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CORPORATE INCOME TAXATION ACT IN BULGARIA

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CORPORATE INCOME TAXATION ACT IN BULGARIA
Effective from 01.01.2007
Prom. SG. 105/22 Dec 2006, amend. SG. 52/29 Jun 2007, amend. SG. 108/19 Dec 2007, amend. SG. 110/21 Dec 2007, amend. SG. 32/25 Mar 2008, amend. SG. 69/5 Aug 2008, amend. SG. 106/12 Dec 2008, amend. SG. 32/28 Apr 2009, amend. SG. 35/12 May 2009, amend. SG. 95/1 Dec 2009, amend. SG. 94/30 Nov 2010, amend. SG. 19/8 Mar 2011, amend. SG. 31/15 Apr 2011, amend. SG. 35/3 May 2011, amend. SG. 51/5 Jul 2011, amend. SG. 77/4 Oct 2011, amend. SG. 99/16 Dec 2011, amend. SG. 40/29 May 2012, amend. SG. 94/30 Nov 2012, amend. SG. 15/15 Feb 2013, suppl. SG. 16/19 Feb 2013, amend. SG. 23/8 Mar 2013, amend. SG. 68/2 Aug 2013
Part one.
GENERALITIES
Chapter one.
GENERAL PROVISIONS
Objects of taxation
Art. 1. This Act shall regulate the taxation of:
1. the profit of local legal entities;
2. the profit of those legal entities which are not traders, including the religious organizations, this profit being derived from transactions under Art. 1 of the Commerce Act, or from leasing movable or immovable property;
3. (suppl. – SG 95/09, in force from 01.01.2010) foreign legal entities’ profit derived from a location of business activity within the Republic of Bulgaria or from administration of property in such a location of business activity;
4. local and foreign legal entities’ income specified in this Act where the income originates from a source within the Republic of Bulgaria;
5. those expenses which are specified in Part Four;
6. the activity of the organizers of gambling games;
7. the income from transactions under Art. 1 of the Commerce Act, and the income from leasing movable or immovable property to State-budget enterprises;
8. the activity of vessel operation on the part of persons performing maritime commercial navigation.

Taxable persons
Art. 2. (1) Taxable persons shall be the following ones:
1. local legal entities;
2. (suppl. - SG 95/09, in force from 01.01.2010) those foreign legal entities which carry out business activities within the Republic of Bulgaria through a location of business activity, carry out administration of property in such a location of business activity or receive income from a source within the Republic of Bulgaria;
3. (suppl. – SG 31/11, in force from 01.01.2011) sole proprietors as well as natural persons registered as tobacco producers and farmers, who calculate their taxable income pursuant to Art. 26 of the Income Taxes on Natural Persons Act – regarding the taxes withheld at the source, and the cases specified in the Income Taxes on Natural Persons Act;
4. natural persons-traders within the meaning of Art. 1, para. 3 of the Commerce Act – in the cases specified in the Income Taxes on Natural Persons Act;
5. the employers and the assignors under management and supervision contracts – regarding the tax on social expenses, provided for in Part Four.
(2) For the purposes of this Act the unincorporated companies and the insurance funds established under Art. 8 of the Social Insurance Code shall be treated as legal entities.
(3) For the purposes of taxation of income from a source within the Republic of Bulgaria, any foreign formation which is organisationally and economically autonomous (such as a trust, a fund and the like) which carries out business activities on its own or makes and manages investments and the owner of the income is impossible to identify, shall be a taxable person.

Local legal entities
Art. 3. (1) Local legal entities shall be the following ones:
1. legal entities established under Bulgarian law;
2. companies established under Regulation (ЕC) No. 2157/2001 of the Council, and cooperative societies established under Regulation (ЕC) No. 1435/2003 of the Council where they have their registered office within the country and are entered in a Bulgarian register.
(2) Local legal entities shall be taxed with taxes under this Act on their profit and income from all sources within the Republic of Bulgaria and abroad.

Foreign legal entities
Art. 4. (1) Foreign legal entities shall be those which are not local ones.
(2) (amend. - SG 95/09, in force from 01.01.2010) Foreign legal entities shall be taxed with taxes under this Act on their profit realized through a location of business activity within the Republic of Bulgaria, or from administration of property in such a location of business activity, as well as on the income specified in this Act from a source within the Republic of Bulgaria.

Types of taxes
Art. 5. (1) Profits shall be taxed with corporate tax.
(2) Local and foreign legal entities’ income specified in this Act shall be taxed with taxes withheld at the source.
(3) The expenses specified in this Act shall be taxed with tax on expenses.
(4) Instead of corporate tax, alternative tax shall apply to:
1. the activity of organizing gambling games;
2. the income from transactions under Art. 1 of the Commerce Act, and the income from leasing movable or immovable property to State-budget enterprises;
3. the activity of vessel operation.

Determining the amount of tax
Art. 6. The amount of tax shall be determined by way of multiplying the basis of taxation by the tax rate.

Tax returns
Art. 7. The standard forms of the tax returns and the other documents under this Act shall be approved by way of an Ordinance of the Minister of Finance and shall be promulgated in the State Gazette.

Paying the taxes
Art. 8. (1) The taxes due under this Act by the taxable persons shall be paid to the Central Budget.
(2) The taxes due shall be paid to the Central Budget by crediting the account of the territorial directorate of the National Revenue Agency either by registration of the taxable person or by the place in which the taxable person must have registered.
(3) The taxes due shall be regarded as paid on the date on which the amount enters the Central Budget as an amount credited to the account of the respective territorial directorate of the National Revenue Agency.

Interest on delayed payment
Art. 9. As for those taxes which have not been paid in due time, including the advance contributions, interest shall be due in accordance with the Act on Interest on Taxes, Fees and Other Similar State Receivables.

Documentary grounds
Art. 10. (1) The accounting expenses shall be recognized for tax purposes where they are grounded on a primary accounting document within the meaning of the Accountancy Act, this document presenting fairly the business operation.
(2) The accounting expenses shall also be recognized for tax purposes where a part of the primary document’s information required under the Accountancy Act is missing, provided that there are documents available which certify the missing information.
(3) Apart from the cases under para. 2, the accounting expenses shall also be recognized where the primary document is issued by a person that is not an establishment within the meaning of Art. 1, para. 2 of the Accountancy Act and a part of the primary document’s information required under the Accountancy Act is missing, provided that the document presents fairly the business operation documented.
(4) (amend. – SG 23/13, in force from 08.03.2013) The taxable persons shall be obligated to get registered and to report the sales they have made, as well as the services they have provided, by way of issuing a fiscal cash-register slip from a fiscal device (fiscal receipt) or by way of issuing a cash slip through an integrated business management system (system receipt) in accordance with the procedure set forth in an Ordinance of the Minister of Finance, except where the payment is made through the bank or by way of a set-off. The absence of a fiscal cash-register slip from a fiscal device or of a cash slip from an integrated business management system, where the issue of such is obligatory, shall form grounds for non-recognition of the accounting expenses for tax purposes.
(5) As for the international air transport, the accounting expense shall be documentarily grounded where it is documented by way of a primary accounting document and the boarding pass for the respective flight. Where the primary accounting document (record) is issued by a person who has performed the sale on behalf of and at the account of the carrier, the said person is assumed to be the issuer of the document.
(6) (new – SG 110/07, in force from 01.01.2008; suppl. – SG 23/13, in force from 08.03.2013) Documentary proof for the expenses under Art. 204, Items 1 and 3, which have been levied an expenses tax, shall be deemed available also where they have been documented only in a fiscal receipt from a fiscal device or in a cash slip from an integrated business management system . The expenses under Art. 204, Item 3, levied an expenses tax, shall be recognized for taxation purposes also in case of lack of a travel list.

Expenses which a statutory instrument defines as mandatory
Art. 11. Those expenses which a statutory instrument defines as being mandatory shall be recognized for tax purposes and shall not be taxed with tax on expenses, unless this Act provides otherwise.

Chapter two.
SOURCES OF PROFIT AND INCOME
Profit and income from sources within the Republic of Bulgaria
Art. 12. (1) (amend. - SG 95/09, in force from 01.01.2010) Foreign legal entities’ profit originating either from business activity performed through a certain location of business activity inside the territory of the Republic of Bulgaria or from disposal of the property of such a location of business activity shall be income from a source within the country.
(2) The income from financial assets issued by local legal entities, the State and the municipalities shall be income from a source within the country.
(3) The income originating from transactions in financial assets under para. 2 shall be income from a source within the country.
(4) The income from dividends and liquidation shares in local legal entities shall be income from a source within the country.
(5) The following types of income assessed by local legal entities, local sole proprietors or foreign legal entities and sole proprietors through a location of business activity or an establishment within the country, or paid by local natural persons or foreign natural persons, having an establishment within the country, in favour of foreign legal entities, shall be income from a source within the country:
1. interest, including interest comprised in financial leasing contributions;
2. income originating from rent or any other granting of the use of movable property;
3. author’s and licence remuneration;
4. remuneration for technical services;
5. remuneration under franchising contracts and factoring contracts;
6. remuneration under contracts for management and supervision of a Bulgarian legal entity.
(6) (amend. – SG 110/07, in force from 01.01.2008) The income referred to in para. 5 assessed to foreign legal entities through a location of business activity of a local person or through an establishment of local natural persons, the said location or establishment being outside the country, shall not be income from a source within the country.
(7) The income originating from agriculture, forestry, game husbandry and fish industry inside the territory of the country shall be income from a source within the country.
(8) (amend. – SG 94/10, in force from 01.01.2011) The following income shall be deemed to be from a source within the country:
1. income from renting or other grant of use pertaining to immovable property, including ideal share of immovable property located within the country;
2. income from disposal of immovable property, including ideal shares thereof or limited property rights thereupon, that is located within the country.
(9) (new – SG 94/10, in force from 01.01.2011) The following income accrued by local legal persons, local sole-entrepreneurs or foreign legal persons or sole-entrepreneurs through a place of economic activity or certain base in the country in favour of foreign legal persons established in jurisdictions of preferential tax regimes shall be deemed to be from a source within the country:
1. remunerations for services or rights with exception of cases, where the services or rights have been actually provided;
2. stipulated damages or compensations of any kind with exceptions of compensations accrued by virtue of insurance contracts.
(10) (prev. text of Para 09 – SG 94/10, in force from 01.01.2011) When determining the source of income under this Art. the place in which the income is paid shall not be taken into consideration.

Chapter three.
INTERNATIONAL TAXATION
International treaties
Art. 13. In those cases in which an international treaty ratified by the Republic of Bulgaria, which has been promulgated and has taken effect, contains provisions that differ from the provisions of this Act, it is the provisions of the respective international treaty that shall apply.

Tax input regarding tax paid abroad
Art. 14. (1) In those cases in which the provisions of an international treaty under Art. 13 do not apply, the taxable persons shall be entitled to recognition of tax input in accordance with the conditions and the procedure set forth in this Act.
(2) When determining the corporate tax or the alternative taxes referred to in this Act, the taxable persons shall be entitled to the recognition of tax input regarding any tax which is similar to the corporate one or has been levied instead of it and has been paid abroad.
(3) The taxable persons shall be entitled to the recognition of tax input for the tax levied abroad on the gross amount of dividends, interest, author’s and licence remuneration, remuneration for technical services and rent.
(4) The tax input referred to in paras. 2 and 3 shall be determined separately per each State and per each type of income and shall be limited to the amount of the Bulgarian tax on the said profit or income.

Chapter four.
PREVENTION OF TAX EVASION
Transactions involving related persons
Art. 15. (amend. - SG 95/09, in force from 01.01.2010) Where related persons perform their commercial and financial relationships under conditions influencing the amount of the taxable basis, these conditions differing from those between unrelated persons, the taxable basis shall be determined and taxed under those conditions which would be present for unrelated persons.

Tax evasion
Art. 16. (1) (amend. - SG 95/09, in force from 01.01.2010) Where one or more transactions, including those between unrelated persons, have been effected under conditions the fulfilment of which brings about tax evasion, the taxable basis shall be determined without taking into consideration the said transactions, or certain conditions thereof, or the legal form thereof, and what is taken into consideration shall be the taxable basis that would have been achieved if a customary transaction of the respective type has taken place, at the market prices, this transaction being aimed at achieving the same economic result, without bringing about tax evasion.
(2) The following shall also be regarded as tax evasion:
1. considerable excess of the quantities of materials and raw stuff used in manufacture or an excess of other manufacturing expenses in comparison with the usual ones used by the person in the activity he/she carries out, providing that the excess is not due to objective reasons;
2. the contracts for interest-free loans or other gratuitous granting of the use of tangible or intangible assets;
3. receipt or provision of credits at an interest rate which differs from the market rate at the time the transaction takes place, including the cases of interest-free loans or other gratuitous temporary financial aid, and remission of credits or repayment of credits at one’s own account, these credits not being connected with the activity;
4. (amend. – SG 94/10, in force from 01.01.2011) accrual of remuneration or compensation for services that have not been provided.
(3) In those cases where a simulated transaction covers another transaction, the tax liability shall be determined under the conditions of the covert transaction.

Transfers connected with the location of the business activity
Art. 17. This Chapter shall also apply to the transfers between the location of business activities and the other parts of the foreign person’s establishment which are situated outside the territory of the country, in accordance with the specificity of the location of business activity.

Part two.
CORPORATE TAX
Chapter five.
GENERAL PROVISIONS
Tax financial result
Art. 18. (1) (amend. – SG 110/07, in force from 01.01.2008) Tax financial result shall be the accounting financial result transformed in accordance with the procedure set forth in this Act.
(2) The positive tax financial result shall be the tax profit.
(3) The negative tax financial result shall be the tax loss.

Basis of taxation
Art. 19. The basis of taxation for determining the corporate tax shall be the tax profit.

Tax rate
Art. 20. The tax rate of the corporate tax shall be 10 percent.

Tax period
Art. 21. (1) The tax period for determining the corporate tax shall be the calendar year, unless this Act provides otherwise.
(2) As for the newly established taxable persons, the tax period thereof shall be the period from the date they were established until the end of the year, unless this Act provides otherwise.

Chapter six.
GENERAL PROVISIONS REGARDING THE TAX FINANCIAL RESULT
Determining the tax financial result
Art. 22. (amend. – SG 110/07, in force from 01.01.2008) The tax financial result shall be determined by way of transforming the accounting financial result in accordance with the procedure set forth in this Act, considering:
1. the tax permanent differences;
2. the tax temporary differences;
3. (amend. - SG 95/09, in force from 01.01.2010) other amounts in cases provided for in this Act.

Tax permanent differences and the use thereof in the transformation of the accounting financial result
Art. 23. (1) Tax permanent differences shall be those accounting receipts or expenses which are not recognized for tax purposes.
(2) When determining the tax financial result, if this Act provides that:
1. certain expenses (losses) are not recognized for tax purposes, the accounting financial result for the year of accounting the expenses (losses) shall be increased by the said expenses (losses), and the subsequent years’ accounting financial results shall not be transformed;
2. certain receipts (profits) are not recognized for tax purposes, the accounting financial result for the year of accounting the receipts (profits) shall be decreased by the said receipts (profits), and the subsequent years’ accounting financial results shall not be transformed.

Tax temporary differences and the use thereof in the transformation of the accounting financial result
Art. 24. (1) Tax temporary differences arise where certain receipts or expenses are recognized for tax purposes during a year which is not the year of their accounting.
(2) Tax temporary difference shall be:
1. certain expenses that have not been recognized for tax purposes during the year of their accounting, and shall be recognized during the subsequent years when the conditions for their recognition under this Part are fulfilled;
2. certain receipts that have not been recognized for tax purposes during the year of their accounting, and shall be recognized during the subsequent years when the conditions for their recognition under this Part are fulfilled.
(3) Tax temporary differences also arise in the cases of transformation of companies and cooperative societies in accordance with the procedure set forth in Chapter Nineteen.
(4) When determining the tax financial result, if this Act provides that:
1. certain expenses (losses), which are not recognized for tax purposes in the year of their accounting, shall be recognized in the subsequent years when the conditions for their recognition under this Part are fulfilled:
а) the accounting financial result for the year of accounting the said expenses (losses) shall be increased by the said expenses (losses) – occurrence of a tax temporary difference;
b) the accounting financial result for the year of fulfilment of the conditions for their recognition under this Part shall be decreased by the said expenses (losses) – reverse manifestation of the tax temporary difference;
2. certain receipts (profits), which are not recognized for tax purposes in the year of their accounting, shall be recognized in the subsequent years when the conditions for their recognition under this Part are fulfilled:
а) the accounting financial result for the year of accounting the said receipts (profits) shall be decreased by the said receipts (profits) – occurrence of a tax temporary difference;
b) the accounting financial result for the year of fulfilment of the conditions for their recognition under this Part shall be decreased by the said receipts (profits) – reverse manifestation of the tax temporary difference.

Receipts and expenses recognized for tax purposes
Art. 25. When determining the tax financial result, if this Act provides that certain receipts (expenses) or profits (losses) have been recognized for tax purposes in the year of their accounting, neither the accounting financial result for the current year, nor the one for the subsequent years shall be transformed therewith.

Chapter seven.
TAX PERMANENT DIFFERENCES
Expenses unrecognized for tax purposes
Art. 26. The following accounting expenses shall not be recognized for tax purposes:
1. expenses that are not connected with the activity;
2. (suppl. - SG 95/09, in force from 01.01.2010) receipts that have originated in connection with expenses that are unrecognized for tax purposes under Art. 26, item 3, 4, 5, 8 and 10 up to the amount of the unrecognized expenses;
3. expenses of the tax charged or the tax input used in accordance with the Value Added Tax Act in those cases where the expenses of the business operation relating to the value added tax have not been recognized for tax purposes;
4. (amend. – SG 110/07, in force from 01.01.2008) expenses accounted by a supplier under the Value Added Tax Act in respect of a value added tax levied by him or by the revenue authority for a completed delivery, except the tax levied in case of gratuitous deliveries and deliveries in connection with deregistration under the Value Added Tax Act; this Item shall not apply to expenses accounted in result of a taxation credit correction under the Value Added Tax Act;
5. (amend. – SG 110/07, in force from 01.01.2008) subsequent expenses accounted for in connection with a receivable that has occurred as a result of the tax charged or the tax input used under items 3, 4, 8 and 10;
6. (suppl. – SG 94/12, in force from 01.01.2013) expenses of fines, confiscations, including under Art. 307a of the Penal Code, and other sanctions imposed in connection with violation of statutory instruments, and interest on delayed payments for public liabilities or municipal ones;
7. expenses of donations except for those specified in Art. 31;
8. expenses of a tax which is subject to being withheld at the source and is at the account of the payer of the income;
9. those expenses of salary in the commercial companies having over 50 percent of State or municipal participation which exceed the expenses fixed in the statutory instruments;
10. (new – SG 110/07, in force from 01.01.2008) expenses accounted during realization of responsibility for due and not deposited value added tax in the cases of Art. 177 of the Value Added Tax Act;
11. (new – SG 110/07, in force from 01.01.2008) expenses, representing hidden distribution of revenue;
12. (new – SG 94/12, in force from 01.01.2013) expenses for bribery and/or hiding the bribery of an official or a foreign person in charge of a public duty.

Receipts unrecognized for tax purposes
Art. 27. (1) The following accounting receipts shall not be recognized for tax purposes:
1. (suppl. – SG 69/08, in force from 01.01.2009; amend. – SG 106/08, in force from 01.01.2009) receipts resulting from the distribution of dividends of local legal entities and of foreign persons, who are local persons for taxation purposes of a Member State of the European Union or of another state – party to the Agreement on European Economic Area;
2. (amend. – SG 94/12, in force from 01.01.2013) receipts that have originated in connection with expenses that are unrecognized for tax purposes under Art. 26, Items 3, 4, 5, 6, 8 and 10 up to the amount of the unrecognized expenses;
3. receipts originating from interest on public liabilities that have been unduly paid or collected, as well as from interest on value added tax charged by State or municipal bodies where the said tax has not been refunded in due time.
(2) Para. 1, item 1 shall not apply:
1. to receipts resulting from the distribution of dividends of licensed companies having a special investment objective under the Act on Special Purpose Investment Companies;
2. in the cases of covert distribution of profit.

Unrecognized expenses of missing assets and waste of assets
Art. 28. (1) The accounting expenses of missing fixed and current assets shall not be recognized for tax purposes, with the exception of the ones resulting from force majeure.
(2) The accounting expenses of missing material inventories and waste thereof shall not be recognized for tax purposes.
(3) Para. 2 shall not apply in those cases where the expenses are caused by:
1. force majeure;
2. technological waste or change in the physical and chemical properties, the waste or change being established by way of a statutory instrument or the company’s standards (if there is no such statutory instrument), and providing that the amount thereof is in accordance with the usual one for the respective activity;
3. an expiry of the term of validity under a statutory instrument or the company’s standards (if there is no such statutory instrument), and providing that the amount thereof is in accordance with the usual one for the respective activity;
4. (new – SG 110/07, in force from 01.01.2008) deficit of goods, resulting of the commercial activity in sites, where the clients have direct physical access to the offered goods, amounting to 0,25 percent of the amount of the net income from sales of the commercial site in question.
(4) The expenses of the tax referred to in Art. 79, para. 3 of the Value Added Tax Act on assets that are unrecognized ones under paras. 1 through 3 shall not be recognized for tax purposes.
(5) The subsequent accounting expenses accounted for in connection with a receivable that has occurred as a result of missing assets or waste of assets that are unrecognized ones under paras. 1 through 4 shall not be recognized for tax purposes.

Unrecognized receipts originating in connection with missing assets or waste of assets
Art. 29. The accounting receipts that have originated in connection with missing assets or waste of assets or a receivable connected therewith, shall not be recognized for tax purposes up to the amount of the unrecognized expenses referred to in Art. 28.

Recognition of a part of the non-distributable expenses of not-for-profit legal entities
Art. 30. (1) The non-distributable expenses of not-for-profit legal entities which have been accounted for and comply with the activity subject to taxation with corporate tax shall not be recognized for tax purposes.
(2) A part of the non-distributable expenses shall be recognized for tax purposes, this part being equal to the product of the multiplication of the non-distributable expenses by the ratio of the operating receipts from the activity subject to taxation with corporate tax to all the receipts of the not-for-profit legal entity.

Expenses of donations
Art. 31. (1) The accounting expenses of donation not exceeding 10 percent of the positive financial result (profit before taxation) shall be recognized for tax purposes in those cases where the donations have been made in favour of:
1. healthcare establishments and medical treatment establishments;
2. (amend. - SG 51/11) specialized institutions for the provision of social services under the Social Support Act, and the Social Support Agency, and the Social Protection Fund with the Minister of Labour and Social Policy;
3. (suppl. – SG 106/08, in force from 01.01.2009) specialized institutions for children under the Child Protection Act, and public establishments for raising children who are deprived of parent’s care, under the Public Education Act and homes for medical and social services for children under the Medical Establishments Act;
4. public nurseries, kindergartens, schools, higher schools and academies;
5. State-budget enterprises within the meaning of the Accountancy Act;
6. religions registered within the country;
7. specialized enterprises or cooperative societies of disabled persons, which are entered in the Register referred to in Art. 29 of the Integration of Persons with Disabilities Act, and the ones in favour of the disabled Persons Agency;
8. disabled persons, and technical relief devices for them;
9. (amend. - SG 35/09, in force from 12.05.2009) persons who have suffered damage in disastrous situations within the meaning of the Disaster Protection Act, or the families thereof;
10. the Bulgarian Red Cross;
11. low-income persons;
12. disabled children or children who have no parents;
13. cultural institutions, or for the purpose of cultural, educational or scientific exchange under an international treaty, the Republic of Bulgaria being a party thereto;
14. not-for-profit legal entities registered in the Central Register of not-for-profit legal entities for the purpose of carrying out activities for the public benefit, with the exception of those organizations which support culture within the meaning of the Arts Patronage Act;
15. (amend. – SG 32/09, in force from 01.01.2010; revoked – SG 68/13, in force from 01.01.2014)
16. (suppl. – SG 35/11, in force from 03.05.2011) the Power Efficiency and Renewable Sources Fund;
17. communes for treatment of drug addicts, as well as in favour of drug addicts for the purpose of their medical treatment;
18. (new – SG 106/08, in force from 01.01.2009) the United Nations Children’s Fund (UNICEF).
(2) (suppl. - SG 95/09, in force from 01.01.2010; amend. – SG 99/11, in force from 01.01.2012) The accounting expenses of donations in favour of the "Fund for Treatment of Children" and Centre, "Assisted Reproduction Fund", amounting to up to 50 percent of the profit before taxation shall be recognized for tax purposes.
(3) The aid provided freely under the conditions and in accordance with the procedure set forth in the Arts Patronage Act amounting to up to 15 percent of the profit before taxation shall be recognized for tax purposes.
(4) The expenses of donations of computers and their peripheral devices manufactured within one year prior to the date of donation, the latter being made in favour of Bulgarian schools, including higher-education ones, shall be recognized for tax purposes.
(5) The total amount of donation expenses recognized for tax purposes under paras. 1 through 4 may not exceed 65 percent of the accounting profit.
(6) The total expense of donation shall be unrecognized for tax purposes in those cases where those managers who grant it or those managers who dispose of it benefit from it, either directly or indirectly, or evidence is present showing that the donation has not been received.
(7) (new – SG 32/09, in force from 01.01.2010) Paragraphs 1 through 6 may also apply to donations provided to persons identical to the ones specified in paras 1 through 4 or similar to them, who are citizens of or established in another Member State of the European Union, or a state – party to the Agreement on the European Economic Area, provided that the person who made the donation, has an official legalized document, certifying the status of the person receiving the donation, issued or verified by a competent authority of the respective foreign country, along with a translation in Bulgarian language, carried out by a certified translator.

Expenses of founding a taxable person
Art. 32. (1) As for the taxable persons-founders, the accounting expenses of founding a legal entity shall not be recognized for tax purposes. The unrecognized expenses shall be recognized for tax purposes when determining the tax financial result of a newly established legal entity for the year of its establishment.
(2) The expenses referred to in para. 1 shall be recognized as the founders’ expenses for tax purposes if circumstances occur determining that no new legal entity shall be established. The expenses shall be recognized for the year in which the circumstances occur, providing that the requirements of this Act are fulfilled.

Tax treatment of income and expenditure, profit and loss, reported by a monitoring associate in a jointly monitored enterprise (New - SG 95/09, in force from 01.01.2010)
Art. 32a. (new- SG 95/09, in force from 01.01.2010) Bok income and expenditures, profit and loss, reported by a monitoring associate in a jointly monitored enterprise as a result of application of the proportional consolidation method shall not be recognized, where the jointly monitored enterprise is a taxable person.

Expenses of natural persons’ travelling and sojourn
Art. 33. (amend. – SG 110/07, in force from 01.01.2007) (1) The following accounting expenses for travelling and sojourn of natural persons shall be recognized for taxation purposes, where the travelling and sojourn are connected with the activity of the taxable person:
1. the expenses for travelling and sojourn of natural persons in employment relationship with the taxable person or hired by him under non-employment relationship, including managers, members of managing and control bodies of a taxable person;
2. the expenses incurred by a sole entrepreneur for travelling and sojourn of;
a) a natural person – owner of the undertaking of the sole entrepreneur, and
b) persons in employment relationship with the taxable person or hired by him under non-employment relationship.
(2) The accounting expenses for travelling and sojourn of shareholders or partners shall not be recognized for taxation purposes, where they travel and sojourn in their capacity of shareholders and partners.

Chapter eight.
TAX TEMPORARY DIFFERENCES
Non-recognition of receipts and expenses of subsequent appraisals (reappraisals and devaluations)
Art. 34. (1) (suppl. – SG 106/08, in force from 01.01.2009) The receipts and expenses of subsequent appraisals of assets and liabilities shall not be recognized for tax purposes in the year of their accounting. The income and expenses of subsequent assessments of receivables and expenses from deletion of non-collectable receivables shall not be recognized for tax purposes in the year of their accounting, provided that none of the circumstances referred to in Art. 37 has occurred in the same or the preceding year.
(2) Para. 1 shall not apply to accounting receipts and expenses of subsequent appraisals of pecuniary items in foreign currency at the fixing rate of the Bulgarian National Bank.

Recognition of receipts and expenses of subsequent appraisals (reappraisals and devaluations)
Art. 35. (1) Those receipts and expenses of subsequent appraisals which are unrecognized for tax purposes under Art. 34 shall be recognized for tax purposes in the year of the write-off of the respective asset or liability.
(2) Where the value of the material inventories of a specific type written off during the current year exceeds the value of the material inventories of the said type as at 31 December of the previous year, the unrecognized receipts and expenses under Art. 34 of this type of material inventories in the previous years shall be recognized for tax purposes in the current year.
(3) Paras. 1 and 2 shall not apply in the cases of missing assets or waste of assets that have not been recognized for tax purposes in accordance with the procedure set forth in Art. 28.

Receipts and expenses of initial recognition and subsequent appraisal of biological products and agricultural (farming) products
Art. 36. (1) The excess of the receipts (profits) of initial recognition and subsequent appraisal of biological products and agricultural (farming) products over the expenses accounted for in connection with the said assets shall not be recognized for tax purposes in the year in which these receipts and expenses are accounted for. The excess of the receipts referred to in the first sentence shall be recognized for tax purposes in the year of the write-off of the respective asset.
(2) The excess of the expenses, accounted for in connection with biological products and agricultural (farming) products, over the receipts (profits) of initial recognition and subsequent appraisal of the said assets shall not be recognized for tax purposes in the year in which these receipts and expenses are accounted for. The excess of the expenses referred to in the first sentence shall be recognized for tax purposes in the year of the write-off of the respective asset.
(3) The provisions of Arts. 34 and 35 shall not apply to biological or agricultural products.

Recognition of receipts and expenses of subsequent appraisals of receivables
Art. 37. (suppl. – SG 106/08, in force from 01.01.2009) Those receipts and expenses of subsequent appraisals and deletion of receivables which are unrecognized under Art. 34 shall be recognized for tax purposes in the year in which any of the following circumstances is present:
1. expiry of the period of limitation for the receivable, however, that should not be later than 5 years following the date on which the receivable became executable;
2. transfer of the receivable for consideration;
3. the debtor’s bankruptcy proceedings have been suspended with an approved rehabilitation plan, which provides for incomplete satisfaction of the taxable person; the unrecognized receipts and expenses shall be recognized for tax purposes only with regard to the decrease of the receivable;
4. an effective decision of the Court lays down that the receivable or a part thereof is not due; the unrecognized receipts and expenses shall be recognized for tax purposes only with regard to the undue part of the receivable;
5. prior to the expiry of the period of limitation for the receivable, the latter has been extinguished by virtue of law;
6. where the debtor is struck off and the receivable or a part thereof has remained unsatisfied, the recognition is up to the amount of the unsatisfied part.

Provisions for liabilities
Art. 38. (1) The expenses of provisions for liabilities shall not be recognized for tax purposes in the year in which they are accounted for.
(2) The unrecognized expenses of provisions under para. 1 shall be recognized for tax purposes in the year of extinguishment of the liability for which the provision is recognized, up to the amount of the extinguished liability.
(3) (amend. – SG 110/07, in force from 01.01.2008) Where the taxation financial result is being determined, the accounting financial result shall be reduced by the accounting income, respectively the amount of reduction of the accounting expenses, accounted in relation to a recognized provision.

Provisions which are not included in the tax amortizable value of a tax amortizable asset
Art. 39. (1) When determining the tax financial result, the accounting financial result shall be decreased by the extinguished liabilities connected with provisions which are not included in the tax amortizable value of a tax amortizable asset under Art. 53, para. 1. The decrease under the first sentence shall be made in the year in which the liability is extinguished.
(2) (amend. – SG 110/07, in force from 01.01.2008) Where the taxation financial result is being determined, the accounting financial result shall be reduced by the accounting income, respectively the amount of reduction of the accounting expenses, accounted in relation to a recognized provision.

Specific procedure for the recognition of expenses of provisions for liabilities in the cases of termination of the activity
Art. 40. (1) A taxable person that has applied Art. 38, para. 1 or Art. 53, para. 1, and totally terminates his basic activity in the year of extinguishment of the liabilities for which the provision unrecognized for tax purposes is charged, shall not apply the provisions of Art. 38, para. 2 or Art. 39, para. 1 and shall be entitled to withholding or refund of the overpaid corporate tax determined in accordance with the procedure set forth in para. 2.
(2) The overpaid corporate tax shall be determined as the product of the multiplication of the extinguished part of the liabilities for which the provision unrecognized for tax purposes is charged by the tax rate of the corporate tax for the year of extinguishment of the liabilities. For the purposes of the first sentence, the extinguished part of the liabilities may not exceed the aggregate of the tax financial results for the 10 years preceding the year of termination of the activity.

Unused leave of absence
Art. 41. (1) The expenses regarding the accumulated unused (compensable) leave of absence as at 31 December of the current year, as well as the expenses connected therewith regarding mandatory social and health insurance shall not be recognized for tax purposes in the year in which they are accounted for.
(2) The unrecognized expenses regarding the accumulated unused (compensable) leave of absence referred to in para. 1 shall be recognized for tax purposes in the year in which the absence of leave is actually paid to the personnel, up to the amount of the leave paid.
(3) The unrecognized expenses of mandatory social and health insurance referred to in para. 1 shall be recognized for tax purposes in the year in which the respective insurance contributions are made, up to the amount of the insurance contributions made.
(4) (amend. – SG 110/07, in force from 01.01.2008) Where the taxation financial result is being determined, the accounting financial result shall be reduced by the accounting income, respectively by the amount of reduction of the accounting expenses, accounted in relation to the obligations under Para 1.
(5) (new – SG 110/07, in force from 01.01.2008) Para 1 shall not apply to leaves and insurances, related thereto, the accounting of which does not lead to reduction of the accounting financial result for the year of their accounting.
(6) (new – SG 110/07, in force from 01.01.2008) Shall not be recognized for taxation purposes the expenses resulting of compensable leaves and insurances related thereto, leading to reduction of the accounting financial result in a year, other than the year of accounting the leaves and insurances, where they have not been paid by 31 December of the year of reduction of the accounting financial result. In such cases Para 2 and 3 shall apply respectively.
(7) (new – SG 110/07, in force from 01.01.2008) Para 1 – 6 shall not apply to compensable leaves and insurances related thereto, which according to the accountancy legislation have been capitalized as a part of the value of a taxation amortizable asset.

Expenses which constitute income of local natural persons
Art. 42. (1) The expenses of taxable persons which constitute income of local natural persons under the Income Taxes on Natural Persons Act, this income not being paid until 31 December of the current year, shall not be recognized for tax purposes in the year in which they are accounted for.
(2) Para. 1 shall not apply to those expenses which constitute:
1. basic or additional labour remuneration determined by virtue of a statutory instrument;
2. income of a sole proprietor.
(3) The unrecognized expenses under para. 1 shall be recognized for tax purposes in the year in which the income is paid, up to the amount of the income paid.
(4) (amend. – SG 110/07, in force from 01.01.2008) Where the taxation financial result is being determined, the accounting financial result shall be reduced by the accounting income, respectively by the amount of reduction of the accounting expenses, accounted in relation to the obligations for unpaid income under Para 1.
(5) (new – SG 110/07, in force from 01.01.2008) The expenses for mandatory insurance instalments related to the unrecognized expenses under Para 1 shall not be recognized for taxation purposes in the year of their accounting, where the compulsory insurance instalments have not been deposited by 31 January of the current year.
(6) (new – SG 110/07, in force from 01.01.2008) The unrecohnized expenses under Para 5 shall be recognized for taxation purposes in the year of deposit of the required mandatory insurance instalments, within the amount of the deposited insurance instalments. Where the taxation financial result is being determined, the accounting financial result shall be reduced by the accounting income, respectively by the amount of reduction of the accounting expenses, accounted in relation to obligations under Para 5.
(7) (new – SG 110/07, in force from 01.01.2008) Para 1 and 5 shall not apply to income and mandatory insurance instalments related thereto, the accounting of which does not lead to reduction of the accounting financial result for the year of their accounting.
(8) (new – SG 110/07, in force from 01.01.2008) Shall not be recognized for taxation purposes the expenses resulting of income and mandatory insurance instalments under Para 1 and 5, leading to reduction of the accounting financial result, in a year, other than the year of accounting the income and insurances, where they have not been paid by 31 December of the year of reduction of the accounting financial result. In such cases Para 3 and 6 shall apply respectively.
(9) (new – SG 110/07, in force from 01.01.2008) Para 1 – 8 shall not apply to income and insurances related thereto, which according to the accountancy legislation have been capitalized as a part of the value of a taxation amortizable asset.

Regulation of low-rate capitalization
Art. 43. (1) The interest expenses shall not be recognized for tax purposes in the year in which they are accounted for if the amount thereof has been calculated for the current year with the formula as follows:
UIE = IE - IR - 0,75 x FRPI, where:
UIE are the unrecognized interest expenses;
IE are the interest expenses determined in accordance with para. 3;
IR is the total amount of interest receipts;
FRPI is the accounting financial result prior to any interest expenses and receipts.
(2) The unrecognized interest expenses under para. 1 shall be recognized for tax purposes during the following 5 years until the full amount thereof has been recognized. The current year amount shall be calculated with the formula as follows:
RIE = 0,75 x FRPI + IR - IE, where:
RIE are the recognized interest expenses;
FRPI is the accounting financial result prior to any interest expenses and receipts;
IR is the total amount of interest receipts;
IE are the interest expenses determined in accordance with para. 3 for the current year.
(3) The interest expenses shall include any financial (interest) expenses accounted for in connection with financing with borrowed capital. The interest expenses shall not include the expenses of:
1. interest under financial leasing or bank credit, except where the parties to the transaction are related parties, or the leasing, and the credit, respectively, has been guaranteed or secured or extended by order of a related party;
2. penalty interest on delayed payments and indemnities;
3. interest that is unrecognized for tax purposes on any other legal grounds;
4. (new – SG 110/07, in force from 01.01.2008) interests and other expenses related to credits, which according to the accountancy legislation have been capitalized as a part of an asset value.
(4) In those cases where the financial result prior to any interest expenses and receipts is a negative value, it shall not be taken into consideration when determining the amount of the unrecognized and recognized interest expenses under paras. 1 and 2.
(5) As for the newly incurred unrecognized interest expenses, it is the provisions of this Art. that apply, in compliance with the succession of their incurrence.
(6) Para. 1 shall not apply where:

BC1 + BC2       EQ1 + EQ2, 
-------------- <= 3 x -------------, where
2       2 
          
BC1 is the borrowed capital as at 1 January of the current year;
BC2 is the borrowed capital as at 31 December of the current year;
EQ1 is the equity as at 1 January of the current year;
EQ2 is the equity as at 31 December of the current year.
(7) The interest expenses of the credit institutions shall not be regulated under the procedure set forth in paras. 1 through 6.

Chapter nine.
AMOUNTS INVOLVED IN DETERMINING THE TAX FINANCIAL RESULT
Securities traded in regulated markets
Art. 44. (amend. – SG 106/08, in force from 01.01.2009) In the process of determining the tax financial result the accounting financial result shall be decreased by the profit from disposal of financial instruments in the sense of § 1, Item 21 of the Additional Provision, determined as the positive difference between the sale price and the documented price of acquisition of the said financial instruments. The first sentence shall not apply to revenues from sources abroad for which "exemption with progression" has been stipulated as a method for avoiding double taxation in an agreement on avoidance of double taxation.
(2) In the process of determining the tax financial result the accounting financial result shall be increased by the loss from disposal of financial instruments in the sense of § 1, Item 21 of the Additional Provision determined as the negative difference between the sale price and the documented price of acquisition of the said financial instruments.

Reserve from subsequent appraisals of assets which are not tax amortizable assets
Art. 45. (suppl. - SG 110/07, in force from 01.01.2008) When determining the tax financial result, the accounting financial result shall be increased by the value of the written-off reserve of a subsequent appraisal (reappraisal reserve) on the write-off of assets that are not tax amortizable ones, providing that no accounting revenue or expenses are accounted for on the writing-off of the reserve. The increase is performed in the year in which the asset is written off. Where land is transformed into investment property, the increase shall be carried out in the year in which the investment property is written off.

Tax treatment of liabilities
Art. 46. (1) (amend.. - SG 110/07, in force from 01.01.2008) When determining the tax financial result, the accounting financial result shall be increased by the amount of the liabilities of the taxable person, the decrease being carried out in the year in which any of the following circumstances is present:
1. expiry of the period of limitation for the liabilities, but not later than 5 years following the date on which the liabilities became executable;
2. the taxable person’s bankruptcy proceedings have been suspended with an approved rehabilitation plan, which provides for incomplete satisfaction of the creditors; the amount of the increase shall be equal to the amount of the decrease of the liability;
3. an effective decision of the Court has laid down that the liability or a part thereof is not due;
4. the creditor has waived his receivable through the Court or has remitted it; the amount of the increase shall be equal to the remitted amount;
5. prior to the expiry of the period of limitation for the liability, the latter has been extinguished by virtue of law;
6. the taxable person has filed an application for being struck off.
(2) (amend. - SG 110/07, in force from 01.01.2008) Para 1 shall not apply where in the year of occurrence of the fact referred to in Para 1 the limitation period for the obligation has expired or accounting revenue resulting from deletion of the obligation has been recorded.
(3) (new - SG 110/07, in force from 01.01.2008) Where Para 1 was applied for the preceding year, the taxation financial result for the current year shall be determined by reducing the accounting financial result by:
1. the amount of the obligation for which the limitation has expired in the current year;
2. the recorded accounting revenue during the current year resulting from deletion of the obligation.
(4) (new - SG 110/07, in force from 01.01.2008) The reduction under Para 3 shall be within the amount of the increase under Para 1 during the preceding years in respect of the obligation in question.

Tax treatment of the tax input deducted for assets available at the time of registration or repeated registration under the Value Added Tax Act
Art. 47. (1) (suppl. - SG 110/07, in force from 01.01.2008) When determining the tax financial result, the accounting financial result shall be increased by the amount of the tax input deducted by the taxable person for assets available at the time of registration or repeated registration under the Value Added Tax Act, where no accounting revenue has been recorded in relation to the deducted tax input.
(2) (revoked - SG 110/07, in force from 01.01.2008)
(3) (amend. - SG 110/07, in force from 01.01.2008) Para 1 shall not apply where:
1. the value added tax was not included in the historical value of the asset, or
2. the asset is not a tax amortizable asset and was deleted in the year of registration or second registration under the Law on the Value Added Tax.
(4) (new - SG 110/07, in force from 01.01.2008) In case of deletion of an asset, which is not a tax amortizable asset and to which Para 1 was not applied during the preceding year, the tax financial result for the current year shall be determined by reducing the accounting financial result with the amount of deducted tax input for the assets in question, with which the accounting financial result was increased under the order of Para 1.

Tax treatment for distribution of dividends from investments, accounted by equity method of accounting (new title - SG 95/09, in force from 01.01.2010)
Art. 47a. (new - SG 95/09, in force from 01.01.2010) (1) For determination of the tax financial result of shareholders or partners, their book financial result shall be reduced by the distributed dividends by local legal entities or by foreign persons, which are local persons for taxable purposes of an European Union Member State – a party under the European Economic Area Agreement, or of another Member State of the European Economic Area Agreement, where the investment is accounted by the equity method of accounting.
(2) For the financial institutions, the reduction referred to in par. Shall be by the distributed dividends in the year. The reduction shall be done in the year of recognition of the distributed dividends in the annual financial statement of the financial institution.
(3) For tax liability of persons, who are not financial institutions, the reduction referred to in par. 1 shall be by the distributed dividends in the period of acquisition prior to investment writing off. The reduction shall be done in the year of investment writing off.
(4) Paragraphs 1 -3 shall not apply to:
1. dividends, distributed from profits, made prior to acquisition of the investment;
2. dividends, distributed by licensed companies with specific investment purpose as per the Act on Special Purpose Investment Companies;
3. dividends, representing a hidden distribution of profit.

Relocation of a place of business (New title - SG 95/09, in force from 01.01.2010)
Art. 47b. (new - SG 95/09, in force from 01.01.2010) (1) For determination of a taxable financial result in a place of business activity its book financial result shall be increased by the profit and shall be reduced by the loss from relocation of its place of business. Taxable temporary differences, related to the assets and liabilities of the place of business, shall be recognized for tax purposes in the year of relocation of the place of business under the general provisions of the law. For determination of the tax financial result of the place of business the provision of Art. 66, par. 1 and 2 shall apply.
(2) The profit and loss for the purposes of par. 1 shall be determined as a difference between the selling price of the place of business and the book cost of the assets, reduced by the book cost of liabilities of the place of business as of the date of relocation.
(3) Paragraphs 1 and 2 shall not apply, where the profit and loss from relocation of the place of business have been included in calculation of the book financial result of the place of business.

Chapter ten.
TAX AMORTIZABLE ASSETS
Tax amortizable assets
Art. 48. Tax amortizable assets shall be the following ones:
1. tax fixed tangible assets;
2. tax fixed intangible assets;
3. investment property, with the exception of land;
4. subsequent expenses referred to in Art. 64.

Goodwill
Art. 49. (1) The goodwill resulting from a business combination shall not constitute tax amortizable asset.
(2) The loss resulting from devaluation and the loss in goodwill shall not be recognized for tax purposes.

Tax fixed tangible assets
Art. 50. Tax fixed tangible assets shall be those amounts which meet the requirements regarding amortizable fixed tangible assets specified in the National Accounting Standards for Small and Medium-Sized Enterprises, and the value of the said assets either equals or exceeds the lower value of the following:
1. the value threshold of significance of the fixed tangible asset specified in the accounting policy of the taxable person;
2. (amend. - SG 110/07, in force from 01.01.2008) seven hundred BGN.

Tax fixed intangible assets
Art. 51. (1) Tax fixed intangible assets shall be:
1. those acquired non-financial resources which:
а) have no physical substance;
b) are used for a period longer than 12 months;
c) have a limited useful-life period;
d) have a value that either equals or exceeds the lower value of the following ones:
аа) the value threshold of significance of the fixed intangible asset specified in the accounting policy of the taxable person;
bb) (amend. - SG 110/07, in force from 01.01.2008) seven hundred BGN;
2. (revoked - SG 110/07, in force from 01.01.2008)
3. the amounts charged as a result of business operations bringing about an increase of the economic benefit from leased fixed assets or assets the use of which has been granted; these amounts do not form tax fixed tangible asset.
(2) Those accounting expenses which have been accounted for in connection with the acquisition of a tax fixed intangible asset prior to the coming into existence of the asset shall not be recognized for tax purposes in the year in which they are accounted for and shall be taken into consideration when determining the tax amortizable value of the asset. In those cases where in the course of the subsequent year circumstances are present evidencing that the taxable person shall not acquire the tax fixed intangible asset, the unrecognized expenses under the first sentence shall be recognized for tax purposes in the year in which the said circumstances are present, providing that the requirements of this Act are fulfilled.

Tax amortization plan
Art. 52. (1) The taxable persons forming a tax financial result shall draw and implement a tax amortization plan, and shall record therein all the tax amortizable assets.
(2) The tax amortization plan shall be a tax register containing the information specified in the requirements of this Chapter on the process of acquisition, subsequent implementation, amortization and write-off of tax amortizable assets.
(3) The tax amortization plan shall contain at least the following information regarding each of the tax amortizable assets:
1. designation;
2. month of putting the asset into operation;
3. tax amortizable value;
4. tax amortization charged;
5. tax value;
6. annual tax amortization rate;
7. annual tax amortization;
8. month of introducing changes in the value of the asset and the circumstances necessitating those changes;
9. month of suspension and resumption of the charging of tax amortizations and the circumstances necessitating it;
10. month of the write-off of the asset under Art. 60, para. 3 for accounting purposes and the circumstances necessitating it;
11. month of the write-off of the asset from the tax amortization plan.

Value of the tax amortizable assets
Art. 53. (1) The tax amortizable value shall be the historical value of the asset, decreased by the charged provisions and donations it comprises, the latter being connected with the asset. In the cases referred to in Art. 64, para. 1 and Art. 67 the tax amortizable value shall be the aggregate of:
1. the subsequent expenses – in the cases referred to in Art. 64, para. 1;
2. those expenses that have not been recognized for tax purposes – in the cases referred to in Art. 67.
(2) The annual tax amortization shall be the amortization charged under the tax amortization plan for the respective year in accordance with the requirements set forth in this Chapter.
(3) The tax amortization charged shall be the aggregate of the annual tax amortizations charged with regard to the respective asset. The tax amortization charged may not exceed the tax amortizable value of the asset.
(4) The tax value shall be the tax amortizable value of the asset decreased by the tax amortization charged for it.

Tax and accounting amortizations
Art. 54. (1) When determining the tax financial result, the annual tax amortizations determined in accordance with the procedure set forth in this Chapter shall be recognized for tax purposes.
(2) (suppl. - SG 110/07, in force from 01.01.2008) The accounting amortization expenses shall not be recognized for tax purposes. Where determining the tax financial result, the accounting financial result shall be increased by the accounting amortizations, regardless of whether their accounting leads to reduction of the accounting financial result for the year of their accounting.

Categories of tax amortizable assets
Art. 55. (1) When determining the annual tax amortizations, the tax amortizable assets shall be distributed in the following categories:
1. Category I – solid-structured buildings, including investment property, equipment, power transmission devices, communication lines;
2. Category II – machinery, production equipment, apparatuses;
3. Category III – means of transportation, with the exception of motor vehicles; pavement of roads and runways;
4. (suppl. - SG 110/07, in force from 01.01.2008) Category IV – computers, peripheral devices for computers, software and the right to software use, mobile phones;
5. Category V – motor vehicles;
6. Category VI – those tax fixed tangible and intangible assets the term of use of which is limited under contractual relationships or a legal obligation;
7. Category VII – all other amortizable assets.
(2) The annual tax amortization rate shall be determined as a fixed rate for the year and shall not exceed the following amounts:

Category of assets Annual tax
  amortization
  rate (%)
Category I 4
Category II 30
Category III 10
Category IV 50
Category V 25
Category VI 100/years of the legal
  limitation
  The annual rate may
  not exceed
  33 1/3
Category VII 15
  
(3) As for the assets of the Category II, the annual tax amortization rate may not exceed 50 percent in those cases where all of the following conditions are present:
1. the assets form part of the initial investment;
2. the assets are brand-new ones and have not been used prior to their acquisition.
(4) (revoked - SG 110/07, in force from 01.01.2008)
(5) (new - SG 110/07, in force from 01.01.2008) The acquisition of assets by conclusion of a leasing contract, classified as financial leasing according to the accountancy legislation, shall not serve as grounds for submission the assets in question under category VI.
(6) (new - SG 106/08, in force from 01.01.2009) Item 1 of Para 3 shall not apply, when the assets under Para 3 have been acquired in relation to an investment for increasing the energy efficiency, where voluntary agreements under the order of Chapter Five, Section II of the Energy Efficiency Act have been concluded.

General procedure for recording the assets in a tax amortization plan
Art. 56. The tax amortizable assets shall be recorded in the tax amortization plan with their tax amortizable values.

Specific procedure for recording the assets in a tax amortization plan
Art. 57. (1) A person that has his taxation regime altered, and as a result thereof an obligation arises for him to form a tax financial result, shall draw a tax amortization plan and shall record therein the available tax amortizable assets with their tax amortizable value and the tax amortization charged in accordance with the procedure set forth in paras. 2 and 3.
(2) The tax amortizable value of an asset under para. 1 shall be determined by way of:
1. increasing its historical value by those subsequent expenses made until that time which bring about future economic advantages relating to the asset, according to the accounting legislation, and
2. decreasing its historical value by the charged provisions and donations it comprises, the latter being connected with the asset.
(3) The tax amortization of an asset charged under para. 1 shall be the accounting amortization that would have been charged on the historical value of the asset until that time, revised in accordance with the procedure set forth in para. 2.
(4) When drawing the tax amortization plan, the assets for which the charged tax amortization equals or exceeds their tax amortizable value shall not be recorded in the plan.
(5) Paras. 1 through 4 shall not apply in those cases in which an asset is repeatedly recorded in the tax amortization plan.

Charging of tax amortizations
Art. 58. (1) (suppl. - SG 110/07, in force from 01.01.2008) The charging of a tax amortization commences from the beginning of the month in the course of which the tax amortizable asset is put into operation or from the beginning of the following month. The date on which the asset is put into operation must be evidenced by way of a document.
(2) In those cases where a statutory instrument provides for a procedure for putting the asset into operation, the asset may not be put into operation for tax purposes earlier than the time specified in the statutory instrument.
(3) The annual tax amortization shall be calculated using the following formula:
ATA = TAV x ATAR x M/12, where:
ATA is the annual tax amortization;
TAV is the tax amortizable value;
ATAR is the annual tax amortization rate determined by the taxable person in accordance with Art. 55, paras. 2 and 3;
М is the number of months in the year during which tax amortization is charged.

Suspension of the charging of tax amortization
Art. 59. (amend. - SG 110/07, in force from 01.01.2008) (1) The charging of tax amortization shall be suspended in those cases where the respective asset is temporarily out of use (it does not provide economic benefit) for a period which is longer than twelve months. The charging shall be suspended from the beginning of the month following the month of expiration of the term referred to in the first sentence, and shall be resumed at the beginning of the month in which the asset is put into operation again. The tax amortizable asset shall not be written off from the tax amortization plan.
(2) The tax financial result for the year of expiration of the twelve month term referred to in Para 1 shall be determined by reducing the annual tax amortization of the taxable person by the amount of the accrued tax amortization of the asset during the twelve months in which the asset has remained unused. The amount of the reduction referred to in the first sentence shall be used to correct the tax amortizable asset by the date of discontinuing the accrual of the tax amortization as follows:
1. the accrued tax amortization of the asset is reduced;
2. the tax value of the asset is increased.
(3) Any taxable person under liquidation or insolvency proceedings shall discontinue the accrual of tax amortizations of the assets, for which the accrual of accounting amortizations is discontinued according to the accounting legislation. By the date of discontinuance of the accrual of the tax amortization Art. 60, Para 5 shall apply respectively.
(4) The charging of tax amortizations for the assets under Art. 60, para. 3 shall not be suspended.

Write-off of assets from the tax amortization plan
Art. 60. (1) The asset is written of from the tax amortization plan when it has been totally amortized for tax purposes.
(2) Where an asset is written off for tax purposes prior to being totally amortized for tax purposes, it shall be written off from the tax amortization plan at the beginning of the month in which it is written off for tax purposes.
(3) Para. 2 shall not apply to the write-off of assets where:
1. (amend. - SG 110/07, in force from 01.01.2008) completely deprecated for account purposes;
2. the assets are written off as a result of an increase of the value threshold of significance.
(4) The assets referred to in para. 3 shall be written off from the tax amortization plan in accordance with the procedure set forth in para. 1.
(5) (suppl. - SG 110/07, in force from 01.01.2008) In those cases where an amortizable asset under the National Accounting Standards for Small and Medium-Sized Enterprises is transformed into a non-amortizable one, except for the transformation into investment property, the said asset shall be written off from the tax amortization plan from the beginning of the current month. The first sentence shall not apply to completely depreciated assets for account purposes and to assets, which remain temporarily unused (not economically profitable).
(6) Where the tax amortizable asset is no more used for an activity for which tax financial result is formed, the said asset shall be written off from the tax amortization plan from the beginning of the current month.

Preserving the values of the tax amortizable asset
Art. 61. The values of the tax amortizable asset shall not be changed in the cases of:
1. subsequent accounting appraisal (reappraisal and devaluation);
2. a change in the accounting policy, including a change in the applicable accounting standards;
3. accounting errors made in previous periods, with the exception of technical errors;
3. (revoked – SG 94/10, in force from 01.01.2011)

Changing the value of the tax amortizable asset
Art. 62. (1) (suppl. – SG 94/10, in force from 01.01.2011) A change in the value of the tax amortizable asset shall be made where circumstances are present necessitating a change under this Act or the Accountancy Act, with the exception of the cases referred to in Art. 61.
(2) The change in the value of the tax amortizable asset shall be reported in the tax amortization plan as at 1 January of the year in which the circumstances necessitating the change are established. No change in the tax amortization plan is made, neither is there any revision of the tax amortization charged for the previous years.
(3) The value of the tax amortizable asset following the change must be equal to the value that would have been determined if the circumstances necessitating the change had been known in the previous years.
(4) (suppl. – SG 94/10, in force from 01.01.2011) When determining the tax financial result, the annual tax amortization of the asset for the current year shall be corrected by the difference between the tax amortization charged for the asset during the previous years and the tax amortization that would have been charged if the circumstances necessitating the change had been known in the previous years. The first sentence shall not apply, where the fact requiring changes to the asset amounts is an error.
(5) In those cases where the established circumstances do not necessitate a change in the value of the asset for the previous years, the change in the value shall be reported in the tax amortization plan at the time the circumstance is established in the course of the current year.

Subsequent expenses relating to an asset included in the tax amortization plan
Art. 63. The tax amortizable value of an asset included in the tax amortization plan shall be increased by those subsequent expenses for which the Accountancy Act provides that they result in future economic benefits connected with the tax amortizable asset. The tax amortizable value shall be increased from the beginning of the month in which the subsequent expenses are completed.

Subsequent expenses relating to an asset which is written off from the tax amortization plan
Art. 64. (1) Where the asset has been written off from the tax amortization plan, but has not been written off for tax purposes, a separate tax amortizable value shall be recorded of those subsequent expenses for which the Accountancy Act provides that they result in future economic benefits connected with the tax amortizable asset.
(2) The tax amortizable asset referred to in para. 1 shall be recorded in the tax amortization plan from the beginning of the month in which the subsequent expenses are completed.
(3) For the purposes of Art. 55 the tax amortizable asset shall belong to the category of the asset in connection with which the subsequent expenses are made.
(4) Where the asset in connection with which the subsequent expenses are made is written off from the tax amortization plan prior to the time the tax amortizable asset under para. 1 is completely amortized, the latter shall be written off from the tax amortization plan under the conditions and in accordance with the procedure set forth in Art. 60.

Receipts and expenses of subsequent appraisals of tax amortizable assets
Art. 65. The accounting receipts and expenses of subsequent appraisals of tax amortizable assets shall not be recognized for tax purposes.

Transformation of the accounting financial result upon the write-off of a tax amortizable asset
Art. 66. (1) Where an asset is written off from the accounting amortization plan, when determining the tax financial result the accounting financial result shall be increased by the accounting balance-sheet value of the asset.
(2) Where an asset is written off from the accounting amortization plan, when determining the tax financial result the accounting financial result shall be decreased by the tax value of the asset.
(3) Paras. 1 and 2 shall not apply:
1. in those cases of unrecognized expenses of missing assets and receivables relating thereto in which the tax value exceeds the accounting balance-sheet value of the asset;
2. in those cases of write-off of an asset at the account of the equity in which the tax value exceeds the accounting balance-sheet value of the asset;
3. in those cases of write-off of an asset under Art. 60, para. 6 in which the tax value exceeds the accounting balance-sheet value of the asset;
4. in the cases of transformation of companies and restructuring of cooperative societies under Chapter Nineteen, Sections II and III.

Accounting expenses forming a tax amortizable asset
Art. 67. The accounting expenses forming a tax amortizable asset, including the subsequent expenses, shall not be recognized for tax purposes.

Receipts and expenses accounted for in connection with a donation relating to a tax amortizable asset
Art. 68. The accounting receipts and expenses accounted for in connection with a donation with which the historical value of the asset was decreased in determining the tax amortizable value thereof shall not be recognized for tax purposes.

Specific tax treatment of an asset formed as a result of research and development activities
Art. 69. (1) When determining the tax financial result, the taxable person shall be entitled to decrease the accounting financial result by the historical value of a fixed intangible asset, doing so only once in the year in which it is formed, providing that all of the following conditions are present:
1. the asset has been formed as a result of research and development activities;
2. the research and development activities have been carried out in connection with the occupation of the taxable person;
3. the research and development activities have been assigned by way of an order of a scientific research institute or a higher-education institution under free-market conditions.
(2) In those cases where the taxable person has exercised his right referred to in para. 1, the fixed intangible asset under para. 1 shall not be tax amortizable asset.

Chapter eleven.
CARRY-FORWARD OF A TAX LOSS
General provisions
Art. 70. (1) Taxable persons shall be entitled to carry forward the tax loss formed in accordance with this Part. Where a taxable person opts for the carry-forward of a tax loss, the latter must be carried forward gradually, in the course of the 5 subsequent years, until all of it has been carried forward.
(2) The taxable person shall exercise his right to opt for deducting the tax loss in the first year, following the year in which the tax loss occurred, in which the person has formed positive tax financial result prior to deducting the tax loss. In those cases where until the tax control date the taxable person has not formed positive tax financial result prior to deducting the tax loss, it shall be considered that the person has exercised his right to carrying forward the tax loss.

Procedure for deduction
Art. 71. (1) Upon determining the tax financial result, the tax loss shall be deducted from the positive tax financial result, which is the result prior to deducting the tax loss. Where the tax loss is smaller than the positive tax financial result, when determining the tax financial result the full amount of the tax loss shall be deducted.
(2) (revoked – SG 94/12, in force from 01.01.2013)

Newly incurred tax losses
Art. 72. As for newly incurred tax losses, it is the provisions of this Chapter that shall apply, in observance of the succession of their incurrence. The five years’ term for each of the newly incurred tax losses shall commence from the year which follows the year of incurrence of the respective loss.

Applying the method of "Exemption with progression" to a loss from a source abroad
Art. 73. (1) Where a tax loss is formed in the course of the current year in a State with which the Republic of Bulgaria has signed a treaty on avoidance of double taxation, and the method of avoidance of double taxation regarding profits is the "Exemption with progression" method, the loss shall not be deducted from the tax profits derived either in the current year or in the subsequent years from a source located either within the country or in other States.
(2) The tax loss referred to in para. 1 shall be deducted gradually in the course of the 5 subsequent years, in observance of the requirements of this Chapter, from the tax profits derived from the source abroad.
(3) (amend. - SG 106/08, in force from 01.01.2009) Upon suspension of the activity of a business establishment in a Member State of the European Union or the European Economic Area, those tax losses from the business establishment which have not been carried forward or recovered shall be carried forward in accordance with the general legal procedure, this being valid until the expiry of the five years’ period following the incurrence thereof.

Applying the method of tax input to a loss from a source abroad
Art. 74. (1) Where a taxable person has formed a tax loss and the said loss or a part thereof is from a source abroad to which the tax input method of avoiding double taxation applies, the current year’s loss that has not been deducted shall be deducted gradually in the course of the 5 subsequent years, in observance of the requirements of this Chapter, from the tax profits derived from the said source abroad.
(2) Where the tax loss for the year is formed from more than one sources (located in a foreign State or within the country), for the purposes of para. 1 it shall be distributed among the States in which it has occurred, in accordance with the formula as follows:
А = B x C/D, where:
А is the part of the taxable person’s tax loss for the year, allotted to the respective source (located in a foreign State or within the country);
B is the tax loss of the taxable person for the year;
C is the tax loss formed by the respective source (located in a foreign State or within the country);
D is the aggregate of the tax losses formed by all sources (located in a foreign State or within the country).
(3) (amend. - SG 106/08, in force from 01.01.2009) Para. 1 shall not apply to losses from a source in a Member State of the European Union or the European Economic Area.

Chapter twelve.
ACCOUNTING ERRORS
Eliminating the accounting errors
Art. 75. (1) Where, in the current year, an accounting error relating to years in the past is identified, the tax financial results for the respective years in the past shall be revised in accordance with the requirements of the laws that were effective in the respective years in the past, in a way as though the error had not been committed.
(2) It is the tax rate for the respective year in the past that shall apply in determining the tax liability for the tax financial result for the respective year in the past revised in accordance with para. 1.
(3) (amend. - SG 110/07, in force from 01.01.2008; amend. – SG 94/12, in force from 01.01.2013; suppl. – SG 15/13, in force from 01.01.2013) In the cases under Para 1 the taxable person shall notify in writing the competent income authority, which shall undertake actions for changing the taxation financial result and the duty for the respective taxation period within 30 day-term from the receipt of the notification.
(4) (amend. – SG 94/10, in force from 01.01.2011) When an error has been found that is related to a tax amortisation asset, the values of the asset shall be amended as set out in Art. 62. In those cases where, as a result of the identified error, it is established that the taxable person was obliged to form a tax amortizable asset for the respective year in the past, the annual tax amortization recognized in determining the tax financial results for the preceding years shall be equal to the accounting amortization that would have been charged for the said asset for the respective years, however, this annual tax amortization may not exceed the one that would have been charged if the maximum allowed annual tax amortization rates for the relevant years had been used. The tax amortizable asset referred to in the second sentence shall be recorded in the tax amortization plan as at 1 January of the year of identifying the error, with its tax amortizable value and the tax amortization charged under the second sentence.
(5) The tax temporary difference that would have occurred in a previous year if the error had not been committed shall be regarded as occurring in the course of the respective previous year and shall be recognized for tax purposes in accordance with the general procedure set forth in law.
(6) (amend. – SG 94/10, in force from 01.01.2011) Paras. 1 through 4 shall not apply to the tax financial result and the tax duty thereon for any past year that precedes the date of 1 January of the year of finding the error by at least 6 years.
(7) The accounting receipts and expenses accounted for in the current year in connection with the identification of an accounting error relating to years in the past shall not be recognized for tax purposes.

Specific cases of correcting of accounting errors
Art. 76. In those cases where, following the revision of the tax financial result under Art. 75, para. 1, a tax loss for the respective period in the past appears or changes, there shall apply the provisions of Chapter Eleven. The tax financial results for the years from the time the error was committed until the time it was identified shall be revised in accordance with Art. 75 as though the error had not been committed. The year in which the error was committed shall be regarded as the year of occurrence of the tax loss.

Expenses accounted for in violation of the accounting legislation
Art. 77. (1) Those expenses which have been accounted for in violation of the accounting legislation shall not be recognized for tax purposes in the year in which they are accounted for.
(2) The expenses under para. 1 that have not been recognized for tax purposes shall be recognized for tax purposes where this Act allows it and in observance of the requirements of this Chapter.

Receipts and expenses that have not been accounted for in accordance with the procedure set forth in a statutory instrument
Art. 78. When determining the tax financial result, the accounting financial result shall be corrected by the aggregate of those receipts and expenses which, according to the requirements of a statutory instrument, should have been accounted for in the current year but were not accounted for by the taxable person. In those cases where, later on, accounting receipts and expenses are accounted for under the first sentence, they shall not be recognized for tax purposes.

Rectification of Errors other than Accounting Errors (Title amend. – SG 94/10, in force from 01.01.2011)
Art. 79. (amend. – SG 94/10, in force from 01.01.2011) The provisions of this Chapter shall apply also to errors other than accounting errors, including errors in transformation of the accounting financial result for determining the tax financial result.

Interest on delayed payment
Art. 80. Interest on delayed payment shall also be due in the cases of applying Art. 75. The interest shall be due from the date on which the corporate tax for the respective year in the past should have been paid.

Correction of errors identified in the course of exercising tax control
Art. 81. Except for Art. 75, para. 3, the provisions of this Chapter shall also apply to those errors which have been identified in the course of exercising tax control.

Chapter thirteen.
CHANGING THE ACCOUNTING POLICY
Corrections in the cases of changing the accounting policy
Art. 82. (1) In those cases where the accounting policy is changed, when determining the tax financial result the accounting financial result for the current year shall be corrected in the way and by the amounts by which the tax financial results for the previous years would have been corrected if the changed accounting policy had been applied in the said years.
(2) The tax temporary differences that have occurred due to the accounting policy applied prior to the change shall be treated as if they had not occurred.
(3) In those cases where the changed accounting policy was applied in the previous years and, as a result thereof, tax temporary differences would occur, it shall be considered that they have occurred, and they shall be recognized in accordance with the general procedure of the law.
(4) Those accounting receipts and expenses which have occurred as a result of the change in the accounting policy shall not be recognized for tax purposes.
(5) (amend. - SG 110/07, in force from 01.01.2008) Para 1 through 3 shall not apply where the change in the accounting policy concerns tax amortizable assets.
(6) No interest on delayed payment shall be due in those cases in which the change in the accounting policy brings about an increase of the tax financial result.

Chapter fourteen.
ADVANCE CONTRIBUTIONS
General provisions
Art. 83. (1) (prev. text of Art. 83 - SG 110/07, in force from 01.01.2008; suppl. – SG 94/12, in force from 01.01.2013) The taxable persons shall make monthly or quarterly advance contributions for corporate tax on tha basis of prognosis tax revenue for the current year.
(2) (new - SG 110/07, in force from 01.01.2008) Exempt from advance contributions shall be:
1. (amend. – SG 94/12, in force from 01.01.2013) taxable persons, whose net income of sales for the preceding year does not exceed BGN 300 000;
2. newly constituted taxable persons for the year of their constitution, except those newly constituted as a result of a transformation under the Commerce Act.
(3) (new – SG 94/12, in force from 01.01.2013) The persons referred to in Para 2 may make quarterly advance contributions as set out in this Chapter, to which Art. 89 shall not apply.

Monthly advance contributions
Art. 84. (amend. – SG 94/12, in force from 01.01.2013) The monthly advance contributions shall be made by the taxable persons whose net income from sales for the preceding year exceed BGN 3 000 000.

Quarterly advance contributions
Art. 85. The quarterly advance contributions shall be made by the taxable persons that have no obligation to make monthly advance contributions.

Determining the monthly advance contributions
Art. 86. (prev. text of Art. 86 - SG 110/07, in force from 01.01.2008; amend. – SG 94/12, in force from 01.01.2013) The monthly advance contributions shall be determined on the grounds of the following formula:
ADVMONTHLY = (PTP/12) x TR, where:
ADVMONTHLY is the monthly advance contribution;
PTP is the prognosis tax profit for the current year;
TR is the tax rate of the corporate tax.

Determining the quarterly advance contributions
Art. 87. (amend. – SG 94/12, in force from 01.01.2013) The quarterly advance contributions shall be determined on the grounds of the following formula:
ADVQUARTERLY = (PTP/4) x TR,
where:
ADVQUARTERLY is the quarterly advance contribution;
PTP is the prognosis tax profit for the current year;
TR is the tax rate of the corporate tax.

Declaring advance contributions
Art. 87a. (new – SG 94/12, in force from 01.01.2013) (1) The advance contributions for the current calendar year determined under Art. 86 and 87 shall be declared with the annual tax declaration for the preceding calendar year.
(2) The quarterly advance contributions for the current calendar year determined under Art. 87 by a newly incorporated company resulting from a transformation shall be declared in a declaration according to a form within the time limit for making the first advance contribution following the transformation.
(3) The quarterly advance contributions for the current calendar year determined under Art. 87 by a newly incorporated company in the cases of Art. 83, Para 3 shall be declared in a declaration according to a form within the time limit for making the first chosen advance contribution.

Declaration for changes to the advance contributions (Title amend. – SG 94/12, in force from 01.01.2013)
Art. 88. (1) (amend. – SG 94/12, in force from 01.01.2013) The taxable persons shall be entitled to file declarations of a standard form for having their advance contributions decreased or increased, in those cases where they think the advance contributions will differ from the annual corporate tax due.
(2) (suppl. – SG 94/12, in force from 01.01.2013) The decrease or increase of the advance contributions shall be enjoyed after the declaration is filed.
(3) (new – SG 94/12, in force from 01.01.2013) The declaration referred to in Para 1 shall be filed also in the cases of transformation under Chapter Nineteen, where the amount of the advance contributions determined by the receiving company following the transformation has changed. The declaration shall be filed within the time limit for making the first advance contribution following the transformation.

