fraud in the oil and grain sector was one of the reason the government in the face of Customs Agency started to fight fuel contraband leading to the revoking of the storage license of the Lukoil Neftochim refinery in Burgas, with the battle now continuing in the courtroom, after a court ruled in Lukoil's favor last week.

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