Registration of tax warehouse in Bulgaria and licensing

In Bulgaria, the process of registration of a tax warehouse is regulated by law and is mandatory for certain categories of persons and activities. Among them, producers and importers of coke or coal stand out, as well as those who carry out transactions with these products. In addition, the obligation to register also arises for persons who have received a license under the Energy Act and are engaged in the sale of electricity or natural gas to consumers for domestic or commercial purposes. This also includes persons who consume electricity or natural gas for their own needs.

The procedure for registration of a tax warehouse covers not only producers and traders, but also persons registered for VAT purposes in another EU Member State who bring excise goods into the territory of Bulgaria for delivery under the conditions of distance selling. This requirement underlines the strictness of Bulgarian legislation in the context of the control and management of excise goods and services. Registration of a tax warehouse is a key step for managing excise duties and protecting against legal irregularities or financial penalties.

What is a tax warehouse in Bulgaria?

The tax warehouse in Bulgaria is a specialized place where excise goods can be produced, stored, transferred or sent, and in these operations the regime of deferred payment of excise duty is applied, regulated by the relevant provisions of the Law on Excise Duties and Tax Warehouses. That is, the excise duty on the goods is not paid at the time of their manufacture or entry into the warehouse, but is postponed until the moment of their release for consumption or sale.

In practice, a tax warehouse is immovable property, which covers all buildings, premises and facilities used for the production, storage and preparation for the removal of excise goods. It also includes the storage of raw materials and other premises that are related to these basic functions, including administrative buildings and facilities. The main purpose of the tax warehouse is to provide a controlled environment where excise goods can be produced, stored and processed before they are introduced to the market. This is especially important because excise goods are often subject to strict regulations and taxation.

According to Art. 28 of the Regulations for the Application of the Law on Excise Duties and Tax Warehouses, in order to meet the security and control requirements, the tax warehouse must be fenced and have certain checkpoints. It must have physical security or signal security equipment and have appropriate locking devices for all exterior windows and doors. Premises and facilities must comply with special regulatory requirements for their operation, including fire safety. To ensure effective control and accountability, an automated reporting system must be installed in the tax warehouse. This system allows the tracking of incoming raw materials and excise goods, as well as manufactured, stored and exported goods. The system shall ensure the identification and identification of all containers and tanks in the warehouse, including their capacity and the name of the goods stored.

It is important to note that means of transport and parts thereof cannot be used as containers or storage tanks in a tax warehouse.

After submitting an application for registration of a tax warehouse, the customs authorities carry out an inspection at the places indicated as the location of the tax warehouse in order to establish whether all legal and regulatory requirements are complied with. The applicant for a licence shall be obliged to provide access to the premises, material and accounting records and to provide the necessary assistance with inspections.

Thus, the tax warehouse in Bulgaria is an important part of the excise goods management system, providing regulation and control over the production, storage and distribution of excisable goods.

In case of changes in the circumstances related to the tax warehouse, persons submitting an application for licensing are obliged to inform the Director of the Customs Agency.

The licensing of a tax warehouse is mandatory for a certain range of commercial activities and is carried out through a strictly regulated process that ensures that all activities carried out within the tax warehouse comply with national legislation. This includes not only production and storage, but also the transfer or shipment of excise goods, which can be diverse, including alcoholic beverages, tobacco products and mineral oils.

Management of a tax warehouse requires not only licensing, but also strict compliance with a number of regulatory requirements, including keeping accurate records and observing control and safety procedures. These are important aspects as they ensure transparency and accountability regarding the movement and processing of excise goods. In addition, tax warehouses play an important role in the supply chain of excise goods, providing flexibility and financial benefits to businesses, allowing them to manage their excise obligations more effectively.

For what types of commercial activities is registration of a tax warehouse required?

Registration of a tax warehouse in Bulgaria is mandatory for certain types of commercial activities. This process is regulated by the Excise and Tax Warehouses Act (ZADC) and includes the following categories of activities:

1. Production, import or introduction of coke or coal into the territory of the country.
2. Trade in coke or coal.
3. Persons who have received a license under the Energy Act and sell electricity or natural gas to consumers for domestic or commercial purposes.
4. Persons licensed under the Energy Act for the production, transmission, distribution, trade, public supply or supply of electricity or natural gas, using these resources for their own needs.
5. Persons registered for VAT purposes in another EU Member State who bring excise goods into the territory of Bulgaria for supplies under the conditions of distance selling within the meaning of the Value Added Tax Act

These categories reflect the main commercial activities for which registration of a tax warehouse is required, as part of the regulations for the management and control of excise goods in the country.

In practice, registration of a tax warehouse in Bulgaria should be carried out by every producer of excise goods, as well as every storekeeper and sender/recipient of goods without excise duty paid.

Who has the right to register a tax warehouse in Bulgaria and what is the procedure?