Interest in case of the annual corporate tax exceeds the determined advance contributions (Title amend. – SG 94/12, in force from 01.01.2013)
Art. 89. (1) (amend. – SG 94/12, in force from 01.01.2013) Where the due annual corporate tax exceeds the amount of determined monthly advance contributions due for the respective year by more than 20 percent or where 75 percent of the due annual corporate tax exceeds the amount of the determined quarterly advance contributions for the respective year by more than 20 percent, interest shall be due for the excess above 20 percent.
(2) (amend. – SG 94/12, in force from 01.01.2013) The amount on which interest is due under para. 1 shall be determined according to the following formulas:
1. for the monthly advance contributions:
A = B – (C + 0,2 C), where:
A is the amount on which interest is due;
B is the due annual corporate tax;
C is the total amount of determined monthly advance contributions for the year;
2. for the quarterly advance contributions:
A = 0,75 B – (C + 0,2 C), where:
A is the amount on which interest is due;
B is the due annual corporate tax;
C is the total amount of determined quarterly advance contributions for the year;
(3) (revoked – SG 94/12, in force from 01.01.2013)
(4) (amend. – SG 94/12, in force from 01.01.2013) Within the meaning of this Art., determined advance contributions shall be:
1. the monthly advance contributions determined under Art. 86 or the quarterly advance contributions determined under Art. 87, for the first, second and third quarter – in respect of advance contributions before submission of the declaration for changes to the advance payments under Art. 88;
2. the decreased or increased monthly advance contributions or the decreased or increased quarterly advance contributions for the first, second and third quarter specified in the declaration under Art. 88 - in respect of advance contributions following the submission of the declaration for changes under Art. 88.
(5) (suppl. – SG 94/10, in force from 01.01.2011; amend. – SG 94/12, in force from 01.01.2013) The interest referred to in para. 1 shall be determined according to the Act on Interest on Taxes, Fees and Other Similar State Receivables and shall be calculated from 16 April to 31 December of the respective year, and in respect of newly incorporated companies resulting from a transformation – from the date, following the date of expiration of the time limit for making the first quarterly advance contribution, to 31 December of the year of the transformation.

Payment of the advance contributions
Art. 90. (amend. – SG 94/12, in force from 01.01.2013) (1) The monthly advance contributions shall be paid as follows:
1. for January, February and March – by 15 April of the current calendar year;
2. for April until December - by the 15th day of the month they are paid for.
(2) The quarterly advance contributions for the first and second quarter shall be payable until the 15th day of the month following the quarter they are paid for, and for the third quarter – by 15 December. No quarterly advance contribution is payable for the fourth quarter.

Exemption from advance contributions
Art. 91. (amend. – SG 94/12, in force from 01.01.2013) The taxable persons that are exempt from corporate tax for the current year shall also be exempt from the respective part of the advance contributions determined, the said part being in proportion to the amount of exemption.

Chapter fifteen.
DECLARING AND PAYING THE CORPORATE TAX
Declaring the corporate tax
Art. 92. (1) The taxable persons that are taxed with corporate tax shall submit an annual tax return of a standard form regarding the tax financial result and the annual corporate tax due.
(2) The annual tax return shall be submitted not later than 31 March of the subsequent year with the territorial directorate of the National Revenue Agency by registration of the taxable person.
(3) (amend. - SG 95/09, in force from 01.01.2010) The annual business report shall be submitted together with the annual tax return.
(4) (amend. - SG 95/09, in force from 01.01.2010) Annual business report shall not be submitted by taxable persons, who have met the following requirements in aggregate:
1. they have not carried out any business during the year;
2. they have not accounted income and expenditures in the year according to the Accountancy Acts.
(5) (amend. - SG 95/09, in force from 01.01.2010) The taxable persons that submit their annual tax returns and their annual business report until 31 March of the subsequent year electronically and pay their corporate tax within the same time limit, shall enjoy a relief of 1 percent of the annual corporate tax due, however, this relief may not exceed BGN 1,000.
(6) (new – SG 94/10, in force from 01.01.2011) The taxable persons shall enclose with their annual tax statement proof of the amount of taxes paid abroad. The first sentence shall not apply to profit/income from sources abroad which are exempt from double taxation by virtue of an "exemption with progression" method stipulated in an agreement for avoidance of double taxation.

Payment of the tax
Art. 93. After deducting the advance contributions paid for the respective year, the taxable persons shall pay the corporate tax for the respective year not later than 31 March of the subsequent year.

Overpaid tax
Art. 94. (revoked – SG 94/12, in force from 01.01.2013)

Chapter sixteen.
FINANCIAL INSTITUTIONS
Receipts and expenses determined by a regulatory body
Art. 95. In those cases where the amount of the receipts or expenses accounted for under the accounting policy of the financial institution differs from the amount determined by a regulatory body under a statutory instrument, it is the amount determined under the statutory instrument that is recognized when determining the tax financial result.

Receipts and expenses of subsequent appraisals (reappraisals and devaluations) of financial assets and liabilities (supp. - SG 95/09, in force from 01.01.2010)
Art. 96. (1) (prev. Art. 96 - SG 95/09, in force from 01.01.2010) The receipts and expenses of subsequent appraisals of financial assets and liabilities accounted for by financial institutions shall be recognized for tax purposes in the year in which they are accounted for. The financial institutions shall not apply Arts. 34, 35 and 37 to the financial assets and liabilities.
(2) (new - SG 95/09, in force from 01.01.2010) Where income and expenditures from subsequent valuations of financial assets and liabilities have not been recognized for tax purposes in a preceding period, they shall be recognized for tax purposes pursuant to the general provisions of the law. The provision of par. 1, second sentence shall not apply to those assets and liabilities.

Subsequent appraisals of financial assets and liabilities recognized directly in the equity
Art. 97. (1) When determining the tax financial result of financial institutions, their accounting financial result shall be increased by the profits of subsequent appraisals of financial assets and liabilities recognized directly in their equity in the current year.
(2) When determining the tax financial result of financial institutions, their accounting financial result shall be decreased by the losses of subsequent appraisals of financial assets and liabilities recognized directly in their equity in the current year.
(3) (amend. - SG 110/07, in force from 01.01.2008) Profits and losses recognized during the current year in the income and expenses account (the revenue account), which have participated in estimating the tax financial result under the order of para. 1 and 2, shall not be recognized for tax purposes.

Chapter seventeen.
SPECIFIC RULES ON DETERMINING THE TAX FINANCIAL RESULT OF COOPERATIVE SOCIETIES
Production and consumer dividends
Art. 98. (1) Production dividends shall be the amounts distributed for those products which the members of the cooperative society have produced and sold to the cooperative society. These dividends shall be determined on the grounds of the profit corresponding to the products sold, including products sold after being processed.
(2) Consumer dividends shall be the amounts distributed for those consumer goods which the members of the cooperative society buy from the latter. These dividends shall be determined on the grounds of the profit resulting from the difference between the sale price at which the cooperative society has sold the goods, this price being decreased by the expenses of selling the goods, and the price which the cooperative society has paid for acquiring the goods.

Tax treatment of production and consumer dividends
Art. 99. (1) When determining the tax financial result, the accounting financial result shall be decreased by those production and consumer dividends which are paid to the members of the cooperative society prior to 25 March of the subsequent year and are covered by the balance-sheet profit. The decrease under the first sentence shall be up to the amount of the positive accounting financial result.
(2) Those production and consumer dividends which are paid to the members of the cooperative society in the course of the year shall be accounted for but shall not be considered when determining the accounting financial result.
(3) Where the cooperative society has accounted for a balance-sheet loss or a balance-sheet profit which is insufficient to cover the production and consumer dividends paid during the year, the amount of those production and consumer dividends paid during the year which are not covered shall be accounted for as accounting expense that is not recognized for tax purposes.

Chapter eighteen.
DIVIDENDS WITHIN THE EUROPEAN COMMUNITY (REVOKED – SG 69/08, IN FORCE FROM 01.01.2009)
Section I.
Definitions (revoked – SG 69/08, in force from 01.01.2009)
Another Member State company
Art. 100. (revoked – SG 69/08, in force from 01.01.2009)

Local mother company
Art. 101. (revoked – SG 69/08, in force from 01.01.2009)

Member State mother company
Art. 102. (revoked – SG 69/08, in force from 01.01.2009)

Local subsidiary company
Art. 103. (revoked – SG 69/08, in force from 01.01.2009)

Member State subsidiary company
Art. 104. (revoked – SG 69/08, in force from 01.01.2009)

Section II.
Tax Treatment of the Distribution of Dividends (revoked – SG 69/08, in force from 01.01.2009)
Dividends distributed by a Member State subsidiary company
Art. 105. (revoked – SG 69/08, in force from 01.01.2009)

Nonfulfilment of the condition for exemption from taxation
Art. 106. (revoked – SG 69/08, in force from 01.01.2009)

Unrecognized expenses relating to unrecognized receipts from dividends
Art. 107. (revoked - SG 110/07, in force from 01.01.2008)

Dividends distributed by a local subsidiary company in favour of a Member State mother company
Art. 108. (revoked – SG 69/08, in force from 01.01.2009)

Security
Art. 109. (revoked – SG 69/08, in force from 01.01.2009)

Cooperative societies
Art. 110. (revoked – SG 69/08, in force from 01.01.2009)

Tax evasion
Art. 111. (revoked – SG 69/08, in force from 01.01.2009)

Chapter nineteen.
TRANSFORMATION OF COMPANIES AND COOPERATIVE SOCIETIES, AND TRANSFER OF ENTERPRISES
Section I.
General Provisions
Scope
Art. 112. The provisions of this Chapter shall apply to the transformation of companies and cooperative societies, and to the transfer of enterprises.

Transformation date
Art. 113. The transformation date for tax purposes shall be the date on which the transformation is entered in the Commercial Register.

Last tax period where a company under transformation is wound up
Art. 114. The last tax period where a company under transformation is wound up shall be the period commencing from the beginning of the year and ending on the date of transformation. As for the companies which are newly established in the year of transformation, the last tax period shall be the period commencing from the date of establishment and ending on the date of transformation.

Taxation regarding the last tax period
Art. 115. (1) The companies under transformation and the foreign persons’ business activity establishments under transformation shall be taxed with corporate tax for the last tax period in accordance with the general legal procedure. The taxation shall be final.
(2) For tax purposes the assets and liabilities as at the transformation date shall be considered realized at market prices and shall be written off.
(3) When determining the tax financial result, the accounting financial result shall be increased by the profit and decreased by the loss calculated as the difference between the market price of the asset or liability and its accounting value as at the date of transformation. Those tax temporary differences for the last tax period which relate to the asset or liability shall be recognized in accordance with the general legal procedure. Art. 66, paras. 1 and 2 shall apply to determining the tax financial result.
(4) Paras. 2 and 3 shall not apply in the cases of transformation under the conditions of Sections II and III.

Tax treatment of transformation by way of changing the legal form
Art. 116. (1) Arts. 115 and 117 shall not apply to the cases of transformation by way of changing the legal form under Art. 264 of the Commerce Act. The newly established company shall assume the obligations to determine the tax financial result and to pay the corporate tax due for the whole year of transformation.
(2) For tax purposes all those rights and obligations which arise from actions performed by the company under transformation both during the current period and during previous ones, including the transformations of the tax financial result, shall be regarded as being performed by the newly established company.

Tax treatment of transformation via transfer of property to the single owner
Art. 116a. (new - SG 110/07, in force from 01.01.2008) (1) In case of transformation via transfer of property to the single owner according to Art. 265 of the Commerce Act all rights and obligations resulting from acts of the company under transformation during current or previous terms, including transformations of the tax financial result, shall be considered performed by the sole entrepreneur.
(2) The sole entrepreneur shall submit a tax statement on the corporate tax for the most recent tax term of the company under transformation under the order of Art. 117, Para 1 and shall deposit the tax within the term under Art. 117, Para 2.
(3) After the transformation the sole entrepreneur shall deposit quarterly advance contributions in the year of transformation.
(4) The sole entrepreneur may not transfer the tax losses, incurred by the company under transformation.
(5) The sole entrepreneur may not recognize for tax purposes the unrecognised expenses for interests in the company under transformation resulting from the application of the weak capitalization regime.
(6) The company under transformation shall not apply Art. 115, Para 2 and 3.

Declaring and paying the tax for the last tax period
Art. 117. (1) (amend. and suppl. - SG 110/07, in force from 01.01.2008) In the cases of termination of companies under transformation the newly established companies or the acquiring ones shall submit a tax return regarding the corporate tax for the last tax period of the company under transformation within a period of 30 days following the date of transformation. The return shall be submitted to the Territorial Directorate of the National Revenue Agency of the newly established or the host company. In case of transformation in the form of division a return shall be submitted only by one of the newly established or host companies.
(2) The corporate tax for the last tax period shall be paid by the newly established companies or the acquiring ones within a period of 30 days following the date of transformation, after deducting the advance contributions made.
(3) (new - SG 110/07, in force from 01.01.2008) Para 1 and 2 shall apply also to cases of termination of the company under transformation according to Section II of the present Chapter.

Advance contributions of acquiring companies or newly established companies
Art. 118. (1) (amend. – SG 94/12, in force from 01.01.2013) In the year of transformation of the acquiring companies shall make, following the transformation, the same advance contributions as before the transformation, and the newly incorporated companies shall make quarterly advance contributions.
(2) (amend. – SG 94/12, in force from 01.01.2013) In the cases of transformation by way of changing the legal form under Art. 264 of the Commerce Act the newly established company shall make monthly advance contributions or quarterly ones in accordance with the general legal procedure, on the grounds of the prognosis tax revenue, determined by the company under transformation.

Carry-forward of a tax loss in the cases of transformation and transfer of an enterprise
Art. 119. (1) In the cases of transformation under the Commerce Act the acquiring companies or the newly established ones shall not be entitled to carry forward those tax losses which have been formed by the companies under transformation.
(2) In the cases of selling an enterprise under Art. 15 of the Commerce Act the legal successor shall not be entitled to carry forward those tax losses which have been formed by the alienator.
(3) Para. 1 shall not apply to the cases of transformation by way of changing the legal form under Art. 264 of the Commerce Act.

Regulation of low-rate capitalization
Art. 120. (1) In the cases of transformation under the Commerce Act the acquiring companies or the newly established ones shall not be entitled to recognize for tax purposes the unrecognized interest expenses of the companies under transformation, these expenses resulting from the application of the low-rate capitalization regime.
(2) In the cases of selling an enterprise under Art. 15 of the Commerce Act the legal successor shall not be entitled to recognize for tax purposes the unrecognized interest expenses of the alienator, these expenses resulting from the application of the low-rate capitalization regime.
(3) Para. 1 shall not apply to the cases of transformation by way of changing the legal form under Art. 264 of the Commerce Act.

Expenses of carrying out the transformation
Art. 121. (1) The accounting expenses the company under transformation has made in connection with the transformation shall not be recognized for tax purposes. The unrecognized expenses shall be recognized for tax purposes when determining the tax financial result of the acquiring company or the newly established company for the year in which the transformation is carried out.
(2) Where circumstances are present which determine that the transformation will not take place, those expenses of the companies under transformation which are referred to in para. 1 shall be recognized for tax purposes for the year in which the said circumstances occur, providing that the requirements of this Act are met.

Tax treatment in the cases of choosing an earlier date of transformation for tax purposes
Art. 122. (1) (amend. and suppl. - SG 110/07, in force from 01.01.2008) In the cases of choosing an earlier date of transformation for tax purposes under Art. 263g, para. 2 of the Commerce Act all the actions of the companies under transformation performed at the expense newly established companies or the acquiring ones in the period from the said date until the date of transformation for tax purposes shall be considered performed for taxation purposes by the companies under transformation.
(2) (suppl. - SG 110/07, in force from 01.01.2008) In the cases under para. 1 all the accounting receipts and expenses, profits and losses accounted for by the newly established companies or the acquiring ones shall be recognized for tax purposes for the company under transformation. The said receipts and expenses, profits and losses shall not be recognized for tax purposes for the newly established companies or the acquiring ones. For the purposes of the first and second sentence the account income and expenses, profits and losses shall be those, which would have been estimated by the company under transformation, if no earlier date has been fixed for account purposes under the order of Art. 263g, Para 2 of the Commerce Act.
(3) When determining the tax financial result, the transformations resulting from the actions under para. 1 shall be made by the companies under transformation.

Cooperative organizations and State-owned enterprises
Art. 123. The provisions of this Chapter regarding the transformation of commercial companies shall also apply to the cases of:
1. restructuring of cooperative organizations;
2. winding-up, closure or formation of State-owned enterprises within the meaning of Art. 62, para. 3 of the Commerce Act under the conditions of universal legal succession.

Responsibility in the cases of transformation and restructuring
Art. 124. (1) In the cases of transformation of commercial companies or restructuring of cooperative organizations the newly established companies/cooperative organizations or the acquiring ones shall bear joint responsibility for the tax liabilities of the companies or cooperative organizations under transformation up to the amount of the rights acquired.
(2) In the cases of transfer of an enterprise under Art. 15 of the Commerce Act the legal successor shall bear joint responsibility for the tax liabilities of the alienator up to the amount of the rights acquired.
(3) The rights acquired shall be assessed in accordance with the market prices.

Section II.
Specific Regime of Taxation in the Cases of Transformation
Scope
Art. 125. (1) (amend. - SG 106/08, in force from 01.01.2009) This Section shall apply to takeover, merger, split-up, separation, transfer of a separate activity and exchange of stocks and shares within the meaning of Arts. 126 through 131 in which local companies and/or companies of another Member State of the European Union are involved.
(2) (amend. - SG 106/08, in force from 01.01.2009) This Section shall also apply to the cases of restructuring of cooperative organizations, including ones of other Member States of the European Union where the conditions specified in this Section are present.

Takeover
Art. 126. (1) Takeover shall be any transformation in the course of which all of the following conditions are present:
1. all the assets and liabilities of one or more companies under transformation are transferred to an existing acquiring company, the companies under transformation being wound up without liquidation;
2. the shareholders or partners in the companies under transformation are issued stocks or shares in the acquiring company.
(2) Takeover shall also be any transformation in which all the assets and liabilities of the company under transformation are transferred to an acquiring company, the latter holding all the stocks or shares of the company under transformation, the latter being wound up without liquidation.

Merger
Art. 127. Merger shall be any transformation in the course of which all of the following conditions are present:
1. all the assets and liabilities of one or more companies under transformation are transferred to a newly established company, the companies under transformation being wound up without liquidation;
2. the shareholders or partners in the companies under transformation are issued stocks or shares in the newly established company.

Split-up
Art. 128. Split-up shall be any transformation in the course of which all of the following conditions are present:
1. (amend. - SG 110/07, in force from 01.01.2008) all the assets and liabilities of a company under transformation are transferred to two or more existing (host) or newly established companies, the company under transformation being wound up without liquidation;
2. the shareholders or partners in the company under transformation are issued stocks or shares in each of the existing or newly established companies in proportion to the stocks or shares held by the shareholders or partners in the company under transformation.

Separation
Art. 129. Separation shall be any transformation in the course of which all of the following conditions are present:
1. (amend. - SG 110/07, in force from 01.01.2008) one or more of the separate activities of a company under transformation are transferred to two or more existing (host) or newly established companies, the company under transformation not being wound up and preserving at least one of the separate activities;
2. the shareholders or partners in the company under transformation are issued stocks or shares in each of the existing or newly established companies in proportion to the stocks or shares held by the shareholders or partners in the company under transformation.

Transfer of a separate activity
Art. 130. (amend. - SG 110/07, in force from 01.01.2008) Transfer of a separate activity shall be any transformation in the course of which one or more than one or all of the separate activities of a company under transformation are transferred to one or more existing (host) or newly established companies, and in return thereof the existing or newly established companies issue stocks or shares in favour of the company under transformation, and the latter is not wound up.

Exchange of stocks and shares
Art. 131. Exchange of stocks and shares shall be a transformation in the course of which all of the following conditions are present:
1. as a result of the transformation, the acquiring company holds more than one half of the shares with voting rights or more than one half of the stocks of the acquired company, or, if it already holds such portion in the capital, it acquires an additional part of the stocks or shares;
2. the shareholders or partners in the acquired company exchange their stocks or shares for stocks or shares in the acquiring company.

Additional pecuniary payments and cases in which stocks or shares are not issued
Art. 132. (1) In the cases of takeover, merger, split-up, separation and exchange of stocks and shares, for the purpose of achieving an equivalent exchange, it shall be possible to make pecuniary payments to the shareholders or partners in the companies under transformation or the acquired companies, these being payments at the amount of up to 10 percent of the par value of the stocks or shares issued as a result of the transformation.
(2) (amend. - SG 110/07, in force from 01.01.2008) In the cases of takeover, division and separation it shall also be possible not to issue stocks or shares providing that the Commerce Act permits so.

Issue of stocks or shares
Art. 133. Within the meaning of this Chapter, issue of stocks or shares shall be present in the cases of provision of newly issued or owned stocks or shares in a newly established company, or an acquiring one, or a receiving one.

Separate activity
Art. 134. Separate activity shall be the aggregate of assets and liabilities of a company with which the company can carry out economic activity of its own, the latter being independent from the organizational, functional and financial point of view.

Companies under transformation
Art. 135. Within the meaning of this Section, companies under transformation shall be:
1. a local company under transformation;
2. (amend. - SG 106/08, in force from 01.01.2009) a company under transformation from another Member State of the European Union;
3. (amend. - SG 106/08, in force from 01.01.2009) a business activity establishment within the country of a company under transformation from another Member State of the European Union.

Receiving companies
Art. 136. Within the meaning of this Section, receiving companies shall be:
1. a local newly established company or an acquiring company;
2. (amend. - SG 106/08, in force from 01.01.2009) a newly established company or an acquiring company from another Member State of the European Union;
3. (amend. - SG 106/08, in force from 01.01.2009) a business activity establishment within the country of the newly established company or the acquiring company from another Member State of the European Union.

A company from another Member State of the European Community
Art. 137. (amend. - SG 106/08, in force from 01.01.2009) Within the meaning of this Section, a company from another Member State of the European Union shall be a company which meets all of the following conditions:
1. the legal form of the company is in accordance with Supplement No. 3;
2. (amend. - SG 106/08, in force from 01.01.2009) the company is a local person for tax purposes in another Member State of the European Union, in accordance with the respective tax legislation and by virtue of a treaty with a third State on avoidance of double taxation the company is not considered a local person for tax purposes in another State outside the European Union;
3. the profits of the company are taxed either with a tax under Supplement No. 4 or with another similar tax on profits, and the company is not entitled to choose it or to be exempt from taxation with the said tax.

Legal succession
Art. 138. For the purposes of this Section, in the cases of transformation all those rights and obligations which arise from the actions performed by the companies under transformation within the current period or during preceding periods and relate to assets and liabilities transferred under Art. 139, item 1, including the transformations in determining the tax financial result, shall be transferred to the acquiring companies.

Assets and liabilities subject to transformation
Art. 139. The assets and liabilities subject to transformation under this Section belong to the following categories:
1. assets and liabilities, the results of the utilization of which are considered, both before the transformation and after it, in determining the tax financial result under this Act;
2. assets and liabilities, the results of the utilization of which were considered before the transformation in determining the tax financial result under this Act, and as a result of the transformation are no longer considered in determining the tax financial result under this Act;
3. assets and liabilities, the results of the utilization of which were not considered before the transformation in determining the tax financial result under this Act, and as a result of the transformation are considered in determining the tax financial result under this Act.

Transferred assets and liabilities under Art. 139, item 1
Art. 140. (1) The accounting profits or losses that occur when assets and liabilities under Art. 139, item 1 are written off as a result of the transformation shall not be recognized for tax purposes.
(2) Those tax temporary differences connected with assets and liabilities referred to in Art. 139, item 1 which have occurred prior to the transformation shall not be recognized for tax purposes at the time of transformation and shall be regarded as occurring in the acquiring companies.
(3) Where, under the accounting legislation, an asset or a liability is recognized for the acquiring company and the value thereof differs from the value prior to the transformation, the difference between the two values either shall form a tax temporary difference of a subsequent appraisal or shall be an amount by which the tax temporary difference under para. 2 shall be revised.
(4) (suppl. - SG 110/07, in force from 01.01.2008) The subsequent valuation reserve (revaluation reserve) for those assets under Art. 139, item 1 which are not tax amortizable assets shall be transferred by the company under transformation and shall be regarded as occurring in the acquiring company. The latter shall not apply Art. 45. Where the transferred reserve of the subsequent valuation (revaluation reserve) referred to in the first sentence was not accounted by the acquiring company, in the year of writing off the asset, to which the reserve is related, shall be increased the accounting financial result by the amount of the reserve, if the reserve has a positive value, respectively reduced the accounting financial result, if the reserve has a negative value.
(5) (suppl. - SG 110/07, in force from 01.01.2008) The tax amortizable assets acquired under Art. 139, item 1 shall be recorded in the tax amortization plan of the acquiring company, their values being equal to the ones in the tax amortization plan of the company under transformation at the time of transformation. A copy of the tax depreciation plan of the transforming company at the moment of transformation shall be delivered to the revenue authority together with the copy of the reference under Para 6.
(6) (amend. - SG 110/07, in force from 01.01.2008) A reference report under Art. 141 shall be made on the transformation of each asset or liability under Art. 139, item 1.
(7) (new - SG 110/07, in force from 01.01.2008) Where as a result of the transformation the host company estimates under the accountancy legislation assets and debts, which were not estimated by the company under transformation, the accounted income and expense after the transformation related to these assets and debts shall not be recognized for tax purposes. Where the assets referred to in the first sentence are depreciable for accountancy purposes, they shall not be entered in the tax depreciation plan of the host company and no tax depreciation shall be accrued for them. The accountancy profit, which has occurred at the host company as a result of the transformation, respectively the accounted recognized income related to the negative reputation, which has arisen, shall not be recognized for taxation purposes.
(8) (new - SG 110/07, in force from 01.01.2008; amend. – SG 94/12, in force from 01.01.2013) Where an asset of the company under transformation was not recognized according to the accountancy legislation at the host company, the accountancy financial result shall be reduced by the asset in question, when determining the tax financial result of the host company for the year of transformation. Where a debt of the company under transformation was not recognized under the accountancy legislation at the host company, the accounting financial result shall be increased by the value of the debt in question, when determining the tax financial result of the host company for the year of transformation. The tax temporary differences, which have occurred before transformation and are related to an asset or a debt referred to in the first or second sentence, shall be recognized at the host company during the year of transformation under the general order of the law.
(9) (new - SG 110/07, in force from 01.01.2008) Para 3, 6 and 8 shall not apply to:
1. tax depreciable assets;
2. assets and debts related to deferred taxes;
3. the reputation, where the the accountancy income and expenses estimated in relation to it are not recognized for tax purposes;
4. amounts, which are assets for the company under transformation, and debts for the host company;
5. amounts, which are debts for the company under transformation, and assets for the host company;
6. shares or quotas of the hos company, owned by the company under transformation;
7. own shares repurchased by the company under transformation;
8. subscribed but non-deposited capital of the company under transformation
9. assets and debts under Art. 139, Item 2.
(10) (new - SG 110/07, in force from 01.01.2008) Para 4 shall not apply to the reserve formed by subsequent valuations of financial assets and debts of the financial institutions, when the accountancy financial result was transformed under the order of Art. 97 with the profits and losses under the subsequent valuations in question. This reserve shall not be noted in the references under Art. 141.

Reference reports on assets and liabilities under Art. 139, item 1
Art. 141. (1) The reference report under Art. 140, para. 6 made by the companies under transformation shall contain the following information on each asset and liability as at the date of transformation:
1. type and designation;
2. accounting value;
3. tax temporary difference;
4. (new - SG 110/07, in force from 01.01.2008) reserve from a subsequent valuation (revaluation reserve).
(2) A copy of the reference report under para. 1 shall be submitted to the acquiring companies and the revenue body not later than the end of the month following the month of transformation.
(3) In the cases under Art. 140, para. 3 a new reference report shall be made by the acquiring companies and a copy thereof shall be submitted to the revenue body together with the annual tax return. The reference report shall contain the following information on each asset and liability:
1. type and designation;
2. accounting value;
3. tax temporary difference before the transformation;
4. tax temporary difference after the transformation, determined under Art. 140, para. 3;
5. (new - SG 110/07, in force from 01.01.2008) reserve from a subsequent valuation (revaluation reserve).
(4) Where, following the submission under para. 3, corrections under the accounting legislation are made in the values of the assets and liabilities as a result of the transformation, the acquiring company shall make a revised reference report. The latter shall be submitted to the revenue body not later than the end of the month following the month of occurrence of those circumstances which have necessitated the revision.
(5) The reference reports under paras. 1 and 3 shall contain data identifying the companies under transformation and the acquiring companies, as well as the date of transformation and the court judgement on the entry thereof.
(6) (new - SG 110/07, in force from 01.01.2008) The copies of the references referred to in this article and from the tax depreciation plan under Art. 140, Para 5 shall be submitted to the Territorial Directorate of the National Revenue Agency at the place of registration of the host companies on a magnetic or optical carrier, or in an electronic way.

Transferred assets and liabilities under Art. 139, item 2
Art. 142. (1) (amend. - SG 106/08, in force from 01.01.2009) The accounting profits or losses that occur when assets and liabilities under Art. 139, item 2 are written off in connection with a business activity establishment of a local person in another Member State of the European Union shall not be recognized for tax purposes.
(2) Those tax temporary differences which are connected with assets and liabilities referred to in para. 1 shall not be recognized for tax purposes at the time of transformation, neither shall they be recognized in the subsequent years.
(3) Except for the cases under para. 1, for tax purposes the assets and liabilities present at the time of transformation under Art. 139, item 2 shall be regarded as realized at market prices and shall be written off.
(4) In the cases under para. 3, when determining the tax financial result, the accounting financial result shall be increased by the profit and decreased by the loss calculated as the difference between the market price of the asset or liability and its accounting value as at the date of transformation. Those tax temporary differences for the last tax period which relate to the asset or liability shall be recognized in accordance with the general legal procedure. Art. 66, paras. 1 and 2 shall apply to determining the tax financial result.

Transferred assets and liabilities under Art. 139, item 3
Art. 143. (1) For tax purposes the assets referred to in Art. 139, item 3 shall be evaluated by the acquiring companies in accordance with the value thereof determined under the national accounting legislation.
(2) The taxable amortizable assets referred to in Art. 139, item 3 shall be recorded in the tax amortization plan in accordance with the general legal procedure.

Carry-forward of tax losses
Art. 144. (1) In the course of transformation under this Section the acquiring companies shall not be entitled to carry forward those tax losses which have been formed by the companies under transformation.
(2) (amend. - SG 106/08, in force from 01.01.2009) Para. 1 shall not apply to the cases of takeover or merger under this Section resulting in setting up a business activity establishment, within the country, of a company from another Member State of the European Union, if prior to the transformation the said company did not have a business activity establishment within the country.

Tax losses of a business activity establishment
Art. 145. (1) (amend. - SG 106/08, in force from 01.01.2009) Those tax losses that have not been carried forward until the time of transformation and have been formed by a business activity establishment of a local company in another Member State of the European Union shall not be deducted.
(2) (amend. - SG 106/08, in force from 01.01.2009) When determining the tax financial result, the accounting financial result shall be increased by the transferred tax losses at the time of transformation, these losses being formed by the business activity establishment of a local company in another Member State of the European Union, providing that the said losses have not been deducted from the profits of the business activity establishment.

Regulation of low-rate capitalization
Art. 146. (1) In the cases of transformation under this Section the acquiring companies shall not be entitled to recognize for tax purposes the unrecognized interest expenses of the companies under transformation, these expenses resulting from the application of the low-rate capitalization regime.
(2) (amend. - SG 106/08, in force from 01.01.2009) Para. 1 shall not apply to those cases of takeover or merger under this Section as a result of which a business activity establishment is set up within the country of a company from another Member State of the European Union, and prior to the transformation the said company did not have a business activity establishment within the country.

Advance contributions on the part of acquiring companies
Art. 147. (1) (amend. – SG 94/12, in force from 01.01.2013) In the year of transformation the acquiring companies shall make, following the transformation, the same advance contributions as before the transformation, and the newly incorporated companies shall make quarterly advance contributions.
(2) (amend. – SG 94/12, in force from 01.01.2013) In the cases referred to in Art. 144, para. 2 the acquiring companies shall make monthly or quarterly advance contributions under the general legal procedure, on the grounds of the net revenue income of the companies under transformation.

Write-off of a share
Art. 148. (1) In those cases where an acquiring company holds a share in the capital of a company under transformation, the accounting profits or losses relating to the write-off of the share in the capital shall not be recognized for tax purposes.
(2) The income under para. 1 shall not be subject to taxation withheld at the source under the procedure set forth in Part Three.

Tax treatment of shareholders or partners in companies under transformation and acquired companies
Art. 149. (1) The accounting profits or losses occurring for shareholders or partners in companies under transformation or acquired companies as a result of the acquisition of stocks or shares in acquiring companies shall not be recognized for tax purposes in the year in which they are accounted for and shall form tax temporary difference of subsequent appraisal.
(2) Those tax temporary differences occurring for shareholders or partners prior to the transformation which are connected with the written-off stocks or shares in the companies under transformation or the acquired companies shall not be recognized for tax purposes at the time of transformation.
(3) The tax temporary differences under paras. 1 and 2 shall be regarded as occurring with regard to the newly acquired stocks or shares and shall be recognized for tax purposes in accordance with the general legal procedure.
(4) The income that has been realized by those foreign legal entities which are shareholders or partners in local companies under transformation or local acquired companies as a result of the acquisition of stocks or shares following a transformation shall be taxed or exempt from taxation at the source as at the date of transformation under the general legal procedure.
(5) The tax at the source under para. 4 shall be due by the shareholder or partner in cases of any disposal of the newly acquired stocks or shares and shall be payable within 60 days following the disposal.
(6) (amend. - SG 110/07, in force from 01.01.2008) It is until 31 January of the respective year that the foreign legal entities under paras. 4, 5 and 8 shall submit a declaration with the territorial directorate of the National Revenue Agency stating they have not disposed of the stocks or shares newly acquired as a result of the transformation. The persons submit a declaration under the first sentence each year until the year of disposal of the newly acquired stocks or shares.
(7) Where the declaration referred to in para. 6 is not submitted in due time, apart from the respective administrative sanction, for the purposes of this Act it shall also be assumed that the foreign legal entity has disposed of the newly acquired stocks or shares.
(8) (new - SG 110/07, in force from 01.01.2008) Shall not be treated as profit gained by a foreign legal person any acquisition of shares or quotas as a result of a transformation in form of a separation, except in case of separation, where shares of the company under transformation are being annulled. For the purpose of estimating the tax at the source, in case of a subsequent disposition of the shares or quotas referred to in the first sentence their documentary proved price of acquisition shall be zero.

Taxation of a company under transformation in the cases of transfer of a separate activity
Art. 150. (1) Those accounting profits or losses of a company under transformation which have occurred as a result of the transfer of a separate activity shall not be recognized for tax purposes in the year in which they are accounted for and shall form a tax temporary difference of subsequent appraisal.
(2) The tax temporary difference referred to in para. 1 shall be regarded as occurring with respect to the newly acquired stocks or shares and shall be recognized for tax purposes in accordance with the general legal procedure.
(3) In those cases where the stocks or shares referred to in para. 1 have been held by the company under transformation for a period of at least 5 years without interruption, the tax temporary difference under para. 1 shall not be recognized for tax purposes at the time of transformation, neither shall it be recognized for tax purposes in the subsequent years.

Tax evasion
Art. 151. The provisions of this Section shall not apply where the transformation is aimed at tax evasion or tax avoidance. Tax evasion is also presumed where the transformation either has no economic motivation or conceals disposal of assets.

Section III.
Relocation of the Registered Office of a European Company or a European Cooperative Society
Scope
Art. 152. Within the meaning of this Chapter, relocation of the registered office of a European company or a European cooperative society shall be an operation in which:
1. (amend. - SG 106/08, in force from 01.01.2009) without its being wound up and without a new legal entity being set up, the company relocates its registered office from the country to another Member State of the European Union, according to Art. 8 of Regulation (EC) No. 2157/2001 of the Council or according to Regulation (EC) No. 1435/2003 of the Council, the company’s assets and liabilities being effectively connected with the business activity establishment within the country, and the results of the utilization of the said assets and liabilities being taken into consideration when determining the tax financial result, or
2. (amend. - SG 106/08, in force from 01.01.2009) without its being wound up and without a new legal entity being set up, the company relocates its registered office from another Member State of the European Union into the country, according to Art. 8 of Regulation (EC) No. 2157/2001 of the Council or according to Regulation (EC) No. 1435/2003 of the Council, the business activity establishment’s assets and liabilities being effectively connected with the company within the country which has come into existence as a result of this operation, and the results of the utilization of the said assets and liabilities are taken into consideration when determining the tax financial result.

Legal succession
Art. 153. (1) For tax purposes, in those cases in which the registered office of a European company or a European cooperative society has been relocated under Art. 152, item 1:
1. all the actions performed by the company in the current and preceding periods, including the transformations of the tax financial result, shall be regarded as being performed by the business activity establishment;
2. the company shall not be taxed with corporate tax for the period starting from the beginning of the year until the date of the operation;
3. the business activity establishment shall be taxed with corporate tax under the general procedure for the period starting from the beginning of the year, and the activity performed by the company in the year of the operation shall be regarded as performed by the business activity establishment;
4. the business activity establishment shall have the right to carry forward those tax losses which have been formed by the company in accordance with the general procedure and have not been carried forward.
(2) For tax purposes, in those cases in which the registered office of a European company or a European cooperative society has been relocated under Art. 152, item 2:
1. all the actions performed by the business activity establishment in the current and preceding periods, including the transformations of the tax financial result, shall be regarded as being performed by the company;
2. the business activity establishment shall not be taxed with corporate tax for the period starting from the beginning of the year until the date of the operation;
3. the company shall be taxed with corporate tax under the general procedure for the period starting from the beginning of the year, and the activity performed by the business activity establishment in the year of the operation shall be regarded as performed by the company;
4. the company shall have the right to carry forward those tax losses which have been formed by the business activity establishment in accordance with the general procedure and have not been carried forward.

Provisions applicable to the cases of relocation of the registered office
Art. 154. The provisions of Section II of this Chapter regarding the assets and liabilities, the profits and losses, and the tax temporary differences shall also apply to the cases of relocation of the registered office of a European company or a European cooperative society.

Chapter twenty .
SPECIFIC RULES ON DETERMINING THE TAX FINANCIAL RESULT IN THE CASES OF TRANSFERS BETWEEN THE BUSINESS ACTIVITY ESTABLISHMENT WITHIN THE COUNTRY AND ANOTHER PART OF THE SAME ESTABLISHMENT LOCATED OUTSIDE THE COUNTRY
Revenues from a transfer to another part of the establishment
Art. 155. (1) Those accounting receipts accounted for in accordance with their market price which have occurred as a result of a transfer from a business activity establishment within the country to another part of the same establishment located outside the country shall be recognized for tax purposes in those cases where:
1. the specific transfer complies with the customary transactions of the said business activity establishment, these transactions being oriented to third persons, or
2. the customary activity of the said business activity establishment consists of similar transfers to the other parts of the establishment.
(2) The accounting receipts resulting from financial means granted by the business activity establishment to another part of the same establishment located outside the country shall not be recognized for tax purposes, with the exception of those financial institutions for which the raising of financial means and the lending of credits constitutes a basic activity.
(3) The accounting expenses relating to a transfer from the business activity establishment to another part of the same establishment located outside the country shall not be recognized for tax purposes in those cases where, as a result of the transfer, no accounting receipts recognized for tax purposes occur in the business activity establishment. In those cases where, as a result of the transfer to another part of the same establishment located outside the country, the business activity establishment assesses accounting receipts at the amount of the expenses actually incurred (the cost value), the accounting expenses relating to the transfer that have been assessed shall be recognized for tax purposes.

Expenses in the cases of transfer from another part of the establishment
Art. 156. (1) Those accounting expenses, accounted for at their market value, which are connected with goods, services and rights and result from a transfer from another part of the same establishment located outside the country shall be recognized for tax purposes in the business activity establishment within the country, providing that the expenses have been accounted for within the customary activity of the business activity establishment in connection with the realization of the transferred goods, services or rights in their modified or unmodified form.
(2) Those accounting expenses, accounted for at their market value, which result from a transfer of goods and services from another part of the same establishment located outside the country to a business activity establishment within the country shall be recognized for tax purposes in the business activity establishment in those cases where:
1. the specific transfer complies with the customary transactions of the said part of the business activity establishment, these transactions being oriented to third persons, or
2. the customary activity of the said part of the business activity establishment consists of similar transfers to the other parts of the establishment.
(3) Those accounting expenses, accounted for at the amount of the expenses actually incurred (the cost value), which result from a transfer of services from another part of the same establishment located outside the country, except for the cases under paras. 1 and 2, shall be recognized for tax purposes in the business activity establishment within the country. The first sentence shall also apply to those administrative and managerial services which are directly connected with the activity of the business activity establishment.
(4) Those accounting expenses, accounted for at the amount of the expenses actually incurred (the cost value), which result from a transfer of rights relating to know-how, patents and other objects of intellectual or industrial property, from another part of the same establishment located outside the country, except for the cases under para. 1, shall be recognized for tax purposes in the business activity establishment within the country. The accounting expenses, accounted for at their market value, shall be recognized for tax purposes in those cases where the said objects have been produced or acquired by that part of the establishment which is specialized in creating them or acquiring them.
(5) Where the rights transferred under para. 4 meet the criteria regarding fixed intangible assets, the expenses of their acquisition under para. 4 shall not be recognized for tax purposes and the amounts shall be recorded in the tax amortization plan. The tax amortizable value thereof shall be determined in accordance with the general procedure of the law.
(6) The accounting expenses resulting from financial means received in the business activity establishment from another part of the same establishment located outside the country shall not be recognized for tax purposes, with the exception of:
1. the financial institutions for which the raising of financial means and the lending of credits constitutes a basic activity, or
2. the cases in which the financial means have been lent by a third person as an interest-bearing loan for the purposes of the business activity establishment and are exclusively used in the activity of the business activity establishment; in this case the expenses accounted for at the amount of the interest payments due to the third person shall be recognized for tax purposes, providing that the other provisions of this Act are observed.

Treatment of assets in the cases of transfer from or to another part of the establishment
Art. 157. (1) Those assets granted to the business activity establishment within the country by another part of the same establishment located outside the country which are not connected with the activity of the business activity establishment, except for the cases under Art. 156, para. 1, shall be assessed for tax purposes in accordance with the amount of the expenses actually incurred (the cost value) by that part of the enterprise which transfers them. Those tax amortizable assets under the first sentence which have been used in the activity of the business activity establishment for a period of at least two years shall be recorded in the tax amortization plan of the business activity establishment in accordance with the general legal procedure.
(2) Where the tax amortizable assets under para. 1 are granted for temporary use for a period of up to two years, the business activity establishment within the country shall have recognized thereto for tax purposes the accounting expenses at the amount of the assets amortizations assessed by that part of the establishment which transfers them. The assessed expenses shall not exceed the annual tax amortization that would have been assessed if the maximum values of the tax amortization rates allowable under Art. 55 had been used.
(3) For tax purposes, in the cases of transfer of assets produced or acquired by the business activity establishment within the country to another part of the same establishment located outside the country the transferred assets shall be regarded as realized at the time of transfer at their market prices and shall be written off.
(4) When determining the tax financial result in the cases under para. 3, the accounting financial result of the business activity establishment shall be increased by the profit and decreased by the loss calculated as a difference between the market price of the asset and its accounting value as at the date of transfer. Those tax temporary differences which relate to the asset shall be recognized in accordance with the general legal procedure. Art. 66, paras. 1 and 2 shall apply to determining the tax financial result.
(5) Paras. 3 and 4 shall not apply where the transfer of assets results in accounting receipts (profits) or expenses (losses). It is the general legal procedure that shall apply to those cases.

Chapter twenty one.
TAX REGULATION IN THE CASES OF WINDING-UP THROUGH LIQUIDATION OR DECLARING BANKRUPTCY AND IN THE CASES OF DISTRIBUTION OF A LIQUIDATION SHARE
Section I.
General Provisions
General provisions
Art. 158. (amend. – SG 99/11, in force from 01.01.2012) In the cases of winding-up through liquidation or declaring bankruptcy, throughout the period prior to his being deleted the taxable person shall perform his obligations in accordance with the general procedure set forth in this Act and in observance of the requirements specified in this Chapter.

Section II.
Corporate Tax in the Cases of Winding-Up
Determining the tax in the cases of winding-up
Art. 159. (1) Corporate tax shall be due as at the date of entering the winding-up into the Commercial Register.
(2) The corporate tax referred to in para. 1 shall be determined on the grounds of the tax profit for the period from the beginning of the year until the date of registering the winding-up.
(3) When determining the tax, there shall be deducted the advance contributions paid within the period from the beginning of the year until the date of registering the winding-up.

Paying the tax in the cases of winding-up
Art. 160. (1) The corporate tax due under Art. 159 shall be paid within 30 days following the date of registering the winding-up.
(2) In the cases of winding-up the corporate tax paid shall be deducted either from the annual corporate tax due for the year of winding-up or from the corporate tax due for the last tax period if the date of filing the request for winding-up through liquidation, or the date of deletion in case of bankruptcy, respectively, is in the year of winding-up.
(3) (amend. – SG 99/11, in force from 01.01.2012) Where the date of winding-up and the date of filing the request for deletion in case of liquidation, or the date of deletion in case of bankruptcy, respectively, are in different years, the annual tax return for the year of winding-up shall be accompanied by the annual activity report as at the date of winding-up and the annual activity report prepared as at 31 December of the year of the taxable person’s winding-up.

Section III.
Corporate Tax for the Last Tax Period
Last tax period
Art. 161. (1) The last tax period of a taxable person wound up through liquidation shall start on 1 January of the year in which the request for deletion under Art. 273, para. 1 of the Commerce Act is filed and shall end on the date of filing the request.
(2) The last tax period of a taxable person wound up through being declared bankrupt shall start on 1 January of the year in which the deletion is carried out and shall end on the date of the deletion.
(3) The last tax period of a foreign person’s business activity establishment shall start on 1 January of the year in which its activity is suspended and shall end on the date of the suspension.
(4) (new - SG 95/09, in force from 01.01.2010) The last tax period of non-personified company or social insurance office shall cover the period from 1 January of the year, when the suspension has taken place to the date of the suspension.
(5) (prev. par. 4 - SG 95/09, in force from 01.01.2010) The taxable person shall be taxed with corporate tax on the tax profit realized in the last tax period, in accordance with the general legal procedure. The corporate tax due shall be final.
(6) (prev. par. 5 - SG 95/09, in force from 01.01.2010) For tax purposes, the assets produced or acquired by the business activity establishment within the country until the date of winding-up shall be regarded as realized at the time of winding-up at their market prices and shall be written off. When determining the tax financial result of the business activity establishment for the last tax period, the accounting financial result shall be increased by the profit and decreased by the loss calculated as the difference between the market price of the assets under the first sentence and their accounting value as at the date of transformation. Those tax temporary differences which relate to the asset shall be recognized for the last tax period in accordance with the general legal procedure. Art. 66, paras. 1 and 2 shall apply to determining the tax financial result.

Declaring the tax for the last tax period
Art. 162. (1) The tax return for the last tax period determined in accordance with Art. 161, para. 1 shall be submitted on the date of submission of the request for deletion together with a copy thereof.
(2) The tax return for the last tax period determined in accordance with Art. 161, para. 2 shall be submitted by the person holding the position of trustee in bankruptcy within 30 days following the date of deletion of the taxable person, together with a copy of the court decision on deletion.
(3) The tax return for the last tax period determined in accordance with Art. 161, para. 3 shall be submitted on the date the activity is suspended.
(4) (new – SG 95/09, in force from 01.01.2010) The tax return for the last tax period, determined pursuant to Art. 161, par. 4, shall be submitted on the date of suspension.
(5) (prev. par. 4 - SG 95/09, in force from 01.01.2010) Where the date of filing the request for deletion in case of liquidation, or the date of deletion in case of bankruptcy or suspension of the activity of a business activity establishment, respectively, is prior to 31 March and the annual tax return for the preceding year has not been submitted yet, the taxable person or the person holding the position of trustee in bankruptcy shall submit the said tax return within the terms under paras. 1, 2 and 3.
(6) (prev. item 5 - SG 95/09, in force from 01.01.2010; amend. – SG 99/11, in force from 01.01.2012) Where the date of winding-up and the date of filing the request for deletion in case of liquidation, or the date of deletion in case of bankruptcy, respectively, are in one and the same year, the tax return referred to in paras. 1 and 2 shall be accompanied by the annual activity report prepared as at the date of winding-up and by the annual activity report prepared as at the date of filing the request for deletion, or the date of deletion, respectively.

Paying the tax for the last tax period
Art. 163. (1) The corporate tax due for the last tax period, this tax being determined under Art. 161, para. 1, shall be payable until the date of filing the request for deletion of the taxable person. The tax shall be final.
(2) In the cases referred to in Art. 161, para. 2 the corporate tax due for the last tax period shall be payable until the date of deletion.
(3) In the cases referred to in Art. 161, para. 3 the corporate tax due for the last tax period shall be payable until the date of suspension of the activity. The tax shall be final.
(4) (amend. - SG 95/09, in force from 01.01.2010) In cases under Art. 161, par. 4 the due corporate tax for the last tax period shall be deposited by the date of suspension. The tax is final.
(5) (new - SG 95/09, in force from 01.01.2010) Where the date of filing of the request for deletion in case of liquidation, the date of deletion in case of bankruptcy, the date of suspension of the activity in the place of business or the date of suspension of a non-personified company or a social insurance office is prior to 31 March and the corporate tax for the preceding year has not been paid yet, the taxable person shall pay the corporate tax for the preceding year within the terms under par. 1 – 4.

Tax treatment in cases in which a taxable person wound up through liquidation continues the activity after the date of filing the request for deletion
Art. 164. (1) A taxable person wound up through liquidation continues the activity after the date of filing the request for deletion shall perform his obligations in accordance with the general legal procedure for the period from the date of filing the request for deletion until the date of deletion, including the obligation to declare and pay the corporate tax due. The liquidator and the taxable person shall bear joint responsibility for those tax liabilities of the latter which have arisen in connection with the continuance of the activity.
(2) In the cases referred to in para. 1 the last tax period shall start on 1 January of the year in which the deletion is carried out and shall end on the date of deletion, or shall start on the date of filing the request for deletion and shall end on the date of deletion where these two dates are in one and the same year.
(3) The taxable person shall be liable for corporate tax on the tax profit realized in the last tax period under para. 2 in accordance with the general legal procedure. The tax shall be final.
(4) In the cases referred to in para. 1 the tax return shall be submitted by the person holding the position of liquidator, within 30 days following the date of deletion of the taxable person, accompanied by a copy of the court decision on deletion. Where the date of deletion is prior to 31 March and the annual tax return for the preceding year has not been filed yet, the person who has held the position of liquidator shall submit this tax return within the time limits specified in the first sentence.
(5) In the cases referred to in para. 1 the corporate tax due for the last tax period shall be payable until the date of deletion. Where the date of deletion is prior to 31 March and the corporate tax for the preceding year has not been paid yet, the taxable person shall pay the corporate tax for the preceding year within the terms under the first sentence.

Tax treatment in the cases of distribution of a liquidation share or dividends (Title suppl. – SG 94/10, in force from 01.01.2011)
Art. 165. (1) (suppl. – SG 94/10, in force from 01.01.2011) For tax purposes the assets distributed as a liquidation share or dividends shall be regarded as realized by the taxable person at the time of distribution at their market prices and shall be written off.
(2) (suppl. – SG 94/10, in force from 01.01.2011) In the cases referred to in para. 1, when determining the tax financial result, the accounting financial result shall be increased by the profit and decreased by the loss calculated as a difference between the market price of the assets and their accounting value as at the date of distribution of the liquidation share or the dividends. Those tax temporary differences which relate to the assets shall be recognized in accordance with the general legal procedure. Art. 66, paras. 1 and 2 shall apply to determining the tax financial result.
(3) (suppl. – SG 94/10, in force from 01.01.2011) Those accounting receipts and expenses which are accounted for in connection with the distribution of the liquidation share or the dividends in the form of assets shall not be recognized for tax purposes.

Chapter twenty two.
ABATEMENT, ASSIGNMENT AND EXEMPTION FROM TAXATION WITH CORPORATE TAX
Section I.
General Provisions
Notion of assignment
Art. 166. Assignment of corporate tax shall be the taxable person’s right not to pay into the central budget those amounts of the corporate tax determined under this Act which remain in the patrimony of the taxable person and are used for purposes determined by law.

General requirement regarding assignment or abatement of corporate tax
Art. 167. (1) The corporate tax shall be assigned or abated under this Chapter, and the accounting financial result shall be decreased when determining the tax financial result, providing that as at 31 December of the respective year the taxable person has no:
1. public liabilities subject to enforcement, or
2. sanctions under effective penalty warrants connected with violations of statutory instruments relating to public liabilities, or
3. interest relating to nonpayment in due time of the liabilities under items 1 and 2.
(2) The fulfilment of the requirement under para. 1 shall be certified by the taxable person in his tax return.

Accounting the corporate tax that has been assigned or abated
Art. 168. (1) The corporate tax that has been assigned or abated under this Chapter shall be accounted for in the equity.
(2) (revoked - SG 110/07, in force from 01.01.2008)

Recognition of a part of the non-distributable receipts or expenses
Art. 169. (1) The part of the non-distributable receipts or expenses which corresponds to those activities for which the assignment of the corporate tax is enjoyed shall be determined by multiplying the aggregate of the non-distributable receipts or expenses by the ratio of the net receipts from sales from the activities for which the assignment is enjoyed to all the net receipts from sales.
(2) Where the non-distributable amounts with which the accounting financial result is transformed are not attributable to a separate activity only and are connected with the performance of an activity for which assignment is enjoyed, the said amounts shall be allotted to the activity for which the corporate tax is assigned, the tax financial result for this activity being determined on the grounds of the ratio referred to in para. 1.

Declaring assigned or abated corporate tax
Art. 170. Where a taxable person’s corporate tax is assigned or abated on various grounds under this Chapter, the taxable person shall be obligated to declare in his tax return the succession in which he has enjoyed the various grounds for assignment or abatement of the corporate tax.

Assignment of an additionally established corporate tax
Art. 171. (1) A taxable person whose corporate tax for a year in the past was assigned is entitled to assignment of an additionally established undeclared corporate tax for the same year providing that he fulfils all the requirements of this Chapter regarding the respective assignment of corporate tax.
(2) The term for the fulfilment of the said requirements commences on the date on which the additional corporate tax is established.

Suspension of the right to assignment
Art. 172. (1) The right to abatement or assignment under this Chapter shall be suspended in the cases of transformation of the taxable person, with the exception of transformation by way of changing the legal form under Art. 264 of the Commerce Act, and transfer of an establishment under Art. 15 of the Commerce Act.
(2) Para. 1 shall also apply to the restructuring of cooperative organizations.

Nonfulfilment of requirements
Art. 173. (1) Where the requirements regarding subsequent use (spending) of assigned corporate tax have not been fulfilled, the latter is due for the respective year, in accordance with the general legal procedure.
(2) Para. 1 shall not apply to those cases of transformation in which the acquiring or newly established companies perform the liabilities of the companies under transformation in observance of those conditions and procedure set forth in this Chapter which concern the companies under transformation. In the cases under the first sentence the acquiring or newly established companies shall be jointly answerable for the assigned corporate tax of the companies under transformation.
(3) Para. 2 shall also apply to the restructuring of cooperative organizations.

Section II.
Exemption from Taxation with Corporate Tax
Collective investment schemes and closed-type investment companies
Art. 174. (amend. – SG 77/11) Those collective investment schemes which are admitted to being offered to public at large in the Republic of Bulgaria, and the licensed closed-type investment companies under the Act on the Operation of Collective Investment Schemes and other Collective Investment Undertakings shall not be liable for corporate tax.

Companies of a special investment purpose
Art. 175. The companies of a special investment purpose under the Act on the Companies of a Special Investment Purpose shall not be liable for corporate tax.

Bulgarian Red Cross
Art. 176. The Bulgarian Red Cross shall not be liable for corporate tax.

Section III.
General Tax Relief
Tax incentives in the cases of employing unemployed persons
Art. 177. (1) When determining his tax financial result, the taxable person shall be entitled to abate his accounting financial result providing that he has employed a person under an employment contract for at least 12 consecutive months and at the time of his being employed, the said person:
1. has been registered as an unemployed person for more than a year, or
2. is a registered unemployed person aged 50 or more, or
3. is an unemployed person of reduced capacity for work.
(2) The abatement concerns the amounts paid as remuneration and the contributions paid at the expense of the employer in the State Social Insurance Fund and the National Health Insurance Fund for the first 12 months of the employment. The abatement is enjoyed once in the year in which the 12 months’ period expires.
(3) (suppl. – SG 16/13) The abatement shall not concern the amounts received under the Employment Promotion Act and pursuant to Art. 22e of the Investment Promotion Act.
(4) (revoked - SG 106/08, in force from 01.01.2009)

Tax incentives in case of awarding of scholarship
Art. 177a. (new - SG 95/09, in force from 01.01.2010) (1) For taxation purposes the accounted expenses for an instituted and awarded scholarship to students, accomplishing high school or to students studying at schools in an European Union Member State, or in another state which is a party to the Agreement for the European Economic Area for a period of not less than 12 and not more than 24 months shall be recognized and as of the time of awarding of the scholarship the following conditions are complied with:
1. the scholarship holder is a student at the last two years of acquisition of secondary education level or is a student at the last two years for acquisition of the educational degree of "bachelor" or "master" and is under the age of 25;
2. the profession of the scholarship holder is applicable in the activity of the taxable person;
3. the taxable person has become bound by the scholarship awarding agreement to appoint the scholarship holder for a period which is not less than the total number of months for which the scholarship has been awarded.
(2) The taxable person may institute and award following the provision of par. 1 a scholarship to one or more school or university students.
(3) In case the taxable person fails to appoint the scholarship holder by the end of the calendar year, following the year of accomplishment of education, for determination of the taxable financial result for the year of occurrence of this circumstance the accountable financial result shall be increased by the amount of the awarded scholarship.
(4) Should the taxable person appoint the scholarship holder for a part of the period referred to in par. 1, item 3, for the determination of the taxable financial result for the year of termination of the employment relationship, the accountable financial result shall be increased by the part of the awarded scholarship, pro rata the non-fulfilled obligation under par. 1, item 3.
(5) Where the scholarship holder refuses to start working by the end of the calendar year following the year of accomplishment of education, for determination of the taxable financial result for the year of occurrence of this circumstance the accountable financial result shall be increased by:
1. the entire amount of the awarded scholarship, where no compensation in favour of the taxable person for the awarded scholarship has been agreed upon;
2. the difference between the awarded scholarship and the agreed compensation, where the compensation has been agreed in an amount which is less than the awarded scholarship.

Art. 177b. (new – SG 68/13, in force from 01.01.2014) Article 177 shall not apply to appointed persons under employment agreements to whom the provision of Art. 177a has been applied.

Enterprises employing disabled persons
Art. 178. (1) The corporate tax shall be totally assigned to those legal entities- specialized enterprises or cooperative societies within the meaning of the Integration of Persons with Disabilities Act which as at 31 December of the respective year are members of the national representative organizations of disabled people and for disabled people, and in which at least:
1. twenty percent of the total number of staff are people of poor eyesight, or
2. thirty percent of the total number of staff are people of poor hearing, or
3. fifty percent of the total number of staff are people suffering from other impairments.
(2) In those cases where the requirements under para. 1 regarding the number of the employed persons have not been fulfilled, the corporate tax of the legal entities referred to in para. 1 shall be assigned in proportion either to the number of people suffering from impairments, or to the number of people with reduced capacity for work reassigned to suitable jobs, versus the total number of staff.
(3) The assignment shall be allowable where the assigned tax is spent only on the integration of the disabled people or on maintaining and creating new jobs for people with reduced capacity for work who should be reassigned to suitable jobs within a period of two years following the year for which the assignment is enjoyed. The planning, spending and accounting for the financial means shall be carried out by way of Ordinances of the national organizations of disabled people, in coordination with the Minister of Finance.

Agricultural products
Art. 179. (revoked - SG 95/09, in force from 01.01.2010)

Air Transport Directorate
Art. 180. (revoked - SG 95/09, in force from 01.01.2010)

Social and health insurance funds
Art. 181. (1) There shall be assigned 50 percent of the corporate tax due by the social and health insurance funds, created by virtue of law, on activity that is either directly connected with or helpful to the performance of their basic activity.
(2) The assignment shall be allowable in those cases where the assigned tax is invested in the basic activity not later than the end of the year following the year for which the assignment is enjoyed.

Section IV.
De Minimis or Regional State Aid in Form of Tax Relief (Title amend. - SG 110/07, in force from 01.01.2007)
Taxable persons that may not enjoy tax relief
Art. 182. (1) (prev. text of Art. 182, amend. - SG 110/07, in force from 01.01.2007) The tax relief under this Section shall not be enjoyed by those taxable persons which:
1. carry on activities in the branches of coal mining, steel manufacture, shipbuilding, synthetic fibres manufacture, fish industry, as well as the production of those agricultural products which are specified in Supplement 1 of the Treaty establishing the European Community, with regard to the respective activity, or
2. (amend. - SG 110/07, in force from 01.01.2007) are parties to liquidation or rehabilitation proceedings, or
3. are defined as establishments in a difficult position.
(2) (new - SG 110/07, in force from 01.01.2007) Tax relief in form of de minimis aid shall not apply to:
1. taxable persons engaged in the sector of fishery and aquacultures according to Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products;
2. taxable persons carrying out primary production of agricultural products under ANNEX I of the Treaty Establishing the European Community;
3. taxable persons carrying out processing and marketing of agricultural products under ANNEX I of the Treaty Establishing the European Community;
4. taxable persons engaged in the sphere coal production according to Council Regulation (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry;
5. undertakings in difficulties;
6. investment in trucks, when provided to a taxable person, carrying out road transportation of loads for other people, or provided against a remuneration;
7. investment in assets, used for activities, related to export to third countries or Member States.
(3) (new - SG 110/07, in force from 01.01.2007) A tax relief in form of state aid for regional development may not be granted also to a taxable person in respect of whom any of the conditions referred to in Para 1 have arisen during the period of performing the initial investment.
(4) (new - SG 110/07, in force from 01.01.2007) A tax relief in form of minimal aid may not be granted to also a taxable person in respect of whom any of the conditions referred to in Para 2 have arisen during the investment period.
(5) (new - SG 95/09, in force from 01.01.2010) A tax relief in the form of a state aid for agricultural producers, shall not apply to enterprises with difficulties.

Municipalities in which the unemployment rate is higher than the country’s average unemployment rate
Art. 183. (1) Those municipalities in which the unemployment rate is 35 percent or more above the country’s average unemployment rate shall be determined annually by way of an Ordinance of the Minister of Finance at the suggestion of the Minister of Labour and Social Policy, and the said Ordinance shall be promulgated in the State Gazette.
(2) (revoked - SG 95/09, in force from 01.01.2010).
(3) (amend. - SG 95/09, in force from 01.01.2010) A municipality the administrative centre of which is also a centre of another municipality shall be included in the list referred to in paras. 1 on the grounds of the weighted average rate of unemployment in the respective municipalities, this weighted average rate being determined on the grounds of the number of the economically active population therein.

Tax relief in the cases of carrying out production activities in municipalities in which the unemployment rate is higher than the country’s average unemployment rate
Art. 184. (amend. - SG 110/07, in force from 01.01.2007) The corporate tax on tax profit shall be assigned in amount of up to 100 per cent in those cases where the taxable person carries out production activities, including work done with materials supplied by the customer, and all of the following conditions are present:
1. the taxable person carries out production activities only in municipalities in which in the year preceding the current year the unemployment rate was at least 35 percent higher than the country’s average unemployment rate for the said period;
2. (amend. - SG 110/07, in force from 01.01.2007) the conditions under:
a) Arts. 188 – in cases of de minimis aid, or
b) Art. 189 – in cases of state aid for regional development.

Specific cases of assignment
Art. 185. (1) Where, as a result of an increased employment rate, the municipality falls off the list of the municipalities referred to in Art. 183, the person that has acquired the right to assignment of the corporate tax shall preserve that right for the next 5 consecutive years, this period commencing from the year in which the municipality falls off the list, providing that the other conditions for assignment are present.
(2) Where a taxable person fulfilled the conditions under Art. 184, item 1 in the year preceding the year in which the municipality falls off the list of municipalities referred to in Art. 183, but did not carry out production activities at that time because of doing preparatory works, and the production activity starts next year, the right to tax assignment accrues in the year in which production activity is started and the said right is preserved for the next 4 consecutive years providing that the other conditions for assignment are present.

Investment tax input
Art. 186. (amend. - SG 110/07, in force from 01.01.2007; revoked - SG 95/09, in force from 01.01.2010)

Tax relief for cooperative societies
Art. 187. (revoked – SG 94/10, in force from 01.01.2011)

Tax relief in form of de minimis aid (Title amend. - SG 110/07, in force from 01.01.2007)
Art. 188. (amend. - SG 110/07, in force from 01.01.2007) (1) (amend. - SG 106/08, in force from 01.01.2009) There shall be a state relief in form of de minimis aid, when the amount of the de minimis aid granted to the taxable person in the course of the last three years including the current one, regardless of their form and source, does not exceed the BGN equivalent of EUR 200 000, and in respect of taxable persons involved in the road transport sector – the BGN equivalent of EUR 100 000, determined in accordance with the official exchange rate of the BGN towards the EUR. These thresholds shall apply irrespective of whether the aid is fully or partially financed with funds of the European Union. The amount of the granted de minimis aid shall include also the abated or assigned corporate tax of the taxable person for the last three years including the corporate tax subject to abatement or assignment for the current year. The amount of the granted de minimis aid shall not include the assigned corporate tax, in respect of which have been fulfilled the conditions of Art. 189.
(2) (amend. – SG 94/10, in force from 01.01.2011) The assigned tax referred to in Art. 184 shall be invested in long-term tangible or intangible assets according to the accounting legislation within 4 years from the beginning of the year for which the tax has been assigned.
(3) (amend. - SG 95/09, in force from 01.01.2010) The assigned tax, invested in the assets referred to in Para 2, shall accumulate to other state aid, approved in decision of the European Commission or admitted under Art. 9 of the State Aid Act in respect of the specified assets, by the maximum allowed intensity of the aid, specified in a National regional State aid map (OJ, C 73 from 30 March 2007).
(4) The taxable person shall declare the amount of granted de minimis aid for the last three years including the current year, regardless of their form and source, in the annual tax statement for the year of assignment of the corporate tax.

Tax relief, which is state aid for regional development (Title amend. - SG 110/07, in force from 01.01.2007)
Art. 189. (amend. - SG 110/07, in force from 01.01.2007) (1) The taxable persons shall have to fulfil the following requirements regarding the provision of state aid for regional development:
1. the assigned corporate tax shall be invested in tangible and intangible assets, which are part of a project for initial investment;
2. the initial investment shall be made within 4 years from the beginning of the year of assignment of the tax;
3. the initial investment shall be made in municipalities, where during the year of assignment the unemployment amounts to or exceeds 35 per cent more than the state average unemployment for the same period;
4. the activity related to the initial investment shall continue within the same municipality for at least 5 years from the year of completion of the initial investment; this fact shall be stated annually by expiration of the 5 years term in the annual tax statements;
5. at least 25 percent of the value of the tangible and intangible assets in the initial investment must be financed by way of the taxable person’s own means or borrowed ones; the assigned corporate tax and other means containing an element of State aid shall not be regarded as the taxable person’s own means or borrowed ones;
6. the tangible and intangible assets in the initial investment must have been acquired under market economy conditions corresponding to those between unrelated parties; the intangible assets in the initial investment shall be depreciable assets;
7. the amount of the admissible expenses for intangible assets in the initial investment shall not exceed 50 per cent of the amount of the admissible expenses for tangible and intangible assets in the initial investment;
8. the intangible assets in the initial investment shall be used inly in the activity of a taxable person and shall be part of its assets for a term of at least 5 years;
9. the assigned tax shall not exceed 50 per cent of the current value of the tangible and intangible assets in the initial investment, as established by 31 December of the year of assignment; for the purpose of determining the current value of the initial investment the interest rate shall be equal to the reference interest rate for the year of assignment determined by the European Commission;
10. the expected amount of the initial investment and the term of its performance shall be stated in the annual tax statement for the year of assignment of the corporate tax.
(2) The assigned corporate tax shall accumulate to other state aid, approved in a decision of the European Commission or granted under Art. 9 of the State Aid Act for the same initial investment, by the maximum admissible intensity of the aid, determined in the National regional State aid map.
(3) Where a tax relief has been granted to a large investment project, which was granted aid from all sources, the total amount of which exceeds the BGN equivalent of EUR 37,5 million, calculated according to the official exchange rate of the BGN towards the EUR, the state relief may be used during the specified year only if:
1. the taxable person has notified the revenue authority about the project before the beginning of its performance;
2. a positive decision was delivered by the European Commission in response to a notification made under the order of Art. 88, Para 3of the Treaty Establishing the European Community. The Minister of Finance shall notify the European Commission according to the order and the procedures, established in the State Aid Act. The taxable person shall be obliged to provide to the Minister of Finance the information required to deliver a notification to the European Commission.
(4) Where Para 3 shall not apply to a large investment project, the tax relief may be used, provided that the adjusted limit for regional aid for large investment projects has been complied with as defined in the European Commission Decision on approval of the National regional State aid map.
(5) For the purposes of Para 3 the value of the aid and the value of the acceptable expenses for tangible and intangible assets in a large investment project shall be determined according to the current value at the date of notification of the European Commission under the order of Art. 88, Para 3 of the Treaty Establishing the European Commission. For the purposes of Para 4 the value of the aid and the value of the acceptable expenses for tangible and intangible assets in a large investment project shall be determined according to the value at the date the performance of the project has started.

Art. 189a. (*) (new – SG 106/08, in force from 01.01.2009; revoked - SG 95/09, in force from 01.01.2010)

Tax relief in the form of a state aid for agricultural producers (new title - SG 95/09, in force from 01.01.2010)
Art. 189b. (new - SG 95/09, in force from 01.01.2010) (1) The corporate tax shall be remitted in the amount of up to 60 per cent to taxable persons, registered as agricultural producer, for their taxable profit from activity of production of non-processed plant and animal products.
(2) The corporate tax shall be remitted where the following requirements have been met in aggregate:
1. the remitted tax is invested into new buildings and new agricultural equipment, required for carrying out of the activity referred to in par. 1, by the end of the year, following the year, for which the remittance is applied;
2. the assets under item 1 are acquired under market conditions, corresponding to those for non-affiliated persons;
3. the activity under par. 1 must continue being carried out for a period of at least three years after the year of remittance; this circumstance shall be declared every year up to the expiration of the three- year term together with the annual tax returns;
4. the remitted tax must not exceed 50 per cent of the cost of the assets under item 1.
5. (new – SG 19/11, in force from 08.03.2011) the assets under item 1 do not replace the existing assets;
6. (new – SG 19/11, in force from 08.03.2011) as regards to the assets under item 1 the farmer is not e recipient (beneficiary) under any of the following aid:
a) aid within the meaning of Art. 107, paragraph 1 of the Treaty on the Functioning of the European Union;
b) minimum aid pursuant to Commission Regulation (EC) No 1535/2007 of 20 December 2007 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid in the sector of agricultural production (OJ L 3337 of 21.12.2007);
c) financial aid under the Rural Regions Development Programme;
d) other public financial aid from the national budget and/or from the European Union budget.

