NW 11:18:31 07-05-2015
SN1118NW.107
107 POLITICS-PARLIAMENT-VAT AMENDMENTS

Parliament Passes Amendments to
Value Added Tax on
First Reading


Sofia, May 7 (BTA) - Parliament Thursday passed GERB-sponsored
amendments to the Value Added Tax Act on first reading.

The amendments introduce transitory regulations thanks to which
municipalities, in their capacity as owners of water supply and
sewerage infrastructure whose building was funded under the
Environment Operational Programme (OP) 2007-2013, have the
opportunity to exercise their right to tax credit for VAT
charged on supplies received after January 1, 2007.

The amendments were passed as a result of halted funding under
the OP of VAT expenditure by municipalities for water supply and
sewerage projects financed by the OP. The sponsor of the
amendments noted that the funding of the VAT expenditure was
halted after the European Commission said in a letter that the
expenditure in question constituted ineligible costs under the
EU's structural funds and the Cohesion Fund since the operation
of the built water and sewerage infrastructure generated
proceeds subject to the payment of VAT.

The impact of amendments on the budget revenues will be to the
amount of 150 million leva. LY /ZH/


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