Crackdown on VAT evasion next year
The Bulgarian Ministry of Finance has proposed changes to VAT legislation for 2025, requiring VAT-registered businesses to report quarterly on their long-term assets and inventory.
This data will help the tax authorities identify potential VAT evasion and ensure accurate tax collection. No changes to core tax rates are planned, and the reduced 9% VAT rate for restaurants is set to expire by the end of the year.
Additionally, businesses face new penalties for non-compliance with reporting obligations related to employee benefits and wages. There are also changes related to corporate taxation, particularly for multinational groups, to implement a global minimum corporate tax of 15%.
Homegrown electronics firm grows after BlackPeak Capital investment
Bulgarian electronics manufacturing services company Security Smart Systems, founded 30 years ago in Vratsa by local engineers, has grown steadily without outside investment.
But a recent 8 million euro investment by BlackPeak Capital, acquiring a 41.9% stake, marks a new phase of growth for the company, known for producing electromechanical components. As part of the deal, three co-founders have exited, but one, Ivo Varganov, remains on the board as technical director.
The company will now be managed by Sashka Stanislavova and Georgi Atanasov, an industry veteran. BlackPeak Capital's investment aligns with the increasing demand for European partners in high-tech manufacturing due to global supply chain challenges.
ESO reports profit despite revenue fall
The Electricity System Operator (ESO) reported a net profit of 136 million levs for the second quarter, nearly unchanged from the 133 million levs profit in the same period of 2023.
Despite a drop in revenue from 717 million levs to 614 million levs, operating profit remained stable at 149 million levs. ESO's data on energy imbalance payments shows a slight decrease in total company obligations, down 1% to 209 million levs. Additionally, ESO now owes 80 million levs to market participants, a significant rise from 35 million levs a year ago. Bulgaria's net electricity exports were minimal, indicating a shift from a major exporter to a transit country in 2024.
Crackdown on VAT evasion next year
The Bulgarian Ministry of Finance has proposed changes to VAT legislation for 2025, requiring VAT-registered businesses to report quarterly on their long-term assets and inventory.
