Tax Inspectors Uncover Widespread Violations in Bulgarian Mountain Resorts

The National Revenue Agency (NRA) recently reported that violations were found in one-third of the commercial establishments inspected in Bulgaria’s mountain resorts. A total of 479 businesses were found to be in breach of tax regulations during an extensive winter control campaign, which involved inspections of over 1,500 facilities across popular resorts such as Bansko, Borovets, Smolyan, Pamporovo, Razlog, Dobrinishte, and Banya.

The violations uncovered by the fiscal inspectors included failing to issue cash receipts, discrepancies between the amounts on fiscal devices and the cash in the registers, incorrect VAT calculations, and non-compliant sales documents. In particular, restaurateurs were found to be applying the old 9% VAT rate instead of the current 20%, which came into effect on January 1. As a result, 453 establishments were issued violation notices, 14 were set to face sanctions, and 57 were subjected to sealing.

The inspections included "open surveillance," where tax inspectors were physically present in establishments for several days to monitor transactions and receipts. The inspectors also employed a "mystery shopper" strategy to further identify violations, leading to the discovery that some traders failed to issue sales documents. In 243 restaurants, inspectors found incorrect VAT reporting, while 59 establishments did not provide customers with receipts, which violates tax regulations.

Consumers are advised that if they do not receive a receipt for goods or services purchased, they are entitled to withhold payment until a valid receipt is issued, as per the VAT Act. This measure aims to combat tax evasion and unfair competition while protecting consumer rights. To help ensure compliance, the NRA has developed an electronic brochure explaining the importance of requesting receipts, and consumers can also use the NRA's mobile app, which allows them to scan receipts and check compliance. The app is available on both iOS and Android platforms.