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:

1. 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;
2. Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
3. 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:

1. 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;
2. Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
3. 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:

1. 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;
2. Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
3. 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:

1. 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;
2. Filing through a customs agent – direct representation – an EORI number and electronic authorization of the agent with a QES are required;
3. 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.

Материалът RULES AND METHODS FOR CLEARANCE OF NATURAL PERSONS AND LEGAL ENTITIES CONSIGNMENTS IMPORTED FROM THIRD COUNTRIES, EFFECTIVE FROM 01.07.2021. е публикуван за пръв път на Emandel.

The procedure and conditions for admission for free circulation of personal property belonging to natural persons transferring their normal place of residence from a third country to the customs territory of the Community are regulated in Title II, Chapter I, Art. 3 to Art. 11 of Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs from customs duty (Codified version) (OJ, L 324 of 10.12.2009) allowing imports to be relieved from customs duty, and the exemption from VAT is pursuant to Art. 58, para. 14, it. 4 of the Value Added Tax Act (VATA).

The request must be accompanied be the following documents, proving the person’s intention to reside permanently in the territory of the Republic of Bulgaria:

I. Evidence of the person’s residence for a period of at least 12 months in the non-European Union country:

1. Hotel stay contract or documents of paid rent for 12 months.
2. Document of.paid tax for 12 months.
3. Employment contract in the non-European Union country of residence.
4. Work visa.
5. Employment contract termination document, etc.

II. Evidence of the person’s current residence in Bulgaria:

1. Return ticket

2. Passport data for your return

3. Declaration of permanent address in Bulgaria (we will send you a form)

4. Registration at the labor office

5. Employment contract in Bulgaria

6. A document proving the termination of a work visa abroad

7. Employment contract in Bulgaria

III. In order to file a request for duty-free import of a motor vehicle, evidence is needed that the car has been property of the person for at least 6 months from the period of its residence in a third country. Such evidence is considered:

1. 1. Vehicle insurance.
2. 2. Purchase contract.
3. 3. Purchase invoice.
4. 4. Registration certificate.

These are sample documents that can serve as an example. Each customs office is entitled to request documents other than the specified above in order to allow the clearance of the property.

Motor vehicle and personal belongings transport costs.

An important condition for import of a motor vehicle and/or personal belongings from a third country into free circulation on the territory of the Republic of Bulgaria is to specify how they were transported:

1. If the vehicle is driven, it is necessary to provide paid expenses documents – fuel receipts, paid toll fees for highways, bridges, ferries, etc.

In the absence of such documents, a declaration must be drawn up on behalf of the natural person for the transport costs from the third country of residence to Bulgaria.

• If the vehicle is transported using a car carrier or another type of transport, it is necessary to provide an invoice for the transport service. If the natural person has no transport service invoice, a statement indicating the amount of transport costs will have to be drawn up.
• If personal belongings are transported by specialized transport, an invoice from the transport contractor must be provided.

For more information on the import of personal property, please use the inquiry form on our website. A member of our team will consider the inquiry and contact you as soon as possible.

Материалът Relief from import duty for personal property belonging to natural persons transferring their normal place of residence from a third country to the territory of the Republic of Bulgaria е публикуван за пръв път на Emandel.

Directive 2006/112/EC, Value Added Tax Act (VATA), Value Added Tax Act Implementation Regulations (VATAIR), Excise Duties and Tax Warehouses Act (EDTWA), Excise Duties and Tax Warehouses Act Implementation Regulations (EDTWAIR).

In case of import followed by an intra-Community supply, goods with activated procedure 42 are exempt from value added tax, namely the procedure “Simultaneous release for free circulation and end-use of goods, which are the subject of an exempt supply of VAT for another member state and deferred excise payment, if applicable”, and the following conditions must be present simultaneously to apply the procedure:

Exemption from Tax upon Importation (VATA)

Art. 58. (1) Exemption from tax shall be granted in respect of the importation of:

6. (amended, SG No 94/2010, effective 1.01.2011) goods, when the importation is followed by an intra-Community supply and when the importer submits the following data:

(a) its identification number under Art. 94(2);

(b) the VAT identification number of the client for whom the goods are being supplied, issued in another member state, or its own VAT identification number issued in the member state in which the dispatch or transport of the goods ends;

(c) proof that the imported goods are intended to be transported or dispatched to another member state pursuant to a procedure stipulated in the implementation regulations of the act;

(2) Where the importer of the goods covered under It. 6 of Para. (1) fails to obtain the documents referred to in Art. 53 (2) herein prior to the lapse of the month succeeding the month of occurrence of the chargeable event under Art. 54 herein, the tax on the importation shall become chargeable by the importer.

(3) The tax referred to in Para. (2) shall become chargeable on the last day of the calendar month succeeding the month of occurrence of the chargeable event under Art. 54 herein.

Exemption from Tax upon Importation (VATAIR)

Art. 51. (2) In cases of tax exemption upon importation under It. 6 of Art. 58 (1) of the Act the importer shall submit to the competent customs office the following documents:

1. a copy of the certificate of registration under Art. 104 of the Act;

2. (amended, SG No 10/2011, effective 1.02.2011) a declaration according to standard form – Appendix No 24;

3. transport documents stating that the goods are intended for another Member State.

(3) (New, SG No 10/2011, effective 1.02.2011) In the cases under Para. 2 the customs authorities, in performing the customs formalities and in order to apply exemption, shall check the validity of the identification number for VAT purposes of the recipient indicated in the declaration under It. 2 of Para. 2 upon an intra-Community supply subsequent to the importation, issued by another Member State.

In case of excise duty due upon import, the payment of the same can be deferred, in case the goods are accompanied to the other Member State by an electronic administrative document (e-AD), according to the Excise Duties and Tax Warehouses Act (EDTWA) and its implementation regulations.

Additional documents to be provided at the time of filing of the Procedure 42 Customs Declaration:

1. A copy of the VAT registration certificate of the importer;
2. Valid VAT number of the consignee in the other Member State;
3. Completed declaration according to the standard form in Appendix No 24 of the VATAIR.
4. The documents for the following intra-Community delivery – invoice and bill of lading – must be attached to the CD for import.

After the delivery of the goods to their final destination, a notification of delivered goods must be filed to the customs office, with at least a certified bill of lading from the consignee attached as proof.

For more information on the import of personal property, please use the inquiry form on our website. A member of our team will consider the inquiry and contact you as soon as possible.

Материалът Application of procedure 42 – Simultaneous release for free circulation and end-use of goods, which are the subject of an exempt supply of VAT for another member state and deferred excise payment, if applicable е публикуван за пръв път на Emandel.