(3) (revoked – SG 19/11, in force from 08.03.2011)
(4) revoked – SG 19/11, in force from 08.03.2011)

Restrictions on the use of tax relief (Title amend. - SG 110/07, in force from 01.01.2007)
Art. 190. (amend. - SG 110/07, in force from 01.01.2007) (1) A taxable person shall not be entitled to more than one tax relief under this Section during the same year.
(2) The assets, in which an assigned tax has been invested according to Art. 188, Para 2, shall be excluded of the scope of the initial investment.

Section V.
Tax Relief in the Cases Where the Requirements Regarding Admissible State Aid for Employment Are Fulfilled (Revoked – SG 106/08, in force from 01.01.2009)
Taxable persons that may not enjoy tax relief
Art. 191. (revoked – SG 106/08, in force from 01.01.2009)

Tax relief for employment promotion
Art. 192. (revoked – SG 106/08, in force from 01.01.2009)

General conditions
Art. 193. (revoked – SG 106/08, in force from 01.01.2009)

Part three.
TAX WITHHELD AT THE SOURCE
Chapter twenty three.
OBJECTS OF TAXATION
Tax withheld from the income originating from dividends and liquidation shares
Art. 194. (1) Tax at the source is due on the dividends and liquidation shares distributed (personified) by local legal entities in favour of:
1. foreign legal entities, except for the cases in which the dividends are realized by a foreign legal entity through a business activity establishment within the country;
2. local legal entities that are not traders, including municipalities.
(2) The tax referred to in para. 1 shall be final and shall be withheld by local legal entities distributing dividends or liquidation shares.
(3) Para. 1 shall not apply where the dividends and liquidation shares are distributed in favour of:
1. a local legal entity which participates in the capital of a company as a representative of the State;
2. contractual fund;
3. (new – SG 69/08, in force from 01.01.2009; amend. – SG 106/08, in force from 01.01.2009; suupl. - SG 95/09, in force from 01.01.2010) a foreign legal entity, which is a local persons for taxation purposes of a Member State of the European Union or of another state – party to the Agreement on European Economic Area, except for the cases of hidden distribution of profit.

Tax withheld from the income of foreign persons
Art. 195. (1) (suppl. – SG 94/10, in force from 01.01.2011) Where the income of foreign legal entities from a source within the country specified in Art. 12, Para 2, 3, 5 and 8 is not realized through a business activity establishment within the country, and the income of foreign legal entities from a source within the country specified in Art. 12, Para 9, established in preferential tax regime jurisdictions, if not realised thought a place of business activity within the country, the said income shall be subject to tax at the source, and that tax shall be final.
(2) (amend. – SG 94/10, in force from 01.01.2011) The tax under para. 1 shall be withheld by the local legal entities, the sole proprietors or the business activity establishments within the country that assess the income of the foreign legal entities, with the exception of the income under Art. 12, Para 3 and Para 8, Item 2.
(3) (amend. – SG 94/10, in force from 01.01.2011) Where the payer of the income is not a taxable person under Art. 2, and the income is not one of those referred to in Art. 12, Para 3 and Para 8, Item 2, the tax shall be withheld by the recipient of the income.
(4) Paras. 1 and 2 shall also apply where, through a business activity establishment within the country, the foreign person assesses the said income to other parts of his establishment which are located outside the country, with the exception of those cases in which the accounting expenses are not recognized for tax purposes, or accounting expenses or assets accounted for at the amount of the expenses actually incurred (the cost value) are recognized for tax purposes in the business activity establishment.
(5) The advance payments in connection with the income referred to in para. 1 shall not be subject to taxation with a tax at the source.

Securities traded in a regulated market
Art. 196. (amend. – SG 106/08, in force from 01.01.2009) No tax at the source shall be due on income from disposal of financial instruments under § 1, Item 21 of the Additional Provisions.

Chapter twenty four.
BASIS OF TAXATION
Basis of taxation for the tax withheld at the source from the income from dividends
Art. 197. The basis of taxation for determining the tax withheld at the source from the income from dividends shall be the gross amount of the distributed dividends.

Basis of taxation for the tax withheld at the source from the income from liquidation shares
Art. 198. The basis of taxation for determining the tax withheld at the source from the income from liquidation shares shall be the difference between the market price of the shares due to the respective shareholder or partner and the acquisition price of his stocks and shares, this price being evidenced with documents.

Basis of taxation for the tax withheld at the source from the income of foreign persons
Art. 199. (1) The basis of taxation for determining the tax withheld at the source from the income referred to in Art. 195, para. 1 shall be the gross amount of the said income, with the exception of the cases under paras. 3 and 4.
(2) The basis of taxation for determining the tax withheld at the source from the interest income of foreign legal entities under financial lease contracts shall be determined on the grounds of the market interest, unless the contract provides otherwise.
(3) The basis of taxation for determining the tax withheld at the source from foreign persons’ income originating from actions of disposal of financial assets shall be the positive difference between their sale price and their acquisition price, the latter being evidenced with documents.
(4) The basis of taxation for determining the tax withheld at the source from foreign persons’ income originating from disposal of immovable property shall be the positive difference between the sale price of the property and the acquisition price of the property, the latter being evidenced with documents.
(5) For the purposes of paras. 3 and 4, the sale price shall be the consideration under the transaction, including the remuneration other than money assessed in accordance with the market prices as at the date of assessing the income.
(6) In those cases where a financial lease contract is terminated prior to the expiry thereof and without transferring the ownership of the respective assets forming the subject matter of the contract, those lease contributions which are not subject to repayment shall be regarded as income originating from the use of property, this income being received by the foreign legal entity at the time of termination of the contract. The tax withheld at the source and paid on interest income until the lease contract is terminated shall be deducted from the tax due at the source on the income originating from the use of property.

Chapter twenty five.
TAX RATES
Tax rates
Art. 200. (1) (amend. - SG 110/07, in force from 01.01.2008) The tax rate of the income tax referred to in Art. 194 shall be 5 percent.
(2) (suppl. – SG 94/10, in force from 01.01.2011) The tax rate of the income tax referred to in Art. 195 shall be 10 percent except of the cases referred to in Art. 200a.

Tax rate for interest, copyright and royalty payment taxes
Art. 200a. (new – SG 94/10, in force from 01.01.2011) (1) The tax rate for interest, copyright and royalty payments shall be 5 percent, if all of the following conditions have been met:
1. the owner of the income is a foreign legal person from a Member State of the European Union, or a location of economic activity in a Member State of the European Union of a legal person from a Member State of the European Union;
2. the local legal person who is payer of the income or the person, whose location of economic activity in the Republic of Bulgaria is payer of the income, is a related person to the foreign legal person – owner of the income, or to the person whose location of economic activity is owner of the income.
(2) Where income taxable according to the tax rate referred to in Para 1 has been taxed with a higher tax rate, the owner of the income shall be entitled to request restoration of the tax. The restoration shall be carried out under the order and within the time limits set out in the Tax-Insurance Procedure Code within one year from filing the request for restoration.
(3) Para 1 and 2 shall not apply to:
1. income representing distribution of profit or restoration of capital;
2. income from debt receivables entitling to a share from the profits of the debtor;
3. income from debt receivables entitling the creditor to exchange his right to interest for the right to a share from the profits of the debtor;
4. income from debt receivables lacking a clause for repayment of the capital or the repayment is due more than 50 years from the date of emission of the debt;
5. income qualifying as non-recognised for taxation purposes costs of a location of economic activity in the Republic of Bulgaria, except those referred to in Art. 43;
6. income accrued by a foreign legal person from a non-Member State of the European Union through a location of economic activity in the Republic of Bulgaria;
7. income from transactions which primary objective or one of the primary objectives is diversion or avoidance of double taxation.
(4) For the purposes of this Article:
1. foreign legal person from a Member State of the European Union shall be every foreign legal person meeting the following conditions:
a) the legal form of the foreign legal person complies to Appendix No 5;
b) the foreign legal person in accordance with the applicable tax laws is considered to be resident for tax purposes in that Member State of the European Union and is not, within the meaning of a Double Taxation Agreement concluded with a third state, considered to be resident for tax purposes of a state outside the European Union;
c) the foreign legal person is subject to one of the taxes listed in Annex No 6 without being exempt, or to a tax which is identical or substantially similar and which is imposed in addition to, or in place of, these taxes;
2. a person is "associated person" of a second person, if at the moment of income accrual at least:
a) the first person has a direct minimum holding of 25 % in the capital of the second person, or
b) the second person has a direct minimum holding of 25 % in the capital of the first person, or
c) a third person has a direct minimum holding of 25 % both in the capital of the first person and in the capital of the second person.
3. the foreign legal person shall be treated as the owner of the income only if it receives this income for its own benefit and not as an intermediary or agent for some other person;
4. a location of economic activity shall be treated as the owner of the income, if all of the following conditions have been met:
a) the debt-claim, right or use of information in respect of which interest or copyright and royalty payments arise is effectively connected with that location of economic activity;
b) the interest or copyright and royalty payments represent income in respect of which that location of economic activity is subject in the Member State of the European Union in which it is situated to one of the taxes mentioned in Annex No 6 or in the case of Belgium to the "impot des non-residents/belasting der niet-verblijfhouders" or in the case of Spain to the "Impuesto sobre la Renta de no Residentes" or to a tax which is identical or substantially similar and which is imposed in addition to, or in place of, those existing taxes.

Chapter twenty six.
DECLARING THE TAX
Declaring the tax. Certificate of tax paid on foreign persons’ income
Art. 201. (suppl. - SG 110/07, in force from 01.01.2008; amend. – SG 94/10, in force from 01.01.2011; amend. – SG 94/12, in force from 01.01.2013) The persons obliged to withhold and pay tax at the source under Arts. 194 and 195 shall declare the due tax for the quarter through a declaration according to a form by the end of the month following the quarter. The declaration shall be filed with territorial directorate of the National Revenue Agency either by registration of the payer of the income or by the place in which the payer of the income must have registered.
(2) In those cases where the payer of the income is not subject to registration, the tax return shall be filed with the territorial directorate of the National Revenue Agency in Sofia.
(3) (suppl. – SG 23/13, in force from 08.03.2013) In those cases where the payer of the income is a person that is not obligated to withhold and pay a tax, the tax return shall be filed by the recipient of the income within the term fixed in para 1.
(4) Upon the request of the person concerned, a certificate of a standard form shall be issued regarding the tax paid under this Act on the income of foreign legal entities. The said certificate shall be issued by the territorial directorate of the National Revenue Agency in which the declaration under Para 1 is filed or should be filed.

Chapter twenty seven.
PAYING THE TAX
Paying the tax
Art. 202. (1) (amend. – SG 94/12, in force from 01.01.2013) The payers of income that have withheld the tax at the source under Art. 194 shall be obligated to pay the taxes due by the end of the month following the quarter, in which the decision for allocation of dividends or liquidation shares is taken.
(2) (amend. – SG 94/12, in force from 01.01.2013) The payers of income withholding a tax at the source under Art. 195 shall be obligated to pay the taxes due by the end of the month following the quarter of receipt of the income.
(3) The tax due under paras. 1 and 2 shall be paid in the respective territorial directorate of the National Revenue Agency by registration of the payer of the income or by the place in which the payer of the income must have registered.
(4) (amend. – SG 94/10, in force from 01.01.2011) Where the payer of the income is not a taxable person under Art. 2, and the income is not one of those referred to in Art. 12, Para 3 and Para 8, Item 2, the tax shall be paid by the recipient of the income within the time limits specified in para. 2, the income being regarded as assessed on the date on which it is received by the foreign legal entity. The tax due shall be paid in the respective territorial directorate of the National Revenue Agency either by registration of the payer of the income or by the place in which the payer of the income must have registered. In those cases where the payer of the income is not subject to registration, the tax shall be paid in the territorial directorate of the National Revenue Agency in Sofia.
(5) The overpaid tax shall be recovered by the territorial directorate of the National Revenue Agency in which the tax is payable.

Re-calculation of the tax at source(new title - SG 95/09, in force from 01.01.2010)
Art. 202a. (new - SG 95/09, in force from 01.01.2010) (1) A foreign legal entity which is not a local person for tax purposes of an European Union Member State or of another country- a party under the European Economic Area Agreement, shall be entitled to choose to recalculate the tax at source of income under Art. 12, par. 2, 3, 5 and 8. Where the foreign person chooses to recalculate the tax at source, the recalculation shall be done for all received by him/her income under Art. 12, par. 2, 3, 5 and 8 over the year.
(2) Where the foreign person chooses to recalculate the tax at source on the received by him/her income, the recalculated tax shall be equal to the corporate tax, which would have been payable for that income, provided that they are received by a local legal entity. Where the foreign person has incurred expenses, related to the income under sentence one, for which tax on expenses would have been payable, provided that they have been incurred by a local legal entity, the amount of the recalculated tax shall be increased by this tax.
(3) Where the amount of the deposited tax at source under Art. 195, par. 1 exceeds the amount of the recalculated tax under par. 2, the difference shall be refundable up to the amount of the tax at source under Art. 195, par. 1, which the foreign person cannot deduct from the tax payable to the state, where it is a local person.
(4) The choice of recalculating the tax at source shall be exercises by submitting an annual tax return in an approved form. The tax return shall be submitted by the foreign person to the Territorial Directorate of the National Revenue Agency – Sofia, not later than 31 December of the year, following the year of calculation of incomes.
(5) Tax refund under par. 3 shall be done according to the provisions of the Core of Tax Insurance Procedure by the Territorial Directorate of the National Revenue Agency.
(6) Paragraphs 1 – 5 shall not apply where the foreign person is a local person for tax purposes of a country – a party under the European Economic Area Agreements, which is not a European Union Member State, with which the Republic of Bulgaria:
1. does not have an enforced agreement for avoidance of double taxation, or
2. has got an enforced agreement for avoidance of double taxation, where the following is not provided:
a) exchange of information, or
b) cooperation in collection of taxes.

Responsibility
Art. 203. Where the tax referred to in Arts. 194 and 195 has not been duly withheld and paid, the persons liable with regard to the respective income shall be jointly responsible for it.

Part four.
TAX ON EXPENSES
Chapter twenty eight.
GENERAL PROVISIONS
Objects of taxation
Art. 204. Tax on expenses shall be due on the following expenses certified by way of documents:
1. the expenses of representation relating to the activity;
2. social expenses provided in kind to workers and employees employed under management and supervision contracts (employees); the social expenses provided in kind shall also include:
а) (amend. – SG 106/08, in force from 01.01.2009) expenses of contributions (premiums) for additional voluntary insurance, for voluntary health insurance and for life insurance;
b) the expenses of vouchers for food;
3. the expenses connected with the operation of vehicles in those cases where managerial activity is performed therewith.

Social expenses which are not in kind
Art. 205. Those social expenses which are not in kind and constitute income of a natural person shall be taxed in accordance with the terms and procedure set forth in the Income Taxes on Natural Persons Act.

Recognition of the tax on expenses
Art. 206. (1) The expenses and the tax thereon shall be recognized for tax purposes in the year in which they are assessed, and shall not form a tax temporary difference under Chapter Eight.
(2) The tax on expenses shall be final.

Taxable persons
Art. 207. (1) The persons liable for the tax referred to in Art. 204, items 1 and 3 shall be the persons subject to taxation with corporate tax.
(2) The persons liable for the tax referred to in Art. 204, item 2 shall be all employers or assignors under management and supervision contracts.

Exemption from taxation of social expenses of contributions and premiums for additional social insurance and life premiums
Art. 208. The social expenses under Art. 204, item 2, letter "а" at the monthly amount of up to BGN 60 per an employed person shall not be taxable in those cases where the taxable persons have no public liabilities enforceable at the time the expenses are made.

Exemption from taxation of social expenses of vouchers for food
Art. 209. (1) (amend. – SG 106/08, in force from 01.01.2009) No tax shall be due on the social expenses referred to in Art. 204, item 2, letter "b" amounting to up to BGN 60 per month, provided in the form of vouchers for food for an employed person, where all of the following conditions are present:
1. (amend. - SG 110/07, in force from 01.01.2008) the person’s negotiated basic monthly remuneration for the month in which the voucher is provided is not lower than the person’s average negotiated monthly basic remuneration for the preceding three months;
2. at the time the vouchers are provided the taxable person has no enforceable public liabilities;
3. the vouchers are provided to the taxable person by a person having permission for carrying out activities as an operator, this permission being given by the Minister of Finance on the grounds of a competition;
4. (revoked – SG 94/10, in force from 01.01.2011)
5. (revoked – SG 94/10, in force from 01.01.2011)
(2) In order for a person to acquire the right to carrying out activities as an operator, he must have obtained permission from the Minister of Finance and must:
1. have fixed (registered) capital of at least BGN 2 million at the time of filing the documents for obtaining permission;
2. be registered under the Value Added Tax Act;
3. not be a party in bankruptcy proceedings and must not have gone into liquidation;
4. have no enforceable public liabilities at the time of filing the documents for obtaining permission;
5. be represented by persons who:
а) have not been sentenced for a wilful crime, except for the cases of exculpation;
b) have not been members of a management body or a supervisory body of a company that was declared bankrupt in the two years preceding the date of the decision on opening bankruptcy proceedings, if there have been unsatisfied creditors.
(3) (amend. – SG 106/08, in force from 01.01.2009) The permission shall be issued by the Minister of Finance on the grounds of a competition and shall be revoked when the operator:
1. (amend. and suppl. – SG 94/10, in force from 01.01.2011) does not fulfil any of the requirement under Para 2, 8 and 9 any more;
2. discontinue the activity;
3. (In force from 01.01.2010; amend. – SG 94/12, in force from 01.01.2013) was not operating during the preceding two years, for which he has received the first individual quota for the year before the previous;
4. (In force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) he has issued to employers food vouchers according to a granted individual quota for issuing food vouchers, where their nominal value exceeds that individual quota, or has issued food vouchers without having been granted an individual quota.
(4) The issue of permission, the refusal to issue permission and the revocation of the permission issued shall be performed by way of a written Ordinance of the Minister of Finance.
(5) The refusal to issue permission and the revocation of the permission issued may be challenged in accordance with the procedure set forth in the Administrative Procedure Code.
(6) The procedure for holding the competition, issuing and revoking the permission, printing out the vouchers, as well as the number of the vouchers issued, the conditions of organizing and exercising control over the activity as an operator shall be determined by way of an Ordinance of the Minister of Labour and Social Policy and the Minister of Finance.
(7) (new – SG 94/10, in force from 01.01.2011) The total annual quota for granting food vouchers shall be approved in the Act on the State Budget of the Republic of Bulgaria for the respective year.
(8) (new – SG 94/10, in force from 01.01.2011) The operator shall use the amounts received from the employers for the food vouchers issued to them only for bank payments to the suppliers, who have signed service contracts with the operator, or for reimbursement of the nominal value of the food vouchers demanded by employers, where the permit of the operator has been withdrawn.
(9) (new – SG 94/10, in force from 01.01.2011) The operator shall sign service contracts only with suppliers registered under the Law on the Value-Added Tax.

Exemption from taxation of social expenses of transportation of workers and employees, and the persons employed under management and supervision contracts
Art. 210. (1) The tax referred to in Art. 204, item 2 shall not be due on the social expenses of transportation of workers and employees, and the persons employed under management and supervision contracts from the place of residence to the place of work and backwards.
(2) Para. 1 shall not apply where the transportation is carried out with a car or using additional bus lines.
(3) Para. 1 shall also apply where the workers and employees are transported with a car to a region difficult of access, or a remote region and without the said expense the taxable person shall not be able to exercise his activity.

Chapter twenty nine.
BASIS OF TAXATION
Basis of taxation for the tax on expenses of representation
Art. 211. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on the expenses referred to in Art. 204, item 1 shall be the expenses assessed for the calendar year.

Basis of taxation for the tax on social expenses provided in kind
Art. 212. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on the expenses referred to in Art. 204, item 2 shall be the assessed social expenses provided in kind decreased by the income relating to the said expenses, for the calendar year.

Basis of taxation for the tax on social expenses of contributions (premiums) for additional social insurance and life premiums
Art. 213. (1) (new – SG 94/12, in force from 01.01.2013) The tax basis for determining the tax on the expenses under Art. 203, Item 2, Letter "a" shall be the sum of the tax bases for the months of the calendar year determined under Para 2 and 3.
(2) (prev. text of Para 01, suppl. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on the expenses for the calendar month referred to in Art. 204, item 2, letter "а" shall be the excess of these expenses over BGN 60 per month per each employee.
(3) (prev. text of Para 02, suppl. – SG 94/12, in force from 01.01.2013) Where the taxable persons have public liabilities enforceable at the time the expenses are assessed, the basis of taxation for determining the tax on the expenses shall be the whole amount of the assessed expenses for the calendar month.

Basis of taxation for the tax on social expenses of vouchers for food
Art. 214. (1) (new – SG 94/12, in force 01.01.2013) The basis of taxation for determining the tax on the expenses under Art. 204, Item 2, Letter "b" shall be the sum of the tax bases for the months of the calendar year, determined under Para 2 and 3.
(2) (amend. – SG 106/08, in force from 01.01.2009; prev. text of Para 01, suppl. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on the expenses for the calendar month referred to in Art. 204, item 2, letter "b" shall be the excess of these expenses over BGN 60 per month per each employee.
(3) (prev. text of Para 02, suppl. – SG 94/12, in force from 01.01.2013) Where the conditions for tax exemption referred to in Art. 209 are not fulfilled, the basis of taxation for determining the tax on the expenses shall be the whole amount of the assessed expenses for the calendar month.

Basis of taxation for the tax on the expenses connected with maintenance, repair and operation of transport vehicles
Art. 215. (1) (amend. – SG 94/12, in force 01.01.2013) The basis of taxation for determining the tax on the expenses referred to in Art. 204, item 3 shall be the expenses assessed during the calendar year for the maintenance, repair and operation of transport vehicles decreased by the assessed income from insurance indemnities relating to the transport vehicle, up to the amount of those repair expenses which the indemnity concerns.
(2) Where the transport vehicles are used both for activity by occupation and for managerial activity, when determining the basis of taxation referred to in para. 1:
1. (amend. – SG 94/12, in force 01.01.2013) the operational expenses shall be attributed to the managerial activity on the grounds of the kilometres travelled for this activity in the calendar year;
2. (amend. – SG 94/12, in force 01.01.2013) the expenses of maintenance and repair shall be attributed to the managerial activity on the grounds of the kilometres travelled for this activity versus the total number of kilometres travelled by the respective transport vehicle for the calendar year.
(3) (amend. – SG 94/12, in force 01.01.2013) Where the basis of taxation referred to in para. 1 is a negative value, it shall be deducted gradually from the basis of taxation for the subsequent years.

Chapter thirty .
TAX RATE, STATEMENT AND PAYMENT OF THE TAX ON EXPENSES (TITLE AMEND. - SG 110/07, IN FORCE FROM 01.01.2007)
Tax rate
Art. 216. The tax rate of the tax on expenses referred to in Art. 204 shall be 10 percent.

Tax and paying the tax (Title amend. - SG 110/07, in force from 01.01.2007)
Art. 217. (1) (new - SG 110/07, in force from 01.01.2007) The tax on expenses shall be stated in an annual tax statement, submitted by the taxable person.
(2) (prev. text of Art. 217 - SG 110/07, in force from 01.01.2007; amend. – SG 94/12, in force 01.01.2013) The tax on expenses shall be payable until 31 March of the following year.

Part five.
ALTERNATIVE TAXES
Chapter thirty one.
GENERAL PROVISIONS
Alternative tax
Art. 218. (1) The taxable persons specified in this Part shall be liable for alternative tax on the activities specified herein, instead of corporate tax.
(2) Except for the State-budget enterprises, the persons referred to in para. 1 shall be liable for corporate tax on all the other activities.

Chapter thirty two.
TAX ON GAMBLING ACTIVITIES
Section I.
General Provisions
Accounting
Art. 219. (amend. – SG 94/12, in force 01.01.2013) (1) The taxable persons under this Chapter shall have to keep detailed accountancy and store information that is sufficient for establishing their obligations under this Act by the income authorities of the National Revenue Agency.
(2) The taxable persons shall be obliged to keep daily and monthly accounts of the sums received and paid for participation in gambling games, these being accounts of a standard form approved by the Minister of Finance.
(3) Para. 2 shall not apply:
1. to the gambling activity referred to in Section V;
2. to the gambling games in which the bet is the price of a telephone or another electronic communication service;
3. to gambling games, which, according to the Gambling Act, are supported by a central computer system approved by the State Commission on the Gambling, including a system for online submission of information for the accrual and allocation of the winnings, enabling the transfer of information to a server of the National Revenue Agency, which shall enable mandatory registration of each transaction to the system of the National Revenue Agency.
(4) (new – SG 15/13, in force from 01.01.2013) Taxes on support and ancillary activities within the meaning of the Gambling Act shall be declared by an annual tax return in a form, which shall be submitted by March 31 of the following year at the respective territorial directorate of the National Revenue Agency at the place of registration of the taxable person.
(5) (new – SG 15/13, in force from 01.01.2013) The taxable persons under this Chapter shall submit an annual activity report by March 31 of the following year at the respective territorial directorate of the National Revenue Agency at the place of registration of the taxable person.

Section II.
Tax on Gambling Activity of Toto and Lotto, Betting Games on Results of Sports Competitions and Horse and Dog Racing, Betting Games on Chance Events and Bets related to Guessing Facts, including such Organised from Distance (Title amend. – SG 94/12, in force from 01.01.2013)
General provisions
Art. 220. (amend. – SG 94/12, in force from 01.01.2013) The gambling activities of toto and lotto games, betting games on results of sports competitions and horse and dog races, betting games on chance events and fact guessing bets, shall be taxed with a tax on gambling activity, and the said tax shall be final.

Taxable persons
Art. 221. (amend. – SG 94/12, in force from 01.01.2013) The taxable persons under this Section shall be the organizers of the toto and lotto games, betting games on results of sports competitions and horse and dog races, betting games on chance events and fact guessing bets.

Basis of taxation
Art. 222. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on gambling activity of the toto and lotto games, betting games on results of sports competitions and horse and dog races, betting games on chance events and fact guessing bets, including the games under this Section organised from distance, shall be the value of the bets made for each game.

Tax rate
Art. 223. (amend. - SG 95/09, in force from 01.01.2010; amend. – SG 94/12, in force from 01.01.2013) The tax rate of the tax on gambling activity under this Section, including the games organised from distance, shall be 15 percent.

Declaring the tax
Art. 224. (amend. – SG 94/12, in force from 01.01.2013) (1) The taxable persons shall declare the tax under this Section by filing a tax statement in a form within 7 days from determining the results of the game.
(2) The tax statement under Para 1 shall be filed electronically signed by qualified electronic signature with the territorial directorate of the National Revenue Agency at the place of registration of the person.

Paying the tax
Art. 225. (amend. – SG 94/12, in force from 01.01.2013) The tax on gambling activity under this Section shall be payable within the time limit for its declaring.

Receipts from auxiliary and subsidiary activities
Art. 226. (1) (amend. - SG 95/09, in force from 01.01.2010) The receipts from auxiliary and subsidiary activities within the meaning of the Gambling Act shall be taxed with alternative tax at the amount of 12 percent of the value thereof.
(2) (amend. – SG 94/12, in force from 01.01.2013) The tax shall be payable until the 31 March of the following calendar year.

Section III.
Tax on Gambling Activity of Lotteries, Rattles, and Bingo and Keno Lottery Games with Numbers, Including such Organised from Distance (Title amend. – SG 94/12, in force from 01.01.2013)
General provisions
Art. 227. The gambling activity of lotteries, rattles, and Bingo and Keno lottery games with numbers shall be taxed with a tax on gambling activity, and the said tax shall be final.

Taxable persons
Art. 228. Taxable persons under this Section shall be the organizers of the gambling games - lotteries, rattles, and Bingo and Keno lottery games with numbers.

Basis of taxation
Art. 229. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on gambling activity under this Section shall be the nominal value of the bet specified in tickets, talons, or other certification signs for participation in gambling.
(2) The tax basis of the lottery games – traditional lottery and Bingo and Keno number lotteries organised from distance through the internet shall be 15 percent.

Tax rate
Art. 230. (amend. - SG 95/09, in force from 01.01.2010) The tax rate of the tax on gambling activity under this Section shall be 15 percent.

Declaring the tax
Art. 231. (amend. – SG 94/12, in force from 01.01.2013) The taxable persons shall declare the tax under this Section by filing a tax statement in a form by the 10th of the month, following the month of receipt of the certification signs for participation in gambling, and for gambling organised from distance through the internet – by the 10th of the month, following the month, when the game ends.

Paying the tax
Art. 232. (amend. – SG 94/12, in force from 01.01.2013) (1) The tax on gambling activity under this Section shall be payable prior to receiving the certification signs for participation or importing them.
(2) The certification signs for participation shall be provided to the taxable persons only after submission of documents evidencing that the tax has been paid.
(3) The tax on the gambling for games under this Section, organised from distance through the internet shall be paid by the 10th of the month following the month of the end of the game.

Recovery of the tax
Art. 233. (1) (amend. – SG 94/12, in force from 01.01.2013) The tax paid on certification signs for participation which have not been used shall be recovered by the territorial directorate of the National Revenue Agency by registration of the person:
1. after completion of each part (drawing) of the lottery games, or
2. where the license of the organizer is suspended on the grounds of Art. 35, Para 1, Item 4 of the Gambling Act.
(2) The tax under Para 1 shall be recovered upon a request for recovery under Art. 129, Para 1 of the Tax Insurance Procedure Code.
(3) The request under Para 2 shall be accompanied by the unused certification signs for participation, and the decision of the State Commission on Gambling on suspension of the license in the cases referred to in para. 1, item 2.

Receipts from auxiliary and subsidiary activities
Art. 234. (1) The receipts from auxiliary and subsidiary activities within the meaning of the Gambling Act shall be taxed with an alternative tax at the amount of 12 percent of the value thereof.
(2) (amend. – SG 94/12, in force from 01.01.2013) The tax shall be payable by 31 March of the following calendar year.

Section IV.
Tax on Gambling Activity of Games, Organised from Distance, in Which the Bet for Participation Is through the Price of a Telephone or Another Electronic Communication Service (Title amend. – SG 94/12, in force from 01.01.2013)
General provisions
Art. 235. (amend. – SG 94/12, in force from 01.01.2013) The gambling activity of games, organised from distance, in which the bet for participation is through the price of a telephone or another electronic communication service shall be taxed with a tax on gambling activity, and the said tax shall be final.

Taxable persons
Art. 236. (amend. – SG 94/12, in force from 01.01.2013) Taxable persons under this Section shall be the organizers of those gambling games, organised from distance, in which the bet for participation is through the price of a telephone or another electronic communication service.

Basis of taxation
Art. 237. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax under this Section shall be the increase in the price of the telephone or other electronic communication service.

Tax rate
Art. 238. (amend. - SG 95/09, in force from 01.01.2010) The tax rate of the tax under this Section shall be 15 percent.

Declaring the bets made and the tax
Art. 239. (amend. – SG 94/12, in force from 01.01.2013) (1) The organizer of the gambling game shall declare the bets made and the tax under this Section at the territorial directorate of the National Revenue Agency by his registration until the 10th day of the month following the month in which the games are held, by way of a tax return of a standard form.
(2) The telephone or other electronic communication service operator shall declare the bets made and the tax under this Section at the territorial directorate of the National Revenue Agency by his registration until the 10th day of the month following the month in which the games are held, by way of a tax return of a standard form.

Paying the tax
Art. 240. (amend. – SG 94/12, in force from 01.01.2013) (1) The tax on the gambling activity under this Section shall be withheld and paid by telephone or other electronic communication service operator until the 10th day of the month following the month in which the games are held.
(2) The telephone or other electronic communication service operator shall have to make sure that the organizer of the gambling game has obtained permission from the State Commission on Gambling and shall have to submit with the territorial directorate of the National Revenue Agency the contract on the grounds of which he accepts the bets, the said contract containing a clause regarding the increase in the price of the telephone or other electronic communication service.

Receipts from auxiliary and subsidiary activities
Art. 241. (1) The receipts from auxiliary and subsidiary activities within the meaning of the Gambling Act shall be taxed with an alternative tax at the amount of 12 percent of the value thereof.
(2) (amend. – SG 94/12, in force from 01.01.2013) The tax shall be paid by the organizer of the gambling game by 31 March of the following calendar year.

Section V.
Tax on Gambling Activity from Slot Machine Games and Casino Games, including such Organised from Distance (Title amend. – SG 94/12, in force fro 01.01.2013)
General provisions
Art. 242. (amend. – SG 94/12, in force from 01.01.2013) The gambling activity with slot machine games, casino games, including such organised from distance shall be taxed with a tax on gambling activity, and this tax shall be final.

Taxable persons
Art. 243. (amend. – SG 94/12, in force from 01.01.2013) Taxable persons under this Section shall be the organizers of gambling games under Art. 242.

Determining the tax
Art. 244. (amend. – SG 94/12, in force from 01.01.2013; suppl. – SG 23/13, in force from 08.03.2013) The tax on the gambling activity under this Section shall be assessed in respect of the devices entered in the certificate of granted licence and in operation:
1. slot machines and/or virtual slot machines in a gambling hall, and each gaming seat thereof, respectively;
2. gambling tables and/or virtual gambling tables and slot machines and/or virtual slot machines in a casino, respectively each gambling seat thereto.

Amount of the tax
Art. 245. (amend. - SG 95/09, in force from 01.01.2010; amend. – SG 94/12, in force from 01.01.2013) (1) The tax on gambling activity under this Section shall amount to as follows:
1. per slot machine and/or virtual slot machine in a gambling hall or casino, per gaming seat thereof, respectively – BGN 500 per quarter;
2. for roulette and/or virtual roulette with a maximum number of 10 simultaneous gaming sessions in a casino per gaming table – BGN 22,000 per quarter per each gambling table;
3. for other gambling device and/or other virtual gambling device with a maximum number of up to 7 simultaneous game sessions in a casino – BGN 5,000 per quarter per each gambling device;
4. for games in a casino involving collection of fees and commissions for participation – 15 percent of collected fees and commissions for the respective quarter.
(2) (amend. – SG 23/13, in force from 08.03.2013) No tax under Para 1, Items 1 to 3 shall be due for the quarters prior to the issue of the license for organizing gambling games with the respective gambling device or for the quarters after the revocation thereof.
(3) (amend. – SG 23/13, in force from 08.03.2013) The full amount of the tax under Para 1, Items 1 to 3 shall be due for the quarter in which the license for organizing gambling games with the respective device is issued as well as for the quarter in which it is revoked.
(4) In the cases under Art. 40 of the Gambling Act the tax under Para 1, Item 1 – 3 shall be due in full amount for the quarter of suspending or resuming the activity.

Declaring the tax
Art. 246. (amend. – SG 94/12, in force from 01.01.2013) (1) The taxable persons shall declare the tax under this Section by filing of a tax statement in a form until the 15th day of the month following the respective quarter.
(2) The tax statement under Para 1 shall be filed with the territorial directorate of the National Revenue Agency at the place of registration of the person.

Paying the tax
Art. 247. (amend. – SG 94/12, in force from 01.01.2013) The tax on the gambling activity under this Section shall be payable within the time limits for declaring it.

Chapter thirty three.
TAX ON THE RECEIPTS OF STATE-BUDGET ENTERPRISES
General provisions
Art. 248. The receipts of the State-budget enterprises from transactions referred to in Art. 1 of the Commerce Act, and the receipts from leasing movable and immovable property shall be taxed with a tax on receipts in accordance with the procedure set forth in this Chapter.

Basis of taxation
Art. 249. (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation for determining the tax on the receipts shall be the receipts of the State-budget enterprise from transactions referred to in Art. 1 of the Commerce Act and the receipts from leasing movable and immovable property which are assessed in the respective year.

Tax rate
Art. 250. (1) The tax rate of the tax on receipts shall be 3 percent.
(2) The tax rate of the tax on the receipts of the municipalities shall be 2 percent.

Tax assignment
Art. 251. (1) There shall be assigned 50 percent of the tax on the receipts of the scientific research State-budget enterprises, the State higher schools, the State and municipal schools of the public education system for their economic activity which is either directly connected with or helpful to the performance of their basic activity.
(2) The assigned tax shall be recorded as a written-off liability to the State.

Declaring the tax
Art. 252. (1) (prev. Art. 252 - SG 95/09, in force from 01.01.2010) In those cases where they are subject to tax on the receipts in the respective year, the State-budget enterprises shall submit an annual tax return of a standard form until 31 March of the subsequent year.
(2) (new - SG 95/09, in force from 01.01.2010) An annual business report shall be submitted together with the annual tax return.

Paying the tax
Art. 253. (amend. – SG 94/12, in force from 01.01.2013) The tax on receipts shall be paid by 31 March of the following year.

Chapter thirty four.
TAX ON THE ACTIVITY OF OPERATION OF VESSELS
General provisions
Art. 254. (1) The taxable persons under this Chapter shall be entitled to choose that their activity of operation of vessels be taxed with a tax on the activity of operation of vessels.
(2) The taxable persons that have chosen to be taxed with the tax referred to in para. 1 shall be taxed with this tax for a period of at least 5 years.

Taxable persons
Art. 255. (1) (prev. text of Art. 255 – SG 94/10, in force from 01.01.2011) Taxable persons under this Chapter shall be the persons performing maritime commercial navigation, providing that all of the following conditions are present:
1. (amend. – SG 106/08, in force from 01.01.2009) they are companies registered under the Commerce Act or business activity establishments of a company located for tax purposes either in another Member State of the European Union or in a Member State of the European Economic Area, and are not regarded as located in another State outside the European Union or the European Economic Area under the respective tax legislation or under a treaty on avoidance of double taxation with a third State;
2. (amend. – SG 94/10, in force from 01.01.2011) they operate vessels of their own or chartered ones, as well as charter vessels;
3. they do not refuse to train probationers on board, with the exception of those cases in which the number of probationers within a year is more than one per 15 officers on board;
4. (amend. – SG 106/08, in force from 01.01.2009) their crews are recruited from Bulgarian citizens or citizens of other Member States of the European Union or the European Economic Area;
5. (amend. – SG 106/08, in force from 01.01.2009; amend. – SG 94/10, in force from 01.01.2011) at least 60 percent of the net tonnage of the operated vessels is of vessels flying the Bulgarian flag or the flag of another Member State of the European Union or the European Economic Area.
6. (new – SG 94/10, in force from 01.01.2011) carry out their activities in compliance with the requirements of the international conventions and the European Union law related to the safety and security of shipping, protection of the environment from pollution from ships and the living and labour conditions on-board of ships.
(2) (new – SG 94/10, in force from 01.01.2011) Taxable persons under this Chapter shall be also the persons carrying out sea merchant shipping managing ships pursuant to management contracts and meeting all of the following requirements:
1. comply with the requirements under Para 1, Items 1, 5 and 6;
2. more than the half of the administrative coastal staff or the crew consists of Bulgarian nationals or nationals of other Member States of the European Union or of the European Economic Area;
3. at least three-thirds of the tonnage of the managed ships is managed by companies qualifying as local persons for tax purposes of a Member State of the European Union or another contracting party to the Agreement on the European Economic Area.

Limitations on the scope of the tax
Art. 256. The taxable persons shall not be entitled to apply the procedure for taxation under this Chapter to:
1. sea vessels the net tonnage of which is below 100 tons;
2. fishing vessels;
3. vessels for trips, with the exception of passenger ships;
4. vessels which the taxable persons have granted under management contracts or under bare-boat charters, except for the cases in which the vessels are granted to the State;
5. installations for extraction of ores and minerals, oil platforms, dredgers and vessels performing towage.

Basis of taxation
Art. 257. (1) The basis of taxation per vessel per day in operation shall be determined as follows:
1. per vessel the net tonnage of which is up to 1,000 tons – BGN 3.50 per each 100 tons commenced;
2. per vessel the net tonnage of which is from 1,001 up to 10,000 tons – BGN 35 plus BGN 3.00 per each 100 tons commenced above 1,000 tons;
3. per vessel the net tonnage of which is from 10,001 up to 25,000 tons – BGN 305 plus BGN 2.50 per each 100 tons commenced above 10,000 tons;
4. per vessel the net tonnage of which is above 25,001 tons – BGN 680 plus BGN 1.00 per each 100 tons commenced above 25,000 tons.
(2) (amend. – SG 94/12, in force from 01.01.2013) The basis of taxation of a vessel for a calendar year shall be determined by multiplying the basis of taxation of the respective vessel per one day of operation, the said basis of taxation being determined under para. 1, by the number of days of operation of the respective vessel for the calendar year.
(3) The basis of taxation for determining the tax under this Chapter shall be the aggregate of the bases of taxation of all vessels determined under para. 2.

Tax rate
Art. 258. The tax rate of the tax under this Chapter shall be 10 percent.

Declaring the tax
Art. 259. (1) The taxable persons shall exercise their right to choose taxation with the tax under this Chapter by way of submitting a tax return of a standard form not later than 31 December of the preceding year.
(2) The taxable persons shall submit an annual tax return of a standard form for the tax due under this Chapter not later than 31 March of the subsequent year.
(3) (new - SG 95/09, in force from 01.01.2010) An annual business report shall be submitted together with the annual tax return.

Paying the tax
Art. 260. (amend. – SG 94/12, in force from 01.01.2013) The taxable persons shall pay monthly the tax due under this Chapter by 31 March of the following year.

Part six.
ADMINISTRATIVE SANCTIONS PROVISIONS
Chapter thirty five.
ADMINISTRATIVE VIOLATIONS AND SANCTIONS
Art. 261. (1) A taxable person that fails to submit the tax return referred to in this Act, or fails to submit it in due time, or fails to state data or circumstances, or states false data or circumstances, this bringing about either a lower amount of the tax or ungrounded abatement, or assignment, or exemption from tax, shall be punished with a pecuniary sanction at the amount of BGN 500 to BGN 3,000.
(2) In the cases of a repeated violation the pecuniary sanction referred to in para. 1 shall be at the amount of BGN 1,000 to BGN 6,000.

Art. 262. (1) A taxable person that fails to submit a supplement to the annual tax return, or states false data or circumstances therein shall be punished with a pecuniary sanction at the amount of BGN 100 to BGN 1,000.
(2) In the cases of a repeated violation the pecuniary sanction referred to in para. 1 shall be at the amount of BGN 200 to BGN 2,000.

Art. 263. (1) A taxable person that reports a business operation in violation of its accounting policy and this brings about improper determination of its accounting financial result shall be punished with a pecuniary sanction at the amount of BGN 100 to BGN 1,000 per each violation.
(2) In the cases of a repeated violation the pecuniary sanction referred to in para. 1 shall be at the amount of BGN 200 to BGN 2,000 per each violation.

Art. 264. (1) A manager, a liquidator/trustee in bankruptcy or a person who has held the position of a liquidator/trustee in bankruptcy who has committed a violation through action or omission, this being a violation under Arts. 261, 262 or 263 shall be punished with a pecuniary sanction or a fine at the amount of BGN 200 to BGN 1,000.
(2) In the cases of a repeated violation the pecuniary sanction or fine referred to in para. 1 shall be at the amount of BGN 400 to BGN 2,000 per each violation.

Art. 265. (amend. - SG 110/07, in force from 01.01.2008) A taxable person that fails to issue a primary accounting document in order to account for receipts shall be imposed a sanction under Art. 182 of the Value Added Tax Act, unless the person is subject to a more severe punishment.

Art. 266. (amend. - SG 110/07, in force from 01.01.2008) A taxable person that fails to perform its duty under Art. 10, Para 4 shall be imposed a sanction under Art. 185 of the Value Added Tax Act.

Art. 267. (amend. - SG 110/07, in force from 01.01.2008) A taxable person that makes a concealed distribution of profit shall be punished with a pecuniary sanction at the amount of 20 percent of the assessed expense constituting concealed distribution of profit.

Art. 268. (1) An organizer of gambling games that fails to perform the obligation to keep daily and monthly accounts referred to in Art. 219 shall be punished with a pecuniary sanction at the amount of BGN 2,000 to BGN 10,000.
(2) In the cases of a repeated violation the pecuniary sanction referred to in para. 1 shall be at the amount of BGN 4,000 to BGN 20,000.

Art. 269. (1) Where an enterprise under Art. 232 which prints out or imports documents for participation provides the documents for participation without having the document of paid tax submitted thereto shall be punished with a pecuniary sanction at the amount of the unpaid tax.
(2) In the cases of a repeated violation the pecuniary sanction referred to in para. 1 shall be equal to the double amount of the unpaid tax and the Minister of Finance shall deprive the enterprise from the right to print out or import the documents for participation in the games under Chapter Thirty-Two, Section III for a period of up to 6 months.

Art. 270. (1) An organizer of gambling games under Art. 228 holding such games without having paid the full amount of the tax due shall be punished with a pecuniary sanction of the double amount of the tax due, this sanction being not less than BGN 2,000.
(2) The pecuniary sanction under para. 1 shall also be imposed on an organizer of gambling games under Art. 228 that offers, sells or provides to a participant in the gambling game a document for participation which does not comply with the requirements set forth in the statutory instruments regarding the printing out, form, type and cost value thereof, or sells the said document for participation at a price higher than the nominal one printed on it. No sanction shall be imposed where the reappraisal of the nominal value of the documents for participation has been entered in a record certified by a representative of the Ministry of Finance, a representative of the enterprise printing the documents and the revenue body of the respective territorial directorate of the National Revenue Agency by registration of the organizer.
(3) In the cases of a repeated violation the pecuniary sanction referred to in paras. 1 and 2 shall be equal to the double amount of the tax due, this sanction being not less than:
1. BGN 4,000 and deprivation of the right to exercising activity under Art. 272, where the repeated violation concerns para. 1;
2. BGN 6,000 and deprivation of the right to exercising activity under Art. 272, where the repeated violation concerns para. 2.

Art. 271. The pecuniary sanctions under Arts. 269 and 270 shall be imposed regardless of the sanctions provided for in other laws, and the control bodies under the Gambling Act shall be notified of the established violations.

Art. 272. (1) The administrative sanction of deprivation of the right to exercising activity shall be imposed for a period of 1 to 6 months.
(2) In the cases referred to in Art. 270, para. 2 the revenue bodies shall seize and destroy those documents for participation which do not comply with the requirements set forth in the statutory instruments regarding the printing out, form, type and cost value, or are sold at a price that is higher than the nominal one printed on the respective document for participation. The expenses shall be borne by the taxable person.
(3) In the cases of imposing the administrative sanction of deprivation of the right to exercising activity, the compulsory administrative measure of sealing the site and forbidding the access thereto shall be applied as well.

Art. 273. (1) The execution of the administrative sanction of deprivation of the right to exercising activity shall be suspended by the body which has imposed it, at the request of the taxable person that has been sanctioned, and after the latter has evidenced to have paid the whole amount of the pecuniary sanction imposed.
(2) In the cases referred to in para. 1 the revenue body shall also order the unsealing of the site which shall be carried out under the taxable person’s obligation to render assistance.

Art. 274. The part of the penalty warrants which concerns the administrative sanction of deprivation of the right to exercising activity and the compulsory administrative measure of sealing the site and forbidding the access thereto, as well as the penalty warrants under Art. 273 shall be subject to preliminary execution, except where the court rules otherwise.

Art. 275. (revoked – SG 94/10, in force from 01.01.2011)

Art. 276. (amend. - SG 95/09, in force from 01.01.2010; suppl. – SG 99/11, in force from 01.01.2012) A taxable person failing to perform the obligation under Art. 92, par. 3, Art. 160, Para 3, Art. 162, Para 6, Art. 219, par. 4, Art. 252, par. 2 or Art. 259, par. 3 shall be punished with a pecuniary sanction at the amount of BGN 500 to BGN 2,000 and in the cases of a repeated violation the pecuniary sanction shall be at the amount of BGN 1,500 to BGN 5,000.

Art. 277. (1) The taxable persons that have applied the procedure for taxation under Chapter Thirty-Four but do not fulfil the conditions which give them the right of choosing shall be punished with a pecuniary sanction at the amount of BGN 20,000 to BGN 30,000 and in the cases of a repeated violation the pecuniary sanction shall be at the amount of BGN 40,000 to BGN 60,000.
(2) The persons referred to in para. 1 shall not be entitled to apply the procedure for taxation of the activity of operation of vessels for a period of 5 years.

Art. 277a. (new – SG 106/08, in force from 01.01.2009; amend. – SG 94/10, in force from 01.01.2011) (1) Any person who according to an individual quota allocated to him has issued to employers food vouchers, which nominal value exceeds the said individual quota, shall be imposed a property sanction amounting to the surplus to the nominal value of the food vouchers issued to employers under the allocated individual quota exceeding the said individual quota, but no less than BGN 2000.
(2) Any person who issues to employers food vouchers without being allocated an individual quota shall be imposed a property sanction amounting to the nominal value of the food vouchers issued to employers, but no less than BGN 2000.
(3) (new – SG 94/12, in force from 01.01.2013) Any person providing food vouchers to employers that do not meet the conditions and order for printing food vouchers specified in the ordinance under Art. 209, Para 6 shall be imposed a property sanction amounting to the nominal value of the provided food vouchers, but no less than BGN 2000.

Art. 277b. (new – SG 106/08, in force from 01.01.2009) Any operator of food vouchers who fails to provide a reference for the made available and paid (cashed) vouchers shall be imposed a property sanction in amount from BGN 1000 to 1500 and in case of repeated offence - in amount from BGN 2000 to 2500.

Art. 277c. (new – SG 94/10, in force from 01.01.2011) Any food voucher operator who fails to meet the requirements of Art. 209, Para 8 for payments related to issued food vouchers shall be imposed a property sanction in amount from BGN 10000 to 15000, and in cases of repeated offence – from BGN 20000 to 30000.

Art. 278. (1) The records establishing the violations shall be drawn by the bodies of the National Revenue Agency, while the penalty warrants shall be issued either by the Executive Director of the National Revenue Agency or by an official authorized by him/her.
(2) The establishment of violations, and the issue, appeal and enforcement of penalty warrants shall be carried out in accordance with the procedure set forth in the Administrative Violations and Penalties Act.

 

  

VALUE ADDED TAX ACT IN BULGARA

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VALUE ADDED TAX ACT
In force from 01.01.2007
Prom. SG. 63/4 Aug 2006, amend. SG. 96/28 Nov 2006, amend. SG. 105/22 Dec 2006, amend. SG. 108/29 Dec 2006, amend. SG. 37/8 May 2007, amend. SG. 41/22 May 2007, amend. SG. 52/29 Jun 2007, amend. SG. 59/20 Jul 2007, amend. SG. 108/19 Dec 2007, amend. SG. 113/28 Dec 2007, amend. SG. 106/12 Dec 2008, amend. SG. 12/13 Feb 2009, amend. SG. 23/27 Mar 2009, amend. SG. 74/15 Sep 2009, amend. SG. 95/1 Dec 2009, amend. SG. 94/30 Nov 2010, amend. SG. 100/21 Dec 2010, amend. SG. 19/8 Mar 2011, amend. SG. 77/4 Oct 2011, amend. SG. 99/16 Dec 2011, amend. SG. 54/17 Jul 2012, amend. SG. 94/30 Nov 2012, amend. SG. 103/28 Dec 2012, amend. SG. 23/8 Mar 2013, amend. SG. 30/26 Mar 2013, amend. SG. 68/2 Aug 2013
Part one.
GENERAL PROVISIONS
Purpose of the Act
Art. 1. This Act shall regulate the levying with value added tax (VAT).

Subject of levying
Art. 2. With value added tax shall be levied:
1. any delivery of goods or service against payment;
2. any inter-community acquisition against payment with a place of performance on the territory of the state, carried out by a person, registered under this Act or by a person, for whom an obligation for registration has occurred;
3. any inter-community acquisition of new vehicles against payment with a place of performance on the territory of the state;
4. any inter-community acquisition of excise goods against payment with a place of performance on the territory of the state, when the recipient is a tax liable person or a tax non-liable legal person, who has not been registered under this Act;
5. the import of goods.

Tax liable persons
Art. 3. (1) Tax liable person shall be any person carrying out independent economic activity regardless of the objectives and the results of it.
(2) (The phrase "as well as performing profession as freelance, including as private bailiff and notary" is declared anti-constitutional by Decision No 7 of 2007 of the Constitutional Court - SG 37/07; suppl. – SG 108/07, in force from 19.12.2007) Independent economic activity shall be the activity of manufacturers, traders and persons, providing services, including in the sphere of mining activity and agriculture, as well as performing profession as freelance, including as private bailiff and notary. Independent economic activity shall also be any activity, carried out regularly or by profession, including the exploitation of material or non-material property with objective to receive regular income from it.
(3) It is not considered to be independent economic activity:
1. the activity, carried out by natural persons upon employment legal relationship or a legal relationship, equal to employment one;
2. (amend. – SG 108/06, in force from 01.01.2007) the activity of the natural persons, who are not sole traders, for the activity, carried out by them, regulated by law, regarding management and control of legal persons.
(4) Tax liable person shall also be every person, who casually carries out inter-community delivery of a new vehicle against payment.
(5) The state, the state bodies and the bodies of local government shall not be tax liable persons with regards to all activities and deliveries, carried out by them in their quality as body of state or local government power, including in the cases, when fees, installments or remunerations are collected for these activities or deliveries, except for:
1. the following activities and deliveries:
a) (amend. – SG 41/07) electronic communication services;
b) water, gas, electricity or steam supplying;
c) transport of goods;
d) harbour and airport services;
e) transportation of passengers;
f) sale of new goods, manufactured for sale;
g) deliveries, carried out with purpose of regulating the agricultural production market;
h) organisation and carrying out trade fairs, exhibitions;
i) storage activity;
j) activities of organisations for trade notification, advertising services, including letting out advertising surfaces;
k) tourist activities;
l) (suppl. – SG 94/10, in force from 01.01.2011) managing stores, canteens and other trade sites, letting out buildings, parts of them and trade areas, as well as granting concessions for building, for services or extraction;
m) radio and television activity of commercial nature;
n) (new – SG 54/12, in force from 01.01.2013) services provided by a state bailiff.
2. Deliveries, except for those under item 1, which will lead to significant violation of the competition rules.
(6) (new – SG 95/09, in force from 01.01.2010) Any tax liable person that also carries out tax exempt deliveries and/or deliveries or activities other than independent economic activity, and also any tax non-liable legal person, registered for value added tax proposes, shall be tax liable persons for all received services.

Tax non-liable legal person
Art. 4. (amend. – SG 95/09, in force from 01.01.2010) Tax non-liable legal person shall be a legal person, who is not tax liable within the meaning of Art. 3, Para 1 - 5 and who carries out inter-community acquisition of goods.

Goods
Art. 5. (1) Goods within the meaning of this Act shall be any chattel or immovable property, including electric power, gas, water, thermal or refrigeratory energy and others similar, as well as the standard software.
(2) Money in circulation and foreign currency, used as payment instruments, shall not be considered as a goods within the meaning of par. 1.

Delivery of goods
Art. 6. (1) Delivery of goods within the meaning of this Act shall be the transfer of right to ownership of goods or other property right over the goods.
(2) For the purposes of this Act as delivery of goods shall also be considered:
1. the transfer of right to ownership of goods or other property right over the goods as a result of request or act of state body or a body of local government or on the grounds of law, against compensation;
2. the actual provision of goods upon contract, in which is explicitly provided transfer of the right to ownership of the goods under postponement condition or term;
3. the actual providing goods upon leasing contract, in which the transfer of right to ownership of the goods is explicitly provided; this provision shall not be applied, when in the leasing contract only option for transfer of the ownership of the goods has been agreed;
4. the actual provision of goods to a person, who acts on his/her behalf at someone else’s expense.
(3) For the purposes of this Act as delivery against payment shall also be considered:
1. the separating or the provision of the goods for personal use or exploitation to the tax liable natural person, to the owner, to his/her employees and officials of to third parties under the condition, that at its production, import or acquisition, tax credit has been partially or completely deducted;
2. the free of charge transfer of ownership or other property right over the goods to third parties, when at its production, import or acquisition, tax credit has been partially or completely deducted;
3. (new – SG 106/08, in force from 01.01.2009) sending or transporting goods, which have been produced, extracted, processed, purchased, acquired or imported on the territory of the state by a tax liable person in the course of his/her economic activity, when being sent or transported for the purposes of this economic activity from or for his/her account from the territory of the state to the territory of another Member State.
(4) Paragraph 3 shall not be applied regarding:
1. (suppl. – SG 95/09, in force from 01.01.2009) provision for the purposes of the economic activity of the person of special, work, uniform and official wear and personal protection means by the employer to his/her employees and officials, including to those with management contracts;
2. free of charge provision of goods of negligible value with advertising purpose or at provision of samples.

Inter-community delivery of goods
Art. 7 (1) Inter-community delivery of goods shall be the delivery of goods, transported by or at expense of the provider – a person, registered under this Act, or of the recipient from the territory of the state to the territory of another Member State, when the recipient is tax liable person or tax non-liable legal person, registered for the purposes of VAT in another Member State.
(2) Inter-community delivery of goods shall also be the delivery of new vehicle, sent or transported by or at expense of the provider or of the recipient from the territory of the state to the territory of another Member State, regardless of the fact whether the recipient is tax liable person or tax non-liable legal person.
(3) Inter-community delivery of goods shall also be the delivery of excise goods, sent or transported by or at expense of the provider – a person, registered under this Act, or of the recipient from the territory of the state to the territory of another Member State, when the recipient is tax liable person or tax non-liable legal person, who is not registered for the purposes of VAT in another Member State.
(4) Inter-community delivery of goods shall also be the sending or transportation of goods, produced, derived, processed, purchased, acquired or imported on the territory of the state by a person, registered under this Act in the frameworks of his/her economic activity, when the goods are sent or transported for the purposes of his/her economic activity by or at his/her expense from the territory of the state to the territory of another Member State, in which the person is registered for the purposes of VAT.
(5) Inter-community delivery shall not be:
1. the delivery of goods, for which the provider applies a special procedure for levying under chapter seventeen;
2. the delivery of goods, which are mounted or installed by or at expense of the provider;
3. the delivery of goods under art. 18;
4. the deliveries of goods under art. 31, items 1, 2 and 7 and art. 34;
5. (amend. – SG 94/10, in force from 01.01.2011) the delivery of gas through a natural gas system placed on the territory of the European Union or through a network connected to such system, the delivery of electrical energy or of heating or cooling energy through heating or cooling networks;
6. the deliveries by a person, registered under this Act – intermediary in three partite operation, to the acquirer in three partite operation;
7. the remote sales of goods, implemented under the identification number, issued by the Member State, in which the goods are sent or transported;
8. (amend. – SG 94/12, in force from 01.01.2013) sending or transportation of goods from the territory of the state to the territory of another Member State with a purpose of evaluation or processing of these goods, which work shall be carried out in the other Member State, under the condition that after implementing the work the goods shall be sent back to the sender on the territory of the state;
9. the sending or transportation of goods from the territory of the state to the territory of another Member State with purpose the same goods to be used for performing services on the territory of the other Member State, under condition that after carrying out the services, the goods shall be returned back to the sender on the territory of the state;
10. the sending or transportation of goods from the territory of the state to the territory of another Member State, if the following conditions are simultaneously pre the territory of the other Member State would be subject of the provisions for temporary import with full exemption from import customs duties;
b) the goods shall be returned back to the sender on the territory of the state no later than 24 months since their sending;
(6) (amend. – SG 113/07, in force from 01.01.2008) When the conditions under par. 5, items 8-10 fall out, it shall be considered, that by this moment inter-community delivery against payment has been made.

Service
Art. 8. Service within the meaning of this Act shall mean anything that has value and is different from goods and money in circulation and from foreign currency, used as payment instrument.

Delivery of service
Art. 9. (1) Delivery of service shall be any implementation of service.
(2) As delivery of service shall also be considered:
1. the sale or the transfer of rights to non-material property;
2. the undertaking of obligation not to perform activities or not to exercise rights;
3. any physical or intellectual labour, including treatment, within the meaning of production, construction or installment of material asset with stuff and materials, provided by the consignor in disposition of the executor;
4. the implementation of a service by a holder/user for repair and/or improvement of asset, rented or provided for use.
(3) As delivery of service against payment shall also be considered:
1. the provision of service for the personal needs of the tax liable natural person, of the owner, of the employees and the officials or of third parties, as at its implementation there shall be used goods, for which at its producing, importing or acquiring tax credit has been partially or fully deducted;
2. free of charge provision of service for personal needs of the tax liable natural person, of the owner, of the employees and the officials or of third parties;
3. (new – SG 94/12, in force from 01.01.2013) free of charge provision of a service by a keeper/user for improvement of an asset which is rented or allocated for use.
(4) Paragraph 3 shall not be applied at:
1. the free of charge provision of transport service from the residence to the place of work and backwards by employer for his/her employees and officials, including for those upon contract for management, when it is for the purposes of the economic activity of the person;
2. (amend. – SG 94/12, in force from 01.01.2013) the free of charge provision of a service by a holder/user for repair of asset, rented or allocated for use;
3. (revoked – SG 94/12, in force from 01.01.2013);
4. the free of charge implementation of service of negligible value with advertising purpose.

Lack of delivery of goods or services
Art. 10. (1) It shall not be delivery of goods or service the delivery from the transforming person towards the acquirer, from the transferor or from the contributor as a result of:
1. transformation of a trade company by the procedure of chapter sixteen of the Commerce Act;
2. transferring a company by the procedure of art. 15 or 60 of the Commerce Act;
3. carrying out a non-monetary instalment in a trade company;
4. (new – SG 94/12, in force from 01.01.2013) transformation of budget organizations, state owned or municipal undertakings, as a result of which the newly established organizations or undertakings are universal successors of the transformed ones.
(2) In the cases under par. 1 the person, who receives the goods and the services, shall also be successor to all rights and obligations under this Act, related to them, including to the right of deduction of tax credit and to the obligations for carrying put correction of the used tax credit.
(3) Paragraph 2 shall also be applied in the cases, when the goods or the services have been acquired by inheritance or legacy by a person, tax liable under this Act.
(4) The procedure and the necessary documents for applying paragraphs 2 and 3 shall be specified with the Regulation for Implementation of the Act.

Provider and recipient
Art. 11. (1) Provider within the meaning of this Act shall be the person who carries out the delivery of goods or service.
(2) Recipient within the meaning of this Act shall be the person, who receives the goods or the service.

Leviable delivery
Art. 12. (1) Leviable delivery shall be any delivery of goods or service within the meaning of art. 6 and 9, when it has been carried out by tax liable person under this Act and has a place of performance on the territory of the state, as well as the delivery, taxable with zero rate, made by tax liable person, unless otherwise provided by this Act.
(2) The delivery, regarding which the recipient is tax payer under chapter eight, shall not be subject to levying by the provider.

Inter-community acquisition
Art. 13. (1) Inter-community acquisition shall be the acquisition of right to ownership of goods, as well as the actual receipt of goods in the cases under art. 6, par. 2, which is being sent or transported to the territory of the state from the territory of another Member State, when the provider is a tax liable person, who is registered for the purposes of VAT in other Member State.
(2) As inter-community acquisition shall also be considered the acquisition of new vehicle, which is being sent or transported to the territory of the state from the territory of another Member State, regardless of the fact whether the provider is a tax liable person for the purposes of VAT in other Member State.
(3) (amend. – SG 106/08, in force from 01.01.2009) As inter-community acquisition shall also be considered the receiving of goods on the territory of the state by a tax liable person, which will be used for the purposes of his/her economic activity, when the goods have been sent or transported by or at his/her expense from the territory of another Member State, in which the person is registered for the purposes of VAT and where the goods are produced, derived, processed, purchased, acquired or imported by him/her in the frameworks of his/her economic activity.
(4) It shall not be inter-community acquisition:
1. the acquisition of goods, for which the provider applies special procedure for levying second hand goods, works of art, articles for collections and antique articles, determined by the legislation of the respective Member State;
2. the acquisition of goods, which are mounted or installed by or at the provider’s expense;
3. the acquisition of goods under art. 18;
4. the acquisition of goods under art. 31, items 1, 2 and 7 and art. 34;
5. (amend. – SG 94/10, in force from 01.01.2011) the acquisition of gas through a natural gas system placed on the territory of the European Union or through a network connected to such system, the delivery of electrical energy or of heating or cooling energy through heating or cooling networks;
6. the acquisition of goods by a person, registered under this Act – acquirer in three partite operation, from an intermediary in three partite operation;
7. the acquisition of goods, sent or transported from the territory of another Member State with purpose of performing remote sales with a place of performance on the territory of the state, when the sales are carried out under the identification number of the provider under art. 94, par. 2;
8. (amend – SG 94/12, in force from 01.01.2013) the receipt of goods, sent or transported from the territory of another Member State with purpose of evaluation or processing of these goods, which shall be performed on the territory of the state, under the condition, that upon accomplishment of evaluation or the processing, these goods shall be returned back to the sender on the territory of the other Member State;
9. the receipt of goods, sent or transported from the territory of another Member State with purpose of using the same goods for carrying out services on the territory of the state, under the condition that after the performance of the services, the goods shall be returned back to the sender on the territory of the other Member State;
10. the receipt of goods, sent or transported from the territory of another Member State to the territory of the state, if the following conditions are simultaneously present:
a) the import of the same goods on the territory of the state would become subject to the provisions of temporary import with full exemption from customs duties;
b) the goods are returned back to the sender on the territory of other Member State not later than 24 months from their sending.
(5) (amend. – SG 113/07, in force from 01.01.2008) When the circumstances under par. 4, items 8-10 fall out, it shall be considered that by this moment there has been made inter-community acquisition.
(6) (new – SG 106/08, in force from 01.01.2009) Paragraph 3 shall also apply where the person is not registered for the purposes of value added tax in the Member State of the import of the goods, where the sending or transportation starts, if theses goods are imported from the importing Member State by or on behalf of the person.

Remote sale of goods
Art. 14. (1) Remote sale of goods shall be the delivery of goods, for which the following circumstances are simultaneously present:
1. the goods are sent or transported by or at expense of the provider from the territory of a Member State, different from this, in which the transport ends;
2. the provider of the goods is a person, registered for the purposes of VAT in a Member State, different from this, in which the transport ends;
3. recipient of the delivery is a person, who is not obliged to charge VAT at inter-community acquisition of the goods in the Member State, where the transport ends;
4. the goods:
a) are not new vehicles, or
b) are not mounted and/or installed by or at the provider’s expense, or
c) are not subject of special order of charging the margin of the price for second hand goods, works of art, collections articles and antique articles.
(2) For the purposes of par. 1, when the goods, which are being provided, sent or transported from a third state or territory and are being imported by the provider in a Member State, different from this, where the transport to the recipient ends, it is accepted that the goods are sent or transported from the Member State of the import.

Three partite operation
Art. 15. Three partite operation shall be the delivery of goods between three persons, registered for the purposes of VAT in three different Member States A, B and C, for whom the following circumstances are simultaneously present:
1. a person, registered in a Member State A (transferor) carries out delivery of goods to a person, registered in a Member State B (intermediary), who after that carries out delivery of this goods to a person, registered in a Member State C (acquirer);
2. the goods shall be transported directly from A to C;
3. the intermediary shall not be registered for the purposes of VAT in the Member States A and C;
4. the acquirer charges VAT as a recipient of the delivery.

Import of goods
Art. 16. (1) Import of goods within the meaning of this Act shall be the entering of non-community goods on the territory of the state.
(2) Import of goods shall also be the placing of goods under the free movement procedure after passive improvement procedure.
(3) (amend. – SG 94/10, in force from 01.01.2011) Import of goods shall also be the entering of community goods on the territory of the state from third states or territories, which are part of the customs territory of the European Union.
(4) Import of goods shall also be any other event, as a result of which customs obligation occurs.
(5) Regardless of par. 1-4, when at entering the territory of the state the goods have obtained status of temporarily stored goods or are placed in a free zone or free store, or under customs procedures – the customs storing, active improvement, temporary import with full exemption from customs duties, external transit, the import shall be considered as implemented, when the goods are no longer under the respective procedure on the territory of the state.

Part two.
LEVYING THE DELIVERIES
Chapter one.
PLACE OF PERFORMANCE
Place of performance regarding delivery of goods
Art. 17. (1) Place of performance regarding delivery of goods, which is not sent or transported, shall be the place, where the goods is situated at the transfer of the ownership or at the factual provision of the goods under art. 6, par. 2.
(2) Place of performance regarding delivery of a goods, which is being sent or transported by the provider, recipient or by a third person, shall be the location of the goods by the moment, when the delivery is sent, or its transportation towards the recipient starts.
(3) Place of performance regarding delivery of goods by an intermediary in three partite operation to an acquirer in three partite operation shall be the Member State, where the acquirer in the three partite operation is registered for the purposes of VAT.
(4) Place of performance regarding delivery of goods, which is being mounted or installed by or at the provider’s expense, shall be the place, where the goods is mounted or installed.

Place of performance in case of delivery of goods, restaurant and catering services, carried out on board of ships, airplanes or trains (Title amend. – SG 95/09, in force from 01.01.2010)
Art. 18. (1) The place of performance regarding delivery of goods, restaurant and catering services, carried out on board of ships, airplanes or trains during transportation of passengers, shall be on the territory of the state, when:
1. the transportation of the passengers starts on the territory of the state and ends up on the territory of another Member State without stopping on the territory of a third state or territory, or
2. the transportation of the passengers starts on the territory of the state and ends up on the territory of a third state or territory with stopping on the territory of another Member State, or
3. (amend. – SG 94/10, in force from 01.01.2011) the transportation of the passengers starts on the territory of a third state or territory and ends up on the territory of another Member State and the first stopping on the territory of the European Union is made on the territory of the state, or
4. the transportation of the passengers is carried out between two points on the territory of the state.
(2) (amend. – SG 95/09, in force from 01.01.2010) The place of performance regarding delivery of goods, restaurant and catering services, carried out on board of ships, airplanes or trains during transportation of passengers, shall be specified by the procedure of par. 1, items 2 and 3, only regarding the part of the transportation of passengers, carried out between the territory of the state and the other Member States.
(3) (amend. – SG 95/09, in force from 01.01.2010) Except for the cases under par. 1 and 2, the place of performance regarding delivery of goods, restaurant and catering services, carried out on board of ships, airplanes or trains during transportation of passengers, shall be outside the territory of the state.

Place of performance regarding delivery of natural gas and electric power
Art. 19. (amend. – SG 94/10, in force from 01.01.2011) The place of performance regarding delivery of gas through a natural gas system placed on the territory of the European Union or through a network connected to such system, the delivery of electrical energy or of heating or cooling energy through heating or cooling networks, shall be:
1. the place, where the seat of business or the permanent site of the recipient of the delivered goods is situated, and when there is not such seat or site – the permanent address or the custom residence of the recipient – trader of natural gas, of electrical energy or of heating or cooling energy;
2. the place where the goods is being effectively consumed – when the recipient is a person, different from the person under item 1;
3. the place, where the seat of business or the permanent site of delivery of the goods of the recipient under item 2 is situated, and when there is not such seat or site – the permanent address or the custom residence of the recipient under item 2 – if the entire gas quantity, electrical energy or heating or cooling energy or part of it are not effectively used by the recipient and have become subject of a subsequent delivery.

