Bulgarian Ministry of Finance to curb VAT fraud in grain trade


Bulgaria will introduce one of the most efficient mechanisms to fight VAT fraud in grain storage and trade, namely the VAT reverse charge mechanism, Bulgarian Deputy Minister of Finance Lyudmila Petkova announced.

The VAT reverse charge mechanism will be introduced pursuant to a European Commission directive and will become effective on 1 October, 2013. The mechanism will enter into force in the EU as well on 15 August.

The reason for the postponement of the entry into force of the mechanism in Bulgaria is the need for amendment to two acts: the VAT Act and the Grain Storage and Trade Act.