I will try to answer to a question according to purchases and sales of goods out of EU, and the VAT questions according to it. The VAT deals (according to Bulgarian VAT act) are 2 types: taxable and untaxable. The taxable deals under VAT could be with 0% ratio, with 20% ratio or different percentage rate (for example in the tourism). In order one deal related with the delivery of goods to be taxable, the seller has to be under VAT registration according to the BG legal order and the place of the fulfillment of the deal has to be on the territory of BG. These conditions have to be fulfilled together. It is clear that it is very important where exactly is the place of fulfillment of the delivery of goods (according to Bulgarian VAT act). In our VAT act the place of fulfillment of the deal is described in chapter 1, art 17 to 24 in Law on VAT act. In art 17, par 2 it is written that the place of fulfillment of the delivery of the goods (which are sent or transported) is the place of the goods, where they are at the moment when the transportation to the receiver starts. In this case the transportation of the goods, starts from a country out of EU, let’s say it’s a 3rd country and finish in a country, out of EU, let’s say its 4th country. When the transport of the goods starts out of BG this deal is not taxable under VAT, because it is with place of fulfillment of the delivery out of the territory of BG.
I. PURCHASE OF GOODS
According to the purchase of your goods from the 3rd country.
It is important when the right on ownership is transferred from the seller to the buyer. Here we have 2 options.
a) If the ownership transfer is concluded on the territory of the 3rd county, byuer will be obligated to fulfill the export of the goods. When the export is fulfilled, in buyer’s capacity of exporter, he will have to cover all legal demands according to the export from this 3rd country (preparation of custom declaration and attachments, payments of custom taxes, fees etc., if any according to the legislation of this 3-rd country).
b) If the supplier fulfills the export and transfers the buyer the ownership on the goods out territory of this 3rd country, the custom declaration for export and all custom documents will be prepared by your supplier according to the local legal order of this 3rd country.
It is obligatory according current legal order in BG, to fill written statement for the send and acceptance of the goods, which to show on which date, on which place, by whom is received the goods physically, on whose behalf and on whose account and who is the receiver. Doesn’t matter in which option you are, all documents, related with the purchase of the goods and the export, altogether with the written statement, will be accounted here in Bulgaria and they have to be described in the VAT ledgers for purchases.
II. SALE OF GOODS
Here I would like to describe the sales of the goods to your customers in the 4th country. Here as well there are 2 options
a) To transfer the ownership of the goods to your customer before the goods reach the territory of the 4th country. In this case your client will make the import in the 4th country.
b) To transfer the ownership of the goods to your client on the territory of the 4th country. In this case you will release the import on the territory of the 4th country. You will need custom declaration for import, all attachments up to it, also documents for payments of custom fees, taxes etc.
Doesn’t matter if you choose option a) or b), there has to be written statement for the send and acceptance of the goods which to show the date, the place, and the physical persons who have given or who have received the goods, on whose behalf and on whose account.