Place of performance of delivery regarding remote sale
Art. 20. (1) The place of performance of delivery of goods under the conditions of remote sale under art. 14 shall be on the territory of the Member State, where the transport ends, when the following circumstances are simultaneously present:
1. the provider is a person, registered under this Act on the grounds, different from this for registration for inter-community acquisition;
2. the deliveries of goods under the conditions of remote sale, carried out by the person under item 1 for a Member State exceed for the current calendar year or have exceeded for the previous calendar year the sum, regulated by the legislation of this Member State.
(2) The place of performance of delivery of goods under the conditions of remote sale shall be on the territory of the state, when the following circumstances are simultaneously present:
1. the provider is a person, registered for the purposes of VAT in another Member State;
2. the deliveries, carried out under the conditions of remote sale for the territory of the state exceed for the current calendar year or have exceeded for the previous calendar year the sum of 70 000 BGN.
(3) In the sum under par. 2, item 2 shall not be included VAT, due in the Member State, where the provider is registered for the purposes of VAT, as well as the excise goods deliveries.
(4) When subject of the delivery are excise goods for personal consumption by the natural person, who is not sole trader, the place of performance of the delivery under the conditions of remote sale shall be the place where the goods arrive or the transport ends.
(5) When the circumstances under par. 1, item 2 are not available, the place of performance shall be on the territory of the state, except for the cases, when the provider has notified the territorial directorate of registration, that he/she does not want the place of performance to be on the territory of another Member State, where the transport ends, and he/she is registered in this other Member State for the purposes of VAT.
(6) Paragraph 2 shall not be applied, when the place of performance of the delivery is on the territory of the state, when the provider is registered on the grounds of art. 100, par. 3.

Place of performance, regarding delivery of service
Art. 21. (amend. – SG 95/09, in force from 01.01.2010) (1) The place of performance regarding delivery of service, where the recipient is a tax non-liable person, shall be the place, where the independent economic activity of the provider is established. Where such services are provided at a permanent site, located elsewhere the place of establishment of the independent economic activity of the provider, then the place of performance shall be the place, where the said site is located. Where there is no place of establishment of independent economic activity or permanent site, the place of performance of the delivery shall be the place of the permanent address or the customary residence of the provider.
(2) The place of performance regarding delivery of service, where the recipient is a tax liable person, shall be the place, where the recipient has established his independent economic activity. Where such services are provided at a permanent site, located elsewhere the place of establishment of the independent economic activity of the recipient, then the place of performance shall be the place, where the said site is located. Where there is no place of establishment of independent economic activity or permanent site, the place of performance of the delivery shall be the place of the permanent address or the customary residence of the recipient.
(3) Where the recipient referred to in Para 2 uses the services exclusively for personal needs or for the needs of his employees, the place of performance shall be determined as prescribed by Para 1.
(4) The place of performance, regarding delivery of service shall be:
1. the place, where the real estate is located, when the service is related to real estate, including in case of:
a) assignment of rights to use, of expert services and services of intermediaries, related to the real estate;
b) services for preparation and coordination of construction works related to the real estate as: architectural, engineering, supervisory and others;
c) accommodation at hotels, camps, caravan parks, vacation camps and others.
2. the place, where the passengers’ transport is carried out, proportionally to the distance covered;
3. (amend. – SG 94/10, in force from 01.01.2011) the place where the event actually takes place – in cases of services of granting entrance (against entrance tickets or payment, including subscription entrance) to cultural, artistic, performance, sporting, scientific, educational, entertaining or similar events (including fairs and exhibitions) and services accompanying the entrance, if the service is rendered to a taxable person;
4. (amend. – SG 94/10, in force from 01.01.2011) the place of actual performance of a service, provided to a tax non-liable person, in case of:
a) services and accompanying services related to cultural, artistic, performance, sporting, scientific, educational, entertaining or similar events (including fairs and exhibitions), including the activity of organising them;
b) services, connected with the transport processing of goods;
c) services of assessment, expertise or work on a movable article;
5. the place of the physical performance of services – in case of delivery of restaurant and catering services.
(5) The place of performance regarding the delivery of service shall be the place of establishment or of the permanent address or the customary residence of the recipient, where the following circumstances are available simultaneously:
1. (amend. – SG 94/10, in force from 01.01.2011) the recipient is a tax non-liable person established or having a personal address or customary residence outside the European Union;
2. the services being delivered are:
a) provision or transfer of rights over license, patent, copyright, trade mark, know-how or other similar right over the industrial or intellectual property, as well as the transfer of rights over program product, different from standard software;
b) advertising services;
c) services, carried out by consultants, engineers, consultancy bureaus, accountants, lawyers and other similar services, including the services regarding the making, processing or further work on software;
d) data processing and information providing;
e) bank, financial, insuring, insurance and re-insurance services, except for letting out safes;
f) personnel providing;
g) letting out chattels, except for all kinds of vehicles;
h) electronic communication services;
i) radio and television dissemination services;
j) services, carried out via electronic way;
k) services regarding the provision of access to a natural gas system placed on the territory of the European Union or to a network connected to such system, to the electrical energy system or to the heating or cooling networks or transfer services or distribution through these systems or networks and the delivery of other services, directly related to them;
l) undertaking obligation for not performing activities or not exercising rights under letters "a" – "k"
m) intermediary services, carried out by a person, acting on behalf of and at expense of another person, in connection with the services under letters "a" – "l".
(6) The place of performance regarding delivery of electronic communication services and radio and television dissemination services shall be on the territory of the state, when the following circumstances are simultaneously present:
1. recipient regarding these deliveries is a tax non-liable person, who is settled, has a permanent address or custom residence on the territory of the state;
2. (amend. – SG 94/10, in force from 01.01.2011) provider is a taxable person with seat or permanent site, from which he performs his economic activity outside the European Union, and when there is not such seat or site – the place of his/her permanent address or his/her custom residence are outside the European Union;
3. the service is effectively used on the territory of the state.
(7) The place of performance of delivery of services, carried out via electronic way, shall be on the territory of the state, when the following circumstances are simultaneously present:
1. recipient regarding these deliveries is the tax non-liable person, who is settled, has a permanent address or customarily resides on the territory of the state;
2. (amend. – SG 94/10, in force from 01.01.2011) provider is a tax liable person, whose seat or permanent site is outside the European Union, when there is not such seat or site – the place of his/her permanent address or customary residence, are outside the territory of the European Union.

Place of performance for deliveries of transport of goods services (Title amend. – SG 95/09, in force from 01.01.2010)
Art. 22. (amend. – SG 95/09, in force from 01.01.2010) (1) (amend. – SG 94/10, in force from 01.01.2011) The place of performance regarding delivery of service for transport of goods within the European Union, provided to a tax non-liable person, shall be the territory of the Member State, where the transportation starts.
(2) (amend. – SG 94/10, in force from 01.01.2011) The place of performance in case of delivery of service for transportation of goods outside the European Union, provided to a tax non-liable person, shall be the place of carrying out the transportation, proportionally to the covered distance.
(3) (amend. – SG 94/10, in force from 01.01.2011) The place of performance in case of delivery of service for transportation of goods inside or outside the European Union, provided to a tax liable person, shall be determined according to the order specified in Art. 21, Para 2 and 3.
(4) (amend. – SG 94/10, in force from 01.01.2011) For the purposes of the law forwarding, courier and postal services, different from the services referred to in Art. 49, provided in connection with transportation of goods inside or outside the European Union, shall be considered adequate to services of transportation of goods inside, respectively outside, the European Union.
(5) (amend. – SG 94/10, in force from 01.01.2011) Forwarding service under par. 4 shall be the service of arranging, carrying out or servicing of transportation of goods inside or outside the European Union and the included activities of transport handling, documents processing, warehousing and insurance.
(6) (amend. – SG 94/10, in force from 01.01.2011) Where a forwarder operates under the terms and conditions of a forwarding agreement and provides forwarding service with regard to provision of a service of transportation of goods inside or outside the European Union, the provision of Art. 127 shall not apply.

Place of Performance in Case of Delivery of a Service for Rental of All Types of Vehicles (Title amend. – SG 95/09, in force from 01.01.2010)
Art. 23. (amend. – SG 95/09, in force from 01.01.2010) (1) Place of performance in case of delivery of service for short term rental/short term lending of vehicles shall be the place, where the vehicles are physically delivered to the recipient.
(2) Short term rental/short term lending of vehicles under Para 1 shall be the uninterrupted possession or use of the vehicle for less than 30 days and in respect of vessels – less than 90 days.
(3) The following cases shall not be deemed short term rental/short term lending:
1. the cases of stipulated automatic extension of the possession/use, where no action was taken by any of the parties;
2. where at least two subsequent time restricted contracts for 30, respectively 90 days for vessels, without interruption or less than two days interruption, regarding the same vehicles together exceed the maximum term of 30/90 days; this is not applicable, when the extension is due to clearly established circumstances beyond the control of the parties to the delivery;
3. when the stipulated term exceeds 30 day, respectively 90 days for vessels, but it was early terminated due to clearly established circumstances beyond the control of the parties to the delivery and therefore its actual duration corresponds to short term rental.
(4) (new – SG 94/12, in force from 01.01.2013) The place of execution for provision of a service for leasing or allocation for use of vehicles, which is different from short-term lease or short-term allocation for use of vehicles to a non-taxable person, shall be the place where the recipient is based or has a permanent address or usual residence.
(5) (new – SG 94/12, in force from 01.01.2013) The place of execution for provision of a service for leasing or allocation for use of a sea vessel, which is different from short-term lease or short-term allocation for use of a sea vessel for entertainment and for sport purposes or for personal needs to a non-taxable person, regardless the provision of par. 4, shall be the place where the sea vessel for entertainment is actually delivered at the disposal of the recipient under this supply, where this service is actually provided by the supplier from the place of location of its business activity or from a permanent facility, located in this place.

Place of Performance for Intermediary Services (Title amend. – SG 95/09, in force from 01.01.2010)
Art. 24. (amend. – SG 108/06; amend. – SG 113/07, in force from 01.01.2008; amend. – SG 95/09, in force from 01.01.2010) The place of performance regarding delivery of service, provided by intermediary, acting on behalf of and at expense of another person, to a tax non-liable person, shall be the place of the main delivery, in relation to which the mediation was provided.

Chapter two.
TAX EVENT AND TAX BASE
Occurrence of tax event and exigibility of the tax
Art. 25. (1) Tax event within the meaning of this Act shall be the delivery of goods or services, carried out by persons tax liable under this Act, the inter-community acquisition as well as the import of goods under art. 16.
(2) The tax event shall occur on the date, when the ownership of the goods has been transferred or the service has been made.
(3) Except for the cases under par. 2, the tax event shall occur on:
1. (suppl. – SG 108/07, in force from 19.12.2007) the date of the actual provision of the goods under art. 6, par. 2, except for the cases of par. 8;
2. the date of keeping aside or providing the goods under art. 6, par. 3;
3. the date of starting the transport under art. 7, par. 4;
4. the date, on which the provider receives the payment – at sale of goods via order by mail, or via electronic way;
5. the date of drawing out the coins or chips – at carrying out deliveries via vending machines or other similar devices, which are activated with coins, chips or others similar;
6. (amend. – SG 94/12, in force from 01.01.2013) the date of the actual returning of the asset along with the improvement by a holder/user upon termination of the lease contract or termination of the use of the asset using where the improvement is not provided as a condition and/or obligation under the contract.
(4) (amend. – SG 108/06, in force from 01.01.2007) At delivery with periodical, in stages or uninterrupted fulfilment, except for the deliveries under art. 6, par. 2, each period or stage, for which a payment has been agreed, shall be considered as separate delivery and the tax event for it shall occur on the date, on which the payment has become due.
(5) (new – SG 95/09, in force from 01.01.2010) Para 4 shall not apply to deliveries of uninterrupted performance with duration exceeding one year, for which there is no due payment for a period exceeding one year. In case of such deliveries the tax event shall be deemed to be the end of each calendar year, while in the calendar year of discontinuing the deliveries the tax event shall be deemed to be on the date of discontinuing the deliveries.
(6) (prev. text of Para 05 – SG 95/09, in force from 01.01.2010) On the date of occurrence of the tax event under par. 2, 3 and 4:
1. the tax under this Act shall become exigible for the leviable deliveries and an obligation shall occur for the registered person to charge it, or
2. grounds shall occur for exemption from charging tax concerning the exempt deliveries and the deliveries with a place of performance outside the territory of the state.
(7) (amend. – SG 113/07, in force from 01.01.2008; suppl. – SG 106/08, in force from 01.01.2009; prev. text of Para 06 – SG 95/09, in force from 01.01.2010) When, before the tax event under par. 2, 3 and 4 occurs, a full or partial down payment for the delivery has been made, the tax shall become exigible at receiving the payment (for the amount of the payment), except for the payment received in connection with inter-community delivery. In such cases shall be presumed that the tax is included in the amount of the payment that has already been made.
(8) (prev. text of Para 07 – SG 95/09, in force from 01.01.2010) When a person, not registered under this Act receives payment in advance for a leviable delivery and actually carries out this delivery after the date of his/her registration under this Act, it shall be considered, that the payment, received in advance contains the tax, which becomes exigible on the date, on which the tax for the delivery becomes exigible.
(9) (new – SG 108/07, in force from 19.12.2007; prev. text of Para 08 – SG 95/09, in force from 01.01.2010) The tax event for the delivery under Art. 6, par. 2, item 4 of newspapers, magazines, books, and other printed production, music audio- and video records and movie records on electronic or technical carriers shall arise on the date that comes first:
1. the date, on which the commitment/trustee receives the payment from the commissioner/agent under Art. 127, or
2. the last day of the quarter, following the tax period, during which the actual handing over of the goods of Art. 6, par. 2, item 4 took place.

Tax base regarding delivery on the territory of the state
Art. 26. (1) Tax base within the meaning of this Act shall be the value over which the tax is charged or not charged depending on whether the provision is leviable or exempt.
(2) (amend. – SG 94/13, in force from 01.01.2013) The tax base shall be determined on the basis of everything, which includes the remuneration, received or due by the recipient or another person to the provider in connection with the delivery, determined in BGN and stotinkas, without the tax under this Act. Any payments of penalties and interests of a compensation nature shall not be considered as remuneration for the delivery.
(3) The tax base under par. 2 shall be increased with:
1. all other taxes and fees, including excise when such are due for the delivery;
2. all subsidies and funding, directly connected with the delivery;
3. the accompanying expenses as commission, packing, transport and insurance, and others directly connected with the delivery;
4. the value of the common or usual packing materials or containers, if they are not subject to returning or if the recipient is not tax liable person; if these packing materials or containers are returned, the tax base shall be reduced by their value at their returning back.
(4) In the tax base of the delivery shall be considered included:
1. the value of the service regarding subsequent guarantee service of the goods;
2. the value, kept by the recipient as a guarantee for goods fulfilment.
(5) The tax base shall not include:
1. the sum of the commercial discount or reduction, if they are provided to the recipient on the date of occurrence of the tax event; if they are provided to the recipient after the date of occurrence of the tax event, the tax base shall be reduced at their providing;
2. the value of the common or usual packing materials or containers if the recipient is tax liable person and these materials or containers are subject to returning; if they are not returned back in 12-month period since their sending, the tax base shall be increased with their value at the end of this period;
3. the expenses of the leaser and leaseholder, related to using goods under the conditions and within the term of contract for financial leasing as: expenses for proprietary insurance, insurance Civil responsibility and like, for the whole or part of the term of the contract, expenses for proprietary taxes and fees, eco-fees and fees for registration;
4. the sums, paid to the provider for covering the expenses, made on behalf and at expense of the recipient, when these sums are explicitly indicated in the accounting records of the provider; the provider shall have in his/her disposition proofs for the actual amount of the sums and shall not have right of tax credit regarding the tax, which may have become due during making the expenses.
(6) (amend. – SG 113/07, in force from 01.01.2008; suppl. – SG 94/13, in force from 01.01.2013) When the values, necessary for calculating the tax base, are specified in foreign currency, the tax base shall be determined on the basis of the equivalence in BGN of this currency at the rate, stated by the Bulgarian national bank by the date, on which the tax has become exigible. The equivalent in Levs of the currency may be determined by the last exchange rate, published by the European Central Bank as of the time when the tax becomes collectable. The conversion between currencies different from the EURO, shall be done by using the exchange rate of each of these currency to the EURO.
(7) (prev. text of Para 06 – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011; amend. – SG 94/13, in force from 01.01.2013) When the remuneration is specified completely or partially in goods or services (the payment is made completely or partially in goods or services), the tax base of every delivery shall be the market price of the delivered goods or service, calculated as of the date of occurrence of the tax event thereof.
(8) (new – SG 95/09, in force from 01.01.2010) In cases of deliveries under Art. 25, Para 5 the tax base shall be determined proportionally of the number of months of the respective calendar year compared to the total number of months of performance of the delivery, including the month of discontinuing the delivery.

Specific cases for determination of the tax base
Art. 27. (1) (amend. – SG 99/11, in force from 01.01.2012) In the event of delivery of goods under Art. 6, para 3 and Art. 7, para 4 the tax base shall be equal to the tax base at acquiring the goods either at its prime cost, or to the tax base at the import - in those cases where it is imported.
(2) The tax base of the delivery of services under art. 9, par. 3 shall be the sum of the direct expenses made, connected with its implementation.
(3) The tax base shall be the market price at the following deliveries:
1. (amend. – SG 99/11, in force from 01.01.2012) delivery between related persons, where the tax base calculated pursuant to Art. 26:
a) is lower that the market price, the delivery shall be taxable and the recipient shall not be entitled to deduct a tax credit or shall be entitled to a partial tax credit or to reimbursement of the tax paid under Art. 81;
b) is lower that the market price, the delivery shall be tax exempt and the supplier shall not be entitled to tax credit deduction or shall be entitled to a partial tax credit or to reimbursement of the tax paid pursuant to Art. 81;
c) is higher than the market price, the delivery shall be taxable and the supplier shall not be entitled to tax credit deduction or shall be entitled to a partial tax credit or to reimbursement of the tax paid pursuant to Art. 81;
2. (suppl. – SG 108/07, in force from 19.12.2007) delivery of goods and/or services under art. 111;
3. (revoked – SG 94/13, in force from 01.01.2013);
4. (new – SG 94/13, in force from 01.01.2013) For deliveries under contracts for a construction concession, for a service or for extraction, where the payment is determined entirely or partially in goods or services (the payment is made fully or partially in goods or services), as of the date of occurrence of the tax event:
1. for the delivery by the concession grantor to the concessionary the tax basis shall be the agreed payment, including the one determined in goods or services subject to compliance with the provisions of Art. 26, par. 2, 3, 4 and 5; the payment, determined in goods or services, shall be equal to the amount of the agreed investment, excluding the compensation, where such is payable by the concession grantor to the concessionary according to the concession agreement;
2. for the delivery by the concessionary to the concession grantor the tax basis shall be equal to the tax basis of acquisition or to the cost of the provided goods, an in cases where the goods are imported – to the tax basis of its import or to the incurred direct expenses, related to the implementation of the provided service, and if it cannot be determined this way, the tax basis shall be the market price of the provided goods or service.

Chapter three.
LEVIABLE DELIVERIES WITH ZERO TAX RATE
Delivery of goods, sent or transported outside the territory of the European Union (Title amend. – SG 94/10, in force from 01.01.2011)
Art. 28. Leviable delivery with zero tax rate shall be:
1. the delivery of goods, which are sent or transported from a place on the territory of the state to third state or territory by or at the provider’s expense;
2. the delivery of goods, which are sent or transported from a place on the territory of the state to third state or territory by or at the provider’s expense, if the recipient is a person, who is not settled on the territory of the state; this provision shall not be applied when the goods are intended for filling up, equipping and supplying boats and aeronautical vehicles, which are used for sporting and entertaining purposes or for personal needs.

International transport of passengers
Art. 29. (1) Leviable delivery with zero rate shall be the transport of passengers, when the transport is carried out:
1. from a place on the territory of the state to a place outside the territory of the state, or
2. from a place outside the state to a place on the territory of the state, or
3. between two places on the territory of the state, when it is a part of transport under items 1 and 2.
(2) For transport of passengers under par. 1 shall also be considered the transport of goods and motor vehicles, when they are part of the passenger’s luggage.

International transport of goods
Art. 30. (1) (prev. Art. 30 – SG 108/07, in force from 19.12.2007) Leviable delivery with zero rate shall be the transport of goods, when the transport is varied out:
1. from a place on the territory of the state to the territory of third state or territory or to the territory of the islands, forming the autonomy areas Azores and Madera, or
2. from the territory of third state or territory or from the territory of the islands, forming the autonomy areas Azores and Madera, to a place on the territory of the state, or
3. between two places on the territory of the state, when it is a part of transport under items 1 and 2.
(2) (new – SG 108/07, in force from 19.12.2007) For the purposes of the law, forwarding, courier and postal services, different from the services referred to in Art. 49, provided in connection with transportation of goods under par. 1, shall be considered adequate to services of international transportation of goods under par. 1.
(3) (new – SG 108/07, in force from 19.12.2007) Forwarding service under par. 2 shall be the service of arranging, carrying out or servicing of international transportation of goods under par. 1 and involved in that activities of transport handling, documents processing, warehousing and insurance.
(4) (new – SG 108/07, in force from 19.12.2007) Where a forwarder operates under the terms and conditions of a forwarding agreement and provides forwarding service with regard to provision of a service of international transportation of goods under par. 1, the provision of Art. 127 shall not apply.

Delivery Related to International Transport
Art. 31. (amend. – SG 95/09, in force from 01.01.2010) Leviable delivery with zero rate shall be:
1. (amend. – SG 108/07, in force from 19.12.2007) the delivery of goods for supplying with spare parts, fuels and lubricant materials, food, beverages, water and other provisions, intended for use on board of aeronautical vehicles, used by aviation operator, carrying out mainly international flights;
2. the delivery of goods for supplying with spare parts, fuels and lubricant materials, food, beverages, water and other provisions, intended for use on board of
a) vessels, used for transportation of goods or passengers in the high sea;
b) passengers or vessels, used for carrying out trade, industrial or fishing activities in the high sea;
c) vessels, used to rescue human life and property in the sea;
d) vessels with military destination according to the definition in sub position 89.01 of the Common Customs Tariff, leaving the state with destination towards foreign harbours and ports;
e) vessels used for shore fishing excluding their supply with provisions.
3. the delivery of services regarding the construction, maintenance, repair, modification, transformation, assembling, equipping, gearing, transport and destruction of vessels and airplanes, except for those under item 2, letter "c"; this shall not concern airplanes, except those referred to in Item 1, and vessels used for sporting and entertaining purposes or for personal needs;
4. the letting out of:
a) vessels, used for transportation of goods and passengers, for trade, industrial or fishing activities in the high sea; this does not apply to vessels, used for sport and entertainment purposes or for personal uses;
b) aeronautical vehicles used by aviation operator carrying out mainly international transport;
5. the processing of:
a) vessels, used for transportation of goods and passengers, for trade, industrial or fishing activities in the high sea, excluding vessels, used for sport and entertainment purposes or for personal uses;
b) aeronautical vehicles used by aviation operator carrying out mainly international transport;
6. the provision of services, connected with the transport processing of passengers or goods, including of transport containers, transported by:
a) vessels, used for transportation of goods and passengers, for trade, industrial or fishing activities in the high sea, excluding vessels, used for sport and entertainment purposes or for personal uses;
b) aeronautical vehicles used by aviation operator carrying out mainly international transport or mobile rolling stock, where the services are carried out in relation to international transport;
7. the delivery of vessels and aeronautical vehicles, except for those for sporting and entertaining purposes or for personal needs;
8. (amend. – SG 94/10, in force from 01.01.2011) the delivery of services, for which fees are being collected as per Art. 120, para 1 of the Civil Aviation Act, provided by airport operator- concessionaire in relation to aeronautical vehicles in international journey, including within the European Union.
9. the provision of services under Chapter Nine of the Merchant Shipping Code, rendered to vessels; this does not apply to vessels, used for sport and entertainment purposes and for personal uses;
10. the provision of services of rescuing human lives and properties in the sea;
11. (new – SG 94/10, in force from 01.01.2011) the delivery of services for air traffic management and air navigation services, rendered on aircrafts, used by an aircraft operator flying mainly international routes.

Delivery, connected with the international goods traffic
Art. 32. (1) (amend. – SG 108/06, in force from 01.01.2007) Leviable delivery with zero rate shall be the delivery of non-community goods, except for the ones indicated in the Appendix No 1, for which the circumstances under art. 16, par. 5 are present.
(2) (amend. – SG 113/07, in force from 01.01.2008) Leviable delivery with zero rate shall be the delivery of services of unloading, loading, reloading, stacking, lashing of goods and/or customs clearance, where they are provided with regard to delivery of goods, leviable with zero rate under par. 1, except for the exempt ones within the meaning of the law.

Delivery concerning the processing of goods
Art. 33. Leviable delivery with zero rate shall be the performance of services, representing work with goods, as treatment, processing or repair of goods, when the following circumstances are simultaneously present:
1. (amend. – SG 94/10, in force from 01.01.2011) the goods have been acquired or imported for the purposes of carrying out such work on the territory of the European Union;
2. after finishing the work the goods are sent back or transported to third state or territory by or at expense of the provider of the recipient;
3. the recipient of the services is not settled on the territory of the state.

Delivery of gold for the central banks
Art. 34. Leviable delivery with zero rate shall be the delivery of gold, different from the investment gold within the meaning of the law, when the Bulgarian national bank or the central bank of another Member State is recipient.

Delivery, connected with duty-free trade
Art. 35. (Suppl. – SG 105/06) Leviable delivery with zero rate shall be the sale of goods in the sites of duty-free trade, where the sale is considered as import within the meaning of the Duty Free Trade Act.

Delivery of services, provided by agents, brokers and other intermediary
Art. 36. (1) Leviable delivery with zero rate shall be the delivery of services, provided by agents, brokers and other intermediaries, acting on behalf and at expense of another person, when they are connected with the deliveries, indicated in this chapter.
(2) (revoked – SG 113/07, in force from 01.01.2008)

Documentation of the deliveries
Art. 37. (1) The documents, with which shall be certified the presence of circumstances under this chapter, shall be specified with the regulation for implementation of the law.
(2) (amend. – SG 108/07, in force from 19.12.2007) If the provider does not obtain the documents under par. 1 until the expiration of the calendar month, following the calendar month, during which the tax has become exigible, the provisions of this chapter shall not be applied. If subsequently the provider obtains the documents under par. 1, he/she shall correct the result of the application of this paragraph by a procedure, specified by the regulation for implementation of the law.
(3) (new – SG 108/07, in force from 19.12.2007) Paragraph 2 shall not apply in case of received down payments.

Chapter four.
EXEMPT DELIVERIES AND ACQUISITIONS
General provisions
Art. 38. (1) Exempt deliveries shall be the deliveries, indicated in this chapter.
(2) Exempt deliveries shall also be the inter-community deliveries, which would have been exempt, if they were carried out on the territory of the state by the procedure of this chapter.
(3) Exempt from tax levying shall also be any inter-community acquisition of goods, the delivery of which on the territory of the state is exempt delivery under this chapter.

Delivery, connected with healthcare
Art. 39. Exempt delivery shall be:
1. (suppl. – SG 94/10, in force from 01.01.2011) carrying out health (medical) services and the services, directly connected with them, provided by health centres under the Health Act and by the medical establishments and child care centres under the Medical Establishments Act;
2. the delivery of human organs, tissues and cells, blood, blood components and mother’s milk;
3. the delivery of prostheses, as well as the services of their provision to people with disabilities when the deliveries are part of the healthcare services under item 1;
4. (new – SG 108/07, in force from 19.12.2007; amend. – SG 106/08, in force from 01.01.2009) delivery of implantable medical devices operating by means of energy generated in the human body or by gravity, as well as actively implantable medical products, where their delivery is a part of the health services under item 1;
5. (prev. item 4 - SG 108/07, in force from 19.12.2007; suppl. – SG 94/10, in force from 01.01.2011) delivery of denture prostheses by dentists or dental technicians;
6. (prev. item 5 - SG 108/07, in force from 19.12.2007) carrying out transport services for ill or injured persons with especially projected vehicles, and by duly authorized bodies;
7. (prev. item 6 - SG 108/07, in force from 19.12.2007) the delivery of goods and services in the frameworks of the humanitarian activity, carried out by the Bulgarian Red Cross and other non-profit legal persons carrying out activity for the public benefit, entered in the Central register of the non-profit legal persons carrying out activity for the public benefit.

Delivery, connected with social care and insuring
Art. 40. Exempt delivery shall be:
1. carrying out social care services under the Social Support Act;
2. the delivery of social support by the procedure of the Social Support Act;
3. the obligatory and the voluntary social, pension and health insuring, carried out under the conditions and by the procedure of special Act, including the intermediate services, directly connected with that.

Delivery, connected with education, sport and physical training
Art. 41. Exempt delivery shall be:
1. (suppl. – SG 94/10, in force from 01.01.2011) the pre-school preparation and training, the school or the university education, the professional education and training, the post-graduate education, re-qualification and improving the qualification, training for acquisition of key competence provided by:
a) (suppl. – SG 94/10, in force from 01.01.2011) kindergartens, schools or their servicing units under the Public Education Act, institutions in the system of the vocational education and training under the Vocational Education and Training Act or cultural-educational or research institutions, suppliers of key competence training entered in a list approved by the executive director of the Employment Agency;
b) higher schools under the Higher Education Act;
2. teaching private lessons, substituting the school or university education under item 1;
3. (amend. – SG 74/09, in force from 15.09.2009; amend. – SG 68/13, in force from 02.08.2013) the delivery of textbooks and teaching aids, approved by the Minister of education and science or by the Minister of culture in compliance with the established obligatory educational-training programs and curricula, when the goods are provided by the organizations under item 1, letter "a", as well as the delivery of textbooks and teaching aids, when the goods are provided by the organizations under item 1, letter "b";
4. the service, directly connected with sport or physical training, provided by sport organizations under the Physical Education and Sports Act, which are registered under the Non-Profit Legal Entities Act as organizations, determined for implementing social useful activity.

Delivery, connected with culture
Art. 42. Exempt delivery shall be:
1. the sale of tickets by cultural organizations and institutes under the Protection and Development of Culture Act, regarding:
a) circus, musical and musical-scenic performances and concerts, except for the tickets for pubs, variety shows and erotic performances;
b) museums, exhibition galleries, libraries and theatres;
c) zoological gardens and botanical gardens;
d) architectural, historical, archaeological, ethnographic and museum reserves and complexes;
2. the activity of the Bulgarian national radio, the Bulgarian national television and the Bulgarian telegraph agency, for which activity they receive payments from the Republican budget.

Delivery, connected with religions
Art. 43. Exempt delivery shall be the delivery of goods and carrying out services by the Bulgarian orthodox church and other registered religions under the Religions Act, when the delivery is connected with the implementation of their religious, social, educational and health activity.

Delivery of non-economic nature
Art. 44 (1) Exempt delivery shall be:
1. the delivery of goods for carrying out services by the organizations under art. 39, 40, 41 and 42, when the delivery is in connection with actions for gaining assets, used for their activity;
2. the delivery of goods and carrying out services by organizations, which are not traders, and which lay down aims of political, trade-union, religious, patriotic, philosophical, philanthropic or civilian character, when the delivery is in connection with actions for gaining assets, used for their activity or for achieving the goals laid down;
3. the delivery of goods and providing services by the organizations under item 2 in favour of their members against membership fee, determined in compliance with the rules of these organizations;
4. providing services by individual groups of persons, whose activities are exempt or are not tax leviable, services to their members, which are directly necessary for the implementation of their activity, when the groups demand on their members only restoration of their share of the common expenses;
5. (new - SG 108/07, in force from 19.12.2007; revoked – SG 95/09, in force from 01.01.2010)
(2) the deliveries under par. 1 shall be exempt, as far as they don’t lead to infringement of the competition rules.

Delivery, related to land and buildings
Art. 45. (1) Exempt delivery shall be the transfer of right to ownership over land, the establishment or the transfer of limited property rights to land, as well as its letting out or granting on lease.
(2) (amend. – SG 99/11, in force from 01.01.2012) The establishment or the transfer of right to construct shall be considered as exempt delivery under par. 1 by the moment of issuance of a permission for construction of a building, for which the right to construct is established or transferred.
(3) Exempt delivery shall also be the delivery of buildings or of parts of them, which are not new, the delivery of the terrains, adjacent to them, as well as the establishment and the transfer of other property rights of them.
(4) Exempt delivery shall also be the letting out a building or part of it for dwelling to natural person, different from trader.
(5) Paragraph 1 shall not be applied with regards real estate within the meaning of the Spatial Development Act, except for the adjacent terrain to buildings, which are not new;
2. the transfer of right to ownership or other property rights as well as letting out equipment, machines, facilities and buildings, affixed without movement on the ground or built under its surface;
3. the transfer of ownership right or other property rights, as well as letting out camping, caravan parks, holiday camps, parking areas and others similar;
4. the transfer of right to ownership of terrains adjacent to new buildings, as well as the establishment and transfer of other property rights over these terrains.
(6) Paragraph 4 shall not be applied at accommodation in hotels, motels, cottages or tourist villages, individual rooms, villas, houses, bungalows, camping, cottages, tourist chalets, hostelries, inns, boarding houses, caravan parks, holiday camps, rest homes, balneological centres and sanatorial complexes.
(7) In the cases under par. 1, 3 and 4 the provider may chose, that the delivery shall be leviable.

Delivery of financial services
Art. 46. (1) Exempt delivery shall be:
1. contracting, granting and managing credit for consideration (interest) by the person granting it, including the granting, contracting and management of credit at delivery of goods under the conditions of a contract for leasing;
2. the contracting of guarantees and transactions with guarantees or securities establishing rights over monetary receivables, as well as management of guarantees by the creditor;
3. (amend. – SG 23/09, in force from 01.11.2009) the transaction, including the contracting, related to payment accounts, payment services, electronic money, payments, debts, receivables, checks and other similar contractual instruments, without the transaction for debt collection and factoring and letting out safes;
4. the transaction, including the contracting, related to currency, banknotes, coins, used as legal payment instrument, with exception of banknotes and coins which are not usually used as legal payment instrument or have numismatic value;
5. the transaction, including contracting, related to company shares, stocks or other securities and their derivatives, with exception of management and safe keeping; this shall not regard securities establishing rights over goods or services beyond those under the indicated in this Art.;
6. (amend. and suppl. – SG 52/07, in force from 01.11.2007; amend. – SG 77/11) the management of the activity of collective investment schemes, investment companies of closed type and pension funds and the provision of investment consultations under the procedure of the Act on Collective Investment Schemes and Other Collective Investment Undertakings, and of the Markets in Financial Instruments Act;
7. the transaction, including contracting, related to financial futures and options.
(2) In the cases of delivery under the conditions of leasing contract under par. 1, item 1 the provider may choose the provision of the credit to be a liable delivery.
(3) For the goods – subject to the leasing contract, for the provider of the financial services under par. 1, item 1, right of deduction of full tax credit shall arise at observance of the requirements under art. 71.

Delivery of insurance services
Art. 47. Exempt delivery shall be the performance of services under the conditions and by the procedure of the Insurance Code by:
1. (suppl. – SG 108/06, in force from 01.01.2007) insurers and re-insurers;
2. insurance brokers and insurance agents.

Gambling
Art. 48. Exempt delivery shall be the organization of gambling games within the meaning of the Gambling Act.

Delivery of postage stamps and postal services
Art. 49. Exempt delivery shall be:
1. the delivery of postage stamps at par or mark, equated to postage stamp;
2. carrying out universal postal services under the conditions and by the procedure of the Postal Services Act.

Delivery of goods or services, for which tax credit has not been used
Art. 50. (1) (prev. Art. 50 – SG 94/12, in force from 01.01.2013) Exempt delivery shall also be such of goods or services:
1. which have been used thoroughly for carrying out exempt deliveries and on this ground the right to deduct tax credit regarding the charged tax has not been exercised at their production, acquisition or import;
2. at the production, the acquisition or the import of which a right to deduct tax credit on the grounds of art. 70 has not been available.
(2) (new – SG 94/2012, in force from 01.01.2013) Paragraph 1 shall not apply where pursuant to the provision of Art. 79, par. 8 the right of tax credit has been exercised or a correction has been made.

Chapter five.
LEVYING INTER-COMMUNITY DELIVERIES
Tax event and exigibility of inter-community deliveries
Art. 51. (1) The tax event regarding inter-community delivery shall occur on the date, on which the tax event regarding delivery on the territory of the state, would occur.
(2) The tax event regarding inter-community delivery under art. 7, par. 4 shall occur on the date, on which the transport of the goods from the territory of the state starts.
(3) The tax regarding inter-community delivery shall become exigible on the 15-th day of the month, following the month, when the tax event under par. 1 and 2 has occurred.
(4) (suppl. – SG 108/06, in force from 01.01.2007) Regardless of par. 3, the tax shall become exigible on the date of issuing the invoice, respectively the document referred to in Art. 168, para 8, when such invoice has been issued before the 15-th day of the month, following the month, when the tax event has occurred.
(5) Paragraph 4 shall not be applied, when the invoice has been issued in relation with payment received regarding the delivery before the date of occurrence of the tax event.
(6) (new – SG 94/12, in force from 01.01.2013) For a continuous supply of goods under Art. 7, par. 1 -4 with a duration for a period, longer than one calendar month, the tax event shall occur at the end of each calendar month, whereby for the calendar month in which the supplies have been terminated, the tax event shall occur on the date of termination of supplies.

Tax base for inter-community deliveries
Art. 52. (1) The tax base of the inter-community deliveries shall be determined by the procedure of art. 26.
(2) The tax base regarding inter-community deliveries under art. 7, par. 4 shall be the tax base at acquiring the goods, their cost or their tax base at import, increased following the procedure of art. 26, par. 3.
(3) (amend. – SG 95/09, in force from 01.01.2010) The tax base under par. 2 shall not be increased by the value of the services under art. 21, Para 2 with place of performance on the territory of the state, for which the person, registered under this Act shall be obliged to charge tax as payer under art. 82, par. 2.
(4) (new – SG 94/12, in force from 01.01.2013) For supplies under Art. 51, par. 6 the tax basis for each calendar month shall be determined pro rata the number of day, included in the respective calendar month, related to the total number of days of execution of supplies, including the days of the month in which the supplies have been terminated.

Tax rate and documentation of the inter-community deliveries
Art. 53. (1) The inter-community deliveries under art. 7, except for the exempt inter-community deliveries under art. 38, par. 2, shall be leviable with zero tax rate.
(2) The documents, certifying the performance of the inter-community delivery, shall be specified by the Rules for Implementation of the Act.
(3) If the provider does not obtain the documents under par. 2 until the expiry of the calendar month, following the calendar month, during which the tax for the delivery has become exigible, par. 1 shall not be applicable. If afterward the provider obtains the documents under par. 2, he/she shall correct the result of the application of this paragraph by procedure, specified by the Rules for Implementation of the Act.

Part three.
LEVYING OF THE IMPORT
Tax event at import
Art. 54. (1) The tax event at import of goods shall occur and the tax shall become exigible on the date, on which the obligation for paying import customs duties on the territory of the state arises or should arise, including when obligation does not exist or its amount is zero.
(2) When an obligation for paying import customs duties on the territory of the state does not arise at import of goods under art. 16, par. 3, the tax event shall occur and the tax shall become exigible on the date, when the customs formalities have been concluded.

Tax base
Art. 55. (1) The tax base at import of goods under art. 16 shall be the customs value, increased by:
1. (amend. – SG 94/10, in force from 01.01.2011) the customs duties, excise and the others fees, due in relation with the import of the goods on the territory of the European Union, as well as the ones, due at import on the territory of the state;
2. the expenses inherent to the import, as commission, package expenses, transport and insurance, realized until the first destination of the goods on the territory of the state.
(2) The tax base shall also be increased with the expenses under par. 1, item 2, related to the transportation of the goods from the territory of the state to the territory of another Member State, when in the documents accompanying the goods is indicated, that the goods is intended for the other Member State.
(3) (suppl. – SG 94/10, in force from 01.01.2011) When the goods have been temporarily exported outside the territory of the state to a place outside the territory of the European Union for processing, treating or repair under the customs procedure passive improvement and are imported back on the territory of the state, the tax base shall be the cost of the processing, treating or the repair, increased following the procedure under par. 1.
(4) The tax base under par. 1, 2 and 3 shall not include the sum of the trade discount or reduction if they are presented to the recipient no later than the date of occurrence of the tax event at the import.
(5) At import of goods under art. 16, par. 3 the tax base shall be determined by the procedure of art. 26.

Charging of the tax by the customs bodies at import
Art. 56. Charging of the tax at import under art. 16 shall be carried out by the customs bodies, as the amount of the tax shall be taken under account by the procedure, determined regarding the customs obligation.

Charging the tax by the importer at import
Art. 57. (1) The charging of the tax at import may be done by the importer, if he/she is a registered person and has permission for applying this regime in connection with the realization of investment project under art. 166.
(2) In the cases under par. 1 the importer shall exercise his/her right of charging by the procedure of art. 164, par. 2.
(3) With regards to the import, for which he/she has exercised his/her right under par. 1, the importer shall charge via protocol the tax for the tax period, during which the tax event under art. 54 has occurred.
(4) In the cases under art. 58, par. 2 the tax shall be charged by the importer via protocol for the tax period, during which the tax has become exigible.

Exemption from tax at import
Art. 58. (1) Exempt from tax shall be the import of:
1. (revoked – SG 94/10, in force from 01.01.2011)
2. (amend. – SG 94/10, in force from 01.01.2011) goods, imported by:
a) diplomatic missions, consular missions or members of their staff that meet the requirements for exemption from tax duties at importation;
b) the European Union, the European Atomic Energy Community, the European Central Bank, the European Investment Bank or the European Union authorities subject to the Protocol on the Privileges and Immunities of the European Union, under the restrictions and conditions in the Protocol and the agreements on its implementation or the headquarters agreements, provided that the competition is not affected;
c) international organisations other than those specified in Letter "b", recognised as such by the public authorities of the host Member State, carried out by members of such organisations under the restrictions and conditions set out in the international conventions establishing the organisations or the agreements on their headquarters;
3. (amend. – SG 94/12, in force from 01.01.2013) dental prostheses, imported by doctors in dental medicine or dental mechanics, human organs, tissues, cells, blood, blood components and mother’s milk;
4. textbooks and teaching aids under art. 41, item 3 by the organizations under art. 41, item 1;
5. (amend. – SG 94/10, in force from 01.01.2011) products of sea fishing and other products, pulled out outside the territorial waters of the European Union by ships, when the products are being imported in harbours in a non-processed state or following preserving processing for market realization.
6. (amend. – SG 94/10, in force from 01.01.2011) goods, where their importation is followed by intra-community delivery and where the importer provides the following data:
a) his identity number referred to in Art. 94, Para 2;
b) the VAT identity number of the client to whom the goods are destined, issued in another Member State, or their own VAT identity number, issued in the Member State of the final delivery or transportation of the goods;
c) evidence that the imported goods are destined for transportation or delivery to another Member State as set out in the regulations on the implementation of this Act;
7. gold from the Bulgarian national bank;
8. aeronautical vehicles, vessels, as well as spare parts for them, except for those for sporting and entertaining purposes;
9. investment gold;
10. (amend. – SG 94/10, in force from 01.01.2011) gas through a natural gas system or through a network connected to such system, or supplied from a sailing vessel that transports gas, in a natural gas system or network of gas pipes before such system, of electrical energy or of heating or cooling energy through heating or cooling networks;
11. (amend. – SG 94/10, in force from 01.01.2011) official publications issued under the control of the state authorities or the territory of export, of international organisations, public structures or public legal formations established in the state or territory of export, or print materials distributed in relation to European Parliament elections or in relation to national elections in the state of issuing of the printed materials by foreign political organisations recognised officially as such in the Member States, as long as these publications or printed materials have been taxed in the state or territory of export and are not exempt from tax upon export;
12. (amend. – SG 94/10, in force from 01.01.2011) purebred horses younger than 6 months born in a third country or territory by an animal fertilised in the European Union and then temporarily exported to give birth;
13. goods that are disintegrated or left in favour of the state by the order of the customs legislation, as well as of free of charge submitted goods, which shall be left and seized in favour of the state with exception of vehicles;
14. goods under customs control, which have been disintegrated or irrevocably lost due to a reason connected with the nature of the goods or due to insurmountable force;
15. (revoked – SG 94/10, in force from 01.01.2011)
16. goods which have been temporarily exported for repair or fix if the requirements, of the customs legislation have been met.
17. (amend. – SG 94/10, in force from 01.01.2011) goods, returned by the exporting person in unchanged condition as exported, excluding the normal deterioration during their use, where the said goods are exempt from customs duties;
18. motor vehicles, unlawfully taken or stolen and for which the due import customs duties are reimbursed or remitted by the order of the customs legislation.
(2) When the importer of the goods under par. 1, item 6 does not obtain the documents under art. 53, par. 2 till the expiration of the calendar month, following the month of occurrence of the tax event under art. 54, the import tax shall become exigible from the importer.
(3) The tax under par. 2 shall become exigible on the last day of the calendar month following the month of occurrence of the tax event under art. 54.
(4) (new – SG 106/08, in force from 01.12.2008) Import of goods in the personal luggage of travellers, which is of no commercial nature, shall be exempted from tax on the ground of monetary thresholds respectively for land, sea and air travellers, specified by the regulations for implementation of the law.
(5) (new – SG 106/08, in force from 01.12.2008) The value of the personal luggage of a traveller, which is imported temporarily or is re-imported following its temporary export, and the value of medicinal products required to meet the personal needs of a traveller shall not be taken into consideration for the purposes of applying the exemptions referred to in para 4.
(6) (new – SG 106/08, in force from 01.12.2008) For the purposes of applying the monetary thresholds under para 4, the value of an individual item may not be split up.
(7) (new – SG 106/08, in force from 01.12.2008) Exempt from VAT shall be the import of tobacco products, alcohol and alcoholic beverages, as well as import of still wine and beer in the personal luggage of travellers, which is of no commercial nature in quantity limits specified by regulations for implementation of the law. The said exemption shall not apply to persons under 17 years of age.
(8) (new – SG 106/08, in force from 01.12.2008) Exempt from VAT shall be the fuel contained in the standard tank and a quantity of fuel not exceeding 10 litres contained in a portable container, in the case of any one means of motor transport of travellers arriving from a third country or territory.
(9) (new – SG 106/08, in force from 01.12.2008) The values of the goods referred to in para 7 and 8 shall not be taken in consideration at specifying the monetary thresholds under para 4.
(10) (new – SG 106/08, in force from 01.12.2008) In the case of any one traveller, the exemption may be applied to any combination of the types of alcohol and alcoholic beverage, provided that the aggregate of the percentages used up from the individual allowances does not exceed 100 % of the total allowance for alcohol and alcoholic beverages.
(11) (new – SG 106/08, in force from 01.12.2008) Exempt from VAT shall be the import of goods in the personal luggage, and imports of tobacco products, alcohol and alcoholic beverages, as well as imports of still wine and beer by the crew of a means of transport used to travel from a third country or from a territory on the basis of monetary thresholds and quantity limits, specified by the regulations for implementation of the law.
(12) (new – SG 106/08, in force from 01.12.2008) Where a journey involves transit through the territory of a third country, or begins in a third territory, The monetary thresholds and quantity limits shall also apply Overflying without landing shall not be regarded as transit.
The monetary thresholds and quantity limits shall also apply in those cases where the travelling between Member States requires0020
(13) (new – SG 106/08, in force from 01.12.2008) Para 12 shall not apply if the traveller is able to establish that the goods transported in his luggage have been taxed in the Member State where acquired and are not subject to the any refunding of VAT.
(14) (new – SG 94/10, in force from 01.01.2011) Exempt from taxes shall be the importation of goods within the permitted duty free import, in cases of:
1. imported goods of total value less than BGN 30;
2. received small parcels of goods of non-commercial character, send from a third country by a natural person to a natural person in the country, without the latter paying for them, and not exceeding the BGN equivalent of EUR 45;
3. imported personal possessions received as inheritance;
4. imported used personal possessions by individuals who are moving their usual residence in the European Union;
5. imported possessions in connection with marriage;
6. imported used household possessions after termination of a temporary stay out of the European Union;
7. imported orders, medals and honorary awards;
8. imported samples of goods of negligible value;
9. imported gifts received within the framework of international relations;
10. imported goods intended for personal use by heads of state;
11. imported goods intended for people suffered by disasters;
12. imported materials for funeral purposes;
13. imported goods for protection of goods during transportation and bedding straw, fodder, and foods for animals during transportation;
14. imported documentation;
15. imported school outfits, educational materials and household effects for school and university students;
16. imported products obtained by farmers on properties located in third countries adjacent to the place of principle undertaking of the farmer;
17. imported seeds, fertilisers and products for the treatment of soil and crops, intended for use on property adjoining a third country and operated by agricultural producers having their principal undertaking in the said third country adjacent to the property;
18. imported video and audio materials of educational, scientific or cultural character produced by the United Nations or one of its specialised agencies whatever the use for which they are intended;
19. imported collectors’ pieces and works of art of an educational, scientific or cultural character which are not intended for sale and which are imported by museums, galleries and other institutions; the exemption shall apply only if the goods are imported for free or, if imported against payment, they are not imported by a taxable person;
20. imported laboratory animals and biological or chemical substances intended for research;
21. imported therapeutic substances of human origin and blood-grouping and tissue-typing reagents;
22. imported reference substances for the quality control of medical products;
23. imported pharmaceutical products used at international sports events;
24. imported goods by state organisations, charitable or philanthropic organisations received by them free of charge;
25. imported by institutions or organisations obtained by them free of charge to support blind and other handicapped persons;
26. imported printed advertising matter and advertising articles;
27. imported goods used or consumed at trade fairs or similar events;
28. imported goods for examination, analysis or test purposes;
29. imported consignments sent to organisations protecting copyrights or industrial and commercial property rights;
30. imported tourist information publications;
31. imported fuels and lubricants present in land motor vehicles and special containers;
32. imported goods by organisations authorised for that purpose by the competent authorities for the construction, upkeep or ornamentation of cemeteries for, graves of, or memorials to, war victims of third countries buried in the European Union.
(15) (new – SG 94/10, in force from 01.01.2011) Exempt from taxes shall be also the importation of goods, which importation from third countries would be exempt pursuant to Para 14.

Tax securing at import
Art. 59. (1) When according to the customs legislation security of the customs duties shall be or shall not be required, the tax shall be secured in accordance to the amounts, specified by the customs legislation and by the procedure for securing the customs duties.
(2) When according to the customs legislation an obligation arises for paying interests on the customs duties for customs obligation, there shall also arise an obligation for paying off interests over the piled up.
(3) A person, who has obtained permission for opening and managing a warehouse under customs control (ware housekeeper) by the order of the customs legislation, shall be jointly liable along with the depositor of the goods in the warehouse for the tax due at deviation of the goods from the customs procedure during their keeping in the warehouse.
(4) When by the procedure of art. 173, par. 1 exemption from tax at import of motor vehicles shall be applied and they shall remain under customs supervision, such exemption from tax shall also be applied if within the term of customs supervision the motor vehicles, imported by persons using privileges according to the Vienna Convention for the diplomatic relations, the Vienna Convention for the consular relations, consular conventions or other international agreements, party to which is the Republic of Bulgaria, have been illegally taken or stolen and this has been found by the competent bodies by the procedure, stipulated for that.

Paying of the tax at import
Art. 60. (1) The tax, charged by the customs bodies shall be paid to the state budget within the terms and by the procedure, stipulated for paying the customs duties.
(2) The tax, charged by the customs bodies at the import on the territory of the state may not be deducted with other duties by the revenue bodies or the customs bodies.
(3) (new - SG 108/07, in force from 19.12.2007) In cases of import of Art. 16 under the regime of "temporary import with partial exemption of custom duties" the charged by the customs authorities tax shall be deposited to the state budget prior to picking up of the goods.

Permission for lifting the goods
Art. 61. The customs bodies shall permit the lifting of the goods after paying or securing the charged tax by the procedure, specified for the customs obligation, except for the cases, when the tax shall be charged by the importer.

Part four.
LEVYING THE INTER-COMMUNITY ACQUISITION
Place of performance of the inter-community acquisition
Art. 62. (1) The place of performance of the inter-community acquisition shall be on the territory of the state, when the goods arrive and their transportation ends on the territory of the state.
(2) Regardless of par. 1, the place of performance of the inter-community acquisition shall be on the territory of the state when the person, acquiring the goods is registered under this Act and has implemented their acquisition under identification number, issued in the state.
(3) Paragraph 2 shall not be applied, when the person has got evidence, that the inter-community acquisition of the goods has been levied in the Member State, where the goods arrive or their transportation ends.
(4) If the inter-community acquisition has been levied, according to par. 2 and afterward the person proves that such inter-community acquisition has also been levied in the Member State, where the goods arrive or their transportation ends, the person shall correct the result of application of par. 2.
(5) Regardless of par. 2, the place of performance of the inter-community acquisition shall be the Member State, where the goods arrive or their transportation ends, when the following circumstances are simultaneously present:
1. the intermediary in three partite operation acquires the goods under his/her identification number under art. 94, par. 2;
2. the person under item 1 carries out subsequent delivery to the acquirer in the three partite operation;
3. the person under item 1 issues delivery invoice under item 2, that meets the requirements of art. 114, in which he/she shall indicate, that he/she is intermediary in the three partite operation and that the tax for the delivery shall be due by the acquirer in the three partite operation;
4. the person under item 1 shall declare the delivery under item 2 in the VHES-declaration for the respective tax period.
(6) The documents, certifying the circumstances under par. 3, 4 and 5, and the procedure for carrying out the correction under par. 4 shall be specified by the regulation for implementation of the law.

Tax event and tax exigibility for inter-community acquisition
Art. 63. (1) The tax event for inter-community acquisition shall occur on the date, on which the tax event would have been occurred at delivery on the territory of the state.
(2) The tax event at inter-community acquisition under art. 13, par. 3 shall occur on the date, on which the transportation of the goods on the territory of the state ends.
(3) The tax for inter-community acquisition shall become exigible on the 15-th day of the month, following the month, during which the tax event according to par. 1 and 2 has occurred.
(4) Regardless of par. 3, the tax shall become exigible on the date of issuing the invoice, when this invoice has been issued before the 15-th day of the month, following the month, during which the tax event has occurred.
(5) Paragraph 4 shall not be applied, when the invoice has been issued in connection with payment made before the date of occurrence of the tax event.

Tax base regarding the inter-community acquisition
Art. 64. (1) The tax base regarding the inter-community acquisition shall be determined by the procedure of art. 26.
(2) The tax base regarding inter-community acquisition under art, 13, par. 3 shall be equal to the tax base, formed for the purposes of the inter-community delivery in the Member State, from which the goods are sent or transported.
(3) In the tax base regarding inter-community acquisition of excise goods shall be also included the excise due or paid for the goods in the Member State, from which they have been sent or transported. If after the acquisition the excise is subject to restoration to the recipient, the tax base shall be reduced by order, determined by the regulation for the implementation of the law.
(4) (amend. – SG 95/09, in force from 01.01.2010) The tax base under par. 1, 2 and 3 shall not include the tax base of the services under art. 21, Para 2 with place of performance on the territory of the state, for which the person registered under this Act is obliged to charge the tax as a person under art. 82, par. 2.

Exempt inter-community acquisitions
Art. 65. (1) Exempt shall be the inter-community acquisitions of goods with place of performance on the territory of the state, the delivery of which on the territory of the state is indicated in chapter four.
(2) Exempt shall be the inter-community acquisitions with place of performance on the territory of the state for goods:
1. when the persons under art. 172, par. 2 and art. 174, par. 1 are recipients;
2. (amend. – SG 94/10, in force from 01.01.2011) the import of which on the territory of the state would have been exempt from tax by the procedure of art. 58, except the importation of goods referred to in Art. 58, Para 1, Item 6;
3. (suppl. – SG 94/10, in force from 01.01.2011) when recipients are institutions of the European union, the European Atomic Energy Community, the European Central Bank, the European Investment Bank, or by the authorities of the European Union to which the Protocol on the privileges and immunities of the European Union applies, within the limits and under the conditions of that Protocol and the agreements for its implementation or the headquarters agreements, in so far as it does not lead to distortion of competition;
4. from a person – intermediary in three partite operation, registered for the purposes of VAT in another Member State.

Part five.
TAX RATES AND TAX LIABILITY DETERMINATION
Chapter six.
TAX RATES
Tax rate
Art. 66. (1) The rate of the tax shall be 20 percent for:
1. the leviable deliveries, unless the ones, explicitly indicated as leviable with zero rate;
2. the import of goods on the territory of the state;
3. the leviable inter-community acquisitions.
(2) (amend. – SG 94/10, in force from 01.01.2011; amend. – SG 99/11, in force from 01.01.2012) The tax rate for accommodation in hotels and similar establishments, including holiday accommodation and letting of places for camping and caravan sites shall be in amount of 9 percent.

Amount of the tax
Art. 67. (1) The amount of the tax shall be determined by multiplying the tax base to the tax rate.
(2) In case at negotiating the delivery it is not explicitly specified that the tax is due separately, it shall be deemed that it is included in the contracted price.
(3) The tax shall also be considered included in the announced price in case on the market are offered goods – subject to retail delivery.

Chapter seven.
TAX CREDIT
Tax credit and right of tax credit deduction
Art. 68. (1) Tax credit shall be the amount of the tax, which the registered person is entitled to deduct from his/her tax liabilities under this Act for:
1. goods or services, received by him/her under leviable delivery;
2. a payment, implemented by him/her, prior to the occurrence of the tax event for liable delivery;
3. import, carried out by him/her;
4. the tax exigible from him/her as a payer under chapter eight.
(2) The right of tax credit deduction shall arise when the tax, subject to deduction, becomes exigible.
(3) In the cases of succession under art. 10 the right of tax credit deduction shall arise:
1. on the date of entering the circumstance under art. 10 in the commercial register – where the successor is a person, registered under this Act;
2. on the date of registration under art. 132, par. 3.
(4) In the cases under art. 116, par. 2 the right of tax credit deduction shall arise on the date, when new tax document is issued.
(5) In the cases under art. 131 the right of tax credit deduction shall arise on the date of issuing the document under art. 131, par. 1, item 2.

Deliveries with right of tax credit deduction
Art. 69. (1) In case the goods and the services are used for the purposes of the leviable deliveries, carried out by the registered person, the latter shall have the right to deduct:
1. the tax for the goods or the services, which the provider – a person, registered under this Act, will deliver or has delivered to him/her;
2. the charged tax in case of import or export of goods under art. 56 and 57;
3. the tax, exigible from him/her as a payer under chapter eight.
(2) For the purposes of par. 1 as leviable deliveries shall also be considered:
1. the deliveries in the framework of the economic activity of the registered person, which are with place of performance out of the state’s territory, which deliveries, however, would have been leviable, if they were carried out on the territory of the state.
2. (amend. – SG 94/10, in force from 01.01.2011) the deliveries of financial services under art. 46 and of insurance services under art. 47, where the recipient of the services is settled outside the European Union or when the deliveries of these services are directly related to goods, regarding which the conditions under art. 28 have been fulfilled.

Restrictions to the right of tax credit deduction
Art. 70. (1) The right of tax credit deduction shall not be available, regardless of the fact that the circumstances under art. 69 or 74 have been fulfilled, in case:
1. the goods or the services are designated for implementation of exempt deliveries under chapter four;
2. the goods or the services are designated for deliveries free of charge or for activities, other than the economic activity of the person;
3. the goods or the services are designated for representative or entertaining purposes;
4. (amend. – SG 94/12, in force from 01.01.2013) a motorcycle or an automobile has been acquired or imported;
5. (amend. – SG 94/12, in force from 01.01.2013) the goods or the services are intended for maintenance, repair, improvement or operation of motorcycles and passenger vehicles under item 4, including for spare parts, assembly, fuel and lubrication materials;
6. the goods are seized in favour of the state or the building is destroyed as unlawfully constructed.
(2) Paragraph 1, items 4 and 5 shall not be applied, in case:
1. the vehicles under par. 1, item 4 are used only for transport and security services, taxi transportation, letting out, courier services or training of drivers of motor vehicles, including at their subsequent sale;
2. the vehicles under par. 1, item 4 are designated for resale solely (commercial stocks);
3. the goods or the services are designated for resale solely (commercial stocks), including after processing;
4. the goods or the services are related to the maintenance, repair, improvement or the exploitation of the vehicles under item 1;
5. (new – SG 94/12, in force from 01.01.2013) vehicles under par. 1, item 4 and the goods and services under par. 1, item 5 are used also for activities different from those referred to in item 1 – 4, in cases where one or more of the activities listed in items 1 – 4, are key activity for the person; in these cases the right of tax credit deduction shall occur from the beginning of the month, following the month, for which the requirement for the key activity is fulfilled.
(3) Paragraph 1, item 2 shall not apply to:
1. (amend. and suppl. – SG 95/09, in force from 01.01.2010) the special, work, uniform and the official clothing and personal protection means, provided for free by the employer to his/her workers and employees, including to the ones under management contracts for the purposes of his/her economic activity;
2. the transport servicing from the place of residence to the place of work and backwards by the employer of his/her workers and employees, including of the ones under management contracts for the purposes of his/her economic activity;
3. (amend. – SG 94/12, in force from 01.01.2013) the goods or the services, used for provision of a service free of charge by a holder/user for repair of asset;
4. (amend. – SG 94/12, in force from 01.01.2013) the goods or the services, used for provision of a service free of charge by a holder/user for improvement of asset, which is rented or provided for use;
5. the free of charge provision of goods or services of negligible value for advertisement purpose and provision of samples;
6. the food and/or the additives to it, provided by the order art. 285 of the Labour code;
7. the transportation and the accommodation of the persons, sent on a business trip by the person;
8. the goods or the services, used in relation to implementation of the guarantee servicing under art. 129.
(4) (amend. and suppl. – SG 95/09, in force from 01.01.2010) A person, registered on the grounds of Art. 97a, Art. 99 and Art. 100, Para 2 shall not be entitled to tax credit.
(5) A right to tax credit shall not be available for a tax, which is illegally charged.

Terms for exercising right of tax credit deduction
Art. 71. The person shall exercise his/her right of tax credit deduction, in case he/she has fulfilled one of the following conditions:
1. possesses a tax document, prepared in compliance with the requirements of art. 114 and 115, in which the tax is indicated on a separate line – with regards to deliveries of goods or services, in the cases the person is a recipient;
2. (amend. – SG 108/06, in force from 01.01.2007) has issued a protocol under art. 117 and has met the requirements of art. 86 – in the cases the tax is exigible from the person as a payer under chapter eight; in the cases referred to in Arts. 161 and 163a, where the provider is a tax liable person, the recipient shall also have a tax document, drawn up in accordance with the requirements of Arts. 114 and 115, in which document the relevant ground for not charging tax is indicated;
3. (amend. – SG 94/10, in force from 01.01.2011) possesses a customs document for import, in which the person is indicated as an importer and the tax is deposited by the procedure of art. 90, par. 1 – in the cases of import under art. 16;
4. (amend. – SG 94/10, in force from 01.01.2011) possesses a customs document for import, in which the person is indicated as an importer, who has issued a protocol under art. 117 and has observed the requirements of art. 86 – in the cases under art. 57.
5. possesses a document, meeting the requirements of art. Art. 114, has issued a protocol under art. 117 and has observed the requirements of art. 86 – in the cases of inter-community acquisition;
6. possesses a document under art. 131, par. 1, item 2;
7. possesses the documents, specified in the Rules for Implementation of the Act – in the cases of succession under art. 10.

Period of exercising the right of tax credit deduction
Art. 72. (1) (amend. – SG 95/09, in force from 01.01.2010) A person, registered under this Act, may exercise his/her right of tax credit deduction for the tax period, during which this right has arisen, or in one of the subsequent 12 tax periods.
(2) The right under par. 1 shall be exercised, provided that the person:
1. includes the amount of the tax credit at assessment of the result for the tax period under par. 1 in the reference-declaration under art. 125 for the same tax period;
2. indicates the document under art. 71 in the purchase record under art. 124 for the tax period under par. 1.

Right of partial tax credit deduction
Art. 73. (1) A registered person shall be entitled to deduct partial tax credit with regards to the tax for goods or services, which are used for carrying out deliveries, for which the person has the right to tax credit deduction, as well as regarding deliveries or activities, for which the person does not have such right.
(2) The amount of the partial tax credit shall be assessed by multiplying the sum of the tax credit to a ratio, calculated within accuracy to the second symbol after the decimal point, obtained as a relation between the turnover, referring to the deliveries, for which the person has the right to tax credit deduction, and the turnover, related to all deliveries or activities, carried out by the person.
(3) The turnover, related to the deliveries, for which the person has the right to tax credit deduction, shall include:
1. the tax bases of the leviable deliveries, carried out by the person;
2. the tax bases of the payments, received by the person, for whom the tax has become exigible prior to the occurrence of the tax event related to leviable delivery;
3. the tax bases of the deliveries, carried out by the person, having a place of performance outside the territory of the state, equivalent to leviable ones according to art. 69, par. 2, except for the deliveries, having a place of performance, outside the territory of the state, carried out from a permanent site of the person outside the territory of the state;
4. the tax bases of the payments, received by the person prior to the implementation of the deliveries under item 3;
5. (amend. – SG 108/06, in force from 01.01.2007) the tax base of the deliveries of goods or services, with regards to which right of tax credit deduction has not been exercised on the ground of art. 70, para 1, items 3 through 5.
(4) The turnover, referring to all deliveries and activities of the person, shall include:
1. the turnover under par. 3;
2. the tax bases of the deliveries, carried out by the person, having a place of performance, outside the territory of the state, which are not equivalent to leviable ones within the meaning of art. 69, par. 2, except for the deliveries, carried out from permanent site of the person outside the territory of the state;
3. (amend. – SG 94/12, in force from 01.01.2013) the tax bases of the exempt deliveries carried out, except for the ones under art. 50, par. 1, item 2;
4. the value of the deliveries and the activities out of the framework of the economical activity of the person;
5. the tax bases of the payments, received by the person prior to implementation of the deliveries and the activities under items 2, 3 and 4;
6. the amount of the subsidies acquired, different from the ones, included in the tax base.
(5) The ratio shall be calculated on the basis of the turnovers under par. 3 and 4 for the whole precedent calendar year, and in case such turnovers are not present for the precedent calendar year - on the basis of the turnovers under par. 3 and 4 for the tax period, during which the right of tax credit deduction arises.
(6) The amount of the partial tax credit under par. 2 shall be reassessed in the latest tax period of the current calendar year on the basis of the indices under par. 3 and 4 for the current calendar year.
(7) In the cases of deregistration the amount of the partial tax credit under par. 2 shall be reassessed at the end of latest tax period on the basis of the indices under par. 3 and 4 for the part of the current calendar year, during which the person has been registered.
(8) The difference in the result of the reassessment under par. 6 and 7 shall be included as a correction (increase or reduction) in the amount of the tax credit in the reference-declaration for the latest tax period.

Right of tax credit deduction, where the tax is exigible from the recipient/importer
Art. 73a. (new – SG 106/08, in force from 01.01.2009) (1) There shall be right of tax credit deduction in case of deliveries, the tax for which is exigible from the recipient, even if the supplier of the goods in question has not provided a document meeting the requirements of Art. 114, and/or if the recipient does not have a document as per Art. 71, items 2, 4 and 5, and/or the recipient has not observed the requirements of Art. 72, provided that the delivery has not been concealed and that there is information about it available in the accountancy of the recipient.
(2) In the cases referred to in para 1 the right of tax credit deduction shall be exercised in the tax period during which the tax has become exigible, provided that Art. 126, para 3, item 2 is applied respectively.

Right to deduct tax credit for available assets and services received before the date of registration
Art. 74. (1) Person, registered under art. 96, 97, 98, art. 100, par. 1 and 3, art. 102 or art. 132, shall be entitled to deduct tax credit for the purchased or acquired in another way or imported assets within the meaning of the Accountancy Act prior to the date of his/her registration under this Act, which are available by the date of the registration.
(2) The right under par. 1 shall only arise for the assets, available by the date of the registration, regarding which the following conditions are simultaneously present:
1. the requirements under art. 69 and 71 are available;
2. the provider is a person, registered under this Act by the date of issuing the tax document and the delivery has been leviable by this date;
3. (amend. – SG 94/12, in force from 01.01.2013) the registration list according to a form of the available assets has been prepared by the date of the registration under this Act and has been submitted not later than 45 days since the date of registration;
4. the assets are acquired by the person up to 5 years, and regarding real estate – up to 20 years prior to the date of registration under this Act.
(3) The person, registered under par. 1 shall have right of tax credit deduction also for the services, received before the date of his/her registration under this Act, if the following conditions are simultaneously present:
1. the services are directly related to the registration of the person under the Commercial law;
2. the services are received no earlier than one month prior to the registration of the person under the Commercial law;
3. the person has submitted an application for registration under this Act within 30-days term from his/her entry into the register under art. 82 of the Tax-insurance procedure code;
4. the person has an invoice under art. 71, item 1 for the received services;
5. the provider of the service is a person, registered under the law by the date of issuing the tax document and the delivery was leviable by this date;
6. (amend. – SG 94/12, in force from 01.01.2013) the registration list according to a form for received services has been prepared by the date of registration under this Act and has been submitted not later than 45 days from the date of registration;

Arising and exercising of the right of tax credit deduction for available assets and services received before the date of the registration
Art. 75. (1) The right of tax credit deduction under art. 74 shall arise on the date of registration under this Act.
(2) The right under par. 1 shall be exercised in the tax period during which it has arisen or in one of the following three tax periods, provided that the available assets, services received and the tax, included in the registration list under art. 74, shall be indicated in the purchase record for the relevant tax period.
(3) (amend. – SG 94/12, in force from 01.01.2013) The right of tax credit deduction under art. 74 shall not arise and may not be exercised by the registered person, if the registration list has been submitted after the 45th day from the date of registration.

Right of tax credit deduction at repeated registration
Art. 76. (1) The registered person shall be entitled to deduct the charged tax at his/her deregistration under this Act for the levied assets under art. 111, par. 1, item 1, available by the date of his/her subsequent registration.
(2) The right under par. 1 shall arise in case the following conditions are simultaneously present:
1. by the date of the subsequent registration under this Act the available assets within the meaning of the Accountancy Act have been levied at the deregistration under art. 111, par. 1, item 1;
2. the charged tax at the deregistration has been effectively or deducted by the revenue body;
3. with the available assets the person has carried out, carries out or will carry out leviable deliveries within the meaning of art. 69;
4. (amend. – SG 94/12, in force from 01.01.2013) the registration list according to a form for the assets under item 1 is compiled by the date of the repeated registration and is submitted not later than 45 days from the date of registration;
5. the assets under item 1 are acquired by the person up to 5 years, and regarding real estate – up to 20 years prior to the date of the repeated registration under this Act.
(3) (new – SG 95/09, in force from 01.01.2010) In the cases of Art. 111, Para 2, Item 5 the registered person shall be entitled to deduction of tax credit for the purchased or otherwise acquired or imported assets in the sense of the Accountancy Act after the date of his deregistration that are available at the date of his subsequent registration. The right to tax credit shall arise under the conditions specified in Art. 74, Para 2.

Arising and exercising of the right of tax credit deduction of charged tax at deregistration and subsequent registration of the person
Art. 77. (1) The right of tax credit deduction under art. 76 shall emerge on the date of the repeated registration under this Act.
(2) The right of deduction under par. 1 shall be exercised in the tax period, during which it has emerged or in one of the following three periods, provided that the available assets and the tax included in the registration list under art. 76 shall be indicated in the purchase record for the relevant tax period.
(3) (amend. – SG 94/12, in force from 01.01.2013) The right of tax credit deduction under art. 76 shall arise and may not be exercised by the registered person, if the registration list is submitted after the 45th day of his/her repeated registration under this Act.

Corrections of used tax credit at amendment of the tax rate and at change of the type of the delivery
Art. 78 (1) The registered person shall correct the amount of the used tax credit at amendment of the tax base or at cancellation of the delivery, as well as in case of change of the type of the delivery.
(2) The correction shall be carried out in the tax period, during which the circumstances under par. 1 have occurred, by indication of the document under art. 115 or the new document under art. 116, with which the correction has been implemented, in the purchase record and in the reference-declaration for the relevant tax period.

