With the adoption of the VAT Package in the field of e-commerce by the Council (Directive (EU) 2017/2455 in December 2017 and Directive (EU) 2019/1995 in November 2019), the VAT exemption threshold is removed considered from 1 July 2021.
In this regard, all goods imported into the EU from third countries will be subject to payment of VAT and the will undergo customs formalities, regardless of their value, and the same should be declared with a customs declaration for admission to free circulation, the so-called H7.
As a result of the adoption of these directives, Art. 14 of the Value Added Tax Act (VATA) was also amended (amend. SG 104 of 2020, effective after 01.07.2021) regarding distance sales of goods imported from third countries, sales of goods, goods imported from third countries, directly to end users in the EU – and Art. 14A of the VATA (New SG 104 of 2020, effective after 01.07.2021) regarding shipments facilitated through the use of an electronic interface.
From 01.07.2021, European legislation provides for two thresholds for taxation of postal and courier consignments imported from third countries, which are subject of distance sales and have a recipient who is a natural person (non-taxable person).
Consignments of an intrinsic value not exceeding EUR 150 – VAT is due, according to the rate for the relevant goods (in Bulgaria, most goods and services are subject to 20% VAT rate). These consignments are exempt from customs duty under Art. 23-24 of Regulation (EC) No 1186/2009.
Consignments of an intrinsic value exceeding EUR 150 – both VAT and customs duty are due, depending on the customs tariff number and the relevant duty rate in the EU TARIC Consultation Module. You can find the module at the following link: https://customs.bg/wps/portal/agency/home/info-citizens/receiving-stock/taxation_shipments
- Consignments to natural persons of an intrinsic value not exceeding EUR 150
These consignments are subject to VAT taxation at the time of filing the H7 Customs Declaration with code C07, and there are three options for submitting such a declaration:
- Personal filing by a natural person – registration on the website of the Customs Agency is required for this option, using QES (Qualified Electronic Signature), as well as registration to obtain an EORI number;
- Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
- Filing through a customs agent – indirect representation – no EORI number and no electronic authorization of a customs agent with a QES are required.
Filing an H7 declaration allows the clearance of the consignment under a simplified procedure, with the requirements involving a smaller set of consignment data.
- Consignments to natural persons of an intrinsic value exceeding EUR 150
Consignments of an intrinsic value exceeding EUR 150 are subject to customs duty and VAT taxation. A complete set of data is required to fill out the declaration and documents depending on the type of goods imported.
A standard H1 customs declaration must be filed for this type of consignment. The rules and requirements of the relevant regulations apply.
There are three options to file a declaration:
- Personal filing by a natural person – registration on the website of the Customs Agency is required for this option, using QES (Qualified Electronic Signature), as well as registration to obtain an EORI number;
- Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
- Filing through a customs agent – indirect representation – no EORI number and no electronic authorization of a customs agent with a QES are required.
Goods sent with no commercial purpose from one natural person to another natural person or consignments contained in the personal luggage of passengers are subject to COUNCIL REGULATION (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs from customs duty, as well as COUNCIL REGULATION (EC) No 275/2008 of 17 March 2008 amending Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
- Consignments to legal entities of an intrinsic value not exceeding EUR 150
Consignments received by legal entities for which no special scheme is applied, are subject to VAT taxation at the time of customs declaration filing.
Such consignments are covered by the standard H1 Customs Declaration, where the rules and requirements of the relevant regulations apply and code C07 is applicable, allowing exemption from payment of customs duty.
There are three options to file a declaration:
- Personal filing by a natural person – registration on the website of the Customs Agency is required for this option, using QES (Qualified Electronic Signature), as well as registration to obtain an EORI number;
- Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
- Filing through a customs agent – indirect representation – no EORI number and no electronic authorization of a customs agent with a QES are required.
- Consignments to legal entities of an intrinsic value exceeding EUR 150
This type of consignments require the filing of a standard H1 Customs Declaration, where the rules and requirements of the relevant regulations apply, and code C07 is not applicable. These consignments are subject to customs duty and VAT taxation.
There are three options to file a declaration:
- Personal filing by a natural person – registration on the website of the Customs Agency is required for this option, using QES (Qualified Electronic Signature), as well as registration to obtain an EORI number;
- Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
- Filing through a customs agent – indirect representation – no EORI number and no electronic authorization of a customs agent with a QES are required.
The VATA also provides for two more consignment clearance options with the aim of simplifying the procedures, as they are primarily intended for companies and persons owning remote sales online stores, couriers, post offices, and agents. The so called Special Schemes.
IOSS – through the national tax office, after registering and obtaining a scheme number. The entities who register should be taxable companies.
For more information on the scheme:
DEFERRED PAYMENT – special customs scheme. Obtaining authorization by request, similar to other special schemes. Obtaining a number.
An H7 form must be filed for both schemes, in which the number of the relevant permit for deferred VAT payment (special scheme – IOSS and deferred payment) must be stated.
For more information on the clearance of any type of consignment, please use the inquiry form on our website. A member of our team will consider the inquiry and contact you as soon as possible.
