Tax Base in the Case of Supply of Goods and Services

Art. 29.

(1)

 ¹⁸ The tax base of the supply of goods or services shall be determined on the grounds of the amount payable to the supplier by the customer or by a third party for the supply denominated in BGN and Stotinki net the tax under this Law and increased by:

1. All other taxes and fees, including excise taxes, where such taxes and fees are chargeable for a supply/ies; and
2. All financing (subsidies) received and appropriated by the supplier, which are directly linked to the supply/ies; and
3. Any penalty interest received by the supplier, which is directly linked to the supply/ies;
4. Incidental costs, such as commission fees, packaging costs, transport and insurance costs, which are accrued on the customer by the supplier.

(2)

Par. 1, item 4 shall not apply to costs for ordinary or customary packaging materials or containers, where under the terms and conditions of the supply the supplier has undertaken to refund such costs upon the return of these packaging materials or containers by the customer.

(3)

The amount, as defined in par. 1 and 2 shall be reduced by the amount of the commercial discount or rebate, where the latter are given to the customer on the date of the chargeable event.

(4)

Where goods or services are supplied for consideration in foreign currency, the tax base shall be determined on the grounds of the BGN equivalent of this foreign currency at the exchange rate announced by the Bulgarian National Bank as of the date of the chargeable event, subject to the increase or reduction in pursuance of the provisions of par. 1, 2 and 3.

(5)

 ¹⁹ The tax base for taxable supplies of goods, for the purposes of this Law, shall not be lower than the historic or prime cost of the goods within the meaning of the Law on Accountancy, or in the case of imported goods - lower than the import tax base.

(6)

Par. 5 shall not apply in any of the following cases:

1. Existence of objective market preconditions which the registered person is to prove beyond any doubt;
2. Sale of goods whose price is fixed by a statutory instrument;
3. Sale of goods financed (subsidised) by the central or local government budget;
4. Sale of rejects to which the provisions of Art. 82 apply;
5. Sale of newspapers;
6. Exports within the meaning of Art. 14.

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