Corrections of used tax credit in other cases
Art. 79. (1) A registered person, who has deducted completely or partially tax credit for manufactured, purchased, acquired or imported by him/her goods or services and subsequently uses them for implementation of exempt deliveries or for deliveries or activities, for which right of tax credit deduction is not available, shall owe a tax in amount of the tax credit used.
(2) A registered person, who has deducted completely or partially tax credit for manufactured, purchased, acquired or imported by him/her goods or services and subsequently uses them both for implementation of deliveries, for which there is right of tax credit deduction, and for implementation of exempt deliveries or for deliveries or activities, for which right of tax credit deduction is not available, and the person may not define what part of the goods or the services are used for deliveries with right of tax credit and for deliveries without right of tax credit, shall owe a tax, determined by the order of par. 7.
(3) (suppl. – SG 113/07, in force from 01.01.2008) A registered person, who has deducted completely or partially tax credit for manufactured, purchased, acquired or imported by him/her goods or services, at destruction, ascertainment of shortages or in case of discarding the goods, as well as at change of their purpose, for which there is no more right to deduct tax credit, shall charge and owe tax in extent of the deducted tax credit.
(4) The correction under par. 1 and 3 shall be implemented in the tax period, during which the relevant circumstances have occurred, by compiling a protocol for the correction carried out and indicating this protocol in the sales record and the reference-declaration for this tax period.
(5) The correction under par. 2 shall be implemented in the last tax period of the year, during which the circumstances under par. 2 occur.
(6) Regardless of par. 1 and 3, for the goods or the services, which are fixed long-term assets within the meaning of the Corporate Income Tax Act, the person shall owe tax in extent, determined by means of the following formula:
1. regarding real estate:

        1     
TD = UTC x ----- x NY, where:
        20     
              

TD is the tax due;
UTC - the amount of the used tax credit;
NY - the number of the years from occurrence of the circumstances under par. 1 and 3, including the year of occurrence of the circumstances, till the expiry of the 20-years term, considered from the year of exercising the right of tax credit inclusive;
2. regarding all the rest goods or services:

        1     
TD = UTC x ----- x NY, where:
        5     
              

TD is the tax due;
UTC - the amount of the used tax credit;
NY - the number of the years from occurrence of the circumstances under par. 1 or 3, including the year of occurrence of the circumstances, till the expiry of the 5-years term, considered from the year of exercising the right of tax credit inclusive;
(7) In the cases under par. 2 the person shall owe tax, assessed by means of the following formula:
1. regarding real estate:

        1       
TD = UTC x ----- x NY (1-K), where:
        20       
                

TD is the tax due;
UTC - the amount of the used tax credit;
NY - the number of the years from occurrence of the circumstances under par. 2, including the year of occurrence of the circumstances, till the expiry of the 20-years term, considered from the year of exercising the right of tax credit inclusive;
K – the ratio under art. 73, calculated on the base of the turnovers for the year, during which the circumstances under par. 2 have occurred;
2. regarding all the rest goods or services:
        1       
TD = UTC x ----- x NY (1-K), where:
        5       
                

TD is the tax due;
UTC - the amount of the used tax credit;
NY - the number of the years from occurrence of the circumstances under par. 2, including the year of occurrence of the circumstances, till the expiry of the 5-years term, considered from the year of exercising the right of tax credit inclusive;
K – the ratio under art. 73, calculated on the base of the turnovers for the year, during which the circumstances under par. 2 have occurred.
(8)( amend. – SG 94/12, in force from 01.01.2013) A registered person, who has not deducted pr has deducted partially the tax credit for manufactured, purchased, acquired or imported by him/her goods or services, and subsequently uses them only for carrying out leviable deliveries under art. 69, may exercise the right to a tax credit or correct (increase) the amount of the used partial tax credit by procedure and in extent, determined by the Regulation for implementation of the law.
(9) The corrections under par. 1 – 8 shall be carried out once.
(10) (New – SG 108/06, in force from 01.01.2007) Registered person, who has deducted entirely or partially tax credit for produced, purchased, acquired or imported by him/her goods and subsequently carries out with these goods inter-community delivery, shall owe a tax in amount of the tax credit used.
(11) (New – SG 108/06, in force from 01.01.2007) The correction as per para 10 shall be made in the tax period, during which the tax for inter-community delivery free of charge has become exigible, by way of drawing up a protocol and indicating it in the sales record regarding the said tax period.

Restrictions to corrections
Art. 80. (1) (suppl. – SG 108/07, in force from 19.12.2007) Corrections under art. 79, par. 1 - 7 shall not be carried out:
1. if the goods or the services have been used for deliveries under art. 70, par. 3, as well as in the cases under art. 10;
2. if the tax regime of the deliveries, for which the registered person uses the goods or the services, is changed by a law;
3. for goods or services, if 5 years have passed from the beginning of the year, during which the right of tax credit deduction has been exercised, and for real estate – 20 years.
(2) Corrections under art. 79, par. 3 shall not be carried out in the cases of:
1. (suppl. – SG 108/06, in force from 01.01.2007) destruction, shortages or discard, caused by insurmountable force, as well as in the cases of destruction of excise goods being under administrative control following the procedure of the Excises and Tax Warehouses Act;
2. (amend. – SG 94/12, in force from 01.01.2013) destruction, shortages or discard, caused by breakdowns or accidents, for which the person can prove that they have not occurred through his/her fault or through a fault of the person, using the goods;
3. shortages, ensuing from change of the physical-chemical properties in normal extents, corresponding to the established norms for utmost extents of the natural losses, and shortages of goods during their preservation and transportation according to the approved standards, normals and other normative acts;
4. technological discard within the admissible norms, set forth by the technological documentation for the respective production or activity;
5. discard by reason of expiry of the term of validity/stability, determined according to the requirements of normative act;
6. discard of long term material assets within the meaning of Accountancy Act, if their balance value is lower than 10 percent of their accounted value.
(3) (New – SG 108/06, in force from 01.01.2007) In the cases of corrections as per Art. 79, para 10 the person shall owe the full amount of the tax credit used, regardless of the term under para 1, item 3.

Tax reimbursement for persons, who are not settled on the territory of the state
Art. 81. (1) The tax paid shall be reimbursed to:
1. tax liable persons, who are not settled on the territory of the state, however, they are settled and registered for the purposes of VAT in another Member State – regarding goods, purchased by them or services received on the territory of the state;
2. (amend. – SG 94/10, in force from 01.01.2011) persons, who are not settled on the territory of the European Union, however, they are registered for the purposes of VAT in another state – on reciprocal principle;
3. (amend. – SG 94/10, in force from 01.01.2011) tax non-liable natural persons, who are not settled on the territory of the European Union, who have purchased goods for personal consumption with charged tax – after leaving the territory of the state, under the condition that the goods are exported in unchanged form.
(2) The procedure and the documents required for reimbursement of the tax under par. 1 shall be set forth by an ordinance of the Minister of Finance.

Chapter eight.
CHARGING AND DEPOSITING THE TAX
Person – tax payer at carrying out leviable deliveries
Art. 82. (1) (amend. – SG 108/06, in force from 01.01.2007) The tax shall be exigible from the person, registered under this Act – a provider under a leviable delivery, except for the cases under par. 4 and 5.
(2) (amend. – SG 108/06, in force from 01.01.2007; amend. – SG 95/09, in force from 01.01.2010) If the provider is a tax liable person not residing on the territory of the country and the delivery has place of performance on the territory of the country and is taxable, the tax shall be exigible from the recipient under the delivery at:
1. (amend. – SG 94/10, in force from 01.01.2011) delivery of natural gas through a natural gas system situated within the territory of the European Union or any network connected to such a system, the delivery of electricity, or the delivery of heat or cooling energy through heating or cooling networks – in case the recipient is a person, registered under this Act;
2. deliveries of services mounted or installed by or at the expense of the provider - in case the recipient is a person, registered under this Act and the provider is settled on the territory of another Member State;
3. deliveries of services – if the recipient is a tax liable person under Art. 3, Para 1, 5 and 6.
(3) The tax shall be exigible from the acquirer under three partite operation, implemented under the conditions of art. 15.
(4) The tax shall be exigible from the recipient - a person, registered under this Act, in the cases of art. 161.
(5) (New – SG 108/06, in force from 01.01.2007) The tax shall be exigible from the recipient – a person, registered under this Act, in the cases referred to in Art. 163a, regardless whether the provider is a tax liable person or tax non-liable person under the law.

Person – payer at import
Art. 83. (1) The tax at import under art. 16 shall be exigible from the importer.
(2) When according to the customs legislation, two and/or more persons are jointly liable for payment of custom duties these persons shall also be jointly liable for payment of the tax due.

Person – payer at inter-community acquisitions
Art. 84. The tax at inter-community acquisitions shall be exigible from the person, who implements the acquisition.

Person – tax payer at invoices issued
Art. 85. (amend. – SG 106/08, in force from 01.01.2009) The tax shall also be exigible from any person, who specifies the tax in an invoice and/or a notice-to-invoice referred to in art. 112.

Duty of charging the tax by a registered person
Art. 86. (1) A registered person, for who the tax has become exigible, shall be obliged to charge it, by:
1. issuing a tax document, in which the tax is indicated on a separate line;
2. including the amount of the tax at determining the result for the respective tax period in a reference-declaration under art. 125 regarding this tax period;
3. indicating the document under item 1 in the sales record for the respective tax period.
(2) The tax shall be due by the registered person for the tax period during which the tax document has been issued, and in the cases when such document has not been issued or has not been issued within the term under this Act – for the tax period, during which the tax has become exigible.
(3) Tax shall not be charged at carrying out exempt delivery, exempt inter-community acquisition, as well as at delivery, having a place of performance out of the state’s territory.
(4) Paragraph 1, items 1 and 2 and par. 2 shall not be applied in the cases under art. 131, par. 1.

Tax period
Art. 87. (1) Tax period within the meaning of this Act shall be the period of time, after the expiry of which the registered person is obliged to submit a reference-declaration with the result for this tax period.
(2) The tax period shall be one month long with regards to all registered persons and shall coincide with the calendar month, except in the cases under chapter eighteen.
(3) The first tax period after the date of the registration shall include the time from the date of the registration to the last day, inclusive of the calendar month, during which the registration under this Act has been implemented, except in the cases under chapter eighteen.
(4) The last tax period shall include the time from the beginning of the tax period to the date of the deregistration inclusive.

Result for the tax period
Art. 88. (1) The result for the tax period shall be the difference between the total amount of the tax, exigible from the person for this tax period, and the total amount of the tax credit, regarding which the right of deduction has been exercised during this period.
(2) In the event that the tax charged exceeds the tax credit, the difference shall represent the result for the period – tax for depositing.
(3) In case the tax credit exceeds the charged tax, the difference shall represent the result for the period – tax for reimbursement.
(4) The registered person shall solely determine the result for each tax period – a tax for depositing in the Republican budget or reimbursement tax from the Republican budget.

Depositing the tax by registered person
Art. 89. (1) When result for the period is available - tax for depositing, the registered person shall be obliged to pay the tax in the Republican budget to account of the competent territorial directorate of the National Revenue Agency within the term for submission of reference-declaration for this tax period.
(2) The tax shall be considered deposited on the date on which the sum has entered the respective account under par. 1.

Depositing the tax at import of goods
Art. 90. (1) In the cases under art. 16 the importer of goods shall import effectively the tax charged by the customs bodies in the Republican budget, as follows:
1. to account of the respective customs office, processing the import;
2. to account or to the cashier's office of the respective customs office, processing the import, in the event that the importer is a natural person, not registered under this Act, who is not a sole trader;
(2) The tax under par. 1 may not be deducted by the revenue bodies or the customs bodies with other liabilities.
(3) In the cases under para 1 the customs bodies shall allow the lifting of the goods after payment or securing of the tax charged by the procedure, specified for the customs obligation.
(4) (revoked – SG 113/07, in force from 01.01.2008)

Depositing the tax by non-registered person
Art. 91. (1) In the event of inter-community acquisition of new vehicle under art. 13, par. 2 by non-registered person under this Act the tax shall be deposited by the person in 14-days term from the expiry of the tax period, during which the tax for the acquisition has become exigible.
(2) At inter-community acquisition of excise goods under art. 2, item 4 the tax shall be deposited by the person, who carried out the acquisition, in 14-days term from the expiry of the month, during which the tax has become exigible.
(3) (amend. – SG 106/08, in force from 01.01.2009; revoked – SG 95/09, in force from 01.01.2010)
(4) (amend. – SG 95/09, in force from 01.01.2010) The tax under par. 1 and 2 shall be deposited in the Republican budget to the account of the territorial directorate of the National Revenue Agency, where the person is registered or is subject to registration under the Tax-insurance procedure code.
(5) The tax under par. 4 shall be considered deposited on the date, on which the sum has entered the respective account under par. 4.

Offset, deduction and reimbursement of result for the period – reimbursement tax
Art. 92. (1) The reimbursement tax under art. 88, par. 3 shall be offset, deducted or restored, as follows:
1. in case other exigible and unpaid tax liabilities and obligations for insurance instalments, collected by the National Revenue Agency, are present which have occurred prior to the date of submitting the reference-declaration, the revenue body shall offset these obligations with the reimbursement tax, indicated in the reference-declaration; regarding the surplus, if there is such, the procedure under item 2 shall be applied;
2. (amend. – SG 95/09, in force from 01.01.2010) in case there are no other exigible and non-paid liabilities under item 1 or their amount is less than the reimbursement tax, indicated in the reference-declaration, the registered person shall deduct the reimbursement tax or the surplus under item 1 from the tax due for depositing, indicated in the reference-declarations, submitted within the following two consecutive tax periods;
3. if there is tax for depositing left after the deduction under item 2, it shall be due in the term under art. 89;
4. (amend. – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) in case after the expiry of the term under item 2 there is a surplus of the reimbursement tax, the revenue body shall offset this surplus for redemption of enforceable public receivables collected by the National Revenue Agency, or shall restore it in 30-days term from the submission of the last reference-declaration;
5. (amend. – SG 95/09, in force from 01.01.2010) if the reimbursement tax, with regards to which deduction procedure has started, is not entirely deducted by the time of submission of the reference-declaration for the last of the two tax periods, any other reimbursement tax under a reference-declaration for some of these two tax periods shall be added to it and shall be subject to reimbursement or offset along with surplus and within the term under item 4;
6. (amend. – SG 95/09, in force from 01.01.2010) if the conditions under item 5 are not present, with regards to the next reimbursement tax under reference-declaration shall start new two successive tax periods of deduction following the period, in which this tax is indicated.
(2) (amend. – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) The revenue body shall not be entitled to carry out offset of other enforceable public receivables, collected by the National Revenue Agency, from the reimbursement tax, indicated in the reference-declarations for the two tax periods of the deduction procedure under par. 1.
(3) (amend. – SG 108/07, in force from 19.12.2007; amend. – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) Regardless of par. 1 the reimbursement tax under art. 88, par. 3 shall be restored in 30-days term from submission of the reference-declaration, if during the last 12 months prior to the current month the person has carried out leviable deliveries with zero rate at total value of more than 30 percent of the total value of all leviable deliveries, including the zero rate deliveries. For the purposes of the first sentence zero rate deliveries shall be deemed to be also the deliveries of the following services with place of performance on the territory of another Member State: transportation of goods within the European Union and also logistics, courier and postal services, other than the services referred to in Art. 49, that have been rendered in relation to the transportation; transportation processing of goods; transportation related services, rendered by agents, brokers and other intermediaries, acting on behalf and at the expense of another person, as well as services on assessment, examination and work on movable articles.
(4) Regardless of par. 1 the reimbursement tax under art. 88, par. 3 shall be restored in 30-days term from the submission of the reference-declaration, if the person has acquired a permission under art. 166.
(5) (amend. – SG 94/10, in force from 01.01.2011) If in the cases under par. 3 and 4 there are enforceable public receivables, collected by the National Revenue Agency, which have arisen by the date of submission of the reference-declaration, the revenue body shall perform offset and reimbursement of the surplus, in case there is such, within the same terms.
(6) (amend. and suppl. – SG 94/10, in force from 01.01.2011) The revenue body shall carry out the offset under par. 1 – 5 in the following sequence: value added tax, other taxes, collected by the National Revenue Agency, obligatory insuring instalments to the funds of the state public insuring, for additional obligatory public insuring, for the National Health Insurance Fund, for the fund "Secured receivables of the workers and employees" and other public receivables collected by the National Revenue Agency.
(7) The circumstances under par. 3 and 4 shall be certified in writing before the competent territorial directorate of the National Revenue Agency by order, determined by the regulation for implementation of the law.
(8) (new – SG 108/07, in force from 19.12.2007; amend. – SG 99/11, in force from 01.01.2012) Regardless the provisions of par. 1, item 4 and par. 3 – 6, when the inspection of the person has commenced, the term for tax reimbursement shall be the term for issuing of inspection certificate, except for the cases where the person provides collateral in cash, in securities or as unconditional and irrevocable bank guarantee valid for not less than 6 months.
(9) (new – SG 108/07, in force from 19.12.2007; amend. – SG 94/10, in force from 01.01.2011) The tax shall be reimbursable and/or deductible up to the amount of the collateral of par. 8 within five days after its allocation.
(10) (prev. par. 8, amend. – SG 108/07, in force from 19.12.2007; amend. – SG 95/09, in force from 01.01.2010) Tax, subject to reimbursement, which without a ground thereof or on fallen out ground has not been restored (inclusive in case of annulment of an act) within the terms, provided for in this Act under Para 1, Item 4, Para 3 and 4, shall be reimbursed along with the lawful interest, considered from the date, on which it would have been restored according to this Act, until its final payment, regardless of the provision of Para 8 and of the suspending of the tax procedure.

Suspending and resuming the terms under art. 92
Art. 93. (1) The terms for reimbursement under art. 92, par. 1, item 4 and art. 92, par. 3 and 4, shall be suspended:
1. at absence of accountancy kept according to the requirements of the Accountancy Act and shall be resumed at starting keeping such;
2. at lack or not presenting documents, which are compulsory under this Act, or of other documents, required by the revenue body, if they shall obligatorily be prepared according to a normative act, and shall be resumed on their presenting to the revenue body.
3. in case authorised revenue body is not allowed to administrative, production or other premises, connected to the activity of the registered person, and shall be resumed at providing the access;
4. in case the person may not be found by the revenue body by the order of the Tax-insurance procedure code on the address for correspondence, indicated by him/her, and shall be resumed at written notification by the registered person to the revenue body regarding the change of his/her address in the state and at his/her finding by a revenue body at the indicated address.
5. (revoked – SG 108/07, in force from 19.12.2007)
(2) The terms for reimbursement under art. 92, par. 1, item 4 and art. 92, par. 3 and 4 shall be suspended after coordination with the executive director of the National Revenue Agency, but for not more than 60 days, in case:
1. a revenue body finds out data evidencing that a crime against the tax system has been committed and approaches the bodies of the pre-court procedure in one month term from their ascertainment;
2. the suspending is requested in writing by the bodies of the Ministry of Interior or by the judicial authorities in case of already instituted pre-court or court procedure.
(3) In the cases under par. 2 the terms for reimbursement shall be resumed at receiving a written refusal of instituting procedure, respectively after notifying of concluding the instituted procedure.

Part six.
OBLIGATIONS OF THE PERSONS
Chapter nine.
REGISTRATION
General provisions
Art. 94. (1) The National Revenue Agency shall create and maintain special register under this Act, which shall be a part of the register under art. 80, par. 1 of the Tax-insurance procedure code.
(2) Along with the entry in the register the persons shall acquire identification number for the purposes of VAT, in front of which shall be placed the sign "BG".
(3) The registration under this Act is compulsory and voluntary.

Registration with respect to deliveries, carried out on the territory of the state
Art. 95. (1) Subject to registration under this Act shall be every tax liable person, settled on the territory of the state who carries out leviable deliveries of goods or services under art. 12.
(2) Subject to registration under this Act shall also be any tax liable person, who is not settled on the territory of the state, and carries out leviable deliveries of goods or services under art. 12, different from the ones, regarding which the tax is exigible from the recipient.

Compulsory registration
Art. 96. (1) Any tax liable person, which has leviable turnover of 50 000 BGN or more, for a period, not exceeding the last 12 consecutive months prior to the current month, shall be obliged to submit an application for registration under this Act within 14-days term from the expiry of the tax period, during which he/she has reached this turnover.
(2) The leviable turnover shall be the sum of the tax bases of the carried out by the person:
1. leviable deliveries, including the ones, leviable with zero rate;
2. deliveries of financial services under art 46;
3. deliveries of insurance services under art. 47.
(3) (amend. – SG 108/06, in force from 01.01.2007) The deliveries under par. 2. items 2 and 3 shall not be included in the leviable turnover, in case they are not related to the main activity of the person, the deliveries of long-term material and non-material assets, used in the person’s activity, as well as the deliveries, regarding which the tax is exigible from the recipient under art. 82, paras 2 and 3.
(4) In the leviable turnover also shall not be included advance payments with regards to deliveries under par. 2, except for the advance payments received prior to occurrence of the tax event under art. 51, par. 1.
(5) The obligation for registration shall arise regardless of the term, for which the leviable turnover has been reached, however, not within a period, longer than the one, set forth in par. 1.
(6) At assessment of the leviable turnover shall be taken into account the tax regime of the deliveries by the date of arising of the tax event or by the date of the payment, before the tax event regarding the delivery has occurred.
(7) Paragraph 1 shall not be applied to persons, for whom the following circumstances are simultaneously present:
1. they carry out services via electronic way with recipients – tax non-liable persons, who are settled or have permanent address or customary reside on the territory of the state;
2. (amend. – SG 94/10, in force from 01.01.2011) they are not settled on the territory of the European Union;
3. they are registered for the purposes of VAT regarding their activity under item 1 in another Member State.
(8) (suppl. – SG 108/07, in force from 19.12.2007; amend. – SG 95/09, in force from 01.01.2010) Regardless of par. 1, the income authority may refuse to register a person, with regards to whom the revenue administration has terminated or refused registration on the grounds of art. 176 until the drop out of the grounds for refusal of registration, respectively the grounds for de-registration, or till expiry of 24 months, considered from the beginning of the month, following the month of the deregistration or the refusal of registration.

Obligation for registration at delivery of services with mounting and installation
Art. 97. (1) Regardless of the leviable turnover under art. 96, subject to registration under this Act shall be any person, settled in another Member State, who is not settled on the territory of the state and carries out leviable deliveries of goods, which are being mounted or installed on the territory of the state by him/her or at his/her expense.
(2) For the persons under par. 1 an obligation for submitting application shall arise not later than 7 days prior to the date of occurrence of the tax event – for the delivery under par. 1.
(3) Par. 1 shall not be applied, in case the recipient under the delivery is a person, registered under this Act.

Obligation for Registration in Case of Delivery of Recipient Taxable Services (New title – SG 95/09, in force from 01.01.2010)
Art. 97a. (new – SG 95/09, in force from 01.01.2010) (1) Registered under this Act shall be every tax liable person under Art. 3, Para 1, 5 and 6 receiving services that have place of performance on the territory of the country, which are taxable and for which the tax is demandable from the recipient under Art. 82, Para 2.
(2) Registered under this Act shall be every tax liable person under Art. 3, Para 1, 5 and 6, residing on the territory of the country, that provides services under Art. 21, Para 2 having place of performance on the territory of another country.
(3) Any tax liable person registered under Para 1 shall be deemed registered also under Para 2 and vice versa.
(4) The obligation for persons under Para 1 and 2 to submit an application for registration under this Act shall arise not later than 7 days before the date, on which the tax for the delivery becomes demandable (advance payment or tax event), while subject to taxation shall be the tax base of the received service.
(5) Any person registered under this Article and subject to mandatory registration under Art. 96, 97, 98 and 99 or voluntary registration under Art. 100, Para 1, 2 and 3 shall be registered under the order and within the time limits for mandatory registration or voluntary registration.

Obligation for registration at remote sale of goods
Art. 98. (1) Subject to registration under this Act shall be any tax liable person, who carries out delivery of goods, having place of performance on the territory of the state according to art. 20 under the conditions of remote sale under art. 14.
(2) For the persons under par. 1 an obligation for submitting application for registration shall arise within 7 days prior to the date of occurrence of the tax event regarding the delivery, with which the total value of the remote sales during the current year exceeds the sum under art. 20, par. 2, item 2. The delivery under sentence one shall be subject to levying with a tax under this Act.
(3) In case the place of performance of the delivery under art. 20, par. 4 is on the territory of the state, the persons under par. 1 shall submit application for registration within 7 days prior to the date of occurrence of the tax event regarding the delivery or from receiving the payment in advance.

Obligation for registration at inter-community acquisition
Art. 99. (1) Subject to registration under this Act shall be every tax non-liable legal person and tax liable person, who is not registered on the grounds of art. 96, 97, 98, art. 100, par. 3 and 3 and art. 102, who carries out inter-community acquisition of goods.
(2) Paragraph 1 shall not be applied, in case the total value of the inter-community acquisitions for the current calendar year does not exceed 20 000 BGN.
(3) For the persons under par. 2 an obligation shall arise for submitting application for registration under this Act within 7 days prior to the date of occurrence of the tax event regarding the acquisition, with which the total value of the leviable inter-community acquisitions exceeds 20 000 BGN. The inter-community acquisition, with which the indicated threshold is exceeded, shall be subject to levying with tax under this Act.
(4) The value under par. 2 shall be the total amount of the leviable inter-community acquisitions, except for the acquisition of new transport vehicles and goods, subject to levying with excise, without the value added tax, due or paid in the Member State, from which the goods are transported or sent.
(5) Paragraph 1 shall not apply with regards to:
1. the persons under art. 168, who acquire new vehicles;
2. the persons under art. 2, item 4.
(6) A person, who is registered on the grounds of this Art. and for whom arise grounds of compulsory registration under art. 96, 97 and 98 or of voluntary registration under art. 100, par. 1 and 3, shall be registered by the order and within the terms for compulsory registration or for voluntary registration.

Voluntary registration
Art. 100. (1) Any tax liable person, with regards to whom the terms for compulsory registration under art. 96, par. 1 are not available shall be entitled to register under this Act.
(2) Any tax liable person and tax non-liable legal person, with regards to whom the terms for compulsory registration under art. 99, par. 1 are not available shall be entitled to register under this Act for inter-community acquisition.
(3) Regardless of the sum under art. 20, par. 2, item 2, any tax liable person may register under this Act, in case the tax administration of the Member State, where he/she is registered for the purposes of VAT, is notified that the latter wishes the remote sales, carried out by him/her, to have a place of performance on the territory of the state.
(4) (suppl. – SG 108/07, in force from 19.12.2007) Regardless of par. 1 and 3, may not be registered a person, with respect to whom the revenue administration has terminated or refused registration under this Act on the grounds of art. 176, until the dropping out of the grounds of refusal of registration, respectively the ground for de-registration, or until the expiry of 24 months, considered from the beginning of the month, following the month of the deregistration or of the refusal of registration.

Registration procedure
Art. 101. (1) The registration shall be carried out by submission of an application for registration according to a form to the competent territorial directorate of the National Revenue Agency by the person, who is obliged or entitled to register.
(2) The application shall be submitted:
1. personally, in the event that the tax liable person is legally capable natural person or a sole trader;
2. by a person, who has powers of a representative by a law, in case the tax liable person is a legal person or a cooperation;
3. by a person, who has powers of a representative according to articles of association, in case the tax liable person is unregistered partnership or insuring fund;
4. by accredited representative under art. 135;
5. by a person, explicitly authorised thereof by the persons under item 1, 2, 3 and 4 via notary certified letter of attorney.
(3) The application may be submitted via electronic way by the order of the Tax-insurance procedure code.
(4) The application under par. 1 shall contain the ground for registration. To the application shall be submitted documents, determined by the regulation for implementation of the law.
(5) (new – SG 95/09, in force from 01.01.2010) In case the person has not submitted for registration to the Registry Agency an electronic address for correspondence, it shall obligatorily submit such an address with the application under Para 1. In case of change to the electronic address the person shall notify the income administration within 7 days, unless the change was made through an application for registration to the Registry Agency.
(6) (suppl. – SG 108/07, in force from 19.12.2007; prev. text of Para 05 – SG 95/09, in force from 01.01.2010) In 7-days term from submission of the application the revenue body shall implement a check of the ground for registration. When the body in charge of revenues has requested the collateral of Art. 176a, the term for accomplishment of the inspection shall be 30 days as from the date of submission of the application for registration.
(7) (prev. text of Para 06 – SG 95/09, in force from 01.01.2010; amend. – SG 94/12, in force from 01.01.2013) In 7-days term from conclusion of the check under par. 6 the revenue body shall issue an act, with which carries out or refuses to carry out the registration.
(8) (prev. text of Para 07, amend. – SG 95/09, in force from 01.01.2010) Regardless of par. 6 and 7 the registration under art. 97, 97a, 98 and 99 shall be carried out by the revenue body in three days term from submitting the application for registration.

Registration on the initiative of the revenue body
Art. 102. (1) In case a revenue body finds out that a person has not fulfilled his/her obligation for submitting an application for registration within the fixed term, it shall register him/her by issuing a registration act, if the conditions for registration are available.
(2) In the act under par. 1 shall be indicated the ground and the date, on which the obligation for registration has arisen.
(3) (suppl. – SG 99/11, in force from 01.01.2012) In order to be assessed the tax obligations of a person in the cases when he/she has been obliged, however, has not submitted an application for registration within the fixed term, it shall be deemed that the person owes tax for the leviable deliveries and the inter-community acquisitions, carried out by him/her as well as for taxable deliveries of services received regarding which the tax is chargeable on the recipient:
1. (amend. – SG 94/12, in force from 01.01.2013) for the period from the expiry of the term, within which the act of registration should have been issued, if the person has submitted the application for registration within a term prior to the date on which he/she is registered by the revenue body;
2. (amend. – SG 94/12, in force from 01.01.2013) for the period from the expiry of the term, within which the act of registration should have been issued, if the person has submitted he application for registration within a term prior to the date on which the grounds for registration have dropped out.
(4) The obligations under par. 3 shall be determined by an inspection certificate by the order of the Tax-insurance procedure code.

Date of registration
Art. 103. (1) As a date of registration under this Act shall be considered the date of the handing over the registration act.
(2) (amend. – SG 94/12, in force from 01.01.2013) By the date of registration the person shall compile a registration list according to a form for the assets within the meaning of the Accountancy Act and for the services, regarding which the person is entitled to deduct a tax credit under art. 74 or 76, and shall submit it not later than 45 days from the date of registration.

Documents, certifying the registration
Art. 104. (1) Simultaneously with the handing over the registration act, the registered person shall be given a certificate for registration, protected by plastic foil, according to a form, determined by the regulation for implementation of the law.
(2) Upon a written request by the registered person the revenue body shall issue more than one certificate.
(3) Upon a written request by the registered person the director of the competent territorial directorate of the National Revenue Agency shall issue within 7-days term an individual certificate for proof of the registration under this Act abroad, according to a form, determined by the regulation for implementation of the law.

Loss, damage or disintegration of the certificate
Art. 105. (1) In case of loss, damage or disintegration of the certificate the registered person shall notify in writing thereof in 7-days term from occurrence of any of the circumstances the territorial directorate of the National Revenue Agency at registration.
(2) In the cases under par. 1 the revenue body shall issue a duplicate of the certificate in 7-days term from the notification.

Chapter ten.
TERMINATION OF THE REGISTRATION (DEREGISTRATION)
General provisions
Art. 106. (1) Termination of the registration (deregistration) under this Act is a procedure, on the grounds of which after the date of the registration the person shall not be entitled to charge a tax and to deduct tax credit, except in the cases, when this Act stipulates otherwise.
(2) The registration shall be terminated:
1. on the initiative of the registered person, in case there is a ground for deregistration – compulsory or voluntary;
2. on the initiative of the revenue body, in the event that:
a) he/she has established a ground for compulsory deregistration;
b) a circumstance under art. 176 is present.

Grounds for compulsory deregistration
Art. 107. Ground for compulsory deregistration shall be:
1. the death of the natural person;
2. the death of the natural person – sole trader, with or without deletion from the trade register;
3. (suppl. – SG 108/07, in force from 19.12.2007; amend. – SG 99/11, in force from 01.01.2012) the deletion of a sole trader from the trade register, unless:
a) the person is subject to obligatory registration under Art. 96, par. 1 for the taxable turnover for the accomplished by him/her supplies, being independent economic activity, or provided that the grounds under Art. 108, par. 2 are available;
b) the terms under letter "a" have not been met and within 14-days term from entering the deletion in the commercial register at the competent territorial directorate of the National Revenue Agency the person submits an application for registration in which the latter declares continuation of the registration under the terms of Art. 100, para 1;
4. the termination of the person in the cases of:
a) termination of legal person – trader, with or without liquidation;
b) termination of the co-operation;
c) termination of legal person, which is not a trader;
d) termination of the unregistered partnership or the insuring fund.

Grounds for voluntary deregistration
Art. 108. (1) Grounds for voluntary deregistration shall occur:
1. regarding a person, registered on the grounds of art. 96, 97, 98, par. 3 or art. 100, par. 1, in case the relevant ground of compulsory registration drops out;
2. regarding a person, registered on the grounds of art. 98, par. 2 or art. 100, par. 3, in case:
a) for each of the two calendar years prior to the current one the sum of the tax bases of the deliveries, carried out under the conditions of remote sale on the territory of the state (not including the deliveries of excise goods), does not exceed 70 000 BGN, and
b) by the date of submitting the application for deregistration there is no ground for compulsory registration;
3. regarding a person, registered on the grounds of art. 99 and art. 100, par. 2, in case:
a) for the precedent calendar year the sum of the tax bases of the inter-community acquisitions, except for those of new vehicles and excise goods, does not exceed 20 000 BGN, and
b) by the date of submitting the application for deregistration there is no ground for compulsory registration;
4. (new – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) for any person registered under Art. 97a, when at the date of submission of the application for deregistration there are no grounds for mandatory registration.
(2) Persons, registered at their own choice according to art. 100 shall not be entitled to terminate their registration on the ground of par. 1 earlier than 24 months, considered from the beginning of the calendar year, following the year of the registration under this Act.

Procedure of deregistration on the person’s initiative
Art. 109. (1) In the cases of art. 107, item 3 and 4 the person shall submit application for deregistration at the competent territorial directorate of the National Revenue Agency in 14-days term from occurrence of the respective circumstance under art. 107.
(2) In the cases of art. 108, par. 1 the registered person shall choose by himself/herself when to submit an application for deregistration before the competent territorial directorate of the National Revenue Agency.
(3) The application under par. 1 and 2 shall contain the ground for the deregistration. To the application shall be attached documents, determined by the regulation for implementation of the law.
(4) In 7-days term from submitting the application the revenue body shall carry out check of the ground for deregistration.
(5) In 7-days term from finishing the check the revenue body shall issue an act, with which carries out the deregistration or refuses to do so with reasons.
(6) (amend. – SG 113/07, in force from 01.01.2008) In cases of par. 1 the date of deregistration shall be deemed the date of occurrence of the respective circumstance referred to in Art. 107.
(7) (new – SG 113/07, in force from 01.01.2008) In cases of par. 2 the date of deregistration shall be deemed the date of handing over of the act of par. 5 of deregistration.

Procedure of deregistration on the initiative of the revenue body
Art. 110. (1) The registration shall be terminated on the initiative of the revenue body by issuing a deregistration act, in case:
1. there is a ground under art. 107, item 1 and 2 for compulsory registration;
2. he/she establishes that the person has not fulfilled his/her obligation for submitting an application for deregistration under art. 109, par. 1 within the fixed term;
3. (new – SG 108/07, in force from 19.12.2007) there is a ground for de-registration under Art. 176.
(2) (suppl. – SG 108/07, in force from 19.12.2007) In the cases under par. 1, item 1 and 2 the deregistration act shall not be handed over to the person, and the date of registration shall be the date of occurrence of the respective circumstance under art. 107. In all other cases the date of service of the deregistration act shall be deemed the date of deregistration.

Delivery with respect to the deregistration and determining the obligations for the last tax period
Art. 111. (1) (suppl. – SG 108/07, in force from 19.12.2007) By the date of the deregistration it is considered that the person carries out delivery within the meaning of the Act of all available goods and/or services, for which he/she has used entirely or partially tax credit and which are:
1. assets within the meaning of the Accountancy Act, or
2. assets within the meaning of the Corporate Income Tax Act, other than the ones under item 1.
(2) Paragraph 1 shall not apply:
1. at deregistration because of death of a natural person, who is not a sole trader;
2. (suppl. – SG 106/08, in force from 01.01.2009) in case of death of a person, registered under this Act – a sole trader, if the enterprise of the person is acquired as inheritance or legacy by a person, who is registered under this Act, or registers within 6-months term from the date of the death – only with respect to the goods and services, available by the date of registration.
3. (suppl. – SG 106/08, in force from 01.01.2009) at transformation of a registered legal person, if the newly-formed or successor person is registered under this Act or registers by the order and within the term of art. 132 - – only with respect to the goods and services, available by the date of registration.
4. to the available assets – public state or public municipal property;
5. (new – SG 95/09, in force from 01.01.2010; amend. – SG 99/11, in force from 01.01.2012) in case of deregistration under Art. 176 and subsequent registration of the person during the same tax period – as regards to the goods and the services which have been available both by the date of deregistration and by the date of subsequent registration.
(3) (amend. – SG 94/12, in force from 01.01.2013) The tax under par. 1 shall be included in the result of the last tax period, whereby the declaration shall take place according to the provision and within the term set out in Art. 125.
(4) (amend. – SG 95/09, in force from 01.01.2010) In the event that by the date of deregistration the person is in procedure of deduction by the order of par. 92, it shall be considered that by this date the two one-month periods have expired.

Chapter eleven.
DOCUMENTATION OF THE DELIVERIES
General provisions
Art. 111a. (new – SG 94/12, in force from 01.01.2013) (1) Documenting of supplies with a place of execution in the territory of the country shall be done subject to compliance with the provisions of this present Chapter.
(2) Documenting of supplies with a place of execution in the territory if another Member State, shall be done subject to compliance with the provisions of this present Chapter, where the tax for the supply is payable by the consignee and the supplier is a person for which the following conditions are met in aggregate:
1. the person has based his/her independent business activity in the territory of the country or has got a permanent facility in the territory of the country, from which the supply is made, or in case of such missing base or facility – he/she has got permanent address or usual residence in the territory of the country;
2. the person is not based in a Member State, in the territory of which is the place of execution of supply, or his/her permanent facility in this Member State is not involved in the supply.
(3) Documenting of supply of goods or provision of services with a place of execution in the territory of a third country or territory shall be done subject to compliance with the provisions of this present Chapter, where the supplier has based his/her independent business activity in the territory of the country or has got a permanent facility in the territory of the country, from which the supply is made, or in case of such missing base or facility – he/she has got permanent address or usual residence in the territory of the country.
(4) (amend. – SG 23/13, in force from 08.03.2013) In cases referred to in Art. 113, par. 11, where the invoice or the note to the invoice is issued by the person, to whom the goods or services are supplied, the provision of par. 2 and 5 shall not apply.
(5) The supplier shall not apply par. 1 for supplies with a place of execution in the territory of the state, where the tax is payable by the consignee and the supplier is a person, for whom the following conditions are met in aggregate:
1. the person has not based his/her independent business activity in the territory of the country or his/her permanent facility in the territory of the country is not involved in the supply, or in case of such missing base or facility – he/she does not have permanent address or usual residence in the territory of the country;
2. the person is based in another Member State, or he/she has got a permanent facility in another Member State, from which the supply has been done.

Art. 112. (1) Tax document within the meaning of this Act is:
1. the invoice;
2. the notice-to-invoice;
3. the protocol.
(2) The tax documents may be issued manually or automatically.
(3) In case of theft, loss, damage or disintegration of a tax document the registered person shall notify in writing the competent territorial directorate of the National Revenue Agency within 24 hours from the coming of knowledge of the respective circumstance.

Issue of invoice
Art. 113. (1) Any tax liable person – provider, shall issue an invoice for the delivery of goods or service, carried out by him/her either at receiving payment in advance, or before that, except in the cases when the delivery is documented by a protocol under art. 117.
(2) The invoice shall be issued in two copies at least – for the provider and for the recipient.
(3) Invoice may not be issued:
1. for deliveries, with respect to which the recipient is a tax non-liable natural person;
2. for deliveries of financial services under art. 46;
3. for deliveries of insurance services under art. 47;
4. for sales of airplane tickets;
5. in case of free of charge deliveries;
6. for deliveries of services under chapter eighteen;
7. (New – SG 108/06, in force from 01.01.2007) for deliveries, carried out by non-registered natural persons under the law, other than sole traders, where regarding the deliveries, carried out by them:
a) a document is issued following the procedure of a special law, or
b) an account of sums paid or a document under Art. 9 of the Income Taxes on Natural Persons Act is issued, or
c) the issue of a document is not obligatory according to the Income Taxes on Natural Persons Act.
(4) The invoice shall be issued within 5 days from the date of occurrence of the tax event regarding the delivery, and in the cases of advance payment – not later than 5 days from the date of the receipt of the payment.
(5) Regardless of par. 4, in the event of inter-community delivery, including in the cases of advance payment, the invoice shall obligatorily be issued not later than 15th of the month following the month, during which the tax event under art. 51, par. 1 has occurred.
(6) In case the issue of an invoice is not compulsory, it shall be issued at the request of the provider or the recipient, provided that each of the parties is obliged to give the necessary assistance to the other party regarding the issue.
(7) (amend. – SG 94/12, in force from 01.01.2013) The provider may authorise in writing another person to issue invoices and invoice notifications on his/her behalf.
(8) Invoice shall not be issued in the cases under art. 131, par. 1.
(9) (suppl. – SG 95/09, in force from 01.01.2010; amend. – SG 94/12, in force from 01.01.2013) The tax liable persons, who are not registered under this Act or are registered on the ground of Art. 97a, Para 1 and 2, Art. 99 and art. 100, par. 2, shall not be entitled to point out the tax in the invoices and invoice notifications, issued by them.
(10) In the event that a registered person carries out leviable delivery, for which he/she has received an advance payment prior to the date of registration under this Act, the person shall issue invoice, which he/she shall point out the whole tax base of the delivery.
(11) (new – SG 94/10, in force from 01.01.2011; amend. – SG 94/12, in force from 01.01.2013) Invoice or invoice notification on behalf and at the expense of the taxable person who is a supplier may be issued also by the recipient of the delivery, if there is a preliminary agreement between the parties and provided that there is a procedure of receipt of each invoice or invoice notification by the taxable person delivering the goods and services.
(12) (new – SG 94/12, in force from 01.01.2013) Electronic invoices and electronic invoice notifications shall be deemed issued on the date on which the supplier or another person, acting on his/her behalf, submits the invoices and invoice notifications, so that they can be received by the client.
(13) (new – SG 94/12, in force from 01.01.2013) For two or more effected supplies of goods or services the tax which becomes payable within the same tax period a complied invoice can be issued. The compiled invoice must contain the particulars referred to in Art. 114, par. 1, item 9 – 15 for each individual supply, included in the complied invoice and shall be issued on the last day of the month, in which the tax for the supplies has become payable at the latest, and for intra-community supplies – within the term under par. 5.

Requirements to the invoices
Art. 114. (1) The invoice shall obligatorily contain:
1. name of the document;
2. successive ten digit number, containing Arabic figures only, based on one or more series depending on the accountancy necessities of the tax liable person, who shall identify the invoice in a unique way;
3. date of issuing;
4. name and address of the provider;
5. identification number of the provider under art. 94, par. 2, respectively – the number under art. 84 of the Tax-insurance procedure code – in case the provider is a person, who is not registered under this Act;
6. (amend. – SG 106/08, in force from 01.01.2009; revoked – SG 95/09, in force from 01.01.2010)
7. name and address of the recipient of the delivery;
8. identification number of the recipient under art. 94, par. 2, respectively – the number under art. 84 of the Tax-insurance procedure code – in case the recipient is a person, who is not registered under this Act, identification number for the purposes of VAT – in case the recipient is registered in another Member State, another number for identification of the person, if such is required according to the legislation of the state, where the recipient is settled;
9. the quantity and the type of the goods, the type of the service;
10. the date, on which the tax event regarding the delivery has occurred, or the date, on which the payment is received;
11. the single price without the tax and the tax base of the delivery, as well as the provided commercial rebates and discounts, in case they are not included in the single price;
12. the tax rate, in case the rate is zero – the ground for its applying, as well as the ground for non-charging a tax;
13. the amount of the tax;
14. the sum to be paid, if it differs from the amount of the tax base and the tax;
15. the circumstances, defining the goods as new vehicle – in the event of inter-community delivery of new transport vehicles.
(2) Where a person carries out remote sale of goods, being registered for the purposes of VAT in another Member State and the place of performance of the delivery under the terms of remote sale is on the territory of another Member State, in the invoice obligatorily shall be pointed out not only the requisites under par. 1, but also:
1. the identification number of the person for the purposes of VAT, issued by the other Member State;
2. the tax rate, applicable to the delivery in the other Member State;
3. the amount of the tax due with respect to the delivery.
(3) (amend. – SG 94/10, in force from 01.01.2011) In case a registered person – intermediary in a three partite operation documents a delivery of goods carried out with respect to the one, who acquires in the three partite operation, as a ground for not charging tax, in the invoice shall be indicated "Art. 141 2006/112/ЕС".
(4) (amend. – SG 94/12, in force from 01.01.2013) In the event that the tax is exigible from the recipient, in the invoice shall not be indicated the amount of the tax and the tax rate. In this case the invoice shall indicate "chargeback", as well as the ground thereof.
(5) The sums regarding the invoice may be indicated in any currency, under the condition that the tax base and the amount of the tax are pointed out in BGN, observing the requirements under art. 26, par. 6.
(6) (amend. – SG 106/08, in force from 01.01.2009; amend. – SG 94/12, in force from 01.01.2013) Every taxable person in a way at his/her option shall provide from the time of issuance until the end of keeping the authenticity of the origin, the integrity of the content and legibility of invoices and invoice notifications, issued by him/her or on his/her behalf, and also of the received by him/her invoices and invoice notifications, regardless whether they are on a hard copy or in an electronic format.
(7) (new – SG 94/12, in force from 01.01.2013) The invoice might not contain the particulars referred to in par. 1, items 12, 14 and 15 where the amount of the tax basis and the tax do not exceed 100 EUR or their equivalent in levs, except for documenting of supplies with a place of execution in the territory of another Member State, of intra-community supplies and of remote sale of goods.
(8) (new – SG 94/12, in force from 01.01.2013) In cases of art. 111a, par. 3 the invoice issued to a taxable person who is a supplier, may not contain the particulars of par. 1, items 12 and13.
(9) (new – SG 94/12, in force from 01.01.2013) Documenting of supplies by electronic invoices and invoice notifications shall be done provided that this documenting is accepted by the consignee by a written or silent consent.
(10) (new – SG 94/12, in force from 01.01.2013) Guaranteeing of authenticity of origin, the integrity of the content and legibility of invoices and invoice notifications shall be provided by the taxable person though any kind of control over the business activity, providing a reliable audit tracing between the invoice or the invoice notification and the supply of goods or services.
(11) (new – SG 94/12, in force from 01.01.2013) In addition to control over business activity referred to in par. 10 the authenticity of origin, the integrity of the content and legibility of electronic invoices and electronic invoice notifications shall be provided through the following exemplary technologies:
1. qualified electronic signature within the meaning of the Electronic Document and Electronic Signature Act, or
2. by electronic data interchange.

Debit and credit notifications
Art. 115. (1) In the event of change of the tax base of the delivery or at cancellation of a delivery, for which an invoice is issued, the provider shall be obliged to issue a notification to the invoice.
(2) The notification shall obligatorily be issued not later than 5 days from occurrence of the respective circumstance under par. 1.
(3) In the event of increase of the tax base a debit notification shall be issued, and in case of reduction of the tax base or at cancellation of deliveries – a credit notification.
(4) Except for the requisites under art. 114, the notification to the invoice shall also contain:
1. the number and the date of the invoice, to which the notification is issued;
2. the ground of issuing the notification.
(5) The notification shall be issued in two copies at least – for the provider and for the recipient.
(6) In the event of termination or cancellation of contract for leasing under art. 6, par. 2, item 3 the provider shall issue a credit notification for the difference between the tax base of the delivery under art. 6, par. 2, item 3 and the sum, retained on the basis of the contract, without the tax under this Act.
(7) (new – SG 94/12, in force from 01.01.2013) The invoice notification may not contain the particulars referred to in Art. 114, par. 1, items 12, 14 and 15, except for where supplies with a place of execution in the territory of a Member State, intra-community supplies and remote sale of goods are documented.

Correction of the invoices and the notifications
Art. 116. (1) Corrections and supplements in the invoices and the notifications to them shall not be permitted. Incorrectly prepared or corrected documents shall be nullified and new ones shall be issued.
(2) Considered as incorrectly prepared documents shall also be considered the issued invoices and notifications to them, in which tax is not charged, even though such it should have been charged.
(3) Considered as incorrectly prepared documents shall also be considered the issued invoices and notifications to them, in which tax is not charged, even though such should not have been charged.
(4) In case documents incorrectly prepared or corrected documents are reflected in the accounting registers of the provider or the recipient, a protocol shall also be compiled for the annulment – for each of the parties, which shall contain:
1. the ground of the annulment;
2. the number and the date of the document, which is nullified;
3. the number and the date of the new document issued;
4. signature of the persons, who have compiled the protocol for each of the parties.
(5) All copies of the nullified documents shall be kept at the issuer, and their accounting by the provider and the recipient shall be carried out by procedure, determined by the Rules for Implementation of the Act.

Issue of protocols
Art. 117. (1) A protocol shall obligatorily be issued:
1. (amend. – SG 108/06, in force from 01.01.2007) in the cases under art. 82, par. 2, 3, 4 and 5 and art. 84 – by the registered person – recipient with respect to the delivery;
2. in the cases under art. 57 – by the registered person – importer;
3. in the cases of deliveries under art. 6, par. 3, art. 7, par. 4, art. 9, par. 3, art. 142, par. 1 and art. 144, par. 4 - by the registered person – provider;
4. (New – SG 108/06, in force from 01.01.2007) in the cases under Art. 161 and 163a – by the registered person – recipient regarding the delivery, in case the provider is a tax liable person, not registered under the law.
(2) The protocol under par. 1 shall obligatorily contain:
1. number and date;
2. (suppl. – SG 108/06, in force from 01.01.2007) the name and the identification number under Art. 94, para 2 of the person under par. 1;
3. the quantity and the type of the goods or the type of the service;
4. the date of occurrence of the tax event regarding the delivery;
5. the tax base;
6. the tax rate;
7. (suppl. – SG 95/09, in force from 01.01.2010) the ground for charging or non-charging the tax by the person under par. 1;
8. the amount of the tax.
(3) (amend. – SG 108/07, in force from 19.12.2007) The protocol shall be issued not later than 15 days from the date, on which the tax has become exigible.
(4) In case of change of the tax base of the delivery or at the cancellation of the delivery, for which a protocol is issued, the person shall issue new protocol, which shall obligatorily contain:
1. the number and the date of the initial protocol, issued for the delivery;
2. the ground for issuing the new protocol;
3. the increase/reduction of the tax base;
4. the increase/reduction of the tax.
(5) (amend. – SG 108/07, in force from 19.12.2007) The protocol under par. 4 shall be issued not later than 15 days from the date, on which the respective circumstance under par. 4 has occurred.

Cash slips and Submission of Data
Art. 118. (amend. – SG 23/13, in force from 08.03.2013) (1) Any person, registered or non-registered under this Act, shall register and report on the deliveries/sales at a commercial site carried out by him or her, by issuing a fiscal cash-register slip from a fiscal device (fiscal receipt) or a cash slip through an integrated business management system (system receipt), regardless whether another tax document has been required. The recipient is required to obtain the fiscal or cash receipt and to keep them till leaving the site.
(2) Fiscal devices and integrated business management systems shall necessarily have the technical capability to establish a remote connection through which to submit data to the National Revenue Agency. The technical requirements, the terms and conditions for establishment and implementation of the remote connection shall be established in the ordinance under para 4 in coordination with the Bulgarian Institute of Metrology.
(3) Fiscal and system receipts are paper documents, reporting a sale/delivery of goods or services in a commercial site, payable by cash, check, voucher, bank credit or debit card or other payment means substituting money, issued by a fiscal device of approved type in operation or by an approved an integrated business management system.
(4) The Minister of Finance shall issue an Ordinance, providing for the following:
1. the conditions, procedure and the manner of approval or revocation of the type, commissioning/decommissioning, registration/deregistration, reporting, keeping documents, issued by or in relation to fiscal device and integrated business management system;
2. servicing, expert opinions and control of the fiscal device and the integrated business management system, as well as the technical and functional requirements thereto;
3. the requirements, terms and conditions for establishing a remote connection and submitting data to the National Revenue Agency;
4. issue of fiscal cash-register slips from a fiscal device and of cash slips through an integrated business management system as well as the pre-requisites they must meet;
5. the type of data submitted, their format and the time limits for submission thereof.
(5) During the operation of the fiscal device and the integrated business management system the persons referred to in para 1 shall conclude written contracts for technical service and repairs with service companies registered by the Bulgarian Institute of Metrology. Technical servicing during the warranty period shall be free of charge within the guarantees given by the manufacturer.
(6) Any person under para 1, carrying out supplies/sales of liquid oils at a commercial site, except for the ones carrying out supplies/sales of liquid oils at a tax warehouse within the meaning of the Excises and Tax Warehouses Act, shall transmit by remote connection to the National Revenue Agency data enabling determination of the available quantities of fuel in the storage tanks at the facilities trade in liquid fuels.
(7) Paras 1 and 6 shall not apply by a supplier/recipient – an oil base, where all of the following conditions are met:
1. the payments for the supplies/sales of liquid fuels shall be made only by bank transfer, including through credit transfer, direct debit or cash transfer made through another payment service provider within the meaning of the Payment Services and Payment Systems Act, or through postal money order, carried out ??by a licensed postal operator handling postal money orders within the meaning of the Postal Services Act;
2has its own measuring system that allows reliable and accurate reporting of the quantity of fuel at any moment;
3. upon request by the revenue bodies, provide immediate access to the measurement system under item 2;
4. submit data to the National Revenue Agency under the terms and following the procedure set out in para 10.
(8) A tax liable person who refuels with liquid fuel vehicles, equipment or other machinery for own use for the purposes of their independent business, shall register and report on the refuelling pursuant to the ordinance under para 4.
(9) Para 8 shall not apply:
1. by a person under para 8 who is a recipient in a liquid fuel delivery in those cases where the supplier of the delivery is not a final distributor, provided that the following conditions are met:
a) payments for deliveries of liquid fuels shall only be made by bank transfer, including through credit transfer, direct debit or cash transfer made through another payment service provider within the meaning of the Payment Services and Payment Systems Act, or through postal money order, carried out ??by a licensed postal operator handling postal money orders within the meaning of the Postal Services Act;
b) does not sell liquid fuels;
c) submit to the National Revenue Agency data on the quantity of liquid fuels received under the terms of para 10.
2. by a person under para 8 who is a recipient in a liquid fuel delivery in those cases where the supplier of the delivery is a final distributor and the recipient does not sell liquid fuels.
(10) A tax liable person who is a supplier/recipient of a delivery of liquid fuel, shall transmit to the National Revenue Agency data concerning the delivery and movement of the quantities of liquid fuels delivered or received, as well as the changes thereto. The data shall be submitted via electronic means by a qualified electronic signature on the date of the tax event or on the date on which a change in the relevant circumstances has occurred
(11) Data under para 10 shall be submitted by:
1. the supplier and recipient of liquid fuel deliveries under excise duty suspension regime;
2. the supplier regarding deliveries and quantities of liquid fuel delivered, for which have been submitted data to Customs Agency evidencing that these fuels have been released for consumption under the Excises and Tax Warehouses Act;
3. the suppliers regarding deliveries which they have reported via their electronic systems with fiscal memory;
4. the recipient regarding deliveries which have been reported by the supplier via electronic systems with fiscal memory and the recipient is an end user;
5. the recipients regarding deliveries which they have reported via their electronic systems with fiscal memory;
6. the recipient under para 9, item 2.

Account for the sales carried out
Art. 119. (1) Regarding the deliveries, for which the issue of an invoice or a protocol is not compulsory, the provider – a person, registered under this Act, shall compile an account of the sales carried out, which shall contain generalised information on these deliveries for the respective tax period.
(2) The account for the sales carried out shall be compiled not later than the last day of the tax period.
(3) At his/her own choice, the person can prepare separate accounts for the sales carried out for each day of the tax period and or for every site.
(4) The contents of the generalised information under par. 1 shall be determined by the Rules for Implementation of the Act.

Account for the sales or purchases carried out under special levying procedure (Title suppl. – SG 108/06, in force from 01.01.2007)
Art. 120. (1) With respect to every type of delivery, to which the special levying procedure under chapters sixteen, seventeen and nineteen is applicable, the provider – a person, registered under this Act, shall compile an account for the sales carried out during the tax period, containing at least the following information:
1. quantity and type of the goods for each concrete delivery or the type of service;
2. the date, on which the tax event regarding the delivery has occurred;
3. a description of the invoices issued for the delivery, in case their issue is compulsory;
4. the elements, necessary for determining the tax base;
5. the tax base;
6. the tax rate;
7. the amount of the tax.
(2) The account or the sales carried out as per para 1 shall be compiled no later than the last day of the tax period.
(3) For the services carried out under chapter eighteen the person, registered under art. 152, shall create an electronic register, containing at least the following information regarding each individual delivery:
1. name, address and electronic address of the client;
2. quantity and type of the delivery, carried out by electronic means;
3. the date, on which the tax event regarding the delivery has occurred;
4. number and date of the issued invoice for the delivery;
5. the tax base;
6. the tax rate applicable;
7. the amount of the tax;
8. way of payment.
(4) (New – SG 108/06, in force from 01.01.2007) Regarding deliveries of goods and services to which the special taxation procedure under Chapter nineteen "a" is applicable, with respect to which the providers are natural persons, who are not tax liable, the recipient – a person registered under this Act, shall compile an account of the purchases carried out during the tax period, containing at least the following information:
1. quantity and type of the goods or the type of the service – regarding each delivery;
2. the date, on which the tax has become exigible;
3. the purchase price – regarding each delivery;
4. the tax rate;
5. the amount of the tax.
(5) (New – SG 108/06, in force from 01.01.2007; amend. – SG 94/12, in force from 01.01.2013) The electronic register referred to in par. 3 and the account of purchases carried out within the tax period as per para 4 shall be compiled no later than on the last day of the tax period.

Chapter twelve.
OTHER OBLIGATIONS
Keeping documents
Art. 121 (1) Any tax liable person shall provide the keeping of the tax documents, issued by him/her or on his/her behalf, as well as of all documents, received by him/her up to 5 years following the expiry of the prescription period for discharge of the public liability, certified by the documents.
(2) (amend. and suppl. – 94/12, in force from 01.01.2013) The authenticity of the origin and the integrity of the tax documents’ contents, as well as their legibility shall be guaranteed throughout the whole period of keeping. Where tax documents are stored on electronic storage devices, within the term referred to in par. 1 taxable persons shall keep also the information, guaranteeing authenticity of origin and integrity of their content.
(3) (amend. – SG 94/10, in force from 01.01.2011) Paragraphs 1 and 2 shall be applied with respect to the accounts of the sales carried out under art. 119 and 120, the registers under 123, par. 2 and 3, as well as with respect to the customs documents for importation.

Right of access to tax documents, kept by using electronic storage devices
Art. 122. (amend. – 94/12, in force from 01.01.2013) In the event that a taxable person keeps by using electronic storage devices, guaranteeing online access to electronic invoices and electronic invoice notifications, invoices, issued or received by him/her, the person shall be obliged to provide electronic (online) access to the stored data:
1. to the competent revenue bodies – where the person is based in the territory of the country, and also where the person is not based in the territory of the country, but the tax for the supply is payable in Bulgaria;
2. the competent bodies of the Member State where the tax is payable – where the person is based in the territory of the country, and the tax for the supply is payable in another Member State.

Accountancy
Art. 123. (1) Any registered person shall keep detailed accountancy, sufficient for establishing his/her obligations under this Act by the revenue bodies.
(2) Any registered person shall maintain a register of the goods under art. 7, par. 5, items 8 – 10 and art. 13, par. 4, items 8 – 10.
(3) Any tax liable person shall maintain a register of the goods, transported to him/her from another Member State by a person, registered for the purposes of VAT in this Member State, in relation to the provision of services according to assessments or work regarding chattels.
(4) The form and the requisites of the registers under par. 2 and 3 shall be determined by the regulation for implementation of this Act.

Chapter thirteen.
DECLARING AND ACCOUNTING
Accounting registers
Art. 124. (1) The persons, registered under this Act shall keep the following registers:
1. purchase record;
2. sales record.
(2) (amend. – SG 108/06, in force from 01.01.2007) The registered person shall be obliged to reflect the tax documents, issued by him/her or on his/her behalf, as well as the accounts of the sales carried out under art. 119 in the sales record for the tax period, during which they are issued.
(3) (amend. – SG 108/06, in force from 01.01.2007) Regardless of par. 2, the tax documents issued with regards to inter-community delivery, including for received payment, shall be reflected in the sales record for the tax period, during which the tax for the delivery has become exigible according to art. 51.
(4) (suppl. – SG 108/06, in force from 01.01.2007; amend. – SG 95/09, in force from 01.01.2010) The registered person shall be obliged to reflect the tax documents received by him/her in the purchase record no later than by the twelfth tax period, following the tax period, during which they are issued, however, not later than the last tax period under Art. 72, para 1.
(5) Regardless of par. 4, the registered person shall be obliged to reflect the credit notifications received by him/her in the purchase record for the tax period, during which they are issued.
(6) The type, contents and the requirements to the registers under this Art., as well as the procedure and the manner of reflection of the documents in them shall be determined by the Rules for Implementation of the Act.
(7) (New – SG 108/06, in force from 01.01.2007) The registered persons, who have carried out inter-community deliveries of new vehicles during the calendar quarter, with regards to which recipients are persons, who are not registered for the purposes of VAT in other Member States, shall reflect the deliveries carried out in a register for the inter-community deliveries of new vehicles.
(8) (New – SG 108/06, in force from 01.01.2007) The type, the contents and the requirements of the register referred to in para 7 shall be laid down by the Rules for Implementation of the Act.

Declaring the tax
Art. 125. (1) Regarding every tax period the registered person shall submit a reference declaration, drawn up on the basis of the accounting registers under art. 124, except for the cases under art. 157.
(2) (amend. – SG 95/09, in force from 01.01.2010) The registered person, who has carried out during the tax period inter-community deliveries, deliveries as a intermediary in a three-party operation or deliveries of services under Art. 21, Para 2 having place of performance on the territory of another Member State, along with the reference-declaration under par. 1 shall also submit a VIES-declaration regarding these deliveries for the respective tax period.
(3) Along with the reference-declaration under par. 1 the registered person shall also submit the accounting registers under art. 124 for the respective tax period.
(4) The reference-declaration under par. 1 shall be submitted also in the cases when tax should not be deposited or restored, as well as in the cases when the registered person has not carried out or received deliveries or acquisitions or has not carried out import in this tax period.
(5) The declarations under par. 1 and 2 and the accounting registers under par. 3 shall be submitted until 14th of the month inclusive, following the month, to which they refer.
(6) The VIES-declaration under par. 2 and the accounting registers under par. 3 may also be submitted on magnetic or optic carrier.
(7) The declarations under par. 1 and 2 and the accounting registers under par. 3 may also be submitted via electronic way under the conditions and following the procedure of the Tax-insurance procedure code. In case the reference-declaration and the accounting registers are submitted via electronic way, par. 6 shall not apply.
(8) The reference-declaration under par. 1 and the declaration under par. 2 shall be submitted according to a form, determined by the regulation for implementation of this Act.
(9) (New – SG 108/06, in force from 01.01.2007) The register referred to in Art. 124, para 7 shall be submitted on a magnetic or optic carrier by the 14th date of the month, following the calendar quarter, to which it refers.
(10) (new – SG 95/09, in force from 01.01.2010) In the cases of Art. 111, Para 2, Item 5 the registered person shall submit one reference declaration for the tax period, which shall include the deliveries made by the person by the date of deregistration, including the deliveries made after the date of the subsequent registration.
(11) (new – SG 94/10, in force from 01.01.2011) Where a declaration under Para 2 is filed, such declaration, the declaration under Para 1 and the accounting registers referred to in Para 3 shall be submitted electronically under the conditions and order set out in the Tax-Insurance Procedure Code. Where the reference-declaration, the VIES-declaration and the accounting registers have been submitted electronically, Para 6 shall not apply.
(12) (new – SG 99/11, in force from 01.01.2012) Where none of the accounting registers under Art. 124 for the respective tax period contains more than five entries, the reference declaration under para 1 and the accounting registers referred to in para 3 shall obligatorily be sent via electronic means under the terms and following the procedure laid down in the Tax-Insurance Procedure Code. In those cases where the reference declaration and the accounting registers are submitted by electronic means, para 6 shall not apply.

Corrections of mistakes at the declaring
Art. 126. (1) Any mistakes made in declarations submitted under art. 125, par. 1 and 2 as a consequence of non reflected or incorrectly reflected documents in the accounting registers under art. 124, shall be corrected by the order of par. 2 and 3.
(2) The mistakes, found until the expiry of the term for submitting the reference-declaration, shall be corrected, provided that the person carries out the necessary corrections and submits again the declarations under art. 125, par. 1 and 2 and the accounting registers under art. 124.
(3) Apart from the cases of par. 2 the mistakes shall be corrected, provided that:
1. the person carries out the necessary corrections in the tax period, during which the mistake is found, and includes the non reflected document in the respective accounting register for the same tax period – in case of non reflected documents in the accounting registers under art. 124;
2. the person notifies in writing the competent revenue body, which shall undertake actions for change of the person’s obligation for the relevant tax period – in case of incorrectly reflected documents in the accounting registers.

Part seven.
SPECIFIC CASES
Chapter fourteen.
SPECIFIC CASES OF DELIVERIES
Delivery, carried out by a person, acting on his/her behalf and at another's expense
Art. 127. (1) In case the tax liable person (commissioner/trustee) provides goods or services on his/her behalf and at another's expense it shall be assumed that the person has received and provided the goods or the services.
(2) In the cases under par. 1 three deliveries are present:
1. delivery between the commissioner/trustee and the third party, for which the date of occurrence of the tax event and the tax base of the delivery are determined according to the general provisions of this Act;
2. delivery between the commissionee/truster and the commissioner/trusteе of the goods or the services – subject to the delivery under item 1; the tax base of this delivery shall be equal to the tax base of the delivery under item 1, and the date of occurrence of the tax event for this delivery shall be determined by general provisions of this Act, however it may not be later than the date of occurrence of the tax event under item 1;
3. delivery of service between the commissioner/trustee and the commissionee/truster; the tax base of this delivery shall be the remuneration of the commissioner/trustee, which also includes the compensation for the expenses made by the latter in relation to the delivery, in case it is agreed so; the date of occurrence of the tax event for this delivery shall be determined by general provisions of this Act.
(3) In case the commissioner/trustee is a person, who is not registered under this Act, at assessment of the tax base for the delivery under par. 2, item 2 shall be considered that the contracted price of the delivery under par. 2, item 1 includes the tax.
(4) In case the tax base of the delivery under art. 6, par. 2, item 4 differentiates from the tax base under par. 2, item 1, on the date of occurrence of the tax event of the delivery under par. 2, item 1 shall occur grounds for change of the tax base of the delivery under art. 6, par. 2, item 4.

Accompanying delivery
Art. 128. (1) In case the main delivery is accompanied by another delivery and the payment is determined jointly it shall be accepted that there is one main delivery.

Guarantee servicing
Art. 129. (1) Shall not be deemed as a delivery the provision of goods by provider or a person, authorised by him/her in order to be replaced or removed any emerged defects under the terms of the contracted guarantee services, implemented at the expense of the producer.
(2) Shall not be deemed as a delivery the provision of services with respect to removing emerged defects under the terms of the contracted guarantee services, in case the following conditions are simultaneously present:
1. the service is carried out by a person, authorised thereof by the producer;
2. the producer is not settled on the territory of the state;
3. the guarantee servicing is at the expense of the producer.
(3) Shall not be deemed as a delivery the provision of goods or services with respect to removing emerged defects by a provider, in the event that the removal of the defects is at the expense of the latter in relation to retained sums under art. 26, par. 4, item 2.

Barter
Art. 130. (1) In case there is a delivery, regarding which the remuneration is determined in goods or services (entirely or partially), shall be deemed that two counter deliveries are present, each of the providers being considered as a seller of what he/she gives and a purchaser of what he/she acquires.
(2) (amend. – SG 106/08, in force from 01.01.2009) The tax event for the deliveries under par. 1 shall occur pursuant to the general provisions of the law.
(3) (new – SG 106/08, in force from 01.01.2009) The delivery under para 1 where the tax event has occurred on an earlier date shall be considered as an advance payment (whole or partial) for the second delivery.
(4) (new – 94/12, in force from 01.01.2013) For the purposes of par. 3, the amount of the tax basis for the received advance payment shall be equal to the amount of the tax basis of the earlier supply by date.

Delivery of goods or services at public sale under the Tax-insurance procedure code or under the Civil procedure code or a sale under the Registered Pledges Act
Art. 131. (1) (amend. – SG 94/10, in force from 01.01.2011) In the cases of public sale by the order of the Tax-insurance procedure code or of the Civil procedure code or in case of sale following the procedure of the Registered Pledges Act or of art. 60 of the Credit Institutions Act and in the event that the owner of the article (the debtor, pledgor, respectively the owner of the property under hypothec) is a person, registered under this Act, the public executor, the court executor or the pledge shall be obliged within 5 days since receiving the full price regarding the sale:
1. (amend. – SG 99/11, in force from 01.01.2012) to remit the tax due on the sale to the bank account of the territorial directorate of the National Revenue Agency authorized with regards to the bailiff or pledge creditor or bank account or the respective territorial directorate of the National Revenue Agency, in the region of which operates the public executor;
2. to prepare a document for the sale, determined by the Rules for Implementation of the Act, in three copies – for the public executor/the court executor/the pledge, for the owner of the article and for the recipient (buyer);
3. to present the document under item 2 to the owner of the article and the recipient within three days term from its issue;
4. to notify the competent territorial directorate of the National Revenue Agency, where the owner of the article is registered under this Act, of the document issued under item 2 by order, determined by the Rules for Implementation of the Act.
Art. 27 shall not apply in determining the tax base.
(2) In the cases under par. 1 it shall be considered that the tax is included in the sale price, provided that it shall be remitted (paid) along with the sale price by the recipient (buyer) to the public executor/the court executor/the pledge.
(3) (amend. – SG 59/07, in force from 01.03.2008) Paragraph 1 shall not be applied, in case by the order of the Tax-insurance procedure code upon request by the creditor, the goods of the latter is assigned for payment of his/her receivable.
(4) (amend. – SG 59/07, in force fro, 01.03.2008) In the cases under par. 3 the tax base of the delivery shall be the price of the goods, determined by the order of art. 250, par. 3 or art. 254, par. 7 of the Tax-insurance procedure code, being considered that the tax is included in the price of the goods.
(5) (new – SG 113/07, in force from 01.01.2008) In case of cancelling of the public sale or of the sale of par. 1 by the competent court, the transferred tax on the sale/selling price shall be refunded following a procedure, set by the Rules for Implementation of the Act.

