Bulgaria Mulls Increasing Lower Threshold for VAT Registration to BGN 200 000

Business | February 19, 2015, Thursday // 19:28|  views

Bulgaria's Economy Minister Bozhidar Lukarski, photo by BGNES

Bulgaria’s Economy Ministry mulls increasing the lower threshold for VAT registration from BGN 50 000 to BGN 200 000 in a bid to curb the informal sector, according to Economy Minister Bozhidar Lukarski.

Lukarski declared Wednesday at a press conference that the measure had been requested by interbranch organizations, adding that the authorities expected that it would make many companies, especially small and medium-sized enterprises, move out of the informal economy.

He noted that the EUR 100 000 limit envisaged in the EU Directive was too high for Bulgaria, adding that the proposal of the Economy Ministry for a lower threshold of BGN 200 000 would be discussed with the Finance Ministry.

He made clear that the Finance Ministry backed the current threshold, while the Economy Ministry called for an increase in a bid to curb the grey sector.

Lukarski, as cited by the Bulgarian Telegraph Agency, said that Chinese investors had expressed interest in the Sofia Tech Park project and in the Trakia Economic Zone.

He said that the talks on the potential investment in the Trakia Economic Zone were to be wrapped up in June, adding that the main investment there was in the logistics sector.

Lukarski told journalists that Pakistan had also expressed interest in making a large-scale investment of the same type on the territory of the Burgas Industrial Zone.

He declared that foreign investors had shown interest in the industrial zones in Vidin and Ruse, stressing that the businesses involved manufacturing of truck parts.

Bulgaria’s Economy Minister went on to say that an investor based in Denmark operating in the sector of manufacturing and trade had expressed interest in the industrial zone at Bozhurishte near Sofia.

Lukarski, who reported on his achievements in his first 100 days in office, argued that the interest expressed by foreign companies so far gave rise to expectations of a substantial increase in foreign investment in 2015.

Deputy Economy Minister Daniela Vezieva announced that around BGN 800 000 had gone into a measure envisaging the partial reimbursement of social security costs of investors.

Lukarski informed that the partial reimbursement of social security expenses had been granted to13 investment projects, adding that 3400 jobs were to be created under the schemes.

Vezieva reminded that the measure was applicable in 2015 and informed that the IT sector had insisted that it be excluded from its scope as it paved the way for unfair competition in a well-paid sphere.

She vowed anti-red tape measures related to the metrological and technical inspection of high-risk equipment such as household gas cylinders, and pressure vessels.

According to calculations of the Economy Ministry, as cited by the government’s press office, the third action plan for reducing the administrative burden for businesses by 2017 is expected to enable savings of BGN 113 M.

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Tags: Economy Minister, bozhidar lukarski, red tape, administrative burden, VAT, foreign investment, Trakia Economic Zone, Bozhurishte Industrial Zone, Burgas Industrial Zone, industrial zones, sofia tech park


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