There are laws and provisions in different legal systems which define the specific grounds for non-accrual of VAT. In the European Union, for example, Directive 2006/112/EC (the VAT Directive) provides a framework for the grounds for not charging VAT. However, these grounds may vary from country to country, as each country may transpose the Directive into its national law with some specific changes.
In the Republic of Bulgaria, the grounds for not charging VAT are set out in the Value Added Tax Act (VAT Act).
List of grounds for not charging VAT
- Article 113, paragraph 9 of the VAT Act – the person is not registered under the VAT Act;
- article 113, paragraph 9 of the VAT Act – the person is registered only on the basis of article 97a (services) of the VAT Act and is not entitled to charge VAT;
- Article 113, paragraph 9 of the VAT Act – the person is registered only on the basis of Article 99 of the VAT Act (VOP – mandatory) and is not entitled to charge VAT;
- Article 113, paragraph 9 of the VAT Act – the person is registered only on the basis of Article 100, paragraph 2 of the VAT Act (VOP – voluntary) and is not entitled to charge VAT;
- Article 28c(F)(3) 77/388/EEC – the person is an intermediary in a triangular transaction; the tax is due from the recipient;
- Article 86(1) of the VAT Act – supply of a common tourist service;
- Article 39 of the VAT Act – the supply is exempt; it is related to health care;
- Article 40 of the VAT Act – the supply is exempt; it is related to social care and insurance;
- Article 41 of the VAT Act – the supply is exempt; it is related to education, sport and physical education;
- Article 42 of the VAT Act – the supply is exempt; it is related to culture;
- Article 43 of the VAT Act – the supply is exempt; it is related to religions;
- Article 44 of the VAT Act – the supply is exempt; it is non-profit-making;
- Article 45 of the VAT Act – the supply is exempt; it is related to land and buildings;
- article 46 of the VAT Act – the supply is exempt; financial services;
- article 47 of the VAT Act – the supply is exempt; insurance services;
- article 48 of the VAT Act – the supply is exempt; gambling;
- article 49 of the VAT Act – the supply is exempt; stamps and postal services;
- Article 50 of the VAT Act – the supply is exempt; no tax credit has been availed;
- Article 17 of the VAT Act – the supply of goods has a place of performance outside the territory of Bulgaria;
- Article 17, paragraph 4 of the VAT Act – the supply of goods with assembly and installation is in a member state of the EU other than Bulgaria; the tax is payable by the recipient;
- Article 18 of the VAT Act – the supply of goods, restaurant and catering services performed on board ships, aircraft and trains is outside the territory of Bulgaria;
- Article 19 of the VAT Act – the place of performance of the supply of natural gas or electricity is outside the territory of Bulgaria;
- Article 19 of the VAT Act – the place of performance of the supply of natural gas or electricity is outside the territory of Bulgaria; the tax is payable by the recipient;
- Article 21 of the VAT Act – the place of performance of the service is outside the territory of Bulgaria;
- Article 21 of the VAT Act – the place of performance of the service is outside the territory of Bulgaria; the tax is payable by the recipient;
- Article 22 of the VAT Act – the place of performance of the transport service is outside the territory of Bulgaria;
- Article 161 of the VAT Act – the tax for the supply of investment gold will be charged by the recipient;
- Article 163a of the VAT Act – supply of waste; the tax is payable by the recipient;
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