Chapter fifteen.
SPECIFIC CASES OF REGISTRATION AND DEREGISTRATION
Obligatory registration as a result of reorganization
Art. 132. (1) A person shall be obligatorily registered under this Act, if on the grounds of art. 10, par. 1 he/she acquires goods and services from registered person.
(2) (suppl. – 94/12, in force from 01.01.2013) The registration under par. 1 shall be made by submitting application for registration in 14-days term since entering the circumstance under art. 10, par. 1 in the trade register or in BULSTAT register.
(3) (suppl. – 94/12, in force from 01.01.2013) The date of the registration in the cases under par. 1 shall be the date of entering the circumstance under art. 10 in the trade register or registration in BULSTAT register.
(4) (amend.– 94/12, in force from 01.01.2013) In the cases of registration under par. 1 the registration list under art. 74, par. 2, item 3 for the available assets (except for those, received under art. 10) shall be compiled by the date of registration under par. 3 and shall be submitted till the 45-th day inclusive after this date.

Registration of foreign person, who is not settled in the state
Art. 133. (1) Registration of foreign person who has permanent site on the territory of the state, from which he/she implements economic activity and who meets the requirements of this Act for obligatory registration and voluntary registration, shall be registered through an accredited representative except for the branches of foreign persons which are registered by the general procedure.
(2) A foreign person who is not settled on the territory of the state but he/she implements leviable deliveries having place of performance on the territory of the state and meets the requirements of this Act for obligatory registration or voluntary registration, shall be registered through an accredited representative.
(3) (amend. – SG 108/07, in force from 19.12.2007) The registration under par. 1 and 2 shall be carried out by the procedure of art. 101 in the territorial directorate of the National Revenue Agency under Art. 8 of the Code of Tax Insurance Procedure.
(4) At termination of the person - accredited representative, or at occurrence of other circumstances leading to impossibility this person to fulfil his/her obligations under this Act, the foreign person shall be obliged to determine new accredited representative in 14 days period considered from the occurrence of the new circumstances.
(5) Paragraphs 1-4 shall not be applied for foreign persons, providing services under chapter eighteen.
(6) (new – SG 95/09, in force from 01.01.2010) When a person under Para 1 and 2 is resident of another Member State or of a third country, with which our country has legal instruments for mutual assistance, the registration shall be pursuant to the general order. The foreign person may appoint an accredited representative, in which case Para 4 shall not apply.
(7) (new – SG 95/09, in force from 01.01.2010) The income authority may register under the order of Art. 102 also a person meeting the requirements of Para 1 and 2, including the cases when he has submitted an application for registration but has failed to determine an accredited representative.

Termination of the registration (the deregistration) of foreign person registered under this Act
Art. 134. (1) The registration of foreign person registered pursuant to art. 133 shall be terminated if the general conditions for deregistration under this Act are present.
(2) The deregistration under par. 1 shall be implemented by the procedure under art. 109.
(3) (amend. – SG 95/09, in force from 01.01.2010) When the foreign person does not determine new accredited representative in the term under art. 133, par. 4, his/her registration may be terminated by the initiative of the revenue body via issuing an act for deregistration.
(4) In the cases under par. 3 the act for deregistration shall not be handed over to the person and the date of deregistration shall be the date, on which the term under art. 133, par. 4 expires.
(5) At deregistration under par. 1 and 3 it shall be assumed, that the foreign person implements delivery under art. 111.

Accredited representative
Art. 135. (1) (amend. – SG 108/07, in force from 19.12.2007) Accredited representative of foreign person may only be a legally capable natural person with a permanent address or permanently residing in the state or local legal person which is not in a procedure of liquidation or that is not announced insolvent and does not have exigible and unpaid tax liabilities and insuring liabilities, collected by the National Revenue Agency.
(2) The accredited representative shall represent the foreign person under art. 133 in all of his/her tax legal relations occurred pursuant this Act.
(3) (suppl. – SG 95/09, in force from 01.01.2010) The accredited representative shall be jointly and unlimitedly responsible for the liabilities under this Act of the registered foreign person, except in the cases referred to in Art. 133, Para 6.

Part eight.
SPECIAL PROCEDURE OF LEVYING
Chapter sixteen.
TOURIST SERVICES
Delivery of common tourist service
Art. 136. (amend. – SG 99/11, in force from 01.01.2012) (1) In case a tour operator provides on his/her behalf goods or services related to the journey of a traveller, for the implementation of which goods or services are used, that the traveller makes use of directly, it is considered, that a delivery of common tourist service is carried out.
(2) The goods and services under par. 1, from which the traveller makes use of directly, shall be those, which the tour operator has received by other tax liable persons and has provided to the traveller without change.
(3) The provisions of this Chapter shall not apply with regards to:
1. deliveries of tourist agents in those cases where they act on behalf of and at the expense of another person;
2. delivery of a tour operator to another tour operator.

Place of performance of the common tourist service
Art. 137. (amend. – SG 99/11, in force from 01.01.2012) Place of performance of delivery of common tourist service shall be the place, where the tour operator has established his/her economic activity or has permanent site, from which implements the performance.

Date of occurrence of the tax event and exigibility of the tax
Art. 138. (1) (amend. – SG 99/11, in force from 01.01.2012) Date of occurrence of the tax event regarding the delivery of common tourist service shall be the date, on which the traveller makes use of the delivery for the first time.
(2) The tax for the delivery of the common tourist service shall become exigible on the date of occurrence of the tax event under par. 1.

Tax base of common tourist service
Art. 139. (1) (amend. – SG 99/11, in force from 01.01.2012) The tax base of the delivery of common tourist service shall be the margin, which represents the difference, decreased with the amount of the tax due, between:
1. the total sum, which the tour operator has received or will receive from the traveller or from the third person for the delivery, including the subsidies and funding, directly connected with this delivery, the taxes and the fees, as well as the expenses accompanying, as commissions and insurances, charged by the provider to the recipient, but except the trade discounts provided;
2. the sum, which has been paid or will be paid for deliveries of goods and services, received by the tour operator from other tax liable persons, from which the traveller makes use of directly, including the tax under this Act.
(2) The tax base under par. 1 may not be negative quantity.

Zero rate at delivery of common tourist service
Art. 140. (1) (amend. – SG 99/11, in force from 01.01.2012) The delivery of common tourist service shall be charged with zero rate, if the deliveries of the goods and the services, from which the traveller makes use of directly, are with place of performance on the territory of third states and territories.
(2) (amend. – SG 99/11, in force from 01.01.2012) When only part of the deliveries of the goods and the services under par. 1, from which the traveller makes use of directly, are with place of performance on the territory of third states and territories, leviable with zero rate shall only be their corresponding part of the delivery of the common tourist service.

Tax credit of the tour operator (title amend. – SG 99/11, in force from 01.01.2012)
Art. 141. (amend. – SG 99/11, in force from 01.01.2012) The tour operator shall not be entitled to deduct tax credit for the deliveries of goods and services, acquired from other tax liable persons, from which the traveller makes use of directly.

Charging the tax and documentation of the delivery of common tourist service
Art. 142. (1) (amend.– 94/12, in force from 01.01.2013) The tax for the delivery of common tourist service shall be charged by issuing a protocol, and in the invoice and the notification thereto it shall be indicated "regime of taxation of the margin – tourist services.
(2) The documentation and accounting of the delivery of common tourist service shall be carried out by order, specified with the Rules for Implementation of the Act.

Chapter seventeen.
SPECIAL PROCEDURE FOR LEVYING THE MARGIN OF THE PRICE
Delivery of second hand goods, works of art, collections articles and antiques
Art. 143. (1) (suppl. – SG 108/06, in force from 01.01.2007; amend. – SG 95/09, in force from 01.01.2010) The provisions of this chapter shall be applied for delivery carried out by dealer, of second hand goods, works of art, collections articles, antique articles delivered on the territory of the state or from the territory of another Member State by:
1. tax non-liable person;
2. (suppl. – 94/12, in force from 01.01.2013) another tax liable person registered under this Act, when the object of delivery are goods exempt under Art. 50, par. 1 or by persons registered for VAT purposes in another Member State exempt from tax according to the legislation of the respective country on similar grounds;
3. another tax liable person not registered under this Act or by a tax liable person from a Member State not registered for VAT purposes, where subject of delivery are goods that are long term assets according to the legislation of the relevant accountancy legislation;
4. another dealer, applying the special procedure for levying the margin of the price.
(2) The provision of par. 1 shall not be applied for inter-community delivery of new vehicles.
(3) The dealers are also entitled to apply the provisions of this chapter with regards to the delivery of:
1. works of art, collections articles or antique articles, which they have imported;
2. works of art, which have been delivered by their authors or by their heirs.
(4) (amend. – SG 108/06, in force from 01.01.2007) The right to choose under par. 3 shall be exercised by submitting notification before the competent territorial directorate of the National Revenue Agency.
(5) The dealers, who have exercised the right of choice under par. 4, shall apply the special procedure for levying the margin of the delivery under par. 3 from the first day of the month, following the month of submitting the notification, and for period not shorter than 24 months, including the month following the month of submitting the notification.
(6) After expiration of the term under par. 5 the dealer may terminate the application of the special procedure for levying the margin for deliveries under par. 3, as submitting notification to the competent territorial directorate of the National revenue agency. Applying the special procedure for levying the margin shall be terminated since the month, following the month of submitting the notification.
(7) The notifications under par. 4 and 6 shall be submitted according to a form, specified by the Rules for Implementation of the Act.

Place of performance, tax event and tax exigibility regarding the deliveries of goods, for which the special procedure for levying the margin shall be applied
Art. 144. (1) Place of performance of deliveries under art. 143 shall be the place, where the seat of business or the permanent address of the dealer, who carries out these deliveries, is located.
(2) The tax event of the deliveries under art. 143 shall occur according to the general provisions of this
law.
(3) The tax for deliveries under art. 143 shall become exigible on the last day of the tax period, during which the tax event for the delivery has occurred pursuant to par. 2.
(4) The tax shall be charged along with the issuing of protocol pursuant to procedure and way, determined with the Rules for Implementation of the Act.

Tax base
Art. 145. (1) The tax base of the delivery of goods under this chapter shall be the margin of the price, which represents the difference, reduced with the amount of the tax due, between:
1. the sale price, which is the total sum the dealer has received or will receive from the client or the third person for the delivery, including the subsidies and funding, directly connected with this delivery, the taxes and the fees, as well as the accompanying expenses for wrapping, transport, commissions and insurances, charged by the provider for the recipient, but without the provided trade discounts.
2. the sum, which has been paid or will be paid for the goods received by the persons under art. 143, par. 1 and 3, including the tax under this Act, and when the goods is imported – the tax base at import, including the tax under this Act.
(2) The tax base under par. 1 cannot be negative value.

Delivery of goods by the special procedure of levying the margin with zero rate
Art. 146. The delivery of good by the special procedure of levying the margin shall be leviable with zero rate, when the conditions under art. 28 are present for the delivery.

Tax credit
Art. 147. (1) The dealer shall have right of tax credit for the other goods and services, acquired or imported by him/her, which he/she uses only for carrying out deliveries under this chapter.
(2) (revoked – SG 95/09, in force from 01.01.2010)
(3) (revoked – SG 95/09, in force from 01.01.2010)
(4) (revoked – SG 95/09, in force from 01.01.2010)
(5) The dealer shall not have right of deduction of tax credit for goods received or imported by him/her, for which the special procedure for levying the margin shall be applied.
(6) (new – SG 99/11, in force from 01.01.2012) The dealer shall be entitled to tax credit for the imported second-hand goods under the general provisions of the law.
(7) (new – SG 99/11, in force from 01.01.2012) The dealer shall be entitled to tax credit for the imported works of art, collectors' items or antiques or works of art supplied to him by their creator or his successors under the general provisions of the law, provided that he has not exercised his right to choose pursuant to Art. 143, para 3.

Documentation of the delivery of goods by the special procedure for levying the margin
Art. 148. (1) (new – 94/12, in force from 01.01.2013) In the invoice and in the invoice notification the dealer shall indicate "regime of taxation of margin – second hand goods" or "regime of taxation of margin – pieces or art" or "regime of taxation of margin – items for collections and antiquities".
(2) (prev. Art. 148 – SG 94/12, in force from 01.01.2013) The documentation and accounting of the delivery of goods by the special procedure for levying the margin shall be implemented by procedure, determined by the Rules for Implementation of the Act.

Leviable turnover of the dealer from deliveries of goods by the special procedure for levying the margin
Art. 149. The leviable turnover of the dealer regarding deliveries of goods by the special procedure for levying the margin shall be the sum of the margins.

Charging tax regarding the available goods at deregistration of a dealer
Art. 150. (1) The deregistration of a dealer shall be implemented pursuant to the general conditions for deregistration under this Act.
(2) At deregistration the dealer shall owe tax for the available goods under this chapter. The extent of the tax shall be determined on the basis of the average margin realized by the dealer for the last 12 months before the date of deregistration.
(3) The procedure and the way for determining the average margin under par. 2 shall be specified in the Rules for Implementation of the Act.
(4) At the deregistration the dealer shall be liable with tax under art. 111, except for the tax regarding the available goods under par. 2.

Right of choice
Art. 151. (1) The dealer may apply the general procedure for levying under the law with regards to the delivery of second hand goods, works of art, collections articles and antique articles.
(2) The right under par. 1 shall be exercised by the person for each separate delivery, as into the issued invoice shall not be pointed, that the special procedure under this chapter is being applied.
(3) (amend. – SG 95/09, in force from 01.01.2010) The tax base of the delivery shall be determined by the procedure of art. 26 and 27.
(4) (amend. – SG 99/11, in force from 01.01.2012) In the cases under par. 1 as regards to the goods for which Art. 143, para 3 is applied, the right of tax credit shall occur and shall be exercised in the tax period, during which the tax for the subsequent delivery of the goods has become exigible.
(5) The documentation of the deliveries under par. 2 shall be carried out by the general procedure of the law.
(6) When the dealer applies the special procedure for levying the margin as well as the general procedure for levying the deliveries, he/she shall keep separate accounting of the deliveries, determined by the Rules for Implementation of the Act.

Chapter eighteen.
LEVYING DELIVERIES OF SERVICES, MADE VIA ELECTRONIC WAY BY PERSONS, NOT SETTLED IN THE EUROPEAN UNION (TITLE AMEND. – SG 94/10, IN FORCE FROM 01.01.2011)
Special registration
Art. 152. (1) Right to be registered under this chapter shall have the tax liable person, for whom the following circumstances are simultaneously present:
1. he/she carries out deliveries of services, made via electronic way, which shall be received by tax non-liable persons, who are established or have permanent address or usually reside in a Member State;
2. (amend. – SG 94/10, in force from 01.01.2011) he/she is not established on the territory of the European Union;
3. he/she is not obliged to get registered for the purposes of VAT on other grounds on the territory of the state or on the territory of another Member State.
(2) The right under par. 1 shall be exercised, as the person submits via electronic way application for registration to the territorial directorate of the National Revenue Agency – Sofia.
(3) With the application under par. 1 the person shall provide the following information:
1. name, postal address, e-mails, including web sites in internet;
2. national tax number, if there is any;
3. declaration, that he/she is not registered for VAT in other Member State.
(4) The person shall inform the territorial directorate under par. 2 through electronic way for all changes occurred in the information submitted under par. 3.
(5) In 7-days term since the receipt of the application the territorial directorate under par. 2 shall inform the person via electronic way for the registration, implemented by the procedure under this chapter, for the identification number under art. 94, par. 2 and for the registration date.
(6) For date of registration shall be considered the first day of the month, following the month of the notification under par. 5.

Termination of the special registration
Art. 153. (1) The registration under art. 152 shall be terminated on the initiative of the person, when he/she:
1. terminates his/her activity under this chapter;
2. ceases to meet the requirements under art. 152, par. 1;
(2) For termination of the registration under par. 1 the person shall submit application for termination of the registration via electronic way to the territorial directorate under art. 152, par. 2.
(3) The registration under art. 152 may be terminated on the initiative of the revenue administration, when:
1. it is found that the activity of the person is terminated, or
2. the person does not meet the conditions under art. 152, par. 1, or
3. the person systematically does not observe the provisions of this chapter.
(4) In the cases under par. 3 the territorial directorate under art. 152, par. 2 shall notify the person, that the registration has been terminated, and shall indicate the date of termination of the registration.
(5) In the cases under par. 1 the registration shall be terminated on the date of submitting the application under par. 2.
(6) In the cases under par. 3 the registration shall be terminated on the date of the notification under par. 4.

Place of performance of the deliveries of services, carried out via electronic way
Art. 154. The place of performance of deliveries of services, carried out via electronic way by the registered person under art. 152, shall be the Member State, where the recipient under art. 152, par. 1, item 1 is settled.

Tax base, date of occurrence of the tax event and exigibility of the tax
Art. 155. The tax base, the date of occurrence of the tax event and the exigibility of the tax regarding deliveries of services under this chapter shall be determined pursuant to the general provisions of this Act.

Tax rate
Art. 156. The tax rate of the deliveries of services, carried out via electronic way under this chapter, shall be the tax rate applicable in the Member State, in which the recipient under art. 152, par. 1, item 1 is settled.

Tax period, declaring and depositing the tax
Art. 157. (1) The tax period for the persons registered under this chapter shall be three months and shall coincide with the calendar trimester.
(2) The person, registered under this chapter shall submit declaration according to a form, specified in the Rules for Implementation of the Act, for each tax period in 20 days period following the end of the period, notwithstanding whether during the same period deliveries of services, carried out via electronic way, have been carried out. The declaration shall be submitted via electronic way before the territorial directorate under art. 152, par. 2.
(3) In the declaration shall be indicated the identification number of the registered person, the total amount of the deliveries for each individual Member State, without the value added tax, the total amount of the tax for each Member State, the tax rate applicable in the respective Member State and the total amount of the tax due for all Member States for the tax period.
(4) The values under par. 3 shall be indicated in euro and in Bulgarian levs, as for the recalculation shall be applied art. 26, par. 6.
(5) The tax exigible for the tax period shall be deposited to the account of the territorial directorate under art. 152, par. 2 in the period for submitting the declaration under par. 2.

Tax credit and tax reimbursement
Art. 158. (1) The persons, registered under this chapter shall not have right of tax credit for the received deliveries of goods and services on the territory of the state and from import.
(2) The persons, registered under this chapter shall have right to reimburse the tax paid on the territory of the state by the procedure of art. 81, par. 1, item 2.

Documentation and providing information
Art. 159. (1) The person, registered under this chapter shall be obliged to maintain electronic register under art. 120, par. 3 for the deliveries of services carried out under this chapter in a way that gives the tax administration of the Member States, where the recipients are located, the opportunity to determine whether the information in the declaration under art. 157, par. 2 is complete and accurate.
(2) At a request the information from the electronic register should be provided via electronic way to the Bulgarian revenue administration or to the competent authorities of the Member States, where the recipients are settled.
(3) The information in the electronic register shall be kept for a period no shorter than 10 years, considered from the end of the year, during which the respective delivery has been carried out.

Chapter nineteen.
INVESTMENT GOLD
Deliveries of investment gold
Art. 160. (1) Exempt shall be the deliveries, related to investment gold, which for the purposes of this Act shall be:
1. deliveries of investment gold, including: of investment gold, presented by certificates for distributed or non-distributed gold; gold, which is traded at accounts; loans of gold and swaps, with right to ownership or claim regarding investment gold; deliveries, concerning investment gold with future and forward contracts, leading to transferring the right to ownership or claim regarding investment gold;
2. services by agents, who act on behalf of and at expense of someone else, in connection with deliveries of investment gold.
(2) Tax liable persons, who produce investment gold or process gold into investment gold, as well as tax liable persons, who usually provide gold for industrial purposes, may choose the deliveries under par. 1, item 1 to be leviable. The tax liable persons, who carry out intermediate services regarding deliveries of investment gold, may choose the deliveries under par. 1, item 2 to be chargeable, when the delivery, in connection with which the intermediate service has been made, is leviable.
(3) The right under par. 2 may be exercised, when the following conditions are simultaneously present:
1. recipient under the deliveries is a person, registered under this Act;
2. in the invoice, issued for the delivery is indicated, that the tax will be charged by the recipient.

Charging the tax by the recipient
Art. 161. (1) Charging the tax shall be carried out by the recipient – a person, registered under this Act, at:
1. deliveries of golden materials or of half-finished products with purity 352 thousandth or more;
2. deliveries, related to investment gold, for which the right under art. 160 has been exercised, and in the invoice, issued by the provider, has been indicated, that the tax will be charged by the recipient.
(2) The tax shall be charged via issuing a protocol.

Right to tax credit
Art. 162. (1) Regardless of the fact that the subsequent delivery related to investment gold is exempt the registered persons shall have the right to tax credit for:
1. the tax charged by them by the procedure of art. 161;
2. (suppl. – SG 106/08, in force from 01.01.2009) the received delivery, inter-community acquisition or the import of gold different from investment gold which has later been processed by the person or at his/her expense into investment gold;
3. the received services leading to change of the form, weight or the purity of the gold, including of investment gold.
(2) (suppl. – SG 106/08, in force from 01.01.2009) Regardless of the fact that the subsequent delivery, concerning investment gold, is exempt the registered persons who produce investment gold or process gold into investment gold shall have the right to deduction of tax credit regarding the deliveries, inter-community acquisition or the import on the territory of the state of goods or services related to the production or the processing of this gold.

Documentation
Art. 163. (1) The deliveries, related to investment gold, as well as the deliveries of golden materials or half-finished products with purity 325 thousandths or more shall be documented by issuing an invoice, which except for the requisites under art. 144 should also include:
1. description of the gold, sufficient for its identification, at least containing: form, weight, purity and others;
2. date and address of the physical delivery of the gold;
3. name, address and personal identification number and/or type, number, issuer of official identity document of the persons, who has compiled the document.
(2) The invoices under par. 1 shall be kept for a period of 10 years, considered from the end of the year, during which the respective delivery has been carried out.

Chapter nineteen.
"A" DELIVERY OF GOODS AND SERVICES UNDER APPENDIX NO 2, HAVING A PLACE OF PERFORMANCE ON THE TERRITORY OF THE COUNTRY, REGARDING WHICH THE TAX IS EXIGIBLE FROM THE RECIPIENT (New – SG 108/06, in force from 01.01.2007)
Tax event and exigibility of the tax
Art. 163a. (New – SG 108/06, in force from 01.01.2007) (1) Tax event for the deliveries of goods and services, laid down in Appendix No 2 shall occur according to the general provisions of this Act.
(2) The tax regarding the deliveries under para 1 shall be exigible from the recipient – a person, registered under this Act, regardless whether the provider is a tax liable or tax non-liable person.
(3) (amend. – SG 95/09, in force from 01.01.2010) The tax regarding the deliveries under para 1 shall become exigible by the manner of Art. 25, paras 6 and 7.

Charging a tax by the recipient
Art. 163b. (New – SG 108/06, in force from 01.01.2007) (1) The charging of the tax shall be carried out by the recipient by way of issuing:
1. a protocol under Art. 117, para 2 within the term referred to in Art. 117, para 3 – in case the provider is a tax liable person;
2. a general protocol for all deliveries with regards to which the tax has become exigible during the respective tax period – where the providers are natural persons, who are not tax liable; the protocol shall be issued on the last day of the respective tax period.
(2) The protocol under para 1, item 2 shall obligatorily contain:
1. number and date;
2. name and identification number under Art. 94, para 2 of the person, who issues it;
3. tax period;
4. description of the goods and services;
5. total sum of the purchase prices of the goods and services referred to in item 4 regarding the tax period;
6. tax charged for the period.

Documenting the deliveries
Art. 163c. (New – SG 108/06, in force from 01.01.2007) Where the provider is a tax liable person, the deliveries of goods and services, laid down in Appendix No 2 shall be documented by issue of invoice, in which "Art. 163a, para 2" shall be indicated as a ground for charging a tax.

Chapter twenty .
INVESTMENT PROJECTS
Special order for charging tax at import
Art. 164. (1) Regardless of art. 56, the tax at import of goods may be charged by a person, registered under this Act, if he/she has permission, issued by the procedure of art. 166, and imports goods (except for excise ones) following a list, approved by the Minister of Finance.
(2) The importer shall exercise his/her right under par. 1, as:
1. (amend. – SG 94/10, in force from 01.01.2011) declares in the submitted customs document for importation, that he/she will use this regime;
2. declares, that by the moment of implementing the import, he/she is a person, registered under this Act, and does not have exigible or not paid tax duties and obligations for insuring installments, collected by the National Revenue Agency.
(3) When the importer has exercised his/her right under par. 1, the customs bodies shall let the lifting of the goods, without the tax to be effectively paid of secured.
(4) The importer shall charge the tax under par. 1 by the procedure of art. 57, par. 3.
(5) For the tax, charged under par. 4 the importer shall have right of tax credit under the conditions of art. 69 and 73.

Reduced 30 days period for tax reimbursement
Art. 165. A person, registered under this Act shall be entitled to reimburse the tax under art. 88, par. 3 in a period of 30 days since submitting the reference-declaration, when the circumstances under art. 92, par. 4 are present.

Issuing a permission
Art. 166. (1) A permission to apply the special procedure for charging the tax at import or for reimbursement of the tax in a period of 30 days shall be issued to a person, who meets simultaneously the following conditions:
1. he/she realizes investment project, approved by the Minister of Finance;
2. he/she is registered under this Act;
3. there are not exigible and unpaid tax duties and obligations for insuring instalments, collected by the National Revenue Agency;
4. (amend. – SG 86/06; amend.– SG 113/07, in force from 01.01.2008) there are conditions available for granting of a minimum aid according to Regulation (EC) No. 1998/2006 of the Commission for application of Articles 87 and 88 of the Contract to the minimum aid.
(2) The investment project shall be approved by the Minister of Finance, when the following circumstances are simultaneously present:
1. the term of implementing the project is up to two years;
2. the amount of the investments is over 10 million BGN for a period, no longer than two years;
3. more than 50 new working places are created;
4. the person is able to finance the project, as well as to construct and maintain sites, providing its implementation, as:
a) credit contracts and trade loans;
b) contracts for financial leasing;
c) bank and other guarantees;
d) letters for undertaking obligation for financing of the project by the owners of the capital;
e) own assets;
f) the prognostic incoming cash flows are reliable, correspond to the market conditions and are sufficient for covering the investment and current expenses of the project.
(3) The permission shall be issued for a period of up to two years on the grounds of a written request enclosing the following documents:
1. projects, developments and plans for constructing and maintaining sites and business plan for economic stability and profitableness of the investment project;
2. analysis of the financial status confirmed by a registered auditor or by a specialized auditing enterprise in the context of the Independent Financial Audit Act in case the person has been carrying out activity more than one year; enclosed to the analysis shall also be the full annual financial reports for the analyzed periods;
3. documents certifying the possibilities of financing the project under par. 2, item 4;
4. list of the goods, which the person will import in pursuance of the investment project; the list of the imported goods shall obligatorily contain information about the quantity, the value, the code from the Combined nomenclature of the Republic of Bulgaria and the number of the contract for delivery of the goods;
5. certificates for the circumstances under par. 1, items 2 and 3;
6. (amend. – SG 113/07, in force from 01.01.2008) declaration of the person about the amount of the received minimum aids, regardless their form and source, for the last three tax years, including the current one; the received minimum aids for the period must not exceed the equivalent in Levs of 200.000 EUR, calculated by the official exchange rate of the Lev to EUR as of the date of the permit; for enterprises, carrying out activity in the field of road transport, the total amount of the minimum aid is the equivalent in Levs of 100.000 EUR as of the date of the permit; these limits shall apply, no matter whether the aid is financed fully or partially with European community resources.
(4) (new – SG 113/07, in force from 01.01.2008) For determination of the maximum allowable intensity of the aid, introduced by the Map of National Regional State Aid (CJ, C 73 – 30 March 2007), the minimum aid under par. 3, item 6 shall be accumulated with any other state aid, received for the same investment project, having been approved by a decision of the European commission or with regard to which Art. 9 of the State Aid Act has been applied.
(5) (amend. – SG 86/06, prev. par. 4 – SG 113/07, in force from 01.01.2008) The Minister of Finance shall issue permission in one month period since the entering of the request, if the requirements under par. 1 and 2 are present. When according to the State Aid Act and the regulation for its implementation a notification to the European Commission is required, the permission shall be issued in one month period since the date of the decision of the European Commission, with which the provision of the aid is permitted.
(6) (new – SG 113/07, in force from 01.01.2008) A permit under par. 5 shall not be issued, when by receiving a minimum aid pursuant to the procedure laid down in this Article the maximum allowable intensity of the aid, as determined by the Map of the National Regional State Aid, is exceeded.
(7) (new – SG 113/07, in force from 01.01.2008) In the permit under par. 5 the amount of the minimum aid for the approved investment project has to be indicated obligatorily.
(8) (prev. par. 5 – SG 113/07, in force from 01.01.2008) The issuing or the refusal of issuing permission shall be made via a written order of the Minister of Finance.
(9) (prev. par. 6 – SG 113/07, in force from 01.01.2008) In a period of 6 months after issuing the permission under par. 4 it shall be allowed the issuing of new permission for goods, which will be additionally imported or acquired in pursuance of the already approved investment project. Corrections of the issued permission shall not be allowed.
(10) (prev. par. 7 – SG 113/07, in force from 01.01.2008) The refusal of issuing permission may be appealed by the order of Administrative procedure code.

Withdrawal of the permission
Art. 167. (1) The issued permission shall be withdrawn in the following cases:
1. when the person ceases to meet the requirements under art. 166, par. 1;
2. at expiry of the period under art. 166, par. 3.
(2) When the respective competent body finds out, that the conditions under art. 166 are not present, he/she shall immediately notify the Minister of Finance about this.
(3) The permission shall be withdrawn via order of the Minister of Finance, which may be appealed by the order of the Administrative procedure code.
(4) The Minister of Finance shall give to the customs administration information about the issued and withdrawn permissions, as well as the lists under art. 166, par. 3, item 4.

Chapter twenty one.
SPECIAL PROVISIONS REGARDING THE NEW VEHICLES
Special provisions for inter-community delivery and inter-community acquisition of new vehicle
Art. 168. (1) (suppl. – SG 94/10, in force from 01.01.2011) Any person, not registered under this Act, and any person registered under Art. 97a, Para 1 and 2 and Art. 99, who carries out inter-community acquisition of new vehicle under art. 13, par. 2 or implements occasional inter-community delivery of new vehicle under art. 7, par. 2 shall be obliged to declare the inter-community acquisition or the implemented occasional delivery in 14 days period since the expiration of the tax period, during which the tax for the acquisition or the delivery has become exigible under art. 63 or 51.
(2) The declaring shall be carried out with the submission of declaration in the territorial directorate of the National Revenue Agency, where the person is registered or is subject to registration under the Tax-insurance procedure code.
(3) The declaration under par. 2 shall be submitted in a form, specified with the regulation for implementation of the law.
(4) The tax due for the inter-community acquisition shall be deposited by the order and in the terms of art. 91.
(5) In the cases of carrying out inter-community delivery under par. 1 for the person arises right of reimbursement of the tax paid for the acquired vehicle, if the following conditions are present:
1. the person:
a) possesses invoice, that meets the requirements of art. 114 – when the vehicle has been purchased on the territory of the state, or
b) (amend. – SG 94/10, in force from 01.01.2011) possesses customs document for importation – in cases of import, or
c) the person has submitted declaration under par. 2 for inter-community acquisition – in the cases of inter-community acquisition under par. 1.
2. the tax for the inter-community acquisition or the import has been deposited to the Republican budget by the procedure and in the terms of art. 90 and 91.
(6) The right of reimbursement of the tax under par. 5 shall be exercised, as the amount of the tax for reimbursement shall be indicated in the declaration under par. 2.
(7) The amount of the tax, which shall be subject to reimbursement under par. 5, may not be greater than the amount of the tax, which would have been exigible from the person, in case the delivery were not chargeable with zero rate.
(8) At implementing occasional delivery under par. 1 by a natural person, who is not sole trader, the person shall issue a document, which contains the requisites under art. 114, par. 1, items 3-15.

Part nine.
OTHER PROVISIONS
Chapter twenty two.
INFORMATION
Public information
Art. 169. (1) Public information shall be such for the registration under this Act, that includes:
1. name, identification number under art. 84 of the Tax-insurance procedure code, identification number under art. 94, par. 2 and correspondence address of the person;
2. date of registration and termination of the registration;
3. date of publication of the circumstances under items 1 and 2.
(2) The information under par. 1 shall be accessible and shall be published in the internet site of the revenue administration.
(3) The information under par. 1 may be provided by the revenue administration and at a written request by a person.
(4) The circumstances under par. 1shall be considered as known by third bona fide persons since the date of publishing the information under par. 1, item 3.

Exchange of information with the customs administration
Art. 170. (1) (amend. – SG 94/10, in force from 01.01.2011) The customs administration shall give to the revenue administration information via electronic way about the customs documents for import accepted and the tax payments received regarding import of goods in a term up to 14 days since the expiration of each calendar month.
(2) The information shall be submitted under the conditions and by order, determined with order of the Minister of Finance.

Exchange of information with the tax administrations of other Member States
Art. 171. (1) The revenue administration may freely exchange information, concerning the levying with value added tax, with the tax administrations of other Member States, under the condition that this information will be used only for determining the tax obligations of persons and/or during the appealing the amount of these tax obligations.
(2) The information, received by the way of par.1 from other Member States, may be used as proof for determination of the obligations under this Act, as well as regarding administrative and court procedure.
(3) Paragraphs 1 and 2 shall also be applied in the cases, when the information is exchanged via electronic way.

Chapter twenty three.
APPLYING INTERNATIONAL TREATIES AND REIMBURSEMENT OF TAX TO PERSONS, NOT SETTLED ON THE TERRITORY OF THE STATE
Exempt import by virtue of international treaties and import of goods by armed forces of foreign states
Art. 172. (1) Exempt from tax shall be the import of goods, for which an act or international treaty, ratified and promulgated by the respective procedure, provides exemption from taxes of the import, duties or other takings (payments, levying) with effect, equal to indirect tax, including when these contracts are financed with assets from the Republican or municipal budgets or with loans, guaranteed by the state.
(2) (suppl. – SG 113/07, in force from 01.01.2008) Exempt from tax shall be the import of goods, which are imported by Commands/staffs of the NATO Organization or by the armed forces of other states, which are parties to the North Atlantic Treaty, for using by these armed forces or by the civilian personnel accompanying them, or for supplying their officer or soldier’s canteens, when the forces take participation into the joint defensive activities under the North Atlantic treaty on the territory of the state.
(3) The procedure for applying par. 1 and 2 shall be determined by the regulation for implementation of the law.

Exempt deliveries by virtue of international treaties and deliveries, recipients upon which are the armed forces of foreign states or institutions of the European Union
Art. 173. (1) For deliveries, which are exempt from value added tax by virtue of international treaties, settlements, agreements, conventions or others similar, under which the Republic of Bulgaria is a party, which are ratified and promulgated in the respective order, a zero tax rate shall be applied, including for the part of the delivery, which has been financed with assets of the Republican of municipal budgets or with loans, guaranteed by the state.
(2) For applying the zero rate the provider shall be obliged to request in writing for statement by the competent territorial directorate of the National Revenue Agency regarding the grounds of exemption. Enclosed to the request shall be the documents, proving the grounds of applying the exemption, determined with the regulation for implementation of the law.
(3) The restrictions of the right of tax credit under art. 70 shall not be applied regarding the goods or services, which are only used for implementation of deliveries under par. 1.
(4) (amend. – SG 95/09, in force from 01.01.2010) Leviable with zero rate shall be the deliveries of goods and services, for which recipients are the persons under art. 172, par. 2. For applying the zero rate the provider shall be obliged to have at his/her disposition documents, determined by the regulation for implementation of the law.
(5) (amend. – SG 95/09, in force from 01.01.2010; amend. – SG 94/10, in force from 01.01.2011) Zero rate taxable shall be the deliveries of goods and services exceeding BGN 400 having place of performance on the territory of the country and recipients – the institutions of the European Union, the European Atomic Energy Community, the European Central Bank or the European Investment Bank, or by the bodies set up by the European Union to which the Protocol of 8 April 1965 on the privileges and immunities of the European Union applies, within the limits and under the conditions of that Protocol and the agreements for its implementation or the headquarters agreements, in so far as it does not lead to distortion of competition. To apply the zero rate the provider shall have documents in writing as evidence for the contractual relations with the institutions of the European Union.
(6) (new – SG 94/10, in force from 01.01.2011) Zero tax rate shall apply to taxable deliveries of goods and services with place of performance on the territory of the country, where all of the following conditions have been met:
1. recipients are:
a) commands/headquarters of the North Atlantic Treaty Organisation;
b) armed forces of other contracting parties to the North Atlantic Treaty;
c) diplomatic and consular missions and their staff members;
d) international organisations recognised as such by the public authorities of the host Member State, or by members of such bodies, within the limits and under the conditions laid down by the international conventions establishing the bodies or by headquarters agreements;
2. the Republic of Bulgaria is not a host state of the persons referred to in Item 1.
(7) (new – SG 94/10, in force from 01.01.2011) The documents certifying the circumstances referred to in Para 6 shall be determined in the regulations on implementation of this Act.

Tax reimbursement for the diplomatic representations, consulates, representations of intergovernmental organizations and members of their personnel
Art. 174. (1) The charged tax shall be reimbursed for deliveries, for which recipients are:
1. diplomatic representations;
2. consulates;
3. representations of international organizations;
4. the members of the personnel of the recipients under items 1, 2 and 3.
(2) The procedure and the necessary documents for reimbursement of the tax under par. 1 shall be determined with ordinance of the Minister of Finance.

Verifying the status of a person, exempt from value added tax, regarding whom the Republic of Bulgaria is a host state
Art. 174a. (new – SG 106/08, in force from 01.01.2009) (1) (amend. – SG 94/10, in force from 01.01.2011) The status of a person, exempt from value added tax, indicated in Art. 173, para 4 and 5 and Art. 174, regarding whom the Republic of Bulgaria is a host state, shall be verified by a certificate issued by the National Revenue Agency.
(2) The procedure for issuing the certificate and its form shall be specified by the regulations for implementation of the law.

Chapter twenty four.
AUTHORITIES OF THE MINISTER OF FINANCE
Authorities of the Minister of Finance
Art. 175. (1) The Minister of Finance shall issue regulation for implementation of this Act.
(2) (amend. – SG 95/09, in force from 01.01.2010) The Minister of Finance shall issue the ordinances under art. 81, par. 2, art. 118, par. 4 and art. 174, par 2.
(3) If it is necessary the Minister of Finance shall determine with order:
1. special procedure for documentation and reporting some types of deliveries, for which the application of the general order shall create practical difficulties;
2. the information, which is public and collected under this Act;
3. the information collected under this Act which may be provided for the tax administrations of other states;
4. the list of the coins, which represent investment gold;
5. (amend. – SG 94/10, in force from 01.01.2011) the order, way and form for information exchange with the persons, not settled on the territory of the European Union, for the purposes of tax levying of the deliveries of services via electronic way.
(4) The orders under par. 3 shall be published in the State gazette.

Chapter twenty five.
AUTHORITIES OF THE REVENUE BODIES AND TAX EVASIONS PREVENTION
Refusal or termination of registration in connection with tax violations
Art. 176. The competent revenue body may refuse to register or to terminate the registration of a person, who:
1. is impossible to be found at the address for correspondence, indicated by him/her in the way of the Tax-insurance procedure code;
2. changes his/her address for correspondence and does not notify in the way provided for this;
3. does not fulfil systematically his/her obligations under this Act;
4. (amend. – SG 95/09, in force from 01.01.2010) has public duties, collected by the National Revenue Agency, the total amount of which exceeds the amount his/her assets, reduced with his/her duties;
5. (new – SG 95/09, in force from 01.01.2010) fails to provide an electronic address for correspondence for more than three months after the obligation for notification has arisen.
6. (new – 94/12, in force from 01.01.2013) fails to present or to provide access to issued or drawn up by him/her original accounting documents, requested by the revenue authority, unless the documents have been lost or annihilated, and the person has advise the revenue authorities thereof.

Registration with collateral
Art. 176a. (new – SG 108/07, in force from 19.12.2007) (1) (amend. – SG 95/09, in force from 01.01.2010) The competent revenue body may refuse registration to a person, which within the set term has not provided collateral in cash, in securities or in the form of an unconditional and irrevocable bank guarantee for a period of one year and with regard to whom there is information, that one or more of the owners, chief executives, procurators, majority partners or stake holders:
1. are or have been as of the time of occurrence of the liabilities owners, procurators, majority partners or stake holders, members of managing or control bodies of persons with pending liabilities for value added tax exceeding 5000 Levs, or
2. (amend. – 94/12, in force from 01.01.2013) have got pending liabilities for value added tax exceeding 5000 Levs, or
3. are persons, against whom penal proceedings have started or have been convicted for offenses against the tax system.
(2) (amend. – SG 94/10, in force from 01.01.2011) Paragraph 1 shall not apply to persons, subject to registration under the provisions of Art. 97a and Art. 99, par. 1.
(3) (amend. – SG 95/09, in force from 01.01.2010) The competent revenue body may terminate registration of a person, registered under the provisions of Art. 132, who has failed to provide within the set term the collateral for a period of one year, when the transformation, the expropriation or the non-monetary contribution is carried out by a person with pending liabilities for value added tax exceeding 5000 Levs.

Requesting and amount of collateral
Art. 176b. (new – SG 108/07, in force from 19.12.2007) (1) The competent revenue body shall request provision of the collateral in a written request, where it must indicate:
1. the ground for requesting collateral;
2. the amount of collateral;
3. the term, within which the person is supposed to provide evidences of the provided collateral, which may not be less than 7 days.
(2) The amount of collateral shall be equal to the amount of the pending liabilities with regard to which the collateral is requested. In cases of Art. 176a, par. 1, item 3 the amount of collateral shall be 250 thousand Levs, where as of the date of requesting of collateral the amount of the liabilities has not been identified.
(3) Collateral can be exempted of reduced also prior to expiration of the one-year term, provided that after the person’s registration the grounds, on which the amount of the requested collateral is being determined, fall out or are altered respectively.
(4) The revenue body, having determined the availability of a ground for exemption or reduction of collateral under par. 3 shall be obliged to notify the bank, that the collateral can be released, respectively reduced, up to a certain amount.

Responsibility of the persons in cases of abuse
Art. 177. (1) (amend. – 94/12, in force from 01.01.2013) Registered person – recipient of leviable delivery, shall be responsible for the exigible and not deposited tax by another person, as long as he/she has used right to deduct tax credit, directly or indirectly connected with the exigible and not deposited tax.
(2) The responsibility under par. 1 shall be realized, when the registered person has known or has been obliged to know, that the tax won’t be deposited and this is proved by the inspecting body by the procedure of art. 117-120 of the Tax-insurance procedure code.
(3) For the purposes of par. 2 it shall be accepted, that the person has been obliged to know, when the following conditions are simultaneously implemented:
1. the exigible tax under par. 1 has not been effectively deposited as a result for tax period, from whoever previous provider regarding leviable delivery with subject the same goods or service, regardless of the fact whether in the same, changed or processed form, and
2. the leviable delivery is apparent, circumvent the law or has a price, that is significantly different from market one.
(4) The responsibility under par. 1 shall not be bound to receiving a certain benefit from not depositing the exigible tax.
(5) At the circumstances under par. 2 and 3 responsibility shall also be undertaken by previous provider for the person, who shall owe the tax, which has not been deposited.
(6) In the cases under par. 1 and 2 the responsibility shall be realized with regards to the person, who is a direct recipient of the delivery, for which the exigible tax has not been deposited, and when the collection has been unsuccessful, the responsibility may be realized with regards to any subsequent recipient by the order of the deliveries.
(7) Paragraph 6 shall applied respectively and regarding the previous providers.

Chapter twenty six.
COMPULSORY ADMINISTRATIVE MEASURES AND ADMINISTRATIVE AND PUNITIVE PROVISIONS
Art. 178. A person tax liable under this Act, who is obliged, but does not submit application for registration or application for termination of registration in the terms established under this Act, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, in extend from 500 to 5 000 BGN.

Art. 179. (amend. – SG 108/07, in force from 19.12.2007; amend. – 94/12, in force from 01.01.2013) A person, who being obliged, does not submit reference-declaration under art. 125, par. 1, the declaration under art. 125, par. 2, the accounting registers under art. 124, the declaration under art. 157, par. 2 or does not submit them in the provided terms, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and sole traders, in extend from 500 to 10 000 BGN.

Art. 180. (1) (amend. – SG 108/07, in force from 19.12.2007) A registered person, who, being obliged, does not charge tax within the terms, provided in this Act, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, in extend of the non-charged tax, but no less than 500 BGN.
(2) Paragraph 1 shall also be applied when the person has not charged tax, because he/she has not submitted application for registration and has not been registered under this Act in term.
(3) (amend. – SG 108/07, in force from 19.12.2007) At violation under par. 1, when the registered person has charged the tax during the period following the period, during which the tax was supposed to be charged, the fine, respectively the proprietary sanction shall be in extend of 25 hundredths of the tax, but no less than 250 BGN.
(4) (amend. – SG 108/07, in force from 19.12.2007) In case of repeated violation under par. 1 and 2 the amount of the fine or the proprietary sanction shall be the double amount of the non-charged tax, and not less than 5000 Levs.

Art. 180a. (new – SG 106/08, in force from 01.01.2009) (1) A registered person, who being obliged, does not charge tax within the terms, provided in this Act in those cases where the tax is exigible from the person as a payer under Chapter eight and that he/she is entitled to full tax credit, shall be punished with a fine – regarding natural persons, who are not traders, or with a proprietary sanction – regarding legal persons and sole traders, in extent of five percent of the non-charged tax, but no less than 50 BGN.
(2) Paragraph 1 shall also be applied when the person has not charged tax, because he/she has not submitted an application for registration and has not been registered within the fixed term.
(3) At violation under par. 1, where the registered person has charged the tax during the period following the period, during which the tax was supposed to be charged, the fine, respectively the proprietary sanction shall be in extent of 2 percent of the tax, but no less than 25 BGN.
(4) In the cases referred to in para 1, where the person has notified the revenue authorities pursuant to Art. 126, para 3, item 2 within two months from the end of the month, in which the tax was supposed to be charged, the fine, respectively the proprietary sanction shall be in extent from 100 to 300 BGN.
(5) In case of repeated violation under para 1 and 2 the amount of the fine or the proprietary sanction shall be 20 percent of the non-charged tax, and not less than 500 BGN, and in the cases referred to in para 4 – from 200 to 600 BGN.

Art. 181. (1) (amend. – SG 108/07, in force from 19.12.2007) Registered person, who does not submit information from the accounting registers or submits information on magnet or optical carrier, different from the one, indicated in the accounting registers, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanctions – for the legal persons and the sole traders, in extend from 500 up to 10 000 BGN.
(2) (amend. – SG 108/07, in force from 19.12.2007) At repeated violation under par. 1 the amount of the fine or the proprietary sanction shall be from 1000 up to 20 000 BGN.

Art. 182. (1) (amend. – SG 108/07, in force from 19.12.2007) Registered person, who does not issue tax document or does not reflect the issued or obtained tax document down in the accounting registers regarding the respective tax period, which event leads to determining the tax in lower extent, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, equal to the determined smaller amount of the tax, and not less than 1000 Levs.
(2) (amend. – SG 108/07, in force from 19.12.2007) At violation under par. 1, when the registered person has issued or reflected the tax document in the period, following the tax period, during which the document was supposed to be issued or reflected, the fine, respectively the proprietary sanction shall be in the amount of 25 per cent of the determined smaller amount of the tax, and not less than 250 BGN.

Art. 183. (1) (amend. – SG 108/07, in force from 19.12.2007) A person, who is not registered under this Act and issues tax document, in which he/she indicates tax, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, in extend of the tax indicated in the document but no less than 1000 BGN.
(2) (amend. – SG 108/07, in force from 19.12.2007) At repeated violation under par. 1 the amount of the fine or the proprietary sanction shall be the double amount of the uncharged tax, but no less than 5000 BGN.

Art. 184. (1) (amend. – SG 108/07, in force from 19.12.2007) A person, who does not submit declaration under art. 168, par. 2 or does not submit it in term, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, in extend from 1000 up to 10 000 BGN.
(2) (amend. – SG 108/07, in force from 19.12.2007) At repeated violation the fine, respectively the sanction under par. 1 shall be in extend from 5000 up to 20 000 BGN.

Art. 185. (amend. – SG 23/13, in force from 08.03.2013) (1) A person, who does not issue a document under Art. 118, para 1 shall be fined – in case of natural persons that are not merchants in amount from BGN 100 to 500, or imposed a property sanction - in case of legal persons and sole entrepreneurs – in amount from BGN 500 to 2000.
(2) Outside the cases under para. 1, any person who commits a violation or allows a violation of Art. 118 or of a statutory instrument related to the implementation thereof, shall be punished with fine – for the natural persons, who are not traders, amounting to between BGN 300 and 1000, or with proprietary sanction – for the legal persons and the sole traders, in extend from 3000 up to 10 000 BGN. Where the violation does not result in failure to indicate income, the sanction under Para 1 shall apply.
(3) In the cases under par. 1 the natural person who actually has been obliged to issue a document under Art. 118, para 1 and has accepted payment, without issuing such document, shall be punished with fine from 100 to 500 BGN.
(4) At repeated offence under par. 1 the amount of the fine shall be from BGN 200 to 1 000 and of the proprietary sanction from BGN 1000 to 4 000.
(5) In case of repeated violation under Para 2 the amount of the fine shall be between BGN 600 and 2000 and of the property sanction – between BGN 6000 and 20 000. Where the violation does not result in failure to indicate income, the sanction under Para 4 shall apply.
(6) Any person who does not fulfil his/her obligation do keep the document under Art. 118, para 1 till he/she leaves the site, shall be punished with fine in extend of 5 BGN, which shall be collected on place with receipt.

Art. 186. (amend. – SG 23/13, in force from 08.03.2013) (1) The compulsory administrative measure closing the site for a period of up to one month, regardless of the provided fines and proprietary sanctions, shall be imposed for a person, who:
1. does not regard the way or procedure for:
a) issuing the respective purchase document, printed and issued in the established procedure for delivery/sale;
b) putting into operation or registration at the National Revenue Agency of the fiscal devices or integrated business management systems;
c) daily reporting the turnovers of sales, when this is compulsory;
d) submission of data under Art. 118 to the National Revenue Agency;
e) storage of documents issued by or in relation to fiscal devices or integrated business management systems;
2. uses a fiscal device or an integrated business management system, which does not meet the requirements of approved type and have not been approved by the Bulgarian Institute of Metrology.
(2) In the cases under par. 1, item 2 the fiscal device shall be seized by the revenue body in favour of the state and shall be destroyed, and the right of the person to use integrated business management systems shall be withdrawn.
(3) The compulsory administrative measure under par. 1 shall be imposed with motivated order of the revenue body or by a person, authorized by him/her.
(4) The appeal of the order under par. 3 shall be processed by the procedure of the Administrative procedure code.

Art. 187. (1) At applying the compulsory administrative measure under art. 186, par. 1 the access to the site or the sites of the person shall be prohibited, and the goods available in these sites and the warehouses, adjacent to them shall be removed by the person or by a person authorized by him/her. The measure shall be applied for the site or the sites, where the violations are found.
(2) When the removal is connected with significant difficulties for the revenue bodies and/or with significant expenses for the person, the body, who has ruled the closing may order that the goods in the site or the sites to be left under safe keeping by the person. The disposition shall not be with regards to the goods – subject of the violation under art. 186, par. 1, item 2.
(3) In the cases under par. 1, when the goods have not been removed by the person in the provided term, the revenue body shall remove them, placing them in front of the site, without obligation to guard them, and shall not be responsible for their damaging, spoiling or loss, which are at the person’s expense.
(4) (suppl. – SG 95/09, in force from 01.01.2010) The compulsory administrative measure shall be ceased by the body, who has imposed it at a request of the administratively punished person and after it has been proved by him/her, that the fine or the proprietary sanction has been fully paid. The opening shall be carried out under obligation for collaboration on the person’s behalf. In case of repeated violation the unsealing of the site before expiration of one month from its sealing shall not be allowed.

Art. 188. The compulsory administrative measure under art. 186, par. 1 shall be subject to preliminary fulfillment under the conditions of the Administrative procedure code.

Art. 189. (1) (amend. – SG 95/09, in force from 01.01.2010) A person – payer of the tax under art. 91, par. 1 and 2, who does not deposit in term the exigible tax, shall be punished with fine – for the natural persons, who are not sole traders, or with proprietary sanction – for the legal persons and the sole traders, in extend from 500 to 2000 BGN.
(2) At repeated offence under par. 1 the amount of the fine or the proprietary sanction shall be in extend of the non-deposited tax, but no less than 4 000 BGN.

Art. 190. (1) A revenue body, who in the stipulated period does not reimburse tax, when the conditions for its reimbursement under this Act are present, shall be punished with fine in extend from 500 to 2000 BGN.
(2) At repeated offence under par. 1 the fine shall be in extend from 1000 to 4000 BGN.

Art. 191. (1) The customs body, who, being obliged, does not charge tax under this Act or charge tax in a smaller extend or releases goods from customs control without paying the exigible tax, shall be punished with fine in extend from 500 to 2000 BGN.
(2) At repeated offence under par. 1 the fine shall be in extend from 1000 to 4000 BGN.

Art. 192. (amend. – SG 23/13, in force from 08.03.2013) At finding out violations under art. 185, committed by manufacturers, importers or persons, carrying out servicing of fiscal devices, the chairman of the Bulgarian Institute of Metrology or a person, authorized by him/her:
1. shall issue compulsory instructions related to his/has powers;
2. shall withdraw the approval on the type of fiscal devices or the approval on integrated automatic system of management of the commercial activity;
3. shall terminate the registration of the person, carrying out servicing – at systematic violation of art. 185.

Art. 193. (1) The finding out the violations of this Act and of the normative acts for its implementation, the issuing, appealing and the implementation of the penal provisions shall be carried out by the procedure of the Administrative Violations and Penalties Act.
(2) The acts for offence shall be issued by the revenue bodies, and the penal provisions shall be issued by the executive director of the National Revenue Agency or by an official, authorized by him/her.

 

LAW FOR THE PUBLIC PROCUREMENT IN BULGARIA

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Написана от Dimitar Kupenov

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LAW FOR THE PUBLIC PROCUREMENT
Prom. SG. 28/6 Apr 2004, amend. SG. 53/22 Jun 2004, amend. SG. 31/8 Apr 2005, amend. SG. 34/19 Apr 2005, amend. SG. 105/29 Dec 2005, amend. SG. 18/28 Feb 2006, amend. SG. 33/21 Apr 2006, amend. SG. 37/5 May 2006, amend. SG. 79/29 Sep 2006, amend. SG. 59/20 Jul 2007, amend. SG. 94/31 Oct 2008, amend. SG. 98/14 Nov 2008, amend. SG. 102/28 Nov 2008, amend. SG. 24/31 Mar 2009, amend. SG. 82/16 Oct 2009, amend. SG. 52/9 Jul 2010, amend. SG. 54/16 Jul 2010, amend. SG. 97/10 Dec 2010, amend. SG. 98/14 Dec 2010, amend. SG. 99/17 Dec 2010, amend. SG. 19/8 Mar 2011, amend. SG. 43/7 Jun 2011, amend. SG. 73/20 Sep 2011, amend. SG. 93/25 Nov 2011, amend. SG. 33/27 Apr 2012, amend. SG. 38/18 May 2012, amend. SG. 82/26 Oct 2012, amend. SG. 15/15 Feb 2013
In force from 1st of October 2004

Part one.
GENERAL RULES
Chapter one.
GENERAL PROVISIONS
Section I.
Objective and principles
Art. 1. This law determines the principles, the terms and the order of assigning public procurement for the purpose of providing efficiency in spending the budget and non-budget funds, as well as of resources related to implementation of activities of public importance defined by the law.

Art. 2. (1) (Prev. text of art. 2, amend. - SG 37/06, in force from 01.07.2006) The public procurement shall be assigned by way of the procedures stipulated by this law, in compliance with the following principles:
1. publicity and transparency;
2. (amend. - SG 37/06, in force from 01.07.2006) free and loyal competition;
3. (amend. - SG 37/06, in force from 01.07.2006) equality and non-admission of discrimination.
(2) (new - SG 37/06, in force from 01.07.2006) When a contracting authority provides special or exclusive rights for carrying out service to a person, who is not a contracting authority, the act, with which the rights are being provided, must require this person to observe the principle of non-admission of discrimination on the basis of nationality at assigning contracts for deliveries to third persons as a part of the activity, related to these rights.

Section II.
Objects and Subjects of Public Procurement
Art. 3. (1) Objects of public procurement are:
1. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) the delivery of goods, which are being carried out by virtue of purchase, renting, leasing with or without a right of purchase or installment plan, as well as all necessary preliminary activities related to the use of the goods, such as set up, testing of machines and equipment and other;
2. providing services;
3. construction including:
a) building or engineering (designing and building) of a construction;
b) (suppl. – SG 37/06, in force from 01.07.2006) fulfilment or designing and fulfilment with any resources of one or several building and mounting works according to Appendix No 1 related to the construction, reconstruction, restructuring, maintenance, restoration or rehabilitation of buildings or construction facilities;
c) (suppl. – SG 37/06, in force from 01.07.2006) engineering and fulfilment with any resources of one or more activities related to a construction of a building in compliance with the requirements of the contracting authority, such as feasibility study, designing, organisation of the construction, delivery and mounting of machines, facilities and technological equipment, preparation and commissioning of the site.
(2) (revoked - SG 37/06, in force from 01.07.2006; new – SG 33/12) Objects of public procurement are also:
1. supply of military equipment, including any parts, components and/or fixing components for it, including the equipment, included in the list of products, related to defense, adopted on the grounds of Art. 2, par. 1 of the Law for the export control of products, related to the defense, and of products and technologies of double use;
2. supply of special equipment, including any parts, components and/or fixing components for it;
3. construction and services, directly related to the equipment referred to item 1 and 2, for every and all component of its life cycle;
4. construction and services for specific military purposes or special construction and special services.

Art. 4. Shall not be object of public procurement:
1. (suppl. – SG 37/06, in force from 01.07.2006) acquiring or renting of land, existing buildings or other real estates, as well as establishing title over limited real rights, except for the financial services, related to these transactions;
2. acquisition, creation, production and co-production of programmes by radio and television operators and submission of programme time;
3. (amend., SG 53/04, SG 34/2005; suppl. - SG 18/06, amend. - SG 37/06, in force from 01.07.2006) financial services related to the issuance and transfer of securities or other financial instruments; the services provided by the Bulgarian National Bank; the services provided in connection with the management of the government debt, at buying and qualifying of production, approving of warehouses for storing and carrying out auctions at intervention of the markets for agricultural production referred to in the Law for Encouragement of Agriculture Producers;
4. (amend. - SG 37/06, in force from 01.07.2006) scientific research and experimental works, when the contracting authority pays the service in full, but the benefits from them does not remain explicitly for the contracting authority in fulfilment of his activity;
5. (new, SG 53/04, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) the arbitration and conciliation services;
6. (new - SG 37/06, in force from 01.07.2006) the labour contracts.
7. (new - SG 99/10, in force from 01.01.2011) the loans provided by the Bulgarian Development Bank for the purpose of funding financial shortage regarding projects under Operational programmes "Transport", "Environment" and "Regional Development", which have been approved by the European Investment Bank following the Credit Agreement for a Structural Program Loan, Bulgaria co-financing under the European Union Funds 2007 - 2013, between the Republic of Bulgaria and the Bulgarian Development Bank.
8. (new – SG 15/13, in force from 01.01.2014) contracts under Art. 154, Para 9 of the Law on Public Finance; service, software and source provision of the SEBPA and operations for revenue collection and other inflows into the budget organisations through the card payments as per Art. 154, Para 8 and 10 of the Law on Public Finance; operations of liquidity management of the unified account system and the execution of guarantee and other deposits under Art. 154. Para 22 and 23 of the Law on Public Finance.

Art. 5. (1) Public procurement for services, depending on the order by which they are assigned, are divided in:
1. (amend. - SG 37/06, in force from 01.07.2006) public procurement for services, included in appendix No 2, assigned by way of:
a) open or limited procedure by contracting authorities under art. 7, items 1 through 4;
b) open procedure, limited procedure or procedure of negotiation with notice by contracting authorities under art. 7, items 5 and 6;
2. (amend. - SG 37/06, in force from 01.07.2006) public procurement for services, included in Appendix No 3, which shall be assigned by way of open procedure, limited procedure or procedure of negotiation with notice.
3. (new – SG 33/12) public procurement for services referred to in Art. 3, par. 2, included in Attachment No. 5, which shall be assigned by way of a limited procedure or a procedure of negotiation with notice;
4. (new – SG 33/12) public procurement for services referred to in Art. 3, par. 2, included in Attachment No. 6, which shall be assigned by way of a limited procedure, a procedure of negotiation with notice or a procedure of negotiation without notice.
(2) (amend. - SG 37/06, in force from 01.07.2006) Public procurement including simultaneously services under Appendices No 2 and 3 shall be assigned by the order, provided for the services of higher cost.
(3) (new – SG 33/12) Public procurement including at the same time services referred to in Attachments No. 5 and 6 shall be assigned following the procedures, provided for the services of a higher value.
(4) (new – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; prev. par. 3, amend. – SG 33/12) Public procurement under para 1, items 1 and 2 shall be assigned for a period of up to 5 years. As an exception in the cases of services related to provision of bank loans for financing of investment projects or European Union projects and programmes a 10-year term may be fixed, provided that the contracting authority states the reasons for this in the decision for initiation of the procedure or in the public procurement notice.

Art. 6. (suppl. – SG 37/06, in force from 01.07.2006) Subjects of the procedures for assigning public procurement are the contracting authorities, the participants and the contractors.

Art. 7. (amend. - SG 37/06, in force from 01.07.2006) Contracting authorities of public procurement are:
1. (suppl. – SG 93/11, in force from 26.02.2012) the bodies of state power, the President of the Republic of Bulgaria, the Ombudsman of the Republic of Bulgaria, the Bulgarian National Bank, as well as other state institutions, established by a normative act;
2. the diplomatic and consular representations of the Republic of Bulgaria abroad, as well as the permanent representations of the Republic of Bulgaria to the international organisations;
3. the public organisations;
4. the associations of subjects under item 1 or 3;
5. the public enterprises and their associations, where they carry out one or several of the activities under art. 7a – 7e;
6. the traders or other persons, who are not public enterprises, when on the grounds of special or exclusive rights they carry out one or several of activities under art. 7a – 7e.

Art. 7a. (new - SG 37/06, in force from 01.07.2006) (1) Activities, connected with natural gas, heating or electric power, are:
1. the provision or the exploitation of fixed networks for public services, related to the production, transfer or the distribution of natural gas, heating or electric power, the production of heating or electric power with the purpose of delivery to these networks or
2. the delivery of natural gas, heating or electric power to such networks.
(2) The delivery of natural gas or heating power to fixed networks for public services shall not be deemed as activity within the meaning of par. 1, in case:
1. the production of natural gas or heating energy is a result from the implementation of activity, other than the activities under par. 1 or art. 7b – 7e, and
2. the delivery to these networks aims solely the economical exploitation of the production of natural gas or heating energy, provided that the amount of the deliveries is not more than 20 percent of the average annual turnover of the producer in the last three years, including the current year.
(3) The delivery of electric power to fixed networks for public services shall not be deemed as activity within the meaning of par. 1, in case:
1. the production of electric power is designated for implementation of an activity, different from the activities under art. 7b – 7e, and
2. the deliveries to the network for public services depend entirely on the own consumption of the producer and do not exceed 30 percent of the average annual production in the last three years, including the current year.

Art. 7b. (new - SG 37/06, in force from 01.07.2006) (1) Activities, connected to drinking water, are:
1. the provision or the exploitation of fixed networks for public services, related to the production, transfer or the distribution of drinking water, or
2. the delivery of drinking water to such networks.
(2) The persons, carrying out activity under par. 1, shall apply the provisions of the law also to activities, related to:
1. irrigation, drainage or other hydro-technical activities, provided that the amount of water, designated for drinking needs is more than 20 percent of the total quantity of water, supplied via these activities, or
2. the discharge or the purifying of waste waters.
(3) The delivery of drinking water to fixed networks for public services shall not be considered as activity within the meaning of par. 1, in case:
1. the production of drinking water is necessary for implementation of activity, different from the activities under par. 1 or art. 7a, art. 7c – 7e, and
2. the deliveries to the network of public services depend entirely on the own consumption of the producer and do not exceed 30 percent or the average annual production in the last three years, including the current year.

Art. 7c. (new - SG 37/06, in force from 01.07.2006) (1) (suppl. – SG 52/10) Activities, related to transport services, are the providing or exploitation of public services networks in the field of the railway, tramway, trolley or the bus transport, as well as automated transport systems or rope-lines.
(2) Activity in the meaning of para 1 shall not be considered the providing of bus transport services to the population, in case other persons may freely provide these services under the same terms as the contracting authority.

Art. 7d. (new - SG 37/06, in force from 01.07.2006) (1) Activities, related to providing universal post service, are the services, referred to in art. 34 of the Law on postal services.
(2) The persons, who carry out the activities under par. 1, shall apply the provisions of the law to their overall activity.

Art. 7e. (new - SG 37/06, in force from 01.07.2006) Activities, related to the exploitation of definite geographical area, are:
1. prospecting, exploration for or production of oil, natural gas, coal or other solid fuel;
2. the operation of aerodromes, ports or other terminal bases, used during air, water or internal water ways transport;

Art. 8. (1) (new - SG 37/06, in force from 01.07.2006) The contracting authority shall be obliged to conduct a procedure for assigning public procurement, if the grounds, provided for in the law, are present.
(2) (Prev. text of par. 1, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The contracting authority or officials, authorized by them, shall organise and carry out the procedures for assigning public procurement and shall conclude the contracts for them. The authorization may not be used for separation of the public procurement with the purpose of evasion of a law.
(3) (new - SG 37/06, in force from 01.07.2006; suppl. – SG 52/10) If the contracting authority is a collective body or a legal entity, the authorities under par. 2 shall be carried out by the person, who represents it.
(4) (Prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009; revoked - SG 93/11, in force from 26.02.2012).
(5) (new - SG 37/06, in force from 01.07.2006; revoked - SG 93/11, in force from 26.02.2012).
(6) (Prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006) Two or more contracting authorities may take a decision for carrying out a joint procedure for assigning public procurement.
(7) (new – SG 94/08, in force from 01.01.2009) contracting authorities shall be obliged to adopt internal rules for public procurement assignment, setting out the planning and organization procedures and the control over the implementation of the concluded public procurement contracts.

Art. 8a. (new - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) (1) Contracting authorities may receive supplies or services from or through a central body for public procurement orders.
(2) The central body for public procurement orders shall be a contracting authority conducting procedures and concluding contracts or frame agreements for the needs of other contracting authorities.
(3) Where the contracting authorities receive supplies or services following the procedure of par. 1, it shall be deemed that they have complied with the legal provisions, as far as the central body for public procurement orders have complied therewith. The central body and the contracting authority shall be held responsible for the legitimacy of the respective procedure conducted by them.
(4) The Council of Ministers upon a proposal of the Minister of Economy, Energy and Tourism may set up a central body for public procurement orders for the needs of the executive government bodies.

Art. 8b. (new - SG 93/11, in force from 26.02.2012) Contracting authorities shall be obliged to accept internal regulations for the assignment of public procurement orders, which shall describe the procedure of planning and organization of conduction of the procedures and of monitoring of the implementation of the concluded public procurement contracts.

Art. 9. (1) (amend. - SG 37/06, in force from 01.07.2006; prev. Art. 9 – SG 33/12) A candidate or a participant in a public procurement procedure may be any Bulgarian or foreign natural or legal person, as well as their associations.
(2) (new – SG 33/12) A candidate or a participant may not be suspended from the procedure for assignment of a public procurement on the grounds of its status or legal and organizational form, where it has been authorized to provide the respective service, carry out supplies or construction works in the Member State, in which it is settled.

Art. 10. (amend. - SG 37/06, in force from 01.07.2006) A contractor of a public procurement shall be a participant in a public procurement procedure, with whom the contracting authority has concluded a public procurement contract.

Art. 11. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) The decisions of contracting authorities, adopted in relation to the public procurement procedures, are individual administrative acts being issued pursuant to this Law.
(2) (new – SG 52/10) The decisions referred to in para 1 contain the following:
1. name of the contracting authority;
2. number, date and legal ground for issue of the act;
3. the procedure type and the subject of the procurement;
4. operative part, the contents of which depends on the stage of the procedure;
5. grounds – where required;
6. the body before which it can be appealed against an the time-limit;
7. full name and signature of the person who has issued the act, as well as the position he/she is holding.
(3) (new – SG 52/10) Contracting authorities shall not be entitled to admit pre-execution upon issue of decisions referred to in para 1.

Art. 12. (1) (amend. – SG 33/12) For projects referred to in Art. 3, par. 1 the law shall not apply for:
1. (amend. - SG 37/06, in force from 01.07.2006) contracts for granting a concession for construction within the meaning of the Law for the concessions;
2. (amend. - SG 37/06, in force from 01.07.2006) contracts, which the contracting authorities under art. 7, item 5 or 6 conclude in connection with activity, other than the activities under art. 7a – 7c and art. 7e or in connection with some of these activities, carried out in a third country and a network or geographic region in a Member state of the European Union are not used;
3. (amend. - SG 37/06, in force from 01.07.2006) contracts for delivery, concluded by a contracting authority under art. 7, item 5 or 6 for the purpose of sale or renting the object of the contract to third persons, in case that the contracting authority has no special or exclusive rights to sell or rent the object of such contracts, and other persons may freely carry out this activity under the same terms;
4. (amend. - SG 37/06, in force from 01.07.2006) contracts for supply of water, energy or fuel for production of energy, concluded by a contracting authority under art. 7, item 5 or 6, carrying out activity under art. 7a;
5. (new - SG 37/06, in force from 01.07.2006) contracts for supply of water, concluded by a contracting authority under art. 7, item 5 or 6, carrying out activity under art. 7b;
6. (prev. text of item 5, amend. - SG 37/06, in force from 01.07.2006) contracts for services concluded by a contracting authority under art. 7, item 5 or 6 with a related enterprise, on condition that at least 80 percent of his average annual turnover from the sale of services, deliveries or construction in the Republic of Bulgaria in the last three years comes from their provision to related enterprises;
7. (prev. text of item 6, amend. - SG 37/06, in force from 01.07.2006, and with regards to second sentence - in force from 01.01.2007) contracts, assigned by association, established by contracting authority for carrying out activity under art. 7a – 7e, to one of the participants in it;
8. (new - SG 37/06, in force from 01.07.2006) contracts, assigned by a participant in association, established by the contracting authority for carrying out activity under art. 7a -7e, to the association, if it has been established with the purpose to carry out the respective activity for a period of at least three years and the constituent act provides that the contracting authority will participate in it during the same period;
9. (prev. text of item 7, amend. - SG 37/06 and from 01.01.2007 with regards to second sentence; amend. - SG 93/11, in force from 26.02.2012) contracts for deliveries, assigned by one contracting authority to another contracting authority under art. 7, item 1 and 3 or to association of such contracting authorities, who have exclusive rights to provide such services by virtue of a law, by law or administrative act, the act for providing the exclusive rights shall be issued, observing the provisions of the Treaty on the functioning of the European Union;
10. (prev. text of item 8, amend. - SG 37/06, in force from 01.07.2006; revoked - SG 93/11, in force from 26.02.2012).
11. (prev. text of item 9 - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) contracts concerning medicinal products, medical devices and dietary food for special medical purposes, concluded by the National Health Insurance Fund under Art. 45, para 8 of the Law for the Health Insurance.
12. (new – SG 19/11, in force from 09.04.2011) contracts for assigning activities related to establishing forests, conducting logging and timber and using of non-timber forest products according to the Law on Forests.
13. (new - SG 93/11, in force from 26.02.2012) contracts for utility services, concluded by contracting authorities under Art. 7, item 1, which are territorial bodies of the executive government bodies or their associations, with a company, established according to the provisions of the Law for the municipal ownership, which is a contracting authority under Art. 7, item 3 and for which the following conditions are met concurrently:
a) its capital is owned by the municipality entirely;
b) it is a subject of control similar to the one exercised by contracting authorities over their own structural units;
c) the subject of business according to its incorporation documents or by-laws is provision of utility services;
d) minimum 90% of the turnover are accumulated from provision of utility services to the respective contracting authority or association of contracting authorities.
14. (new – SG 33/12) contracts, awarded for implementation of an international treaty, concluded subject to compliance with the provisions of the Treaty on the Functioning of the European Union, between the Republic of Bulgaria and a third party and providing supplies, services or construction of projects, meant for joint implementation or operation by the parties having signed it;
15. (new – S 33/12) contacts, awarded under specific procedural rules of an international organization.
(2) (new - SG 37/06, in force from 01.07.2006) In the cases under par. 1, item 6, when the related enterprise has not achieved turnover for the precedent three years because of the date of its establishment or the initial moment of its activity, it is enough its business plans to provide for at least 80 percent of its average annual turnover to be achieved from the deliveries, the services or the construction, which shall be provided to related enterprises.
(3) (new - SG 37/06, in force from 01.07.2006) If one or more than one enterprise, related to the contracting authority, provides the same or similar services, deliveries or construction, the value under par. 1, item 6 shall be calculated, taking into account the total turnover, achieved respectively from the provision of services, deliveries, or construction to these related enterprises.
(4) (new - SG 93/11, in force from 26.02.2012) In cases referred to in par. 1, item 13, where the company has not achieved a turnover due to the date of its establishment or the time of commencement of its business, it shall be sufficient that at the time of its establishment it has been provided that its annual turnover shall be accumulated from the services, provided to the contracting authority.
(5) (new - SG 93/11, in force from 26.02.2012) In case of withdrawal of any of the conditions referred to in par. 1, item 13, the contracting authority shall be obliged to terminate the contract within one month.
(6) (Prev. text of par. 2 - SG 37/06, in force from 01.07.2006; prev. par. 4 - SG 93/11, in force from 26.02.2012) The contracting authority shall notify the Public Procurement Agency, upon its request, of:
1. (amend. - SG 37/06, in force from 01.07.2006) the cases for which the exceptions under para 1, item 2 shall apply;
2. the subject of the contracts under para 1, item 3;
3. (amend. - SG 37/06, in force from 01.07.2006) the name of the related enterprise, the object and the cost of the contract, as well as proof of the presence of the circumstances under para 1, items 6, 7 and 8 in the cases where these exceptions apply.
(7) (new – SG 33/12) In cases referred to in par. 1, item 14, the contracting authority shall notify the Public Procurement Agency of the concluded contracts within 7 days.