In Bulgaria, the process of registration of a tax warehouse is open to a wide range of entities meeting certain criteria. According to the Bulgarian legislation, the right of registration is granted to:

• Manufacturers of excise goods - According to Article 43 of the Excise and Tax Warehouses Act, a licensed storekeeper may be a trader within the meaning of the Commercial Act or under the legislation of another Member State or a State party to the Agreement on the European Economic Area, as well as a legal entity established on the basis of a regulatory act. This includes companies registered both in Bulgaria and in other member states of the European Union or countries of the European Economic Area.
• Persons who are not producers of excise goods, but are engaged only in their storage: These persons may be tax storekeepers if they are capital companies with a registered and fully contributed capital of at least BGN 500,000, with the exception of persons who store, receive and send only quiet and sparkling wines and/or other fermented beverages.

In order to be validated as a tax warehouse license holder, a trader must meet a number of additional conditions:

• Financial situation: It is necessary not to be in bankruptcy or liquidation proceedings.
• Reputation: The managing persons must not have been convicted of crimes of a general nature or have been part of the management or control bodies of companies dissolved due to insolvency with dissatisfied creditors.
• Public Obligations: The person must be free from unpaid public obligations, except in the case of disputed or secured obligations.
• History of violations: Must not have committed serious or repeated violations of the legislation.
• Licenses and permits: Must have all necessary licenses and permits provided for in other laws.
• Facilities and equipment: It is necessary to have appropriate premises and automated reporting systems.
• Access to the Internet: Must provide Internet access to automated reporting systems for customs authorities.
• Means of measurement and control: The use of measuring and control means complying with the legal requirements is required requirements.
• It has its own or rented premises and/or areas for carrying out the activities under Art. 46, para. 2 of the Excise and Tax Warehouses Actwhich meet the security and control requirements laid down in the Regulations for the application of the law, where the excise goods will be received and unloaded;
• Uses a video surveillance and control system meeting the requirements of Art. 47b of the ZADC, in the case of production and/or storage of energy products with CN code 2710 12 to 2710 20;
• Uses a video surveillance and control system meeting the requirements of Art. 47b, in cases of production and/or storage of ethyl alcohol or tobacco products

Procedure for registration of a tax warehouse

The procedure for registration of a tax warehouse in Bulgaria is regulated in the Excise and Tax Warehouses Act and its relevant regulations. It covers the following steps:

1. Submission of application for registration: The request shall be submitted to the head of the customs concerned. For the persons referred to in items 1 to 3, the request shall be submitted prior to the commencement of the activity, while for the persons referred to in item 4, to the head of customs at their permanent address or address of establishment.
2. Verification by the customs authorities: The customs authorities carry out a check in accordance with Art. 28 and Art. 29 of the Regulations for Implementation of the Excise Duties and Tax Warehouses Act as to whether all legal requirements have been complied with.
3. Compliance with additional conditions: Including financial position, reputation, public liabilities, history of violations, necessary licenses and permits, appropriate facilities and equipment, internet access, and means of measurement and control.
4. Time limits for consideration of the request: When the conditions for issuing a tax warehouse management licence are met and the documents submitted comply with the requirements, the competent customs authority shall rule on the request in one month term from the date of its submission.
5. Elimination of irregularities - When the submitted documents under Article 48, paragraph 2 do not meet the requirements or the information provided is insufficient, the authority referred to in Article 48, paragraph 1 within 14 days of receipt of the request shall notify the person who submitted the request and set a deadline for eliminating the irregularities or providing additional information 14 days from receipt of the notification. When the verification establishes the existence of a circumstance referred to in Article 47, paragraph 3, the person shall be notified within 14 days of receipt of the notification to submit a security in an amount not less than the amount of the outstanding public obligation.
6. Specific rules for certain types of excise goods: For some types of excise goods, such as ethyl alcohol and tobacco products, a video surveillance and control system is required.
7. Issuance of a license to manage a tax warehouse: Upon successful completion of the procedure and compliance with all conditions, the Director of Customs issues the license and it remains for the storekeeper to provide security.

This procedure is an important element of the management of excise goods and provides control over the production, storage and trade of such goods. It is important that potential licensees carefully prepare and follow all steps of the procedure to ensure the successful receipt of a tax warehouse license.

Is there a fee for issuing a license and registering a tax warehouse?

No. Registration and licensing of a tax warehouse in Bulgaria is a procedure that does not require payment of fees.

What is the deadline for issuing a license and registering a tax warehouse?

According to Art. 49 and Art. 50 of the Excise and Tax Warehouses Act (ZADC), which regulates the procedure for issuing a license for managing a tax warehouse, within a period of 1 month, the director of the Customs Agency is obliged to issue the license or refuse to issue it with reasons. It is important to note that for each tax warehouse a separate license is issued.

A tax warehouse management license is a document that contains detailed information about the storekeeper and the warehouse itself. According to Art. 51 of the ZADC, the license includes the name of the issuing authority, identification numbers of the licensed storekeeper and tax warehouse, details of the company, registered office, address of management and tax warehouse, as well as information about the representatives of the licensed storekeeper. Also, data on the activities that will be carried out in the tax warehouse, the type of excise goods and the amount of collateral are included in the license.

