[size=55:47vc1iu4]Standart

Bulgarian Govt Lowers VAT by 1% by 2013

Taxation police will investigate cases of tax evasion
Bulgaria may soon become SE Europe's taxation heaven, as the government plans to lower the VAT rate in the country by one percent by 2013.
This became clear from an interview of finance minister Simeon Djankov.
We will hardly be able to lower the VAT rate in the country to 18%, but a smaller step is more feasible, Djankov said.
Most probably, the decrease will not be announced in advance, so that a possible contraction of domestic consumption could be prevented.
According to Mr. Djankov, the Cabinet is mulling the establishment of taxation police, which to investigate cases of tax evasion and VAT fraud. The tax cops will have the right to collect evidence, carry out investigations and execute arrests. Their powers may be expanded, if the results of their work are encouraging.

Wow a whole 1% That will bring investment , NOT

[size=55:o39nxuu8]novinite

Bulgaria Govt Confirms Plans for VAT Cut by Mid-2013

Bulgaria's government has voiced, yet again, its willingness to lower the 20% value-added-tax by the end of its term, which expires next year.

"
The VAT level is likely to be changed at the end of 2012 or the beginning of 2013,"
Bulgaria's Deputy Prime Minister and Finance Minister, Simeon Djankov, told the morning broadcast of Nova TV on Tuesday.

The news comes as Croatia and Cyprus increased their value added tax as of March 1 in a bid to cope with the crisis and rake in more revenues in the budget.

Changing the VAT level has been a thorny issue in Bulgaria over the last two years with the cabinet changing their mind numerous times and several versions tossed around.

After a series of U-turns Bulgaria's government decided at the end of May 2010 to scrap plans for an increase of the 20% value added tax in a bid to plug a budget gap that has thwarted the new EU member's efforts to join the Euro in the near future.

The VAT hike, ranging from 22% to 24%, was proposed as part of a package of new austerity measures, which also include the introduction of a luxury tax, floating minority stakes in state-owned companies and a possible bond issue.

Politicians, analysts and trade unions took a firm stand against the hike, citing a long line of negative repercussions – an increase in the inflation rate, an expansion of the grey sector, a slow-down in the economic growth, in short a boost for the impact of the crisis.

Representatives from all business sectors cautioned that the hike in the value-added tax in Bulgaria should be a last-ditch measure, introduced only together with an overhaul in government expenditure and structural reforms.

Hungary has the highest VAT rate in Europe at 27%. The lowest VAT rate in the European Union - 15% - is in force in Luxembourg.

The value added tax hike in Croatia pushed it from 23 to 25% and made it one of the countries in Europe with the highest VAT rate, alongside Denmark, Sweden and Norway.

In Croatia, VAT was imposed on 1 January 1998 at the rate of 22%. It was increased by one per cent on 1 August 2009.

In Cyprus the value-added-tax increased from 15% to 17% on March 1. Thus, the government hopes to reduce the projected budget deficit to 2.4% of gross domestic product (GDP) in 2012 from 6% last year.

not for political gains then? lol

Whenis anything like this not for political gains

[size=45:2fcjf8xu]novinite
New EU VAT Rules Enter into Force

From January 1, 2013, new EU VAT rules enter into effect, which, Brussels claim, will make life much simpler for businesses across Europe.

First, electronic invoicing will have to be treated the same as paper invoicing, enabling companies to choose the VAT invoicing solution that works best for them. EU estimates show that the measure has the potential to save businesses up to EUR 18 B a year in reduced administration costs.

Second, member states will be allowed to offer a cash accounting option to small businesses with a turnover less than EUR 2 M a year. This means that these SMEs will not have to pay the VAT until it has been received by the customer, thereby avoiding cash-flow problems for them.

"
These new VAT rules reflect what businesses in Europe need today: simpler procedures, reduced costs and support in applying solutions that best meet their needs,"
Algirdas Semeta, Commissioner for Taxation, Customs, Anti-fraud and Audit, commented.

The second Directive on VAT invoicing was adopted in July 2010, and must be applied in all member states from 1st January 2013. It aims to simplify rules on VAT invoicing to reduce burdens and barriers for businesses.

A 1% reduction from the poorest country in the European Union when every other country is putting the rate higher isn't bad. It is certainly better than the beleagured state of our own fatherland back in the UK.

Text taken from an earlier posting:- The tax cops will have the right to collect evidence, carry out investigations and execute arrests. Their powers may be expanded, if the results of their work are encouraging.
I would suggest that the above is not worth the paper it is written on. How many times have we read the the police have been given powers for newly introduced laws, (smoking ban for example) it may work for a couple of weeks or so and in most not at all as any action taken has to be authorised by a prosecutor and that can take anything between three weeks and three years