Art. 13. (amend. – SG 33/12) (1) The law shall not apply to contracts with the subject referred to in Art. 3, par. 2:
1. to be awarded under specific procedural rules:
a) in compliance with international treaties, concluded by and between the Republic of Bulgaria, individually or jointly with one or more European Union Member States as one party and one or more third parties as second party;
b) of an international organization, carrying out purchases for its own needs or for orders which have to be assigned in compliance with these rules;
2. the awarding of which is related to provision of information, the disclosure of which contradicts the key interests of state security according to the provision of Art. 346 of the Treaty on the Functioning of the European Union;
3. to be awarded for the needs of intelligence operations;
4. to be awarded within the cooperation program based on research and development activity, carried out by minimum two European Union Member States, for the development of a new product, and, where applicable, at the later stages for the entire or for parts of the life cycle of this product;
5. to be awarded in a third country, where the operative needs require the contracts to be concluded with contractors, located in the area of the operations, including for civil orders, implemented in the process of accommodation of forces outside the territory of the European Union;
6. to be awarded by the Council of Ministers of a different government, related to:
a) supplies of military equipment or special equipment, or
b) construction works and services, directly related to the equipment referred to in item "a", or
c) construction works and services for specific military purposes or special construction works and special services;
7. for financial services, except for insurance services;
8. to be awarded for the fulfillment of an international treaty, related to accommodation of military forces and police forces in international missions and trainings.
(2) Upon accomplishment of the program referred to in par. 1, item 4 the participant from the Bulgarian side shall notify the European Commission of the share of expenditures for research and development as a part of the total cost of the cooperation program, of the agreement for sharing of expenditures, and of the estimated share of purchases of a European Union Member State, if any.
(3) The Council of Ministers, upon a proposal of the Minister of Defense, the Minister of Economy, Energy and tourism, the Minister of Interior and the Minister of Finance shall adopt an ordinance, regulating:
1. the criteria and the procedure of determination of the major national interests in the field of security and defense in the meaning of Art. 346 of the Treaty on the Functioning of the European Union, and
2. the procedure of awarding of execution of investment projects for acquisition and/or upgrading of armaments, machinery and equipment for the needs of armed forces in cases referred to in par. 1, item 6;
3. the terms and conditions and the procedure for conclusion of compensatory (offset) agreements – in cases referred to in par. 1, item 2.

Art. 13a. (new – SG 33/12) The contracting authorities shall not have the right to apply the grounds under Art. 4, par. 12 and 13 in order to bypass the law.

Art. 14. (amend. – SG 93/11, in force from 26.02.2011) (1) (suppl. – SG 33/12) The procedures referred to in this shall apply obligatorily in assigning public procurement with a subject under Art. 3, par. 1 of the following cost without VAT:
1. (amend. – SG 33/12) for construction – such exceeding 264 000 BGN, and where the procurement has a place of fulfilment outside the country – such exceeding 1 650 000 BGN;
2. (amend. – SG 33/12) for deliveries, services and a project competition – such exceeding 66 000 BGN, and where the procurement has a place of fulfilment outside the country – such exceeding 132 000 BGN;
(2) (new – SG 33/12) Where the public procurements are with a subject referred to in Art. 3, par. 2, the contracting authorities shall apply the procedures under the law for the following costs, VAT exclusive:
1. for construction works – equal to or exceeding 4 000 000 BGN;
2. for supplies, services and a project competition – equal to or exceeding 400 000 BGN.
(3) (prev. par. 2, suppl. – SG 33/12) Contracting authorities may apply the simplified rules provided in this law, where the public procurement orders with a subject referred to in Art. 3, par. 1 are of the following cost, VAT exclusive:
1. (amend. – SG 33/12) for construction – higher than 264 000 BGN and up to 2 640 000 BGN, and where the procurement has a place of fulfilment outside the country – higher than 1 650 000 BGN and up to 6 600 000 BGN;
2. (amend. – SG 33/12) for deliveries, services and a project competition – higher than 66 000 BGN, and where the procurement has a place of fulfilment outside the country – higher than 132 000 BGN up to the respective limit, referred to in Art. 45a, par. 2.
(4) (prev. par. 3, suppl. – SG 33/12) Contracting authorities may not conduct the procedures referred to in the law, but they shall be obliged to apply the terms and conditions and the procedures referred to in Chapter Eight "a" in case of public procurement orders with a subject referred to in Art. 3, par. 1, the cost of which, VAT exclusive, is:
1. (amend. – SG 33/12) for construction – from 60 000 BGN to 264 000 BGN, and where the procurement has a place of fulfilment outside the country – from 670 000 BGN to 1 650 000 BGN;
2. (amend. – SG 33/12) for deliveries or services – from 20 000 BGN to 66 000 BGN, and where the procurement has a place of fulfilment outside the country – from 66 000 BGN to 132 000 BGN.
(5) (prev. par. 4, amend. – SG 33/12) Contracting authorities shall not be obliged to apply the procedures referred to in the law or the terms and conditions and the procedures referred to in Chapter Eight "a" for procurements under Art. 3, par. 1 the cost of which, VAT exclusive is:
1. (amend. – SG 33/12) for construction – less than 60 000 BGN, and where the procurement has a place of fulfilment outside the country – less than 670 000 BGN;
2. (amend. – SG 33/12) for deliveries or services – less than 20 000 BGN to 60 000 BGN, and where the procurement has a place of fulfilment outside the country – less than 66 000 BGN.
3. (amend. – SG 33/12) for a project competition – less than 66 000 BGN.
(6) (prev. par. 5, amend. – SG 33/12) In cases referred to in par. 5, item 2 and 3 contracting authorities may not conclude a written agreement, and in this case they shall substantiate the expense by a primary payment documents.
(7) (new – SG 33/12) Contracting authorities shall not apply the procedures under the law and the terms and conditions and the procedures of Chapter eight "a" for public procurements under Art. 3, par. 2 of a cost less than those, referred to in par. 2, but shall be obliged to conclude a written agreement.

Art. 14a. (new – SG 93/11, in force from 26.02.2012) (1) In case an object of public procurement is provision of services, however including construction also, which ensues from the main object of the procurement, it shall be assigned as a public procurement for services.
(2) In case of assignment of a public procurement order including provision or goods and provision of services at the same time, the procedure applicable for the scope with a higher cost shall apply.
(3) (amend. – SG 33/12) When a contracting authority under art. 7, item 1 – 4 finances by more than 50 percent a construction contract, the persons, obtaining the financing and assigning the contract, shall be obliged to observe the provisions of this law as a contracting authority where the total value of the contract, VAT exclusive, is equal to or exceeds 2 640 000 BGN.
(4) (amend. – SG 33/12) Where a contracting authority under art. 7, item 1 – 4 finance by more than 50 percent a services contract, related to the construction contract, the persons obtaining the financing and assigning the contract for services shall be obliged to observe the provisions of this law as a contracting authority where the total value of the contract VAT exclusive is equal to or exceeds 391 160 BGN.
(5) In the cases referred to in par. 3 and 4 the contracting authority shall be obliged to exercise control for observing the law over the persons, having obtained the financing.

Art. 15. (1) (amend – SG 93/11, in force from 26.02.2012) The estimated cost of the public procurement shall be determined as of the date of the decision for opening the procedure for assigning of public procurement.
(2) (amend. – SG 94/08, in force from 01.01.2009) For determining the order of assigning public procurement its cost shall be calculated as follows:
1. (amend. - SG 37/06, in force from 01.07.2006) for a contract for delivery through leasing, renting with or without a right of purchase, as well as for purchase on the installment plan, in case the term:
a) (suppl. – SG 37/06, in force from 01.07.2006) is up to one year – the total cost for the term of its validity;
b) (suppl. – SG 37/06, in force from 01.07.2006) is more than one year – the cost for the term of its validity plus the reference remaining value of the delivery;
c) (new - SG 37/06, in force from 01.07.2006) is not fixed or can not be fixed – the monthly value, multiplied by the figure 48;
2. for periodical contracts for delivery and/or service – on the basis of:
a) the actual total value of similar contracts concluded during the preceding financial year and adjusted by the provided changes in the quantity or value of the respective delivery or service; or
b) the expected value of the delivery and/or services during the next 12 months after the first delivery or service or for the period of the deliveries and/or services when it is longer than 12 months;
3. (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 33/12) for a contract for delivery, service and/or construction, providing options – amounting to the maximum admissible total value, including the option and renewals clauses;
4. for a contract for service which does not determine a total price:
a) if it is for a period of up to 4 years – the total value of the contract for the term of its validity;
b) (amend. - SG 37/06, in force from 01.07.2006) if the term could not be fixed in advance or it is longer than 4 years – the value of the monthly payment multiplied by the figure 48;
5. (suppl. – SG 37/06, in force from 01.07.2006) for a contract for insurance service – the due insurance premium and other payments;
6. (suppl. – SG 37/06, in force from 01.07.2006) for a contract for financial service – the price of the service, including the fees, commissions and interest and other payments;
7. for a contract for service preceded by a project competition, as well as for a project competition followed by a contract for service, the value shall be determined by the price of the service and the total value of the awards and other payments to the participants in the competition;
8. for a construction contract – on the basis of the value of the construction and the delivery of all goods and services for fulfilment of the construction, where they are provided by the contracting authority;
9. for a project competition the value of the procurement shall include the total value of the awards and other payments to the participants in the competition.
10. (new - SG 37/06, in force from 01.07.2006) for a frame agreement or dynamic purchasing system – on the basis of the maximum value expected, without VAT, of all contracts, envisaged to be concluded within the term of effect of the agreement or the system;
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) In determining the value of a public procurement shall be included all payments without VAT to the provider of the public procurement, including the options provided and repeat of the service or the construction under art. 90, par. 1, item 9, art. 103, par. 2, item 8 and art. 119c, par. 3, item 12=
(4) (amend. - SG 37/06, in force from 01.07.2006; amend – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Where the public procurement includes several detached positions, each of them being object of a contract, the value of the procurement shall be equal to the sum of the values of all positions. If the total value of the positions is equal to or exceeds the limits under art. 14, par. 1, 2, 3 or 4 upon the assignment of the procurement at each detached position shall be observed the procedure, applicable to the total cost of the procurement.
(5) The choice of a method for determining the value of the contract for public procurement shall not be used for the purpose of avoiding the application of the law.
(6) Not admitted shall be the partition of a public procurement for the purpose of avoiding the application of the law, including through a progress construction, where the concluded stage cannot obtain a permit for using as an individual site.
(7) (new - SG 37/06, in force from 01.07.2006) At determination of the value of a construction contract the including of deliveries or services, which are not necessary for its fulfilment, shall not be admitted.

Section III.
Types of Procedures
Art. 16. (1) (amend. and suppl. - SG 37/06, in force from 01.07.2006; suppl. – SG 93/11, in force from 26.02.2012) The public procurement referred to in Art. 14, par. 1 shall be assigned by way of holding an open procedure, a limited procedure, competitive dialogue and procedures of negotiation.
(2) (revoked - SG 37/06, in force from 01.07.2006)
(3) (revoked - SG 37/06, in force from 01.07.2006)
(4) Open procedure is the procedure whereupon all interested persons may file offers.
(5) Limited procedure is the procedure whereupon offers may be filed only by candidates having received invitation from the contracting authority upon a preliminary selection.
(6) (new - SG 37/06, in force from 01.07.2006) Competitive dialogue is a procedure, where every interested person can submit application for participation and the contracting authority conducts a dialogue with the candidates, admitted upon a preliminary selection, with the purpose of definition of one or more proposals, which meet his/her requirements and after that he/she invites the candidates with suitable proposals to submit offers.
(7) (prev. text of par. 6 - SG 37/06, in force from 01.07.2006) The procedures of negotiation are:
1. (amend. - SG 37/06, in force from 01.07.2006) procedure of negotiation with notice, whereupon the contracting authority holds negotiations for determining the clauses of the contract with one or more participants chosen by him/her upon a preliminary selection;
2. procedure of negotiation without notice, whereupon the contracting authority holds negotiations for determining the clauses of the contract with one or more concretely chosen persons.
(8) (prev. text of par. 7, amend. - SG 37/06, in force from 01.07.2006) The contracting authority under art. 7, items 1 – 4 shall take a decision for assigning public procurement by way of open procedure and limited procedure at all times, when the conditions for conducting competitive dialogue or procedures of negotiation are not present.

Art. 16a. (new - SG 37/06, in force from 01.07.2006) Project competition is the procedure whereupon the contracting authority acquires a plan or a project, chosen by an independent jury on the grounds of a competition with or without adjudgement of awards.

Art. 16b. (new - SG 37/06, in force from 01.07.2006) (1) (amend – SG 93/11, in force from 26.02.2012) The contracting authorities may choose a contractor of a public procurement by way of open, limited procedure or procedures of negotiation with notice in the cases under art. 84, item 1, using electronic auction, as well as in the cases under art. 93b, par. 3 and art. 93i, if the technical specifications for the public procurement can be precisely defined.
(2) Object of electronic auction may not be public procurement for service and construction, whose subject is intellectual activity such as designing construction sites.
(3) The use of electronic auction shall be indicated in the notice for public procurement.
(4) The electronic auction may not be applied, if it prevents, restricts or violates the competition, provided that it also may not change the object of the procurement, indicated in the promulgated notice and in the specifications.
(5) The terms and the order for application of the electronic auction shall be settled by the Regulations for implementation of the law.

Art. 16c. (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) (1) The contracting authority shall be obliged to keep their right to participate in procedures for assigning public procurement for specialized enterprises or cooperations of people with disabilities, where:
1. the object of the procurement is included in a list, approved by the Council of Ministers, or
2. the procurement is being fulfilled according to programmes for protection of the employment of people with disabilities.
(2) The contracting authority must point out the requirement under par. 1 in the notice for opening the public procurement.
(3) (new – SG 33/12) In cases referred to in par. 1, item 1 specialized enterprises or cooperations of people with disabilities shall participate, provided that they can fulfill minimum 80 per cent of the subject of the public procurement with their own production and resources or with subcontractors, which are also specialized enterprises or cooperations of people with disabilities.
(4) (new – SG 33/12) Nationally represented organizations of and for people with disabilities annually by 30 September of the current year shall publish on the Internet site for public procurement information about the capacitive power of their members.
(5) (new – SG 33/12) The contracting authority shall open for the subsequent calendar year a public procurement referred to in Art. 1, item 1, where it can be fulfilled by specialized enterprises or cooperations of people with disabilities according to the information under par. 4.
(6) (new – SG 33/12) Where after conducting a procedure under par. 1 no contractor has been selected, the contracting authority can open a new procedure under Art. 16, par. 8 or Art. 103, par. 1, without keeping the right for participation of specialized enterprises or cooperations of people with disabilities. The contracting authority shall indicate in their decision for opening the reasons for termination of the previous procedure.

Chapter two.
BODIES. PUBLIC PROCUREMENT REGISTER
Section I.
Bodies
Art. 17. (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009) The Minister of Economy, Energy and Tourism shall carry out the state policy in the sphere of public procurement.

Art. 18. (1) (suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009) Established with the Minister of Economy, Energy and Tourism shall be Public Procurement Agency, called hereinafter "the Agency", which shall support him in implementing the state policy in the sphere of public procurement.
(2) The Agency is a corporate body with a seat in Sofia.
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The financial support of the Agency shall be formed by budget revenue.
(4) (new – SG 94/08, in force from 01.01.2009; amend. - SG 82/09, in force from 16.10.2009; revoked – SG 38/12, in force from 01.07.2012)
(5) (new – SG 94/08, in force from 01.01.2009; revoked – SG 38/12, in force from 01.07.2012)
(6) (prev. text of para 4 – SG 94/08, in force from 01.01.2009) The activity, the structure, the organisation of the work and the number of personnel of the Agency shall be determined by structural regulations adopted by the Council of Ministers.

Art. 19. (1) (suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009) The Agency shall be managed and represented by an executive director who shall be appointed by the Minister of Economy, Energy and Tourism.
(2) The executive director of the Agency:
1. (suppl. – SG 93/11, in force from 26.02.2012) shall issue methodological instructions for unification of the practice of implementation of the law and the related by laws;
2. (amend. – SG 93/11, in force from 26.02.2012) shall issue opinions on principals’ inquiries;
3. (amend. - SG 37/06, in force from 01.07.2006; amend. and suppl. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) notify competent bodies in view of exercising control for compliance with the law;
4. (amend. – SG 52/10) appeal before the Commission for Protection of Competition the decisions of contracting authorities with which have been committed violations of the procedure for assigning public procurement, an which have been established by the European Commission prior to concluding the contract and are specified in the notification as per Art. 122p, para 1;
5. (amend. - SG 37/06, in force from 01.07.2006) shall work out draft normative acts and give opinion on international agreements in the sphere of public procurement;
6. shall keep Public Procurement Register;
7. (amend. - SG 37/06, in force from 01.07.2006 and from 01.01.2007 in the part, regarding the notification of the European Commission of amendments in the lists) shall maintain lists of the contracting authorities under art. 7 and notify the European Commission of amendments in the lists;
8. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) shall maintain, with the assistance of the professional associations and organisations in the respective branch, a list of persons who may used by the contracting authority as external experts for preparation and conducting of public procurement procedures;
9. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) shall work out standard forms of documents for publishing of information in the Register of public procurement orders;
10. (amend. - SG 37/06, in force from 01.07.2006) shall co-ordinate the activity, connected to the training of the subjects of the public procurement;
11. shall participate in the international cooperation of the Republic of Bulgaria with organisations from other countries in the sphere of public procurement;
12. (suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009) shall present to the Minister of Economy, Energy and Tourism an annual report for the activity of the Agency;
13. (suppl. – SG 37/06, in force from 01.07.2006) shall compile and summarise the practice of applying the law and implement monitoring of the public procurement;
14. (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 93/11, in force from 26.02.2012) shall carry out co-operation in the sphere of public procurement with other bodies and with branch organisations;
15. (new - SG 37/06, in force from 01.07.2006; amend. and suppl. – SG 94/08, in force from 01.01.2009) provide generalized information from the Public Procurement Register via the web-site of the Agency;
16. (new - SG 37/06, in force from 01.07.2006) shall support the process of electronic assignment of public procurement;
17. (new - SG 37/06, in force from 01.07.2006; suppl. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) shall notify the European Commission of all international contracts under art. 12, par. 1, item 14;
18. (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) shall send upon request of the European Commission the information under art. 12, par. 46;
19. (new - SG 37/06, in force from 01.07.2006; suppl. – SG 52/10) shall send to the European Commission annual statistical accounts, as well as the orders as per Art. 121b, para 3 which have entered into force and the related thereto resolutions under Art. 122d, para 4 of the Commission fro Protection of Competition;
20. (new - SG 37/06, in force from 01.07.2006) shall notify the European Commission of legal or factual problems in connection to participation of Bulgarian persons in procedures for assigning public procurement for services in third countries;
21. (new - SG 37/06, in force from 01.07.2006) shall notify the European Commission of legal or factual problems in connection to participation of Bulgarian persons in procedures for assigning public procurement in third countries, which are result of non-observance of the provisions of the international labour law;
22. (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 24/09; amend. – SG 93/11, in force from 26.02.2012) shall carry out preliminary control carried out by the managing bodies of the respective operational programmes, over public procurement procedures, financed entirely or partially by resources from the European funds, as follows:
a) (amend. – SG 33/12) for construction, the cost of which is equal to or exceeding BGN2.640.000;
b) for supply or service, the cost of which is equal to or exceeding the respective cost, indicated in Art. 45a, par. 2;
23. (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) shall promote the Good practices in assignment of public procurement orders, including those related to application of environmental, social and innovative requirements;
24. (new – SG 94/08, in force from 01.01.2009) shall exercise preliminary control on the decisions for initiation of negotiation procedures without notice on the ground of Art. 90, para 1, items 1 through 9 and item 12, issued by a contracting authority as per Art. 7, items 1 through 4;
25. (new – SG 94/08, in force from 01.01.2009) shall keep a list of the persons who have failed to fulfil a public procurement contract, this being established by a final court ruling;
26. (new – SG 94/08, in force from 01.01.2009; revoked – SG 93/11, in force from 26.02.2012).
(3) (suppl. – SG 33/12) In connection with the implementation of his legal capacity the executive director of the Agency shall have the right to require from the contracting authority of public procurement the necessary information, and also to approve samples of documents.
(4) The contracting authority shall be obliged to submit the required information under para 3 within a period set by the executive director of the Agency.
(5) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The directions contained in par. 2, item 1 shall be obligatory for the control bodies referred to in Art. 123, par. 1, where they are agreed upon with them. The agreeing procedure shall be determined by the regulations for application of the law.
(6) (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The contracting authority shall send to the Executive director of the Agency the decisions under para 2 by electronic means within 14 days from their entry into force.
(7) (new - SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009) The forms under par. 2, item 9 shall be approved by the Minister of Economy, Energy and Tourism and shall be promulgated in State Gazette.
(8) (new – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) The following shall be published on the internet site of the agency:
1. the information referred to in par. 1, items 1, 6 – 8, 12, 13 and 25;
2. the approved forms referred to in par. 1, item 9;
3. the Common Procurement Vocabulary (CPV), adopted by Regulation (EC) No. 2195/2002 of the European Parliament and of the Council of 5 November 2002 on the Common Procurement Vocabulary (CPV);
4. other information, determined by the regulations for application of the law.

Art. 20. (amend. - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)

Art. 20a. (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) (1) The preliminary control as per Art. 19, para 2, item 22 shall comprise:
1. the notice for the public procurement;
2. the decision for opening of a limited procedure on the grounds of Art. 76, par. 3, procedure of negotiation with an notice or a procedure of competitive dialogue;
3. Methodology of offers assessment – based on the most cost-efficient offer criterion.
(2) For the implementation of preliminary control the contracting authority shall be obliged prior to the opening of the procedure, to send to the agency the drafts of the documents referred to in par. 1.
(3) (amend. – SG 33/12) Within 14 days after the receipt of the drafts referred to in par. 2, the agency shall issue an opinion about the compliance with the provisions with this law and shall send it to the contracting authority. In case of identified inconformity, the opinion shall contain recommendations for their elimination.
(4) (amend. – SG 33/12) Together with sending of the decision and the notice for opening a procedure for publishing in the register, the contracting authority shall send to the agency also the approved methodology of assessment of proposals – in case of criterion of economically most favourable offer. Failing to take into consideration the recommendations in the opinion referred to in par. 3, the contracting authority may attach also written justification thereof.
(5) Within 10 days after the publication of the documents referred to in par. 1, items 1 and 2, the agency shall carry out assessment of their conformity with the issued recommendations and shall prepare a final legitimacy report.
(6) The report shall be sent to the contracting authority referred to in Art. 123, par. 1 and to the bodies responsible for funds management and spending under the respective program within the term referred to in par. 5.
(7) Preliminary control over the procedures referred to in Art. 76, par. 3 and in Art. 86, par. 3 shall be finalized with the opinion under par. 3.
(8) Exchange of information regarding the implementation of preliminary control shall be regulated by the regulations for the application of the law.

Section II.
Public Procurement Register
Art. 21. (1) Created shall be Public Procurement Register.
(2) The Public Procurement Register shall be open for the public.
(3) (amend. – SG 94/08, in force from 01.01.2009) The contracting authority shall be obliged to send the information (in Bulgarian) intended for entry in the Public Procurement Register to the Executive director of the Agency.
(4) (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The Executive director of the Agency shall specify by an order the electronic format and the technical requirements concerning the information under para 3. The order shall be published on the web site of the Agency.
(5) (new – SG 94/08, in force from 01.01.2009) Any piece of information sent in violation of the order as per para 4 shall not be published in the register and shall be considered unsent.
(6) (new – SG 94/08, in force from 01.01.2009) The terms and procedure for operation of the register shall be defined by the regulations for implementation of the law.

Art. 22. The Public Procurement Register shall contain:
1. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) the decisions for opening, amendment and termination of procedures for assigning of public procurement;
2. the notices required for entry in the register;
3. the information regarding the assigned public procurement;
4. (new – SG 94/08, in force from 01.01.2009) information concerning the fulfilled public procurement contracts;
5. (new – SG 93/11, in force from 26.02.2012) information in the progress of the procedure in case of appeal proceedings;
6. (prev. text of item 4 – SG 94/08, in force from 01.01.2009; prev. item 5 – SG 93/11, in force from 26.02.2012) other information determined by the regulations for implementation of the law.

Art. 22a. (new – SG 93/11, in force from 26.02.2012) (1) Registration of particulars in the register shall be refused in the cases, where:
1. the information is provided not in compliance with the form approved for the respective type of a contracting authority;
2. the fields which are obligatory to be filled out are not;
3. the information has not been provided in compliance with the procedure provided in the regulations for the application of the law;
4. there is a discrepancy in the information, provided in the documents related to the same order.
(2) The refusal under par. 1 shall be advised to the contracting authority within 5 days after the information has been received by the agency.

Part two.
ASSIGNING PUBLIC PROCUREMENT
Chapter three.
GENERAL RULES FOR ASSIGNING PUBLIC PROCUREMENT
Section I.
Advance notice
Art. 23. (1) (suppl. SG 31/05, in force from May 1, 2005, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall send to the Agency for entry in the Public Procurement Register or publish in the buyer profile an advance notice for all procedures for assigning public procurement or for concluding frame agreements, which they intend to open in the following 12 months:
1. (amend. – SG 52/10) for delivery of goods and for services under art. 5, para 1, item 1 in categories, when the total value without VAT of the respective category of goods or services is exceeding 450 000 BGN;
2. (amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) for construction, where the total value of the procurement without VAT is equal to or exceeds BGN2 640 000, and where the public procurement is under art. 3, par. 2 – equal to or exceeding BGN4 000 000;
3. (new – SG 33/12) for supplies of goods under art. 3, par. 2 and for services under par. 5, par. 1, item 3 by categories, where the total value, VAT exclusive for the respective category of goods or services is equal or exceeds BGN1 000 000.
(2) (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) When publishing advance notice at the buyer profile, the contracting authority shall send via electronic means to the agency a notice according to a confirmed form. The advance notices may not be published in the buyer profile before the date of sending the notice.
(3) (new - SG 37/06, in force from 01.07.2006) The notices, indicated in par. 1, and the notice under par. 2 for deliveries and services must be sent till the 1st of March.
(4) (suppl. SG 31/05, in force from May 1, 2005, prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) The contracting authorities shall be obliged to send an advance notices only when they are intending to use shortened terms under art. 64, par. 2, art. 81, par. 2 and art. 104, par. 1.
(5) (prev. text of par. 3, suppl. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) In the cases under para 1, item 1 the category of goods shall be determined by the contracting authority according to the Nomenclature of the Common Procurement Vocabulary (CPV), and the category of services – according to Appendix No 2..
(6) (prev. text of par. 4 - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Publishing of an advance notice shall not oblige the contracting authority to carry out the respective procedures for assigning public procurement.

Art. 24. (amend. - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)

Section II.
Decision for Opening a Public Procurement Procedure and Notice for Public Procurement
Art. 25. (1) The contracting authority shall take a decision for opening a procedure for assigning public procurement by which shall approve the notice for public procurement and the documentation for participation in the procedure. The decision and the notice shall be sent to the Agency for entry in the Public Procurement Register in electronic form as well.
(2) The notice for public procurement shall contain at least the following information:
1. name, address, telephone, fax, electronic address of the contracting authority and a person for contact;
2. type of the procedure;
3. (amend. – SG 93/11, in force from 26.02.2012) object and subject of the procurement and also quantity or volume, including of detached positions;
4. (amend. – SG 94/08, in force from 01.01.2009) code according to the nomenclature of the Common Procurement Vocabulary (CPV);
5. place and term of fulfilment of the procurement;
6. (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009) the selection criteria, including minimal requirements for the economic and financial status of the candidate or the participant or his/her technical capacities and qualification, where the contracting authority has set such, as well as indication of the documents proving them;
7. terms and size of the guarantee for participation and of the guarantee for fulfilment of the contract;
8. terms and way of payment;
9. (suppl. – SG 94/08, in force from 01.01.2009) term of validity of the offers in open procedures;
10. (suppl. – SG 94/08, in force from 01.01.2009) criterion for assessment of the offers, and in case the relevant criterion is the economically most favourable offer – also the indices for complex assessment along with their relative weight, or, in those cases where their relative weight may not be specified due to objective reasons – the rating in descending order according to their significance;
11. (new - SG 37/06, in force from 01.07.2006) opportunity for providing options in the offers;
12. (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) opportunity the participants to submit offers only for one, for all or for one or more detached positions – in case the subject of the procurement includes several detached positions;
13. (prev. text of item 11 - SG 37/06, in force from 01.07.2006) place and term of receiving, price and way of payment of the documentation for participation in the procedure;
14. (prev. text of item 12, amend. - SG 37/06, in force from 01.07.2006) place and term of receiving the applications or the offers;
15. (prev. text of item 13 - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009) place and date of opening the offers or the applications for participation;
16. (prev. text of item 14 - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) date of publication of the advance notice under art. 23, if there is any;
17. (prev. text of item 15 - SG 37/06, in force from 01.07.2006) the date of sending the notice.
(3) The notice of the contracting authority may also stipulate:
1. (amend. - SG 37/06, in force from 01.07.2006) opportunity for conducting electronic auction;
2. (amend. and suppl. - SG 37/06, in force from 01.07.2006, amend. and suppl. - SG 37/06, in force from 01.07.2006) requirement for establishing a legal person where the participant, appointed for a contractor, is an association of natural and/or legal persons. The newly established legal person shall be bound by the offer, submitted by the association;
3. (revoked - SG 37/06, in force from 01.07.2006);
4. (revoked – SG 94/08, in force from 01.01.2009)
(4) (new - SG 37/06, in force from 01.07.2006) In case of limited procedures, procedures of negotiation with notice and competitive dialogue procedures the contracting authority may also include in the notice a restriction of the number of candidates, who shall be invited to present offers, to negotiate or to take part in a dialogue, provided that there is sufficient number of candidates, meeting the requirements. In these cases in the notice shall be pointed out objective and non-discriminatory criteria or rules, which the contracting authority intends to apply, the minimum number of candidates, who will be invited, and in the contracting authority’s opinion – also the maximum number.
(5) (prev. text of par. 4 - SG 37/06, in force from 01.07.2006) The contracting authority shall not have the right to include terms or requirements, giving privilege or restricting the participation of persons in the public procurement without a ground, in the decision, notice or documentation.
(6) (prev. text of par. 5, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The selection criteria referred to in par. 2, item 6 and the documents required for their implementation must correspond to and be in compliance with the cost, complexity and the subject of the public procurement. Where the contracting authority sets a requirement for existing turnover under Art. 50, par. 1, item 3 related to the subject of procurement, this turnover may not exceed three times the estimated cost of procurement. Where the procurement contains detached items, the selection criteria for each individual detached item must correspond to the complexity, cost and scope of the respective item.
(7) (new – SG 93/11, in force from 26.02.2012) The selection criteria referred to in par. 2, item 6, set out by the contracting authority, must be the same for all participants in the procedure.
(8) (new – SG 93/11, in force from 26.02.2012) In case of participation of associations, which are not legal entities, the selection criteria shall be applied to the participating association, instead of to each person involved herein, except for relevant registration, provision of a certificate or any other term and condition, required for the implementation of the procurement in compliance with the provisions of a regulating or administrative act and in consideration of the share of involvement of the persons in performance of works, as provided by the agreement for the establishment of the association.
(9) (new – SG 93/11, in force from 26.02.2012) The parameters of complex assessment referred to in par. 2, item 10 must be related to the subject of the public procurement.
(10) (new – SG 94/08, in force from 01.01.2009; prev. par. 7, amend. – SG 93/11, in force from 26.02.2012) Where the relevant criterion is the economically most favourable offer, the contracting authority shall not be entitled to include selection criteria as offers assessment parameters.
(11) (new – SG 93/11, in force from 26.02.2012) For determination of the term referred to in par. 2, item 14 the contracting authority must take into consideration the complexity of the procurement and the time, required for preparation of applications for participation or of offers.

Art. 26. (1) (prev. text of art. 26, amend. - SG 37/06, in force from 01.07.2006) The contracting authority may also provide for in the notice under art. 25 additional requirements for the fulfilment of the public procurement, related to the protection of the environment, the unemployment and the opening of new positions for disabled persons, in compliance with the requirements of art. 25, para 5.
(2) (new – SG 33/12) In case of assignment of public procurements under art. 3, par. 2, in addition to the requirements referred to in par. 1, the contracting authority may provide also special requirements for implementation of the public procurement, related to reassignment to subcontractors, or such, intended to guarantee the classified information safety and/or supplies safety.
(3) (new - SG 37/06, in force from 01.07.2006; prev. par. 2 – SG 33/12) In the cases under par. 1, at preparation of the offer the participants shall also specify the manner of fulfillment of the additional requirements.

Art. 26a. (new – SG 52/10) (1) Upon assignment of a public procurement for delivery of transport vehicles, specified in Appendix No 3a, contracting authorities shall be obliged to take into account the energy aspects and the environmental impacts throughout the operational lifetime of the transport vehicles, including the following minimum requirements:
1. energy consumption, and
2. emissions of carbon dioxide (CO2), and
3. emissions of nitrogen oxides (Nox), non-methane hydrocarbons (NMHC) and particulate matter.
(2) In order to fulfil the requirements set out in para 1 contracting authorities shall:
1. set technical specifications for energy and environmental performance in the documentation of the public procurement, or
2. include indices where the assessment criterion is the most economically favourable offer.
(3) (suppl. – SG 33/12) In the cases referred to in para 2, item 2, where the impact aspects referred to in par. 1 are displayed in monetary form shall be applied methodology for calculation of costs of energy consumption, emissions of carbon dioxide, nitrogen oxides, non-methane hydrocarbons and particulate matter throughout the operational lifetime of transport vehicles. The methodology shall be defined by an ordinance of the Minister of Transport, Information Technology and Communications.
(4) (amend. – SG 93/11, in force from 26.02.2012) Contracting authorities are allowed not to apply the requirements set out in para 1 in those cases where:
1. they assign a public procurement for delivery of transport vehicles which are not subject to compulsory type approval or to individual approval pursuant to an ordinance of the Minister of Transport, Information Technology and Communications adopted on the grounds of Art. 38, para 4 of the Road Traffic Law or
2. (amend. – SG 33/12) the public procurement is for the cost referred to in Art. 14, par. 3.

Art. 27. (1) (new – SG 33/12) The notices for public procurements of a value under the thresholds, determined in Art. 25a, par. 2, shall be issued in the respective form, approved according to the procedure of Art. 19, par. 7.
(2) (amend. SG 31/05, in force from May 1, 2005; amend. – SG 37/06, in force from 01.07.2006; prev. art. 27 – SG 33/12) After the publication of the notice referred to in Art. 25, par. 2 the contracting authority may publish information regarding the public procurement also in a local newspaper or in a national daily newspaper. The publication shall indicate at least the subject of the public procurement and the date of publication of the notice in the Register of public procurement orders and it cannot include information not contained in the notice.

Art. 27a. (new – SG 93/11, in force from 26.02.2012) (1) (amend. – SG 33/12) The contracting authority may on its own initiative or upon an interested person’s proposal, to make single amendments of the notice and/or the documentation of the public procurement, related to provision of legitimacy of the procedure, correcting of blanks or of an obvious error of fact.
(2) Each interested person may make a proposal for amendments in the notice and/or the documentation within 10 days after the publication of the notice for opening of the procedure.
(3) The amendments referred to in par. 1 shall be carried out through a decision for an amendment which shall be published in the Register of public procurement orders within 14 days after the publication of the notice for opening of the procedure.
(4) By the decision for amendment the contracting authority shall not have the right to amend the works and/or supplies according to the announced subject of procurement.
(5) In the decision referred to in par. 3 the contracting authority shall set out also a new term for receiving of offers or of applications, which may not be shorter than the initially fixed one.
(6) The contracting authority may not determine a new term referred to in par. 5, where the amendments do not affect the selection criteria, the requirements to the offer or the implementation of procurement.
(7) Upon expiration of the term referred to in par. 3 the contracting authority may publish a decision for amendment, only in case of extending of the terms announced in the procedure.
(8) The contracting authority shall be obliged to extend the terms announced in the procedure:
1. where it is found out, that the initially determined term is not sufficient for preparation of offers, including because of required on the spot reviewing of additional documents to the documentation or a site visit;
2. in cases referred to in Art. 29, par. 2.
(9) The contracting authority may extend the terms announced in the procedure, where:
1. within the initially determined term there are no submitted applications or offers or only one application or offer have been submitted;
2. this is required following appeal proceedings;
3. (new – SG 33/12) the term referred to in art. 51, par. 3 is not sufficient.
(10) By the publication of a decision for amendment in the Register of public procurement orders it shall be deemed that all interested parties have been duly notified.

Art. 27b. (new – SG 93/11, in force from 26.02.2012) (1) Article 27a shall not apply in the cases referred to in Art. 76, par. 3 and Art. 86, par. 3.
(2) In cases referred to in par. 1 the contracting authority may publish a decision for amendment in the Register of public procurement orders, thus extending the announced terms for submission of applications, where:
1. within the initially fixed term there are no submitted applications or only one application has been submitted;
2. this is required following appeal proceedings.

Section III.
Documentation for Participation in the Public Procurement Procedure
Art. 28. (1) The documentation for participation in public procurement procedure shall contain:
1. the decision for opening public procurement procedure;
2. the notice for the public procurement;
3. (amend. – SG 93/11, in force from 26.02.2012) the full description of the subject of the procurement, including the detached positions;
4. the technical specifications;
5. (new - SG 37/06, in force from 01.07.2006) the minimum requirements, which the options must meet, and the special requirements for their presentation, in case the contracting authority admits options;
6. (prev. text of item 5, amend. - SG 37/06, in force from 01.07.2006) the investment projects when public procurement for construction requires such;
7. (prev. text of item 6 - SG 37/06, in force from 01.07.2006) the indices, their relative weight and the methodology for determining the complex assessment of the offer when the criterion for the assessment is economically the most favourable offer;
8. (prev. text of item 7 - SG 37/06, in force from 01.07.2006) a form of the offer, as well as instructions for its preparation;
9. (prev. text of item 8 - SG 37/06, in force from 01.07.2006) the draft contract;
9. (revoked - SG 37/06, in force from 01.07.2006).
(2) (amend. and suppl. - SG 37/06, in force from 01.07.2006) The methodology under para 1, item 7 shall contain exact instructions for determining the assessment by each indicator and for determining the complex assessment of the offer, including of the relative weight, with which the contracting authority awards each of the indices for assessment of the most favourable offer economically. The relative weight of the individual indices may be expressed by maximum values within the frames of the general assessment.
(3) (new – SG 94/08, in force from 01.01.2009) The contracting authority shall apply the methodology as per para 1, item 7, to all offers admitted to assessment, without changing it.
(4) (suppl. – SG 37/06, in force from 01.07.2006; prev. text of para 3, amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) Where payment for the documentation for participation is provided, the contracting authority may not determine a price, which is higher than the real cost covering its printing and copying. Upon request by the interested person the contracting authority shall be obliged to send the documentation at the expense of the person, having addressed the request.
(5) (new – SG 33/12) The Contracting authority may indicate in the documentation the bodies, from which the applicants or the participants may obtain relevant information about the obligations related to taxes and insurances, environmental protection, protection of employment and labor conditions, applicable in the country of in the state, where the construction works are to take place or the services are to be provided, and which are applicable to construction works or to the provided services.
(6) (amend. - SG 37/06, in force from 01.07.2006; prev. text of para 4, amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012; prev. par. 5, amend. – SG 33/12) The documentation for participation may be purchased or obtained within 10 days prior to expiration of the term for receiving the offers or of the applications, and for procurement referred to in Art. 14, para 3– within 7 days.
(7) (new – SG 93/11, in force from 26.02.2012; prev. par. 6 – SG 33/12) In cases referred to in Art. 76, par. 3 andArt. 86, par. 3 – the documentation may be purchased or obtained within three work days prior to expiration of the term for receiving of the applications for participation.
(8) (new – SG 93/11, in force from 26.02.2012; prev. par. 7 – SG 33/12) The persons shall have the right to review the documents on the spot, prior to purchasing it.
(9) (new – SG 93/11, in force from 26.02.2012; prev. par. 8 – SG 33/12) In cases referred to in Art. 27a, par. 1 the contracting authority shall be obliged to provide free of charge the amended documents to the persons having purchased them prior to issuance of the decision for their amendment.

Art. 29. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) The persons may request in writing from the contracting authority clarifications on the documentation for participation prior to expiration of the term for its purchasing or obtaining. The contracting authority shall send the clarifications within 4 days after the receipt of the request.
(2) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Provided that from the provision of the clarification by the contracting authority to the deadline for receiving of offers or applications for participation remain less than 6 days, and in cases referred to in Art. 14, par. 3 – less than three days, the contracting authority shall be obliged to extend the term for receiving of offers or of applications for participation by a number of days, equal to the delay.
(3) (amend. and suppl. - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009; prev. par. 2, amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall send the elucidation under para 1 to all persons having bought documentation for participation and having indicated an address for correspondence, without noting in the reply the person who has made the request. The elucidation shall also be attached to the documentation which is to be provided to other applicants or participants.

Section IV.
Technical Specifications
Art. 30. (amend. - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 33/12) In the documentation for participation in public procurement procedure the contracting authority shall determine the technical specifications by:
1. indicating in the following order of:
a) Bulgarian standards introducing European standards;
b) European technical approvals;
c) Generally accepted technical specifications;
d) Bulgarian standards, introducing international standards;
e) other international standards;
f) other technical references, issued by European standardization bodies, or ins case such are missing – other national standards, national technical approvals or national technical specifications, related to engineering, calculation method and execution of construction works, and also to use of goods;
g) technical specifications, produced and widely adopted by the industry;
h) national standards in the field of defense and similar specifications of equipment and supplies in the field of defense;
2. indication of operating parameters of functional requirements, allowing precise determination of the subject of order; functional requirements may include requirements for environmental protection ;
3. determination of operating characteristics or functional requirements by referring to technical specifications under item 1, reference to which shall be accepted as achievement of compliance;
4. indication of specifications under item 1 for a part of the parameters, and for others – by reference to operating parameters or functional requirements under item 2.
(2) (new – SG 33/12) Each reference to a particular standard, specification, technical approval or other technical reference under par. 1, item 1 shall have to be supplemented by adding the words "or equivalent".
(3) (prev. par. 2, amend. - SG 33/12) In the cases under par. 1, item 2, when the contracting authority has provided requirements for protection of the environment, he/she may use specifications or parts of European or national schemes of ecomarking of other ecomarkings, meeting simultaneously the following requirements:
1. (amend. – SG 33/12) the specifications are suitable for determining the characteristics of the goods and the services;
2. (amend. – SG 33/12) the requirements to ecomarking are prepared on the basis of scientific information;
3. (amend. – SG 33/12) the ecomarkings are accepted following a procedure, in which all interested parties man take part – state bodies, consumers, producers, distributors and organizations for protection of the environment;
4. they are accessible to all interested parties.
(4) (prev. par. 3, amend. – SG 33/12) The contracting authority may point out that the goods and the services having ecomarking are considered to correspond to the technical specifications, provided in the documentation for participation in a procedure for assigning public procurement.
(5) (amend. – SG 93/11, in force from 26.02.2012; prev. par. 4, amend. – SG 33/12) In the cases under par. 3 the contracting authority shall accept also any other facility, proving conformity, such as manufacturer’s technical file or a test report, or a certificate, issued by a recognized body.

Art. 31. (amend. - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 33/12) When providing technical specifications to the applicants or the participants in the procedures and when concluding the public procurement contract the contracting authority may place requirements for protection of information of confidential nature or of classified information. The contracting authority may request from the applicants or the participants to guarantee compliance with these requirements by their subcontractors, too.
(2) (suppl. – SG 33/12) The applicants or the participants, including their subcontractors shall not have right to disclose the information under par. 1.

Art. 32. (1) (suppl. – SG 37/06, in force from 01.07.2006) The technical specifications shall provide equal access of the candidates or the participants for participation in the procedure and shall not create obstacles to the competition without a ground.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The technical specifications shall not be determined by indicating a specific model, source, process, trade mark, patent, type, origin or production, which would lead to the provision of privilege or the elimination of certain persons or products. In exclusive cases, where it is impossible for the subject of the procurement to be described precisely and clearly by the order of art. 30, par. 1 and Art. 33 such indication is admissible, provided that the words "or an equivalent" are obligatorily added.

Art. 33. (1) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In the cases of art. 30, para 1, item 1 the contracting authority may not reject an offer on the grounds that the offered goods or services do not correspond to the technical specifications he indicated where the participant proves in his offer by any relevant means, which satisfy the contracting authority that the solution offered by him solution meets equivalently the requirements determined by these technical specifications.
(2) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In the cases of art. 30, para 1 where technical specifications are determined through operating parameters or functional requirements, the contracting authority may not reject an offer corresponding to a Bulgarian standard introducing an European standard, to European technical approval; to generally accepted technical specification; to international standard or technical reference, established by European standardization bodies, where the participant proves in his offer by relevant means that these standardization documents are related to the requirements determined by the contracting authority.
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In the cases of para 1 and 2 as relevant means for proving of achieved equivalency subject to satisfying of requirements, indicated in technical specifications, shall also be deemed manufacturer’s technical file or test reports or certificates, issued by a recognized body.
(4) (amend. - SG 37/06, in force from 01.07.2006) When submitting the offer the participant may point out which part of it is of confidential nature and require from the contracting authority not to disclose it.
(5) (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall not have right to disclose information, provided to him/her by candidates and participants, indicated by them as confidential with regards to technical or commercial secrets, except for the cases under art. 44 and art. 73, par. 4.

Art. 33a. (new – SG 33/12) Contracting authorities shall acknowledge certificates issued by recognized bodies.

Section V.
Consideration, Assessment and Rating of the Offers
Art. 34. (1) The contracting authority shall appoint a commission for holding a public procurement procedure, determining its members and reserve members.
(2) (amend. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The commission shall include obligatorily one qualified lawyer, and the remaining members shall be persons having adequate professional qualification and practical experience in compliance with the subject and the complexity of the procurement. The commission shall consist of an odd number of members – minimum five persons, and in cases referred to in Art. 14, par. 3 – minimum three persons.
(3) (amend. – SG 94/08, in force from 01.01.2009; suppl. – SG 93/11, in force from 26.02.2012) A contracting authority referred to in Art. 7, items 1 through 4 may involve as a member of the commission an external expert as well, who has been included in the list as per Art. 19, para 2, item 8 and is qualified as required by the subject of the procurement.
(4) (new – SG 94/08, in force from 01.01.2009; .revoked. – SG 93/11, in force from 26.02.2012; new – SG 33/12 ) In case of assignment of public procurement orders containing or requiring classified information, commission members can be only individuals, holding a permit for access to classified information in compliance with the requirements of the Law for protection of classified information.
(5) (amend. - SG 37/06, in force from 01.07.2006; prev. text of para 4 – SG 94/08, in force from 01.01.2009) In case of open procedure the commission shall be appointed by the contracting authority upon expiration of the term for accepting the offers, and in case of limited procedure, competitive dialogue or procedure of negotiation - upon expiration of the term for accepting the applications for participation.
(6) (amend. - SG 37/06, in force from 01.07.2006; prev. text of para 5, amend. – SG 94/08, in force from 01.01.2009) The contracting authority shall set a term for conclusion of the work of the commission which must be in accordance with the specific nature of the public procurement. The said term may not be longer than the term of validity of the offers.
(7) (prev. text of para 6 – SG 94/08, in force from 01.01.2009; amend. – SG 82/12) All expenses related to the commission activity shall be paid by contracting authority. Commission members shall receive remuneration for their work, determined by the order of appointment, unless the law provides otherwise.

Art. 35. (1) (amend. - SG 37/06, in force from 01.07.2006) Members of the commission or consultants may be persons who declare that:
1. they have no material interest in the assignment of the public procurement to a definite candidate or participant;
2. (amend. - SG 52/10; amend. - SG 97/10, in force from 10.12.2010; amend. – SG 93/11, in force from 26.02.2012) they are not "affiliated persons" with an applicant or a participant in the procedure or with subcontractors appointed by him/her, or with members of their management or control bodies;
3. (new – SG 94/08, in force from 01.01.2009; amend. - SG 97/10, in force from 10.12.2010) have no private interest within the meaning of the Law on Prevention and Establishment of Conflict of Interests as regards to assigning the public procurement.
(2) The members of the commission and the consultants shall be obliged to keep secret the circumstances they have learned in connection with their work in the commission.
(3) (amend. – SG 94/08, in force from 01.01.2009) The members of the commission and the consultants shall present to the contracting authority a declaration for compliance of the circumstances under para 1 and for observance of the requirements under para 2 after receiving the list of candidates or participants and at each stage of the procedure where a change of the declared circumstances occurs.

Art. 36. (1) The decisions of the commission shall be taken by a majority of its members. When a member of the commission is against the decision taken he/she shall sign the records with reservation and shall present his/her motives in writing.
(2) Where, due to objective reasons, a member of the commission cannot fulfil his/her duties and he/she cannot be substituted by a reserve member, the contracting authority shall issue an order for appointing a new member.
(3) (new - SG 37/06, in force from 01.07.2006; revoked – SG 94/08, in force from 01.01.2009)

Art. 36a. (new – SG 93/11, in force from 26.02.2012) (1) The contracting authority or an authorized person referred to in Art. 8, par. 2 shall have the right to monitor the work of the commission in charge of conducting of the procedure prior to issuance of relevant decisions.
(2) In the course of monitoring referred to in par. 1 the contracting authority shall review only the content of the records produced by the commission on the conformity with the legal provisions and preliminary announced terms and conditions of the public procurement.
(3) Provided that in the course of monitoring referred to in par. 1 violations in the commission work are identified, which may be corrected, without having to suspend the procedure, the contracting authority shall issue written instructions for their correction.
(4) The contracting authority instructions referred to in par. 3 shall be binding for the commission. The undertaken actions and the adopted decisions for fulfillment of instructions shall be recorded in a protocol, whereas in case of any disagreement, a dissenting opinion shall be attached thereto.

Art. 37. (1) (prev. text of art. 37, amend. - SG 37/06, in force from 01.07.2006) The contracting authority shall determine the contractor of the public procurement on the grounds of an assessment of the offers by one of the following criteria, indicated in the notice:
1. the lowest price;
2. economically most favourable offer.
(2) (new - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009) If the chosen criterion is economically the most favourable offer, the contracting authority shall be obliged to determine the indices, their relative weight and methodology for determining the assessment by each index, including digital admissible values and its evaluation within limits set in advance. Where, due to objective reasons, it is impossible the relative weight to be indicated, the contracting authority shall arrange them by importance in descending order.
(3) (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) The criteria under para 1 shall apply for evaluation of offers, which:
1. meet the requirements announced in advance by the contracting authority, and
2. have been filed by participants with regards to whom there are no circumstances under Art. 47, para 1 and 5 as well as the ones indicated in the notice as per Art. 47, para 2, and who meet the requirements for financial and economic standing, technical possibilities and qualification.
(4) (new - SG 37/06, in force from 01.07.2006) If the chosen criterion is economically the most favourable offer and the contracting authority has indicated in the notice that he/she admits presentation of options, subject to assessment shall be all options proposed, which meet the announced requirements under art. 28, par. 1, item 5.
(5) (new - SG 37/06, in force from 01.07.2006) In the cases under par. 4 the participant shall take part in the rating only with the option, which has acquired the highest assessment

Art. 38. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) All procedures under this Law shall wind up by a decision for:
1. designating a contractor under a public procurement contract, as well as under a contract concluded by implementation of frame agreement, a dynamic delivery system or a system for preliminary selection;
2. concluding a frame agreement;
3. (revoked – SG 93/11, in force from 26.02.2012)
4. classifying the participants and/or awarding a prize and/or other payments in a project competition;
5. termination of the procedure.

Art. 39. (1) (amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall terminate the procedure by a justified decision when:
1. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. And suppl.– SG 93/11, in force from 26.02.2012) not a single offer, application or a project have been filed, or there is no candidate or participant who meets the requirements set out in Art. 47 through 53a;
2. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; suppl. – SG 93/11, in force from 26.02.2012) all offers or projects do not meet the requirements announced by the contracting authority in advance;
3. all offers meeting the requirements announced in advance by the contracting authority exceed the financial resource he can provide;
4. (amend. - SG 37/06, in force from 01.07.2006; amend. And suppl. – SG 93/11, in force from 26.02.2012) the first and the second rated participants refuse to conclude a contract;
5. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) there is no more a necessity of holding the procedure as a result of substantial change of the circumstances or in case of impossibility of providing financing for fulfilment of the procurement for reasons which the contracting authority could not have foreseen;
6. (amend. - SG 37/06, in force from 01.07.2006) violations in its opening and holding are established, which cannot be removed without changing the terms under which the procedure has been announced;
7. (new - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009) due to presence of some of the grounds under art. 42, para 1, public procurement contract is not concluded.
(2) (new – SG 94/08, in force from 01.01.2009) Contracting authorities may terminate the proceedings by a reasoned decision, in case:
1. (amend. – SG 93/11, in force from 26.02.2012) only one offer, application for participation or project have been submitted;
2. (amend. and suppl. – SG 52/10; suppl. – SG 93/11, in force from 26.02.2012) there is only one candidate or participant who meets the requirements set out in Art. 47 through 53a or only one offer or project meets the prerequisites announced in advance by the contracting authority;
3. (new – SG 93/11, in force from 26.02.2012) the applicant, having been ranked first:
a) refuses to sign a contract, or
b) fails to meet any of the requirements referred to in Art. 42, par. 1, or
c) does not meet the requirements of Art. 47, par. 1 and 5 or the requirements of Art. 47, par. 2, where these are mentioned in the notice;
4. (new – SG 33/12) where the grounds referred to in Art. 79, par. 9, item 2, Art. 83d, par. 8, item 2 and Art. 88, par. 8, item 2 are existing.
(3) (amend. and suppl. - SG 37/06, in force from 01.07.2006; prev. text of para 2, suppl. – SG 94/08, in force from 01.01.2009) The contracting authority shall be obliged, within 3 days from the decision under para 1 or 2, to notify the candidates or the participants of the termination of the public procurement procedure, as well as to send a copy of it to the executive director of the agency.
(4) (prev. text of para 3 – SG 94/08, in force from 01.01.2009) In the cases of para 1, item 3 the contracting authority shall obligatorily include in the decision the lowest offered price and he may not conclude a contract for the same object at a price equal or higher than the one indicated by the decision, on holding another procedure within the same year.
(5) (suppl. – SG 37/06, in force from 01.07.2006; prev. text of para 4, suppl. – SG 94/08, in force from 01.01.2009) On termination of the public procurement procedure under para 1, item 3, 5 and 6 or para 2 the contracting authority shall reimburse to the candidates or the participants the expenses incurred by them for buying the documentation for participation in the procedure within 14 days from the decision under para 1 or para 2.
(6) (new – SG 93/11, in force from 26.02.2012) Where the initially announced procedure has been terminated, the contracting authority may open a new procedure for assignment of a public procurement order with the same subject only if the decisions for termination has been enforced.

Art. 40. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The contracting authority may revoke the decision for selection of a contractor upon its enforcement, but prior to conclusion of the contract, and to issue a decisions for termination of the procedure, where the circumstances referred to in Art. 39, par. 1, item 4, 5 and 7 and par. 2, item 3 have occurred.

Section VI.
Public Procurement Contract
Art. 41. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall conclude a written public procurement contract with the participant, chosen for contractor as a result of conducted procedure.
(2) (amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to conclude a contract, conforming with the project attached to the documentation, supplemented with all proposals of the offer of the participant, on the ground of which he/she has been selected as a contractor.
(3) (amend. – SG 52/10) The contracting authority shall not be entitled to conclude the contract prior to expiry of the 14-days term from the notification of the interested candidates and/or interested participants of the decision for designation of a contractor.
(4) (amend. – SG 52/10) The contracting authority shall conclude the contract within one month from entry into force of the decision for designating a contractor or of the order with which has been admitted pre-execution or this decision, however not prior to the expiry of the term fixed in para 3.
(5) (new – SG 52/10; suppl. – SG 93/11, in force from 26.02.2012) The contracting authority shall not be entitled to conclude a contract with the designated contractor before all decisions related to the procedure enter into force, unless preliminary execution has been admitted.
(6) (prev. text of para 5 – DG 52/10) Shall not be admitted conclusion of termless public procurement contracts.

Art. 41a. (new – SG 52/10) The contracting authority may conclude a public procurement contract prior to the expiry of the term fixed in Art. 41, para 3, where:
1. the contractor is designated as a result of a negotiation procedure without an notice where only one participant has been invited;
2. the designated contractor is the only interested participant and there are no interested candidates;
3. the contract is concluded on the grounds of a frame agreement with one participant.

Art. 41b. (new – SG 52/10) (1) (amend. – SG 33/12) As regards to the persons under Art. 122i, para 1, null and void shall be considered contracts or frame agreements, concluded:
1. (new – SG 93/11, in force from 26.02.2012) without public procurement assignment procedure, regardless the grounds for its conduction;
2. (prev. item 1, amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) in case of unlawful implementation of the grounds under Art.4, Art. 12, para 1, Art. 13, para 1, Art. 90, para 1, Art. 103, para 2 or Art. 119c, par. 3;
3. (prev. item 2 – SG 93/11, in force from 26.02.2012) prior to entry into force of any of the decisions of the contracting authority issued in relation to the procedure, and an infringement is established which has affected the ability of:
a) an interested person to submit an application for participation or an offer;
b) an interested candidate to submit an offer;
c) an interested candidate or participant to take part in the process of designating a contractor.
(2) (suppl. – SG 33/12) The contract or the frame agreement shall retain its effect in those cases where a decision as per Art. 122d, para 4 has entered into force.

Art. 41c. (new – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) (1) (amend. – SG 33/12) The contracting authority may publish a voluntary transparency notice, where Art. 4, item 2, 4 and 5, Art. 12, par. 1, items 2 – 9, 11 - 15, Art. 13, par. 1, Art. 90, par. 1, Art. 103, par. 2 or Art. 119c, par. 3are applied.
(2) The voluntary transparency notice is an individual administrative act, containing minimum:
1. name and information about the contracting authority;
2. description of the subject of the contract, which the contracting authority is planning to conclude;
3. justification for application of the grounds referred to in par. 1;
4. name and information about the selected contractor.
(3) The notice referred to in par. 1 shall be issued in Bulgarian language in a form, approved by Commission Implementing Regulation (EU) No 842/2011 of 19 August 2011 establishing standard forms for the publication of notices in the field of public procurement and repealing Regulation (EC) No. 1564/2005 (OJ, L 222/1 of 27 August 2011), herein after referred to "Implementing Regulation (EU) No. 842/2011".
(4) In those cases where the contracting authority uses a voluntary transparency notice, they shall forward it to the Public Procurement Register for publication, and where the procurement value is equal to or exceeding those fixed in Art. 45a, para 2 – the notice shall also be sent to the Official Journal of the European Union.
(5) In cases referred to in Art. 41b, par. 1, item 2 the contract shall remain valid, if concluded after entering of voluntary transparency notice into force and the contracting authority has met the provisions of par. 1 – 4.

Art. 42. (amend. - SG 37/06, in force from 01.07.2006) (1) (prev. text of Art. 42 – SG 94/08, in force from 01.01.2009) The public procurement contract shall not be concluded with a participant chosen for contractor who, on signing the contract:
1. does not present a document for registration in compliance with the requirement of art. 25, para 3, item 2;
2. (amend. – SG 93/11, in force from 26.02.2012) does not fulfil the obligation under art. 47, para 10 and art. 48, para 2;
3. does not present the fixed guarantee for performance of the contract;
4. (new – SG 52/10) fails to make the respective registration, does not provide certain document or fails to fulfill some other requirement required for the performance of the public procurement set out in a statutory instrument or in an administrative act, provided that the said requirement has been set by the contracting authority upon initiation of the procedure.
(2) (new – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012) Paragraph 1, item 2 shall not apply in the cases referred to in Art. 47, para 11.

Art. 43. (1) (amend. - SG 37/06, in force from 01.07.2006) The parties to the public procurement contract may not amend it.
(2) (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Amendment of a public procurement contract shall be admitted by way of an exception:
1. (suppl. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) in case as a result of unforeseeable circumstances the following required:
a) amendment of contractual terms, or
b) partial replacement of works subject to a construction or service order, where this is in contracting authority interest and does not lead to an increase of contractual price, or
c) reduction of the total cost of the contract in contracting authority interest due to reduction of contractual prices or agreed quantities or cancelling of works, or
2. (amend. and suppl. – SG 94/08, in force from 01.01.2009; revoked – SG 93/11, in force from 26.02.2012);
3. (new – SG 94/08, in force from 01.01.2009; suppl. – SG 93/11, in force from 26.02.2012) in case of change of prices regulated by the state, where main subject of the public procurement contract is activity whose price is regulated by the state and its term for implementation exceeds 12 months, or
4. (new – SG 93/11, in force from 26.02.2012) where an increase of the price is required due to an adopted regulating act – up to the amount, arising as a direct and immediate result thereof, or
5. (new – SG 93/11, in force from 26.02.2012) in case of extension of the validity of a delivery or service provision contract with recurring or continuous implementation, provided that the following conditions are met concurrently:
a) not later than 6 months prior to expiration of the validity of the contract the contracting authority has opened a procedure with the same subject for a subsequent period, which has not been finalized with a selection of a contractor;
b) the validity of the contract is extended until a contractor is selected, however for not more than 6 months;
c) any termination of the delivery or of the service would result in major difficulties for the contracting authority;
6. (new – SG 33/12) in contracts referred to in Art. 3, par. 2 for a value exceeding 50 million BG levs in case of occurrence of circumstances, which could not be foreseen as of the time of conclusion of the contract and as a result of which the contract affects the legal interests of any of the parties thereto.
(3) (new – SG 94/08, in force from 01.01.2009) A change of prices on the ground of para 2, item 3 may be up to the amount of the actual costs increase of the contractor occurred as a result of alteration of prices regulated by the state.
(4) (prev. text of par. 2- SG 37/06, in force from 01.07.2006; prev. text of para 3 – SG 94/08, in force from 01.01.2009) The contracting authority may terminate the public procurement contract if, as a result of circumstances having occurred after its conclusion, he/she is not in a position to fulfil his obligations. In this case the contracting authority shall owe to the contractor indemnification for suffered damages from the conclusion of the contract.
(5) (new – SG 33/12) The contracting authority shall be obliged to terminate a contract concluded based on a frame agreement, which has been announced invalid on any of the grounds referred to in Art. 41b, par. 1.

Art. 44. (1) (suppl. – SG 37/06, in force from 01.07.2006) The contracting authority shall be obliged to send an information for every concluded public procurement contract or for concluded frame agreement to the Agency for entry in the Public Procurement Register not later than 7 days from the conclusion of the contract or of the frame agreement.
(2) (amend. - SG 37/06, in force from 01.07.2006) The information under para 1 shall be worked out in the form under art. 19, par. 7.
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) Information under par. 1, whose notice contradicts the law or public interest, including in the field of defense and security, shall not be entered in the Public Procurement Register. In this case the contracting authority shall provide reasons before the Agency.
(4) (new - SG 37/06, in force from 01.07.2006) Information, which, according to the form under art. 19, par. 7, is not designated for publishing, shall be used for statistical objectives.
(5) (new - SG 37/06, in force from 01.07.2006) The information about concluded contracts on the basis of dynamic purchasing system may be sent once in a quarter. In this case the contracting authority must send the information within 7-days term after the end of each quarter.
(6) (new - SG 37/06, in force from 01.07.2006) The contracting authority shall be obliged to send to the Agency information about every contract, concluded on the grounds of a frame agreement, within 7-days term after its conclusion.
(7) (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The contracting authorities may publish information about the concluded contract subject to application of:
1. Art. 4, items 2, 4 and 5, Art. 12, para 1, items 2 through 9, 11 through 15 and where the prices of the contracts exceed the minimum thresholds referred to in Art. 14, par. 4;
2. Art. 13, par. 1, if the contracts are for the values referred to in Art. 14, par. 2.
(8) (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; suppl. – SG 93/11, in force from 26.02.2012) The information specified in para 7 shall be prepared according to the respective form under Art. 19, para 7 and shall be sent to be entered in the Public Procurement Register within 7 days from the concluding of the contract. The contracting authority must obligatorily indicate in the information its justifications for the application of the respective grounds.
(9) (new – SG 93/11, in force from 26.02.2012) The contracting authority shall send to the Agency information within one month after the accomplishment of public procurement contact or after its premature termination.
(10) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Not later than 31 March every year, following the reference year, the contracting authority shall send summarized information in a form approved by the Agency Managing Director regarding all spent funds for public procurement orders in an amount referred to in Art. 14, par. 4 and 5.

Art. 45. For all unsettled issues in connection with the conclusion, fulfilment and termination of the public procurement contracts shall apply the provisions of the Commercial Law and of the Law for the obligations and contracts.

Section VII.
Sending information to the European commission (new - SG 37/06, in force from 01.01.2007)
Art. 45a. (new - SG 37/06, in force from 01.01.2007) (1) (amend. – SG 93/11, in force from 26.02.2012) Contracting authorities shall be obliged to send for promulgation, in addition to the Register of Public Procurement Order, also to the Official Journal of the European Union the following documents:
1. (suppl. – SG 52/10) the advance notices or messages for publication of advance notices in the buyer’s profile – in the cases of public procurement for construction;
2. advance notices - invitations;
3. notices for initiation of proceedings;
4. (new – SG 93/11, in force from 26.02.2012) information on amendment of the notice and/or the documents;
5. (prev. item 4 – SG 93/11, in force from 26.02.2012) information concerning concluded contracts or frame agreements;
6. (prev. item 5 – SG 93/11, in force from 26.02.2012) information concerning project competitions which have been held;
7. (prev. item 6 – SG 93/11, in force from 26.02.2012) simplified public procurement notices within the frames of dynamic purchasing.
(2) (amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The documents referred to in para 1 shall be sent, where:
1. contracting authorities under Art. 7, par. 1, which are central executive power bodies, their associations, and also contracting authorities under Art. 7, item 2 and 4 assign public procurement orders under Art. 3, par. 1 for amounts, VAT exclusive equal or higher than:
a) BGN9 779 000 – for construction;
b) BGN254 254 – for supplies, services under Attachment No. 2 and a project competition;
c) BGN391 160 – for services under Attachment No. 2, category 8, telecommunication services of category 5, equivalent to reference numbers as per CPV 7524, 7525 and 7526, services under Attachment No. 3, and also a project competition, related to these services;
2. contracting authorities referred to in Art. 7, item 1, which are territorial executive power bodies, their associations and also contracting authorities under Art. 7, item 3 which assign public procurement orders under Art. 3, par. 1 amounting to, VAT exclusive, or higher than:
a) BGN9 779 000 – for construction;
b) BGN391 160 – for supplies, services and a project competition;
3. contracting authorities under Art. 7, item 1, carrying out activities in the field of defense, shall assign public procurement orders under Art. 3, par. 1 amounting to, VAT exclusive, or higher than:
a) BGN9 779 000 – for construction;
b) BGN391 160 – for supplies, and 254 254 – for supplies under Attachment No. 4;
4. contracting authorities, carrying out activities in the field of defense and which are central executive power bodies, shall assign public procurement orders under Art. 3, par. 1 amounting to, VAT exclusive, or higher than:
a) BGN254 254 – for services under Attachment No. 2 and project competition;
b) BGN391 160 – for services under Attachment No. 2, category 8, telecommunication services of category 5, equivalent to reference numbers under CPV 7524, 7525 and 7526, services under Attachment No. 3, and a project competition, related to these services;
5. contracting authorities, carrying out activities in the field of defense and which are territorial executive power bodies, shall assign public procurement orders under Art. 3, par. 1 for services and a project competition amounting to, VAT exclusive, or higher than BGN391 160;
6. contracting authorities referred to in Art. 7, item 5 and 6 shall assign public procurement orders under Art. 3, par. 1 amounting to, VAT exclusive, or higher than:
a) BGN9 779 000 – for construction;
b) BGN782 320 – for supplies, services and competition for a design;
7. contracting authorities under Art. 7 shall assign public procurement orders under Art. 3, par. 2 amounting to, VAT exclusive, or higher than:
a) BGN9 779 000 – for construction;
b) BGN782 320 – for supplies, services and competition for a design;
(3) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In cases referred to in Art. 14a, par. 3 the documents under par. 1 shall be sent, where the total estimated cost of construction works order, VAT exclusive, is equal to or higher than BGN 9 779 000.
(4) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In cases referred to in Art. 14a, par. 4 the documents under par. 1 shall be sent, where the total estimated cost of a service order, VAT exclusive, is equal to or higher than BGN391 160.
(5) (new – SG 52/10; prev. par. 3 – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Contracting authority shall also send the advance notices according to para 1 or the messages for publication of advance notices in the buyer’s profile in those cases where the public procurement under Art. 3, par. 1 by category of deliveries and services according to Appendix No 2 to Art. 5, para 1, item 1 has an equivalent in BGN equal to or exceeding EUR 750 000 as per the official exchange rate of BG lev to EUR, and for orders under Art. 3, par. 2 – amounting to or exceeding those referred to in par. 2, item 7. Contracting authorities shall be obliged to send notifications in advance only when they intend to use the shorter terms referred to in Art. 64, par. 2, Art. 81, par. 2 and Art. 104, par. 1.
(6) (prev. text of para 3 – SG 52/10; prev. par. 4 – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to send the notices for establishing systems of preliminary selection pursuant to para 1.
(7) (prev. text of para 4, amend. – SG 52/10; prev. par. 5, amend. – SG 93/11, in force from 26.02.2012) The contracting authority may send the documents referred to in para 1, 5 and 6 and to the Official Journal of the European Union by post, fax or by electronic means, and in the cases of Art. 76, para 3 and Art. 86, para 3 – by fax or by electronic means. The message under para 1, item 1 shall be sent by electronic means.
(8) (prev. text of para 5 – SG 52/10; prev. par. 6, amend. – SG 93/11, in force from 26.02.2012) The contracting authority may not publish advance notices in the buyer profile prior to the date of sending the notice as per para 1, item 1 for publication in the Official Journal of the European Union.
(9) (prev. text of para 7 – SG 52/10; prev. par. 8 – SG 93/11, in force from 26.02.2012) The documents referred to in par. 1, 5 and 6 shall be sent for promulgation in the Official Journal of the European Union in Bulgarian language, in compliance with forms, approved by Implementing Regulation (EU) No. 842/2011. The version in Bulgarian language shall be the only authentic text.
(10) (prev. text of para 8, amend. – SG 52/10; prev. par. 9, amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to send the documents under para 1, 5 and 6 for publication in the Official Journal of the European Union not later than their sending for publication in the Public Procurement Register. The documents sent for publication in the state shall also indicate the date of their sending to Official Journal.
(11) (prev. text of para 9 – SG 52/10; prev. par. 10 – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to
1. (amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) publish the same data in the documents which are to be sent to the Official Journal of the European Union and the ones sent to the Public Procurement Register;
2. to present upon request proofs of the dates, on which the documents are sent, and the confirmation of the date of their publication, provided by the Official Journal of the European Union.
(12) (prev. text of para 10 – SG 52/10; prev. par. 11, amend. – SG 93/11, in force from 26.02.2012) Where there are any discrepancies between the information published in the Public Procurement Register and in the Official Journal of the European Union, the information promulgated in the Official Journal shall be considered genuine.
(13) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The contracting authorities may sent to the Official Journal of the European Union an notice of an assigned public procurement order also in cases, where the provision of Art. 4, item 2, 4 and 5, Art. 12, par. 1, items 2 through 9, 11 through 15 and Art. 13. par. 1 apply, where the cost of the contract is equal or higher than the ones, referred to in par. 2. The contracting authority must indicate in the notice justifications for applying the respective exception.