The right to apply the regime of deferred payment of excise duty arises from the moment of delivery of the license, which is important for the functioning of the tax warehouse. The license is issued upon presentation of the necessary security, which is a guarantee of the fulfillment of obligations related to the storage and management of excise goods.

In conclusion, the procedure for registration and issuance of a tax warehouse license in Bulgaria is related to a number of requirements and documentation, but it is important to note that it does not involve the payment of fees for the issuance of the license itself.

Necessary documents for registration of a tax warehouse

The process of registering a tax warehouse in Bulgaria involves the submission of a number of documents that are essential for the successful issuance of a license. Each step of the procedure is strictly regulated, and the application for a license refers to the director of the Customs Agency. Here are the main documents and information that must be provided:

1. Description of operations: This includes details of the activities that will be carried out in the tax warehouse.
2. Types of excise goods and their CN codes: The specification of excise goods to be manufactured or stored is critical. This includes their exact classification according to the Combined Nomenclature (CN).
3. Annual estimated volume of goods: Includes estimates of the annual volume of goods produced and/or stored under the regime of deferred payment of excise duty, as well as the volume of movement of these goods.
4. Automated reporting systems: Description of the accounting systems used that allow real-time control of raw materials, materials and finished products.
5. Location and characteristics of the premises: The exact location of the warehouse, as well as a description of its characteristics and purpose.
6. Collateral: Information on the type and amount of the security that will be provided to the Customs Agency as a guarantee for the fulfillment of the obligations.
7. Location of the place of direct delivery: If applicable, the exact location of the place where direct deliveries of excise goods will take place must be provided.

These documents are necessary for a detailed assessment of the application and to ensure that the applicant meets all the requirements for managing a tax warehouse. The preparation of these documents must be carried out carefully, since they are the basis for approval or refusal of the license by the competent customs authorities.

What is an automated tax warehouse accounting system?

An automated tax warehouse accounting system is an extremely important component in the management and control of excise goods. This system is a software product that connects directly to the terminal of the tax warehouse and provides reliable control and accurate accounting of excise goods. Its main function is to import transaction data from various devices and to take care of the preparation of the documents for excise declarations (ADDs) and protocols for excise deliveries (ADP). This system is also responsible for creating XML files for submission to the Bulgarian Agency for Control of Excise Goods and Services (BACIS).

The system should have reliability and stability, as well as an intuitive interface that facilitates the work of staff. It should provide speed and convenience in customer service, full accountability and control of personnel, as well as detailed reports on sales and deliveries. The software should allow recording of various events to facilitate the control of staff, customs authorities and managers.

In addition, the system can also offer functions for managing discounts, allowances, promotions, raffles and coupons for customers, as well as tracking the price with a discount column and destination with a customer card.

What is a security for registration of a tax warehouse?

According to the legislation, before the license for managing a tax warehouse is issued and it enters into force, that is, it begins to operate in practice, applicants are required to provide collateral. This security can be presented in the form of a deposit in cash or by a bank guarantee, in accordance with the requirements of customs legislation. The amount of the security is determined individually for each case and is reflected in the license, which is issued by the Customs Agency.

It is important to note that according to the Bulgarian legislation, the amount of excise duty which has arisen or which could arise during the application of the deferred payment of excise duty regime is not allowed to exceed the amount of the security provided.

Also, in the event that the security has ceased to be valid, the tax warehouse license is terminated.

Why trust Elan Consulting for tax warehouse registration?

Choosing the right partner when registering a tax warehouse is a key element for the success of your business operation. Elan Consulting offers reliability, professionalism and deep knowledge in the field of tax warehousing, which makes the company the preferred choice for businesses seeking competent assistance.

1. Expertise:Elan Consulting has considerable experience in the field of tax warehouses. The company has a team of specialists who understand all the nuances of Bulgarian legislation regarding excise duties and tax warehouses. This allows customers to benefit from valuable guidance and advice to ensure compliance with all regulations.
2. Personalized approach:Elan Consulting consultants are distinguished by an individual approach to each client. They delve into the specifics of each business to offer solutions that meet the unique needs and requirements of each company. This ensures maximum efficiency and compliance with legal requirements.
3. Scope of services:In addition to assistance with the registration of a tax warehouse, Elan Consulting offers a wide range of additional services, including preparation of documentation, advice on collateral and calculation of fees, as well as support in conducting customs inspections and preparing the necessary reports.
4. Professional Support:Elan Consulting clients can count on continuous support and advice in the process of managing a tax warehouse. The company provides up-to-date information on changes in legislation and guidelines for optimal management of tax warehouses.
5. Security and Trust:Elan Consulting has built a reputation as a trusted partner in the field of tax services. With its professional attitude and in-depth knowledge, the company guarantees security and peace of mind to its customers who are looking for reliable support when registering a tax warehouse.

After all, the choice of Elan Consulting for tax warehouse registration provides a comprehensive, professional and personalized service that is in accordance with all legal requirements and aimed at the success of your business activity.