When your Bulgarian company goes into liquidation, VAT deregistration procedure is compulsory. After the date of deregistration, the company has no right to charge VAT and to deduct credit for input tax.
The winding up or liquidation of a company is one of the grounds for compulsory VAT deregistration, unless the legal entity decides to remain registered under the date of deregistration from the Commercial register. The right of option may be exercised by filing a declaration (free wording) to the relevant territorial directorate of the National Revenue Agency within 14 days from the date of liquidation. In this case the liquidator (liquidators) are jointly and severally liable for the tax due for the period of liquidation.
If your company does not want to remain VAT registered until the date of its deregistration from the Commercial register, a liquidator shall submit an application for VAT deregistration to the competent National Revenue Agency territorial directorate within 14 days from the date of liquidation.
The application for termination of VAT registration shall be submitted in a standard form – Appendix No. 8 of the Regulations for Application of the Value Added Tax Act. As well, the application must state the grounds for VAT deregistration.
The following documents shall be enclosed to the application:
- a statement of the taxable turnover by months for the last 12 months preceding the current one. The statement shall also include the taxable turnover for the current month until the date of filing the application;
- a statement of the total amount of taxable intra-Community acquisitions for the previous and current years, with the exception of acquisitions of new means of transport and excisable goods;
- a statement of the sum total of the taxable amounts of the supplies under the terms of distance selling with a place of performance in the territory of the country, with the exception of the supplies of excisable goods, for the current year and for each of the two calendar years preceding the current one;
- the certificate(s) for VAT registration, in cases where they are issued.
In addition, together with the VAT return for the last tax period the company shall submit an inventory-memorandum for charging the tax under Article 111 of the Value Added Tax Act according to a standard form – Appendix No. 9 of the Regulations for Application of the Value Added Tax Act. The inventory-memorandum shall be included in the sales day book for the last tax period and in the net result for the last tax period stated in the VAT return for this tax period.
Within seven calendar days after receipt of the application, the revenue authority verifies the grounds for VAT deregistration.
Within seven calendar days after completion of the verification, the revenue authority deregisters the company for VAT or refuses to effect the deregistration, stating reasons for such refusal.
The date of liquidation shall be deemed a date of VAT deregistration.
For more information or legal assistance for obtaining a VAT number or VAT deregistration please do not hesitate to contact us by e-mail: email@example.com or call us on: +359 2 851 72 59.