The trade of Goods in EU is simplified from administrative and VAT regimes.

When a BG supplier of a particular group of goods, sells to certain EU customers who is know who they will be. They have the ability to use the on-demand warehousing regime. And there will be no need to register for VAT in another Member State or to self-charge VAT and pay in Bulgaria. This has not been the case so far. Because they were previously equated to taxable delivery, if a consignor not registered in the other country a taxable event occurred. To solve this problem, the on-demand warehousing mode is introduced. When one person sends goods to another Member State in a warehouse waiting for the customer to pick them up from the warehouse, no specific VAT event will occur as long as the customers pick up the goods within 12 months. And no tax will arise unless certain conditions are met:

Conditions to meet for warehousing regime

Conditions of application:

  1. Transport of goods from the territory of the country to the territory of another Member State, subject to the agreed subsequent delivery. They are sent for the purpose of pre-arranged provision of specific customers. The sale of the goods is agreed upon at a specific time. The Directive allows a maximum period of 12 months.
  2. The consignor of the goods is not established in the Member State. Have no permanent facility there.
  3. The goods for which the person is destined have a valid VAT number in the Member State.
  4. The goods must be entered in the register by the taxable person who sends them.
  5. The goods must be indicated in the VIES declaration with the recipient’s tax number Within 12 months, the goods must be transferred to the buyer

Possible complications


– The client may be changed within 12 months; this must be entered in the register and in the VIES declaration. But its period remains 12 months from transport. There must be a known customer at all times.

– A return is also not considered taxable. When the deal did not take place, for some reason. But it must be reflected in the register.

– If, within the 12-month period, some of the conditions are not fulfilled, the conditions under the regime will be considered not to be met. Or if he sends them to another camp, or to another client. Also, if the goods are destroyed or missing. Or else the 12 month deadline has expired. Taxable delivery is believed to be available, followed immediately by the GP. The Bulgarian company will need to register for VAT in the other Member State.

– The warehouse keeper must store information about the goods is electronic type and be able to provide timely information about it

If you need any help regarding the accounting of your company MKAfinance are here for you. The professional accountants and lawyers will gladly help with company registration, administrative services, payroll and many more! Contact MKAfinance today and get your accounting straight!

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