Chapter four.
GENERAL RULES FOR PARTICIPATION IN A PUBLIC PROCUREMENT PROCEDURE
Section I.
Requirements to the Candidates and the Participants (Title amend. - SG 37/06, in force from 01.07.2006)
Art. 46. (suppl. – SG 37/06, in force from 01.07.2006) Participant in a public procurement procedure may be every candidate or participant who meets the requirements announced in advance.

Art. 47. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall remove from participation in a public procurement procedure a candidate or participant who:
1. has been convicted by an enacted sentence, unless rehabilitated, for:
a) a crime against the financial, tax or insurance system, including money laundering;
b) bribe under art. 301 – 307 of the Penal code;
c) participation in a criminal organisation under art. 321 – 321a from the Penal code;
d) a crime against the property under art. 194 – 217 from the Penal code;
e) offence against the economy under art. 219 – 252 from the Penal code;
f) (new – SG 33/12) an offence under Art. 108a of the Penal Code – for assigning of public procurement orders under Art. 3, par. 2.
2. has been declared bankrupt;
3. is in liquidation proceedings or in a similar procedure according to the national laws and by laws.
(2) (amend. – SG 33/12) The contracting authority may remove from participation in the public procurement procedure a candidate or a participant:
1. (suppl. – SG 33/12) who is in initiated bankruptcy proceedings or has concluded out-of-court settlement with his/her creditors within the meaning of art. 740 of the Commercial law, in case the candidate or the participant is a foreign person - is in a similar procedure according to the national laws and by laws, including when his/her activity is under court injunction, or the candidate or participant has discontinued his/her activity;
2. (amend. – SG 33/12) who is divested of the right to practice a definite profession or activity according to the legislation of the country, where the violence is committed, including for violations related to export of products in the field of defense and security;
2a. (new – SG 33/12) who is liable for non-fulfillment of obligations under a public procurement contract, including regarding information safety and supplies safety in orders under Art. 3, par. 2 evidenced by the contracting authority by an enforced court decision;
3. (amend. – SG 93/11, in force from 26.02.2012; suppl. – SG 33/12) who has got liabilities in the meaning of art. 162, par. 2, item 1 of the Tax-insurance Procedure Code to the government or to a municipality established by an act of a competent body, unless deferring or postponement of the liability has been admitted, or has got liabilities for taxes or social insurance contributions according to the laws of the state, where the applicant or the participant is established;
4. (new - SG 43/11, in force from 15.06.2011; suppl. – SG 33/12) who has been imposed an administrative penalty for employment of foreigners residing illegally during the last 5 years;
5. (new – SG 33/12) who has been convicted with an enforced sentence for an offense under Art. 313 of the Penal code regarding conducting of procedures for assignment of public procurement;
6. (new – SG 33/12) for whom it has been found out by the security services in the meaning of the Law for protection of classified information, based on whatever evidences, including intelligence means, that he/she is not adequately reliable, which excludes threat for the national security, when assigning orders under Art. 3, par. 2.
(3) (amend. – SG 93/11, in force from 26.02.2012) Where the contracting authority is planning to remove an applicant or a participant subject to existence of any of the circumstances referred to in par. 2, the contracting authority is obliged to indicate these circumstances in the public procurement notice, and in case of contracting procedures without prior notification – in the notice of invitation.
(4) (amend. – SG 94/08, in force from 01.01.2009; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The provisions of par. 1, item 1 and of par. 2, item 2 and 5, where indicated by the contracting authority in the notice, shall be applied, as follows:
1. as regards to general partnerships - to the persons referred to in Art. 84, para1 and Art. 89, para 1 of the Commercial Law;
2. as regards to limited partnerships - to the persons referred to in Art. 105 of the Commercial Law, without the limited liable partners;
3. as regards to limited liability companies - to the persons referred to in Art. 141, para 2 of the Commercial Law, and in case of single person limited liability company - to the persons referred to in Art. 147, para 1 of the Commercial Law;
4. as regards to joint-stock companies - to the persons referred to in Art. . 235, para 2 of the Commercial Law, and where there is no authorization - to the persons under Art. 235, para 1 of the Commercial Law;
5. as regards to partnerships limited by shares - to the persons referred to in Art. 244, para 4 of the Commercial Law;
6. (new – SG 93/11, in force from 26.02.2012) as regards to single owners – for the natural person who is a businessman;
7. (suppl. – SG 52/10; prev. item 6 - SG 93/11, in force from 26.02.2012) in all other cases, including for foreign persons - to the persons representing the candidate or participant.
8. (new – SG 52/10; prev. item 7, amend. - SG 93/11, in force from 26.02.2012) In the cases referred to in items 1 through 7 also regarding the administrators, where applicable; in those cases where a foreign person has more than one authorized representative, the declaration shall be submitted only by the person whose representative powers cover the territory of the Republic of Bulgaria, respectively the territory of the state in which is conducted the procedure with a contracting authority as per Art. 7, item 2.
(5) (amend. – SG 94/08, in force from 01.01.2009) May not participate in a procedure for assigning public procurement candidates or participants:
1. (amend. – SG 52/10; amend. - SG 97/10, in force from 10.12.2010; amend. - SG 93/11, in force from 26.02.2012) where the persons under para 4 are affiliated persons with the contracting authority or with employees, holding managerial position at his/her organization;
2. (amend. - SG 97/10, in force from 10.12.2010) who have concluded contracts with a person under Art. 21 or 22 of the Law on Prevention and Establishment of Conflict of Interests.
(6) (new - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Regarding the circumstances referred to in Art. 47, par. 1, item 2 and 3, par. 2, item 1, 3 and 4 and par. 5, item 2, where the applicant or the participant is a legal entity, submission of a declaration by one of the persons, authorized to represent it severally, shall be sufficient.
(7) (prev. par. 6 - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In the cases under art. 90. par. 1, item 12, art. 103, par. 2, item 11 and art. 119c, par. 3, item 10 the requirements under par. 1, item 2 and 3 and par. 2, item 1 shall not apply.
(8) (prev. par. 7 - SG 93/11, in force from 26.02.2012) In case the applicant or the participant provides for the participation of subcontractors in the fulfilment of the procurement, the requirements under par. 1 and 5 and the ones, indicated in the notice under par. 2 shall also be applied to the subcontractors.
(9) (prev. par. 8 - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In filing the offer or application for participation the applicant or the participant shall certify by a declaration the absence of the circumstances under para 1 and 5 and the requirements, indicated in the notice under par. 2, item 1 - 5.
(10) (amend. – SG 94/08, in force from 01.01.2009; prev. par. 9 - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) At signing the public procurement contract the participant chosen for a contractor shall be obliged to present documents by the respective competent bodies for certifying the absence of the circumstances under para 1 and the circumstances referred to in the notice under para 2, items 1, 2, 3 and 5.
(11) (new – SG 94/08, in force from 01.01.2009; prev. par. 10, amend. - SG 93/11, in force from 26.02.2012) The contracting authority, with regards to whom Art. 23, para 4 of the Law of the Commercial Register is applied, may not require the documents under para 10, if these documents refer to circumstances entered in the Commercial register.

Art. 48. (1) (amend. - SG 37/06, in force from 01.07.2006) A foreign natural or legal person, for whom in the state, where he/she is established, a circumstance under art. 47, par. 1 and 2 is present, may not participate in a procedure for assigning public procurement.
(2) (amend. - SG 37/06, in force from 01.07.2006) At signing the public procurement contract the participant, chosen for a contractor, shall be obliged to present documents for certifying the absence of the circumstances under art. 47, para 1 and the ones, indicated in the notice under art. 47, par. 2, issued by a competent body, or an extract from a court register or an equivalent document by a judicial or administrative body in the country where he/she is established.
(3) (new - SG 37/06, in force from 01.07.2006) In case the documents under par. 2 are not being issued in the respective country or if they do not include all cases under art. 47, par. 1 and 2, the participant shall present an affidavit, if such is of legal importance according to the law of the country, where he/she is established.
(4) (new - SG 37/06, in force from 01.07.2006) If the affidavit is of no legal importance according to the respective national law, the participant shall present an official application, made before judicial or administrative body, notary or competent professional or commercial authority in the country where he/she is established.

Art. 49. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority may require from every candidate or participant to prove his/her registration in some of the professional or commercial registers in the country where he/she is established, or to present a declaration or a certificate for the presence of such registration by the competent authorities according to the national legislation.
(2) In the procedures for assigning public procurement for services, as far as the candidates or the participants must have a special permission or must be members of a definite organization in order to fulfil the respective service in their country, the contracting authority may require from them to prove the presence of such permission or membership.
(3) (new – SG 52/10) For the purpose of admission to a procedure the contracting authority shall not be entitled to require a certificate or another document of registration from an administrative body, if the candidates or participants established in another Member state of the European Union provide an equivalent document issued in the state where they are established.

Art. 50. (1) (suppl. – SG 37/06, in force from 01.07.2006) For proving the economic and financial status of the candidates or the participants, the contracting authority may require from them the presentation of one or several of the following documents:
1. certificates by banks or a copy of insurance for professional liability;
2. (amend. and suppl. - SG 37/06, in force from 01.07.2006) an annual financial report or some of its constituents when their publication is required by the legislation of the state in which the candidate or the participant has been established;
3. (suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) information for the total turnover and for the turnover of goods, services or construction, which are subject of the procurement, for the last three years depending on the date, on which the candidate or the participant has been constituted or has started his/her activity.
(2) (suppl. – SG 37/06, in force from 01.07.2006) Where, for objective reasons, the candidate or the participant cannot produce the documents required by the contracting authority he may prove his economic and financial status by any other document accepted by the contracting authority as appropriate.
(3) (suppl. – SG 37/06, in force from 01.07.2006; revoked - SG 93/11, in force from 26.02.2012).

Art. 51. (1) (prev. text of art. 51, suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) For proving the technical capacity and/or the qualification of the applicants or the participants the contracting authority may require from them to produce one or several of the following documents:
1. (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 33/12) a list of the basic contracts for deliveries and services fulfilled during the last three years, and in case of orders under Art. 3, par. 2 – over the last 5 years, including the values, the dates and the recipients, accompanied by references for good fulfilment;
2. (new - SG 37/06, in force from 01.07.2006) a list of the contracts for construction, fulfilled during the last 5 years, accompanied by references for good fulfilment for the most important construction sites; these references indicate the value, the date and the place of the construction, as well as whether it is performed professionally and in compliance with the normative requirements;
3. (prev. text of item 2, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) a description of the technical equipment and the measures for providing the quality, and also of the equipment for testing and studying, and in case of orders under Art. 3, par. 2 – also of the internal rules of the participant regarding the intellectual property;
4. (prev. text of item 3 - SG 37/06, in force from 01.07.2006) a list of technical persons, including those in charge of quality control;
5. (prev. text of item 4 - SG 37/06, in force from 01.07.2006) samples, description and/or photos of the goods to be supplied, whose authenticity must be proven if the contracting authority so requires;
6. (prev. text of item 5, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) certificates issued by accredited persons for quality management, certifying the compliance of the goods with the respective specifications or standards;
7. (prev. text of item 6, amend. - SG 37/06, in force from 01.07.2006) documents certifying the degree of education and professional qualification of the candidate or the participant and/or of his managerial employees, or of the persons in charge of the fulfilment of the service or construction, as well as the delivery, in case it includes services and/or the preparation and entering the site into exploitation;
8. (prev. text of item 7, amend. and suppl. - SG 37/06, in force from 01.07.2006) declaration for the average annual number of workers and employees and for the number of managerial employees of the candidate or the participant during the last three years;
9. (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) a declaration of the technical equipment, which the candidate or the participant possesses for fulfillment of public procurement for services or construction, and in all cases of assignment of orders under Art. 3, par. 2 – also for the number of workers and employees and know-how and/or the sources of supply with indication of geographical location, where it is outside the territory of the European Union, which are available to the applicant or the participant for the implementation of the order, in order to meet possible increase of contracting authority’s needs resulting from a crisis or for provisions for maintenance, upgrading or adapting the supplies, covered by the order;
10. (prev. text of item 8, suppl. - SG 37/06, in force from 01.07.2006) data for own or hired technical persons to be used by the candidate or the participant for the construction;
11. (new - SG 37/06, in force from 01.07.2006) for the public procurement for construction - a description of the measures for protection of the environment, which the candidate or the participant shall apply in fulfilment of the procurement, if the contracting authority has provided such in the notice;
12. (new – SG 33/12) a permit, a certificate or approval of access to classified information in the meaning of the Law for protection of classified information, including the opportunity for processing, storage and transmission of such information at the protection level, required by the contracting authority – in case of orders, containing or requiring classified information.
(2) (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) In the procedures for assigning public procurement for deliveries, which require research of the terrain or installation work, provision of services and/or fulfilment of construction, the contracting authority can lay down requirements to the candidates or the participants with regards to their skills, efficiency and experience to provide the service or to implement the mounting or the construction works.
(3) (new – SG 33/12) The contracting authority may determine in the notification an additional term, within which persons, not holding a permit, a certificate or an approval referred to in par. 1, item 12 are to provide the respective document. Within the term for receipt of applications for participation these persons shall file to the contracting authority a declaration of consent for carrying out of a study and shall attach the required documents under the Law for protection of classified information, which shall be sent by the contracting authority to the competent security service.

Art. 51a. (new - SG 37/06, in force from 01.07.2006) Candidate or participant may use the resources of other natural or legal persons in fulfilment of the procurement, on the condition that he/she proves that he/she will have at his/her disposal these resources.
(2) The terms under par. 1 shall also apply when a candidate or a participant in the procedure is an association of natural and/or legal persons.

Art. 52. (suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012; suppl. – SG 33/12) Where the subject of a public procurement is complex or of special purpose, and also in all cases of assignment of orders under Art. 3, par. 2, the contracting authority may inspect the technical capacity of the candidate or the participant and, where necessary, the equipment for testing and studying and the possibilities of providing the quality. The contracting authority may also require this from a competent body of the state where the candidate or the participant is established, if this body agrees to carry out inspection on behalf of the contracting authority.

Art. 53. (1) (suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Where the contracting authority requires presentation of certificates certifying the compliance of the candidate or the participant with standards of systems of quality management the contracting authority shall indicate the systems of quality management through the respective series of European standards.
(2) (new - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) In the cases under art. 51, par. 1, item 11 the contracting authority shall require the submission of certificates, certifying the compliance of the candidate or the participant with certain standards for protection of the environment, and shall indicate the Eco-Management and Audit Scheme of the European Union (EMAS) or the standards for protection of the environment via the respective European or international standards.
(3) (prev. text of par. 2, suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The certificates referred to in par. 1 and 2 must be issued by independent persons, accredited according to the respective series of European standards by Executive Agency "Bulgarian Accreditation Service" or by another national accreditation body, which is a party to the Multinational Agreement for Mutual Recognition of the European Cooperation for Accreditation, in the respective field or to meet the recognition requirements according to Art. 5a, par. 2 of the Law for the national accreditation of conformity recognition bodies.
(4) (prev. text of par. 3, amended. – SG 37/06, in force from 01.07.2006) The contracting authority shall accept equivalent certificates, issued by authorities, established in other Member States, as well as other proof of equivalent measures for ensuring the quality or for protection of the environment.

Art. 53a. (new - SG 37/06, in force from 01.07.2006) (1) Candidate or participant may present a certificate for registration in official list of approved economic entities of a Member state of the European Union.
(2) In the cases under par. 1 the contracting authority may not remove a candidate or a participant from procedure for assigning public procurement or to refuse to conclude a contract with him/her on the ground that he/she has not presented some of the documents under art. 48, par. 2, art. 50, par. 1 and 2, art. 51 and art. 53, par. 1, if the fact is proved by the presented certification.

Art. 53b (new – SG 93/11, in force from 26.02.2012) The contracting authority may not remove an applicant or a participant from the public procurement procedure or to refuse to conclude a contract with him/her for the reason of non-presentation of any of the documents referred to in Art. 50, par. 1, Art. 51 and Art. 53, par. 1, where he/she has submitted a certificate of registration in the Central Professional Constructors Register, whereas the terms and conditions of registration in the Register are identical or higher than the requirements placed by the contracting authority.

Art. 53c. (new – SG 33/12) (1) In cases referred to in Art. 51, par. 1, item 12 contracting authorities shall recognize the permits for access to classified information issued in compliance with the laws of the European Union Member State, in which the applicant or the participant is based, subject to existence of an enforced international treaty or a bilateral agreement for protection of classified information, to which the Republic of Bulgaria is a party. This does not exclude the opportunity, under the terms and conditions and following the procedure of the Law for protection of classified information, to request carrying out of additional research in the respective European Union Member State.
(2) Subject to the provisions of the Law for protection of classified information the contracting authority may request the national security body in the applicant’s state to verify the compliance of the premises or the systems, which would possibly be used, the production and administrative procedures, which will be followed, the information management methods and/or the condition of the personnel, which may be hired for the implementation of the public procurement.

Section II.
Offer
Art. 54. (amend. - SG 37/06, in force from 01.07.2006) (1) In working out the offer every participant shall comply exactly with the requirements announced by the contracting authority.
(2) Until the expiration of the term for filing the offers every participant in the procedure may amend, supplement or withdraw his offer.

Art. 55. (1) (amend. - SG 37/06, in force from 01.07.2006) Every participant in the public procurement procedure shall have the right to present only one offer.
(2) (amend. - SG 37/06, in force from 01.07.2006) When the criterion for assessment of the offers is the economically most favourable offer and the contracting authority has admitted presentation of options, the participant may propose several options in his/her offer.
(3) (new – SG 93/11, in force from 26.02.2012) Where the prices of goods or of services subject to public procurement are subject to regulation, the participants may submit budget offers with prices lower than the regulated.
(4) (new - SG 37/06, in force from 01.07.2006; prev. par. 3 – SG 93/11, in force from 26.02.2012) Admitted for consideration shall be only the options, which meet the minimum requirements, set by the contracting authority.
(5) (prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006; prev. par. 4, suppl. – SG 93/11, in force from 26.02.2012) A person participating in an association or having given consent and is in the offer as a subcontractor of another participant may not present an independent offer.
(6) (new – SG 93/11, in force from 26.02.2012) In a public procurement assignment procedure a natural person or a legal entity may participate in one association only.

Art. 56. (1) Every offer shall contain:
1. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) a copy of the registration document or unified identification code according to Art. 23 of the Law of the Commercial Register in case the participant is a legal entity or a sole trader; a copy of the identification document where the participant is an individual;
2. (new – SG 93/11, in force from 26.02.2012) where participants are associations – a document, undersigned by the persons in the association, where the representing person must be indicated obligatorily;
3. (prev. item 2 – SG 93/11, in force from 26.02.2012) a document for guaranteeing participation;
4. (prev. item 3 – SG 93/11, in force from 26.02.2012) proof of the economic and financial status under art. 50, indicated by the contracting authority in the notice for public procurement;
5. (prev. item 4 – SG 93/11, in force from 26.02.2012) proof of the technical capacity and/or qualification under art. 51 indicated by the contracting authority in the notice for public procurement;
6. (suppl. – SG 37/06, in force from 01.07.2006; prev. item 5 – SG 93/11, in force from 26.02.2012) declaration for absence of the circumstances under art. 47, para 1, 2 and 5;
7. (new – SG 93/11, in force from 26.02.2012) technical proposal for the fuflfillment of the public procurement;
8. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; prev. item 7 – SG 93/11, in force from 26.02.2012) the subcontractors, if the participants envisages such, as well as the kind of activities to be carried out, and the share of their participation;
9. (prev. item 8 – SG 93/11, in force from 26.02.2012) term of fulfilment of the procurement;
10. (prev. item 9 – SG 93/11, in force from 26.02.2012) offered price;
11. (prev. item 10, amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) declaration stating that the requirements for protection of employment, including minimal labour price and labour conditions has been complied with – in the cases referred to in Art. 28, par. 5;
12. (new – SG 93/11, in force from 26.02.2012) declaration of agreement to the terms and conditions laid down in the draft contract;
13. (prev. item 11 – SG 93/11, in force from 26.02.2012other information indicated in the notice or documentation for participation;
14. (amend. - SG 37/06, in force from 01.07.2006; prev. item 12 – SG 93/11, in force from 26.02.2012) list of the documents contained in the offer signed by the participant.
(2) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) Where the participant plans a participation of subcontractors the documents under para 1, item 1, 4, 5, 6 and 11 shall be presented for each of them and the requirements thereto shall be applied according to the type and share of their participation.
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Where a participant in the procedure is an association which is not a corporate body:
1. the documents under para 1, item 1 and 6 shall be presented for each individual or corporate body included in the association;
2. the documents under para 1, item 4 and 5 shall be presented only for those participants, through which the association is evidencing its compliance with the selection criteria referred to in Art. 25, par. 2, item 6;
3. (suppl. – SG 33/12) declaration under par. 1, item 11 shall be presented only for those participants in the association, who will be carried out only construction-related activities or services.
(4) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) Where the candidate in a procedure is a foreign individual or corporate body or their associations the offer shall be filed in Bulgarian language, the document under para 1, item 1 shall be presented in an official translation and the documents under para 1, item 4, 5, 6 and 11 which are drawn in foreign language shall also be presented in translation.
(5) (new – SG 52/10) In those cases where the place of performance of the public procurement is outside the territory of the state, the contracting authority may allow the application for participation and the offer to be presented in an official language of the respective state.

Art. 57. (1) (amend. - SG 37/06, in force from 01.07.2006) The offer shall be filed in a sealed opaque envelope by the participant or by a representative authorised by him personally or by return mail. The participant shall indicate on the envelope an address for correspondence, telephone and, where possible, fax and e-mail, and where the offer regards individually detached positions – the positions it regards.
(2) (amend. – SG 52/10) The envelope under para 1 shall contain three individual sealed non-transparent envelopes with addresses thereon, as follows:
1. (amend. – SG 93/11, in force from 26.02.2012) envelope No 1 with a notice "Documents for selection", in which shall be put the documents required by the contracting authority pursuant to Art. 56, para 1, items 1 through 8, 11 through 14, referring to the selection criteria for the participants and candidates;
2. (suppl. – SG 93/11, in force from 26.02.2012) envelope No with a notice "Offer for the public procurement performance", in which shall be put the documents referred to in Art. 56, par. 1, item 7 and 9, referring to the public procurement performance, according to the criterion chosen by the contracting authority and the requirements laid down in the documentation;
3. envelope No with a notice "Offered price", containing the price offer of the participant.
(3) (new – SG 93/11, in force from 26.02.2012) Where a participant is submitting an offer for more than one separate item, the envelopes No. 2 and 3 shall be presented for each item. If the contracting authority has required presentation of various documents evidencing the compliance with the selection criteria under various separate items, the participants shall present also separate envelopes No. 1.
(4) (prev. par. 3 – SG 93/11, in force from 26.02.2012) On accepting the offer the envelope shall be marked by the serial number, the date and the hour of receipt and the indicated data shall be entered in an incoming register for which a document shall be issued to the bearer.
(5) (amend. and suppl. - SG 37/06, in force from 01.07.2006; prev. par. 4 – SG 93/11, in force from 26.02.2012) The contracting authority shall not accept for participation in the procedure, and shall return immediately to the participants the offers filed after the expiration of the deadline for receiving or presented in unsealed or torn envelope. These circumstances shall be noted in the register under para 3.
(6) (new - SG 37/06, in force from 01.07.2006; prev. par. 5 – SG 93/11, in force from 26.02.2012) The offer may also be presented by electronic means under the conditions and by the order of the Law for the electronic document and the electronic signature. In this case the participant shall be obliged to present to the contracting authority all contracts, which are not in electronic form, following the procedure of par. 1, prior to the expiration of the term for receiving the offers.
(7) (new - SG 37/06, in force from 01.07.2006; prev. par. 6 – SG 93/11, in force from 26.02.2012) The terms and the procedure for receiving and preserving the offers, sent by electronic means, shall be settled by the regulation of implementation of the law.

Art. 58. (1) (amend. - SG 37/06, in force from 01.07.2006) The term of validity of the offers shall be the time during which the participants are bound with the terms of the offers they have filed.
(2) (suppl. – SG 93/11, in force from 26.02.2012) The contracting authority shall determine the term under para 1 in calendar days. The term shall start elapsing from the date, fixed as a deadline for receiving of offers.
(3) (amend. - SG 37/06, in force from 01.07.2006) The contracting authority may require from the rated participants to extend the term of validity of their offers until the moment of conclusion of the public procurement contract.
(4) (new - SG 94/08, in force from 01.01.2008) Except for the open procedure the assigner shall specify the offers’ validity term in the invitation for providing an offer.

Art. 58a. (new - SG 37/06, in force from 01.07.2006) (1) The preparation and implementation of the procedures shall be carried out by the contracting authority. The latter shall be responsible for the acceptance and the preservation of the applications for participation, the offers and the projects.
(2) The exchange of information may be implemented by post, via fax, by electronic means under the conditions and following the procedure of the Law for the electronic document and the electronic signature or by combination of these means by choice of the contracting authority. The chosen means of communication must be accessible to all.
(3) The exchange and the preservation of information in the course of conducting the procedure for assigning public procurement shall be carried out in a way, ensuring the integrity, the authenticity and the confidentiality of the applications for participation and the offers.
(4) All actions of the contracting authority towards the candidates or the participants shall be in writing.
(5) The decisions of the contracting authority, about which he/she shall be obliged to inform the candidates or the participants, shall be handed over personally against signature or shall be sent by registered letter with return of service, via fax or by electronic means under the conditions and following the procedure of the Law for the electronic document and the electronic signature.
(6) The contracting authority shall be obliged to preserve the overall documentation for the implementation of every procedure for assigning public procurement for at least 4 years after concluding the fulfilment of a contract.

Section III.
Guarantees
Art. 59. (1) (suppl. – SG 37/06, in force from 01.07.2006) The candidate or the participant shall file a guarantee for participation in the public procurement procedure, and the chosen contractor shall file a performance guarantee on signing the contract.
(2) The contracting authority shall set the terms and the size of the guarantee for participation in an absolute sum, but no more than 1 percent of the value of the procurement.
(3) (amend. – SG 52/10) The contracting authority shall set the terms and the size of the performance guarantee under the contract as a percentage of the value of the public procurement, but no more than 3 percent of the value of the procurement.
(4) The contracting authority shall also require other performance guarantees in the cases determined by a law.
(5) (revoked - SG 37/06, in force from 01.07.2006; new – SG 93/11, in force from 26.02.2012) The contracting authority may not request a participation guarantee or a performance bond, where:
1. a procedure of contracting without notice is being conducted, or
2. (amend. – SG 33/12) the cost of the public procurement is as referred to in Art. 14, par 3.
(6) (new – SG 33/12) The contracting authority shall not request guarantees for participation and performance bonds in case of assignment of public procurements under Art. 16c.

Art. 60. (1) The guarantees shall be presented in one of the following forms:
1. cash;
2. bank guarantee.
(2) (suppl. – SG 37/06, in force from 01.07.2006) The candidate, the participant or the chosen contractor himself shall choose the form of the participation, respectively performance guarantee.
(3) (new – SG 93/11, in force from 26.02.2012) Where the applicant, the participant or the selected contractor is an association, which is not a legal entity, each partner therein may be the bank guarantee assignor, respectively depositor of the amount for the guarantee.

Art. 61. (1) (suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) (1) The contracting authority shall have the right to retain the guarantee for participation until the final settlement of the dispute, when the candidate or the participant in a public procurement procedure is protesting the decision, by which the preliminary selection results are announced, or the decision nominating a contractor.
(2) The contracting authority shall have the right to use the participation guarantee, regardless its form, where an applicant or a participant:
1. withdraws his/her application after the expiration of the term for receiving applications or withdraws his/her offer after the expiration of the term for receiving the offers;
3. has been selected as a contractor but he does not fulfil his obligations to conclude a public procurement contract.

Art. 62. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The contracting authority shall release the guarantees for participation of:
1. excluded candidates within five working days from expiration of the term for appealing the decision of the contracting authority for preliminary selection, respectively – the term for selection of a contractor;
2. participants rated first and second – after the public procurement contract is concluded, and the rest of the rated participants - within five working days from expiration of the term for appealing the decision for choosing a contractor.
(2) (revoked - SG 37/06, in force from 01.07.2006)
(3) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) On termination of the public procurement procedure the guarantees of all candidates or participants shall be released within five working days after the expiration of the term for appealing the decision for termination.
(4) (amend. - SG 37/06, in force from 01.07.2006) The contracting authority shall release the guarantees under para 1, without owing interest for the period during which the funds have legally be held by him.

Art. 63. (1) (prev. Art. 63 – SG 93/11, in force from 26.02.2012) The terms and the conditions of keeping or releasing the performance guarantee shall be settled by the public procurement contract.
(2) (new – SG 93/11, in force from 26.02.2012) Where the public procurement contract is being implemented by stages, the contracting authority may include in the draft contract a clause of partial exemption from the guarantee referred to in par. 1, respectively of the already fulfilled part of the subject of the public procurement.

Chapter five.
OPEN PROCEDURE
Section I.
Preparation of the Open Procedure
Art. 64. (1) (suppl. SG 31/05, in force from May 1, 2005, amend. - SG 37/06, in force from 01.07.2006; amend. and suppl. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In holding an open procedure the contracting authority shall send the notice for the public procurement to the Registry Agency in the Public Procurement Register not later than 52 days before the deadline for receiving of the offers, and in cases referred to in Art. 14, par. 3 – minimum 40 days before the deadline.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The terms under para 1 may be reduced to 36 days where the advance notice has been sent for publication from 52 days to 12 months before the date of sending the notice under para 1 and contains the information, available by the date of its sending.
(3) (new - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The terms under para 1 and 2 may be reduced by 7 days, if the notice has been sent by electronic means, and by 5 more days, if from the date of publication of the notice in electronic form the contracting authority provides full access via electronic means to the documentation for participation in the procedure and in case an Internet address has been indicated in the notice, where the documentation can be found.
(4) (new - SG 37/06, in force from 01.07.2006; revoked - SG 93/11, in force from 26.02.2012).

Art. 65. (amend. - SG 37/06, in force from 01.07.2006; revoked - SG 93/11, in force from 26.02.2012)

Art. 66. (revoked - SG 37/06, in force from 01.07.2006)

Art. 67. (revoked - SG 37/06, in force from 01.07.2006)

Section II.
Considering, Assessment and Rating of the Offers
Art. 68. (1) (amend. - SG 37/06, in force from 01.07.2006) The commission appointed by the contracting authority for consideration, assessment and rating of the offers shall start its work upon receipt of the list of participants and the filed offers.
(2) (amend. - SG 37/06, in force from 01.07.2006) For change of the data and hour of opening the offers, the participants shall be notified in writing.
(3) (amend. – SG 52/10) The opening of the envelopes is public and all participants in the procedure or their authorized representatives may be present, as well as representatives of the mass media and of the non-profit legal entities.
(4) (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10) The commission shall open the envelopes following the order of their filing and shall ascertain the presence of three separate sealed envelopes, and after that at least three of its members shall sign envelope No 3. The commission shall propose one representative of all the present participants, who shall sign the other participants’ envelopes No 3.
(5) (prev. text of par. 4, amend. and suppl. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; amend. - SG 93/11, in force from 26.02.2012) At the presence of the persons referred to in para 3 the commission shall open envelope No 2 and at least three of its members shall sign all the documents, included therein. The commission shall propose a representative of each of the present participants who shall sign the documents of other participants’ in envelope No 2. Afterwards the commission shall open envelope No 1, shall declare the documents included therein and shall verify the compliance with the list referred to in Art. 56, par. 1, item 14.
(6) (prev. text of par. 5 - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10) After carrying out the actions under paragraphs 4 and 5 the public part of the commission’s session shall be considered concluded.
(7) (prev. text of par. 6, amend. and suppl. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. - SG 93/11, in force from 26.02.2012) The commission shall review the documents contained in envelope No. 1 for compliance with the selection criteria, set by the contracting authority, and shall issue a protocol thereof.
(8) (new – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; amend. - SG 93/11, in force from 26.02.2012) Where missing docum entand/or non-conforming with the selection criteria or non-conforming with any other requirements of the contracting authority, the Commission shall send the protocol referred to in par. 7 to all participants.
(9) (new – SG 52/10) Participants shall submit to the commission relevant documents within 5 work days after the receipt of the protocol referred to in par. 7. A participant shall not be entitled to provide documents other than the missing ones and those meant for elimination of non-conformity, indicated in the Commission protocol.
(10) (new – SG 52/10; amend. - SG 93/11, in force from 26.02.2012; amend. - SG 93/11, in force from 26.02.2012) After the term under para 9 expires the Commission shall proceed with revision of additionally submitted documents regarding the conformity of participants with the selection criteria, set by the contracting authority. The Commission shall not consider the documents of the participants in envelope No 2 which do not comply with the selection criteria.
(11) (new – SG 52/10; amend. - SG 93/11, in force from 26.02.2012) Where necessary, the Commission may at any time:
1. verify the information stated by the participants, including by requesting information from other bodies and persons;
2. require from the participants:
a) explanations on the stated by them information;
b) additional proof of the information in the documents, contained in envelopes No 2 and 3, whereas this opportunity may not be used for modifications of the technical and price offer of the participants.

Art. 68a (new - SG 93/11, in force from 26.02.2012) (1) The commission shall notify the contracting authority, where in the course of its work justified doubts have occurred of agreements, decisions of coordinated practices between participants within the meaning of Art. 15 of the Law for the protection of competition.
(2) In cases referred to in par. 1 the contracting authority shall notify the Commission for protection of competition. Notification shall not suspend the conduction and finalization of the procedure.

Art. 69. (1) (amend. - SG 37/06, in force from 01.07.2006) The commission shall propose for removal from the procedure a participant:
1. (suppl. – SG 37/06, in force from 01.07.2006) who has not presented some of the necessary documents under art. 56;
2. (amend. - SG 37/06, in force from 01.07.2006) for whom present are circumstances under art. 47, para 1 and 5 and the ones, indicated in the notice under art. 47, para 2;
3. (amend. and suppl. - SG 37/06, in force from 01.07.2006) who has filed an offer which does not meet the terms of the contracting authority announced in advance;
4. (suppl. – SG 37/06, in force from 01.07.2006) who has filed an offer which does not meet the requirements of art. 57, para 2;
5. (new - SG 93/11, in force from 26.02.2012) about whom following the provision of Art. 68, par. 11 it has been identified, that he/she has provided incorrect information for proving of his/her compliance with the selection criteria announced by the contracting authority.
(2) (amend. - SG 37/06, in force from 01.07.2006; revoked – SG 33/12)
(3) (amend. and suppl. - SG 37/06, in force from 01.07.2006) The participants shall be obliged, in the process of holding the procedure, to inform the contracting authority for all occurring changes in circumstances under art. 47, par. 1 and 5 and the ones, indicated in the notice under art. 47, par. 2, within 7 days from their occurrence.

Art. 69a. (new – SG 94/08, in force from 01.01.2009) (1) The envelope containing the price proposed by a participant whose offer does not meet the contracting authority’s requirements, shall not be opened.
(2) (amend. – SG 93/11, in force from 26.02.2012) Where the criterion is economically the most favourable offer, the commission shall open the envelope containing the proposed price, after having carried out the following:
1. has considered the offers in the envelope No. 2 for verification of their compliance with contracting authority requirements;
2. has verified the existence of the grounds referred to in Art. 70, par. 1 for the offers contained in envelope No. 2;
3. has assessed the offers against all other parameters, except for the price.
(3) (amend. – SG 93/11, in force from 26.02.2012) The commission shall announce in an appropriate way the date, time and place where the price offers will be opened, whereas the participants in the procedure or their authorized representatives, as well as representatives of non-profit legal persons and of the mass media shall have the right to attend. The commission shall announce the quoted priced at the time of opening.
(4) Where the criterion is economically the most favourable offer, the commission shall announce the assessment results regarding the offers by the other indices to the persons present under para 3.

Art. 70. (1) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) Where the offer of a participant contains a price quotation subject to assessment, and it is by more than 20 per cent more favourable than the average cost of the proposals submitted by other participants in terms of the same assessment criteria, the commission shall require from him/her a detailed written substantiation of the offered price. The commission shall set a reasonable term for producing the substantiation, which may not be shorter than three working days from the receipt of the request for that.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) The commission may accept the written substantiation under para 1 and not to propose elimination of the offer if objective circumstances are pointed out related to:
1. an original solution of fulfilment of the public procurement;
2. the offered technical resolution;
3. (amend. - SG 37/06, in force from 01.07.2006) the presence of exceptionally favourable conditions for the participant;
4. frugal fulfilment of the public procurement;
5. (new - SG 37/06, in force from 01.07.2006) providing government support.
(3) (amend. - SG 37/06, in force from 01.07.2006) Where the participant does not present the written substantiation in time or the commission deems that the pointed circumstances are not objective, the commission shall propose the participant for removal from the procedure.
(4) (new - SG 37/06, in force from 01.07.2006) If the commission establishes that the offer of a participant is with unusually low price because of government support provided, the legal ground of which is not possible to be proved within the fixed term, it may propose the offer to be rejected and the participant - removed.

Art. 71. (1) The commission shall consider the admitted offers and shall assess them in compliance with the terms announced in advance.
(2) (amend. - SG 37/06, in force from 01.07.2006) Where the contracting authority has admitted presenting options in the offer, the commission may not reject an option only on the grounds that the choice of this option would lead to a conclusion of a contract for services instead of a contract for delivery and vice versa.
(3) (amend. - SG 37/06, in force from 01.07.2006) The commission shall rate the participants by the degree of compliance of the offers with the terms announced by the contracting authority in advance.
(4) (new – SG 52/10) If the complex assessments of two or more offers are identical, where the selected criterion is the one under Art. 37, para 1, item 2, as economically the most favourable offer shall be considered the one with the lowest price. In those cases where the offered prices are also equal, the assessments shall be compared on the basis of the index with the highest relative value and shall be selected the offer with the most favourable value of the said index.
(5) (new – SG 52/10) The Commission shall conduct a public lot in order to designate a contractor among the first rated offers, provided that the public procurement is being assigned:
1. with the "the lowest price" criterion and this price is offered in two or more offers, or
2. with the "the most favourable offer economically" criterion, however this offer may not be assessed pursuant to para 4.

Art. 72. (1) The commission shall draw up written records for the consideration, assessment and rating of the offers, containing:
1. members of the commission and a list of the consultants;
2. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) a list of the participants, proposed for removal from the procedure and the motives for their removal;
3. statements by the consultants;
4. (amend. - SG 37/06, in force from 01.07.2006) the results from the consideration and the assessment of the admitted offers, including a brief description of the offers of the participants and the assessment by each index where the criterion of assessment is economically the most favourable offer;
5. (amend. - SG 37/06, in force from 01.07.2006) the rating of the participants whose offers have been admitted to consideration and assessment;
6. date of drawing the written records;
7. (new – SG 52/10) dissenting opinions, where there are such, along with the respective grounds thereof by the commission members.
(2) The written records of the commission shall be signed by all members and shall be submitted to the contracting authority along with the whole documentation.
(3) (amend. – SG 93/11, in force from 26.02.2012) The commission shall complete its work by acceptance of contracting authority report.

Section III.
Choosing Contractor of the Public Procurement
Art. 73. (1) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 24/09; amend. – SG 93/11, in force from 26.02.2012) Within 5 working days after the conclusion of the work of the commission, the contracting authority shall issue a motivated decision, announcing the rating of the participants and the participant, chosen as a contractor.
(2) (amend. - SG 37/06, in force from 01.07.2006) Pointed in the decision under para 1 shall be the participants and offers removed from participation in the procedure and the motives for their removal.
(3) (amend. and suppl. - SG 37/06, in force from 01.07.2006 and from 01.01.2007 regarding second sentence) The contracting authority shall send the decision under para 1 to the participants within three days from its issuance. The contracting authority shall notify the European commission in the cases under art. 70, par. 4.
(4) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Upon a written request by a participant, filed within the term of protesting of the decision, the contracting authority shall be obliged, within three days from the receipt, to provide for him/her a copy or access to the written records, depending on participant’s request. The contracting authority may refuse access to information contained in the written records when its submission contradicts a normative act or prevents, restricts or violates the competition.
(5) (new - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012).

Art. 74. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall conclude a public procurement contract with the participant, rated first by the commission and chosen for contractor.
(2) (amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) The contracting authority may by a decision nominate a contractor and conclude a contract with the second rated participant in those cases where the participant who was been rated first:
1. refuses to conclude a contract;
2. fails to fulfill any of the requirements set out in Art. 42, para 1;
3. (new – SG 93/11, in force from 26.02.2012) does not meet the requirements referred to in Art. 47, par. 1 and 5 or the requirements referred to in the notification of Art. 47, par. 2.

Chapter six.
LIMITED PROCEDURE
Art. 75. (1) (prev. text of art. 75, amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 33/12) In the notice for public procurement assigned by way of a limited procedure, the contracting authority may limit the number of candidates he/she intends to invite to present offers, provided that this number may not be less than 5, and in cases referred to in Art. 3, par, 2 – less than 3. The contracting authority may also point out the maximum number of candidates. The number of the invited candidates must be sufficient in order to guarantee free and loyal competition.
(2) (new - SG 37/06, in force from 01.07.2006) The contracting authority shall point out in the notice for public procurement objective and non-discriminatory criteria or rules, which shall be applied in the selection of the candidates under par. 1.

Art. 76. (1) (suppl. SG 31/05, in force from May 1, 2005; amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall send the notice for public procurement to the Registry Agency in the Public Procurement Register at least 37 days before the deadline for receiving the applications for participation in the preliminary selection of candidates.
(2) (new - SG 37/06, in force from 01.07.2006) The term under par. 1 may be reduced by 7 days, if the notice is sent by electronic means also.
(3) (prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006) Upon occurrence of circumstances of exceptional urgency, as a result of which it is impossible to meet the deadline under para 1, the contracting authority under art. 7, items 1 - 4 may determine a term for receiving the applications for participation in the preliminary selection, not shorter than 15 days from the date of sending the notice – or not shorter than 10 days, if the notice is also sent by electronic means.
(4) (prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006) In the cases of para 3 the contracting authority shall be obliged to indicate in the notice for public procurement the concrete circumstances of exceptional urgency.
(4) (revoked - SG 37/06, in force from 01.07.2006)

Art. 77. (1) The contracting authority shall carry out a preliminary selection for the purpose of determining the candidates having the necessary financial and technical resources to fulfil the public procurement.
(2) Every candidate may file an application for participation in the preliminary selection.
(3) (amend. – SG 93/11, in force from 26.02.2012) The application for participation in the preliminary selection contains:
1. (amend. SG 94/08, in force from 01.01.2009) a copy of the registration document of the candidate or unified identification code according to Art. 23 of the Law of the Commercial Register, where the participant is a legal entity or a sole trader; a copy of the identity document, if the participant is a natural person;
2. (suppl. – SG 37/06, in force from 01.07.2006; amend. SG 94/08, in force from 01.01.2009) a declaration for absence of the circumstances under art. 47, para 1 and 5, as well as for the circumstances referred to in Art. 47, para 2, if this is specified in the notice;
3. (revoked - SG 37/06, in force from 01.07.2006; new – SG 93/11, in force from 26.02.2012) where the participants are associations – a document, undersigned by the persons in the association, whereas the representing person must be indicated obligatorily;
4. proof of the economic and financial status under art. 50, indicated by the contracting authority in the notice for public procurement;
5. proof of the technical capacity and/or qualification under art. 51 indicated by the contracting authority in the notice for public procurement;
6. (suppl. – SG 52/10; suppl. – SG 33/12) the subcontractors who will participate in fulfilment of the procurement the type and the share of their participation when participation by subcontractors is planned, except for cases of orders with a subject under Art. 3, par. 2;
7. document for guarantee for participation;
8. (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) declaration, that the requirements for protection of employment, including the minimum price of labor and working conditions have been met – in cases under Art. 28, par. 5;
9. (new – SG 93/11, in force from 26.02.2012) declaration of acceptance of the terms and conditions set out in the draft contract;
10. (new – SG 93/11, in force from 26.02.2012) any other information, referred to in the notice or in the tender documentation;
11. (new – SG 93/11, in force from 26.02.2012) list of documents, contained in the application, signed by the applicant.
(4) (amend. - SG 37/06, in force from 01.07.2006; suppl. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) Where the candidate plans a participation of subcontractors the documents under para 3, item 1, 2, 4, 5 and 8 shall be produced for each of them and the requirement shall be applied according to the type and the share of their participation.
(5) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) When a candidate in the procedure is an association which is not a corporate body:
1. the documents under para 3, item 1 and 2 shall be submitted for every natural person or corporate body included in the association;
2. the documents under par. 3, item 4 and 5 shall be submitted only for the participants, through whom the association is proving its compliance with the selection criteria referred to in Art. 25, par. 2, item 6;
3. (amend. – SG 33/12) the declaration of par. 3, item 8 shall be presented only for those participants in the association, who will carry on construction-related works or services.
(6) (new - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)
(7) (new - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)

Art. 78. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The application shall be produced by the order of art. 57, para 1, 4, 6, by fax or announce on the phone.
(2) (new - SG 37/06, in force from 01.07.2006) When the application for participation is announced on the phone, the candidate must confirm it in writing before the expiry of term for receiving applications.
(3) (new - SG 37/06, in force from 01.07.2006) When the application for participation is sent via fax, the contracting authority may oblige the candidate to confirm it by a letter, sent with return of service or by electronic means. This requirement, as well as the term for receiving the written confirmation, must be pointed out in the notice for public procurement.
(4) (new - SG 37/06, in force from 01.07.2006) The conditions and the procedure for receiving and preserving the applications, sent by electronic means or via fax, shall be settled by the regulation for implementation of the law.
(5) (prev. text of par. 2 - SG 37/06, in force from 01.07.2006) During the preliminary selection the contracting authority shall not have the right to require, and the candidate shall not have the right to present an offer.

Art. 79. (1) (amend. - SG 37/06, in force from 01.07.2006) For conducting the procedure the contracting authority shall appoint a commission by the order of art. 34 - 36.
(2) (suppl. – SG 37/06, in force from 01.07.2006; amend. SG 94/08, in force from 01.01.2009; suppl. – SG 52/10) The commission shall consider the filed applications by the procedure set out in Art. 68, paras 7 through 11 and shall make a selection of the candidates on the grounds of the documents, presented according to the notice, certifying their economic and financial status, their technical capacity and/or qualification for fulfilment of the public procurement. The candidates or their authorized representatives, representatives of the mass media and of non-profit legal persons shall have the right to be present at opening of the applications.
(3) (new – SG 33/12) The contracting authority shall determine the terms and conditions for participation of other persons beyond the commission members for orders under Art. 3, par. 2, containing or requiring classified information.
(4) (new – SG 33/12) Where the number of applicants meeting the requirements, indicated in the notice for the procedure, exceeds the announced maximum number of persons, to be invited to submit offers, the commission shall make a selection based on the objective and non-discriminatory criteria indicated in the notice.
(5) (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) The commission shall issue a protocol for the result of the selection, containing:
1. commission members and list of consultants;
2. list of applicants, not meeting the requirements announced by the contracting authority, and also the reasons thereof, including in cases of a subject under Art. 3, par. 2, where the requirements regarding protection of classified information and supplies safety have not been complied with;
3. list of applicants, meeting the requirements announced by the contracting authority, respectively selected applicants based on the objective and non-discriminatory criteria indicated in the notice – where their number exceeds the limitation, indicated in the notice;
4. date of drawing up of the protocol;
(6) (new – SG 37/06, in force from 01.07.2006, prev. par. 3 – SG 33/12) In case the contracting authority has not included in the notice a restriction of the number of candidates, who shall be invited to submit offers, he/she shall be obliged to invite all candidates, who meet the criteria for selection and the minimum requirements of technical resources.
(7) (new - SG 37/06, in force from 01.07.2006; prev. par. 4 – SG 33/12; prev. par. 4 – SG 33/12) In case the contracting authority has included in the notice a restriction of the number of candidates, who shall be invited to submit offers, he/she shall be obliged to invite a number of candidates, at least equal to the minimum, determined in advance.
(8) (amend. - SG 37/06, in force from 01.07.2006; prev. par. 6, amend. – SG 33/12) In case the number of the candidates, meeting the criteria for selection and the minimum requirements, is below the minimum, indicated in the notice, the contracting authority may continue the procedure by inviting all candidates, who possess the required resources.
(9) (prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006; prev. par. 7, amend. – SG 33/12) In case of assignment of public procurement under Art. 3, par. 2, where after the initial selection the contracting authority finds out, that the number of applicants meeting the selection criteria and the minimum requirements, is too low to guarantee real competition, the contracting authority may:
1. publish again the initial notice and to repeat the stage of selection of the newly submitted applications, or
2. terminate the procedure.
(10) (new – SG 33/12) In cases under par. 9, item 1 the contracting authority shall invite the applicants shortlisted after the first and second notice, to submit offers.
(11) (new – SG 33/12) The contracting authority may not invite to submit offers persons, who have not filed an application for participation, or applicants who do not have the required capacities.
(12) (prev. text of par. 4, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) Within 5 working days from the date of the adoption of the written records, containing the final results of the selection, the contracting authority shall announce by a decision the applicants to be invited to present offers. The decision shall also include the candidates who do not meet the requirements announced by the contracting authority and the motives thereof.
(13) (prev. text of par. 6, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012; prev. par. 9, amend. – SG 33/12) Within three days from taking the decision under par. 12 the contracting authority shall send it at the same time to all applicants, and to the selected applicants he/she shall send also a written invitation for submission of offers.
(14) (new – SG 33/12) In case of a written request by an applicant, submitted within the term for appealing of the decision, the contracting authority shall be obliged within three days after its receipt to provide him/her with a copy of it or access to the protocol, depending on applicant’s request. The contracting authority may refuse access to information contained in the protocol, where its provision disputes a regulating act or prevents, limits or violates the competition, or the disclosure of which contradicts country security interests.

Art. 80. (amend. - SG 37/06, in force from 01.07.2006) The invitation for presenting offers for participation in the limited procedure shall contain:
1. term and place of filing the offers;
2. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) date of publication of the notice for public procurement;
3. (new - SG 37/06, in force from 01.07.2006) a copy of the specifications and all additional documents, if they are not included in the documentation for participation, or electronic address for access to the specifications and additional documents, in case they are provided by electronic means;
4. (new - SG 37/06, in force from 01.07.2006; amend. SG 94/08, in force from 01.01.2009) the assessment methodology by each of the indices and the complex assessment methodology regarding the offer, where the criterion is economically the most favourable offer.

Art. 81. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall set, in the invitation under art. 80, a term for receiving of the offers which may not be shorter than 40 days from the date of the sending.
(2) The term under para 1 may be reduced up to 22 days when the advance notice has been sent for publication from 52 days to 12 months prior to the date of sending the notice under art. 76, para 1 and shall contain the information, available by the date of its sending.
(3) (amend. – SG 93/11, in force from 26.02.2012) The term under par. 1 may be reduced by 5 days, if from the date of publication of the notice the contracting authority provides full access to the documentation for participation in the procedure by electronic means, provided that he/she shall point out an Internet address, where it could be found.
(4) In the cases under art. 76, para 3 the contracting authority may set a term for receiving the offers not shorter than 10 days from the date of sending the invitation under art. 80.
(5) (amend. – SG 93/11, in force from 26.02.2012) In the cases under art. 76, para 3 up to 7 days before the expiration of the term for receiving the offers, every candidate may request in writing from the contracting authority elucidation on the documentation for participation. The contracting authority shall be obliged to answer within three days from receiving the request and to notify the other candidates by the order of art. 29, para 3.
(6) (revoked – SG 93/11, in force from 26.02.2012)
(7) (amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to prolong the term for receiving the offers:
1. where it has been found out that the initially set term is not sufficient for the preparation of the offers, including where it is necessary to consider additional documents ad hoc;
2. in the cases referred to in Art. 29, par. 2;
3. where this is required as a result of an opened appealing procedure.

Art. 82. (amend. – SG 33/12) (1) The offer shall be submitted in a sealed non-transparent envelope according to the procedure referred to in Art. 57, par. 1, 4 – 6.
(2) The envelope referred to in par. 2 shall contain two separate sealed non-transparent and inscribed envelopes, as follows:
1. envelope No. 1 with an inscription "Proposal for implementation of public procurement", in which the documents referred to in Art. 56, par. 1, item 7 and 9 shall be inserted, related to the implementation of the public procurement according to the criterion selected by the contracting authority and indicated in the documentation requirements;
2. envelope No. 2 with an inscription "Bid price", containing applicant’s price quotation.
(3) The commission appointed by the contracting authority for consideration, evaluation and ranking of offers, shall start working upon receipt of the list of submitted offers.
(4) In case of a change of the date and time of opening of offers the applicants shall be notified thereof in writing.
(5) Opening of offers shall be public and it may be attended by the participants in the procedure or their authorized representatives, and also mass media representatives and non-profit legal entities.
(6) The commission shall determine the terms and conditions for participation of other persons beyond the commission members in case of public procurements under Art. 3, par. 2, containing or requiring classified information.
(7) The commission shall open the offers following the order of their receipt and shall check for the existence of two separate sealed envelopes, and after that minimum three of its members shall undersign the envelope No. 2. The commission shall propose one representative of the attending participants to undersign envelope No. 2 of the remaining participants.
(8) In the presence of the persons referred to in par. 5 the commissions shall open envelope No. 1, shall announce the documents, contained therein, and minimum three of its members shall undersign them. The commission shall propose one representative of the attending participants to undersign the documents in envelope No. 1 of the remaining participants.
(9) Upon accomplishment of the activities referred to in par. 7 and 8 the public part of the commission sessions shall be over.
(10) The commission shall consider, evaluate and rank the offers following the procedure of Art. 69a, 70 propose one representative of the attending participants to undersign envelope No. 2 of the remaining participants and 71, whereby in the course of its work it can check the information from the offers subject to compliance with the provisions of Art. 68, par. 11.

Art. 83. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) (1) Upon accomplishment of its work the commission shall issue a protocol, containing:
1. commission members and list of consultants;
2. the results of consideration and evaluation of shortlisted offers, including brief description of applicants’ proposals and scores by each individual parameter, where the evaluation criteria is economically the most favorable offer;
3. list of participants, whose offers have been suggested to be withdrawn, and the justification thereof;
4. ranking of participants, whose offers have been shortlisted for consideration and evaluation;
5. date of drawing up of protocol;
6. as the case may be – dissenting opinions with respective justifications of the members of the commission.
(2) The commission protocol shall be undersigned by all members and shall be submitted to the contracting authority together with all the documentation.
(3) The commission shall complete its work upon adoption of the protocol by the contracting authority.
(4) The contracting authority shall nominate a contractor by a justified decision within the term referred in Art. 73, par. 1. The decision shall indicate participants’ ranking, the disqualified participants and the reasons for their disqualification.
(5) The contracting authority shall conclude a contract with the participant nominated as a contractor. The contract may be concluded with the participant ranked the second subject to compliance with the provisions of Art. 72, par. 2.
(6) The contracting authority shall provide access to the protocol to the participants subject to compliance with the provisions of Art. 79, par. 14.

Chapter six.
"A" COMPETITIVE DIALOGUE (NEW - SG 37/06, IN FORCE FROM 01.07.2006)
Art. 83a. (new - SG 37/06, in force from 01.07.2006) (1) The contracting authority may assign public procurement by way of competitive dialogue, in case the procurement is extremely complex, due to which its assignment by way of open or limited procedure is impossible.
(2) The public procurement is extremely complex, in case the contracting authority can not determine for objective reasons:
1. the technical specifications under art. 30, and/or
2. the financial or the legal framework of the procurement.
(3) In the decision for assigning public procurement by way of competitive dialogue the contracting authority shall give reasons for the choice of this procedure and shall approve the notice and a descriptive document.
(4) (new – SG 94/08, in force from 01.01.2009) The decision under para 3 shall be taken on the basis of a proposal of a commission appointed by the contracting authority, with the participation of experts of the latter, at least two external experts, included in the list as per Art. 19, para 2, item 8, and at least one external independent consultant, provided that all of them have qualifications corresponding to the subject of the procurement.
(5) (prev. text of para 4 – SG 94/08, in force from 01.01.2009) The contracting authority shall define his/her necessities and the requirements in the notice for public procurement and/or in the descriptive document, which substitutes the technical specifications.
(6) (prev. text of para 5 – SG 94/08, in force from 01.01.2009) Upon assignment of public procurement by way of competitive dialogue the contracting authority shall assess the offers only according the criterion economically the most favourable offer.

Art. 83b. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall send the notice for public procurement to the agency for entry into the Public Procurement Register at least 37 days prior to the deadline for receiving the applications for participation in the competitive dialogue.
(2) The deadline under par. 1 may be reduced by 7 days, if the notice has been sent also by electronic means.
(3) (revoked – SG 93/11, in force from 26.02.2012)

Art. 83c. (new - SG 37/06, in force from 01.07.2006) (1) The contracting authority may point out in the notice the minimum and maximum number of candidates, who he/she intends to invite to take part in a competitive dialogue, provided that the minimum number may not be less than three. The number of the invited candidates has to be sufficient in order free and loyal competition to be guaranteed.
(2) The contracting authority may consider the competitive dialogue to be implemented at consecutive stages in order to reduce the number of the proposals which are to be discussed during the dialogue, by applying the criteria, indicated in the notice or in the descriptive document.

Art. 83d. (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) (1) For conducting the procedure the contracting authority shall appoint a commission following the provisions of Art. 34 – 36.
(2) The commission referred to in par. 1 shall consider the filed applications subject to compliance with the provisions of Art. 68, par. 7 – 11 and shall shortlist the applicants based on the documents the submitted according to the notice, which evidence their economic and financial situation, their technical ability and/or qualification for the fulfillment of the public procurement. The applicants or their authorized representatives, and also mass media representatives and non-governmental legal entities shall have the right to attend the process of opening of applications, except for the cases referred to in Art.79, par. 3.
(3) Where the number of applicants meeting the requirements specified in the notice for the procedure, exceeds the announced maximum number of the persons to be invited in a dialogue, the commission shall shortlist them based on objective and non-discriminatory criteria indicated in the notice.
(4) The commission shall draw up a protocol for the results of the selection, which shall contain:
1. board of the commission and a list of the consultants;
2. a list of applicants, not meeting the requirements, announced by the contracting authority, as well as the justification thereof, including in cases of a subject under Art. 3, par. 2, where the requirements concerning classified information protection and supplies safety are not met;
3. a list of applicants, meeting the requirements announced by the contracting authority, respectively the shortlisted applicants based on objective and non-discriminatory criteria indicated in the notice – where their number exceeds the limit indicated in the notice;
4. date of drawing up of the protocol.
(5) In case the contracting authority has not included in the notice a limit for the number of applicants to be invited to participate in a dialogue, the contracting authority shall be obliged to invite all applicants meeting the selection criteria and the minimum requirements for technical capacities.
(6) In case the contracting authority has included in the notice a limit for the number of applicants to be invited to participate in a dialogue, the contracting authority shall be obliged to invite such a number of applicants, which as a minimum should be equal to the minimum specified in advance.
(7) Where the number of applicants meeting the selection criteria and the minimum requirements, is less than the minimum number indicated in the notice, the contracting authority may continue the procedure by inviting all applicants, having the required capacities.
(8) In case of assignment of orders under Art. 3, par. 2, where after carrying out of initial shortlisting the contracting authority finds out that the number of applicants meeting the selection criteria and the minimum requirements is too low to guarantee real competition, the contracting authority may:
1. publish again the initial notice and to repeat the stage of shortlisting of newly filed applications, or
2. terminate the procedure.
(9) In cases referred to in par. 8, item 1 the contracting authority shall invite the applicants, shortlisted after the first and the second publications to participate in a dialogue.
(10) The contracting authority may not invite for participation in a dialogue persons, who have not filed application forms, or applicants not having relevant capacities.
(11) Within 5 working days from the date of receipt of the protocol, containing the final results of the selection, the contracting authority shall announce by a decision the applicants, who shall be invited to participate in a dialogue. In the decision shall also be included the candidates, who do not meet the requirements, announced by the contracting authority, as well as the justification thereof
(12) Within three days after taking of the decision under par. 11, the contracting authority shall send it at the same time to all applicants, and to the applicants under par. 4, item 3 the contracting authority shall also sent a written notice for participation in a dialogue.
(13) During the preliminary selection the contracting authority shall not be entitled to require offers and the candidate shall not have the right to present an offer.

Art. 83e. (new - SG 37/06, in force from 01.07.2006) The invitation for participation shall contain at least:
1. (amend. – SG 93/11, in force from 26.02.2012) the date of publication of the notice for public procurement;
2. a copy of the descriptive document and all additional documents or an electronic address for access to them, if they are provided by electronic means.
3. date and place of conducting the dialogue;
4. (amend. – SG 94/08, in force from 01.01.2009) the assessment methodology regarding each of the indices and the methodology for complex assessment of the offer, where the assessment criterion is economically the most favourable offer.

Art. 83f. (new - SG 37/06, in force from 01.07.2006) (1) The commission, which has implemented the preliminary selection, shall conduct a dialogue with each of the approved candidates with the purpose of determining the parameters of the procurement, which meet to a greater extent the demands of the contracting authority.
(2) (amend. – SG 33/12) During the dialogue all parameters of the procurement may be discussed.
(3) To all candidates, participating in the dialogue, equality shall be guaranteed, by providing them with the same information.
(4) The commission shall not be entitled to provide the offers or other confidential information, obtained from a candidate, participating in the dialogue, to the other candidates, without his/her permission.
(5) The offers made and the agreements reached with each candidate shall be depicted in an individual written report, which shall be signed by the members of the commission and by the candidate.
(6) (suppl. – SG 93/11, in force from 26.02.2012) After concluding the dialogue with all candidates, the commission shall compile a written report to the contracting authority, in which the result of the dialogue is indicated and shall be proposed the candidates, which will be invited to present offers.

Art. 83g. (new - SG 37/06, in force from 01.07.2006) (1) Within 5 working days from presenting the written report of the commission the contracting authority shall announce by a decision that the dialogue is concluded and shall determine the candidates, who shall be invited to present offers.
(2) In three days term from the decision under par. 1 the contracting authority shall send it simultaneously to the agency and to all candidates, who have participated in the dialogue, and to the determined candidates he/she shall also send a written invitation for presenting offers.
(3) In the invitation under par. 2 the contracting authority shall point out deadline for receiving the offers and the address, where they must be sent.
(4) The offer must meet the requirements of the contracting authority and contain all proposals for fulfilment of the offer, made in the course of the dialogue.
(5) Upon request by the commission the offers can be amended, supplemented and clarified. These amendments, supplements and clarifications may not amend the basic characteristics of the offer or of the invitation for presenting an offer, if this would lead to restriction of the competition or to discrimination of the candidates.
(6) The commission shall assess the received offers according to the indices, defined in the notice or in the descriptive document, and shall choose economically the most favourable offer.
(7) The commission may require from the participant, who has presented the most favourable offer economically, to clarify some of the characteristics of the offer or to confirm his/her obligations concerning it, on the condition that this will not lead to amendment in the basic characteristics of the offer or of the invitation for presenting an offer, as well as to restriction of the competition or to discrimination of the candidates.

Art. 83h. (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) The contracting authority shall determine the contractor of the public procurement and shall conclude a contract with him/her by the order of art. 83, par. 4 – 6.

Chapter seven.
PROCEDURES OF NEGOTIATION
Section I.
Procedure of Negotiation with Notice
Art. 84. The contracting authorities may assign public procurement by way of procedure of negotiation with notice only where:
1. (amend. and suppl. - SG 37/06, in force from 01.07.2006) the open or limited procedure or the competitive dialogue have been terminated according to art. 39, para 1, item 2 and the initially announced terms have not been substantially changed;
2. (suppl. – SG 37/06, in force from 01.07.2006) as an exception the nature of the service, delivery or of the construction, or the risks related to them, do not allow pre-determining of the value;
3. the nature of the service does not allow sufficiently exact determining of the technical specifications in order to assign the procurement by the order of the open or limited procedure;
4. the procurement regards services under art. 5, para 1, item 2;
5. carried out in the sphere of construction is research, experimental or development non-profit activity or does not aim at reimbursement of the expenses thereof.

Art. 85. In the decision under art. 25, para 1 the contracting authority shall be obliged to motivate the choice of the procedure of negotiation with notice.

Art. 86. (1) (suppl. SG 31/05, in force from May 1, 2005; amend. – SG 93/11, in force from 26.02.2012) The notice for public procurement shall be sent to the Registry Agency in the Public Procurement Register not later than 37 days before the deadline for receiving the applications for participation in the procedure.
(2) (new - SG 37/06, in force from 01.07.2006) The term under par. 1 may be reduced by 7 days, if the notice has also been sent by electronic means.
(3) (prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006) Upon occurrence of circumstances of exceptional urgency, as a result of which the compliance with the term under para 1 is impossible, a contracting authority under art. 7, items 1 - 4 may set a term for receiving applications for participation in the procedure of negotiation not shorter than 15 days from the date of sending the notice or not shorter than 10 days, in case the notice has been sent by electronic means.
(4) (prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006) In the cases of para 2 the contracting authority shall be obliged to indicate in the notice for public procurement the concrete circumstances of exceptional urgency.
(5) (new - SG 37/06, in force from 01.07.2006) In the notice for public procurement the contracting authority may restrict the number of the candidates, who he/she intends to invite to take part in the negotiations, provided that this number may not be less than three. The contracting authority may also point out the maximum number of candidates. The number of the candidates must be sufficient in order to guarantee free and loyal competition.
(6) (new - SG 37/06, in force from 01.07.2006) The contracting authority shall point out in the notice for public procurement objective and non-discriminatory criteria or rules, which shall be applied in the selection of the candidates under par. 5.
(7) (new - SG 37/06, in force from 01.07.2006) In the notice for public procurement the contracting authority may provide the negotiations to be held at several consecutive stages, provided that at each following stage the number of the offers considered shall be reduced with the purpose of achieving possibly the most complete correspondence of the offers with the announced requirements.
(8) (new - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)
(9) (new - SG 37/06, in force from 01.07.2006; revoked – SG 93/11, in force from 26.02.2012)

Art. 87. (1) The application for participation in a procedure of negotiation with notice has to meet the requirements of art. 77, para 3 – 5.
(2) (amend. – SG 93/11, in force from 26.02.2012) The application shall be presented by the order of art. 57, para 1, 4 and 6 by fax or it shall be announced by phone.
(3) (new - SG 37/06, in force from 01.07.2006) Where the application for participation is announced by phone, the candidate shall confirm it in writing before the expiry of the term for receiving applications.
(4) (new - SG 37/06, in force from 01.07.2006) Where the application for participation is sent via fax, the contracting authority may oblige the candidate to confirm it by a letter, sent with return of service or by electronic means. These requirements, as well as the term for receiving the written confirmation, have to be indicated in the notice for public procurement.
(5) (new – SG 94/08, in force from 01.01.2009) During the preliminary selection the contracting authority shall not be entitled to require offers and the candidate shall not have the right to present an offer.

Art. 88. (1) (amend. - SG 37/06, in force from 01.07.2006) For holding the procedure the contracting authority shall appoint a commission by the order of art. 34 - 36.
(2) (suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; suppl. – SG 52/10; suppl. – SG 33/12) The commission shall consider the received applications pursuant to the procedure set out in Art. 68, para 7 through 11 and shall carry out a selection of the candidates on the grounds of the filed according to the notice documents for their economic and financial status, technical capacity and/or qualification for fulfilment of the public procurement. The candidates, their authorized representatives, as well as representatives of the mass media and of non-profit legal entities shall have the right to be present during opening of the applications, except for the cases referred to in Art. 79, par. 3.
(3) (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) In case the number of applicants meeting the requirements indicated in the notice for the procedure exceeds the announced maximum number of persons to be invited to participate in negotiations, the commission shall make a selection based on the objective and non-discriminative criteria indicated in the notice.
(4) (new – SG 33/12) The commission shall draw up a protocol for the results of the selection, containing:
1. members of the commission and list of consultants;
2. list of applicants, not meeting the requirements announced by the contracting authority, and also justification thereof, including in cases of a subject under Art. 3, par. 2, where the requirements regarding protection of classified information and supplies safety are not complied with;
3. list of applicants meeting the requirements announced by the contracting authority, respectively of the listed applicants based on the objective and non-discriminative criteria indicated in the notice – where their number exceeds the limit indicated in the notice;
4. date of drawing up of the protocol.
(5) (new - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) In case the contracting authority has not included in the notice a restriction of the number of the candidates, who shall be invited to take part in the negotiation, he/she shall be obliged to invite all applicants, meeting the selection criteria and the minimum requirements for technical capacities.
(6) (new – SG 37/06, in force from 01.07.2006, prev. par. 4 – SG 33/12) In case the contracting authority has included in the notice a restriction of the number of applicants to be invited to participate in the negotiations, he/she shall be obliged to invite such a number of applicants, which is at least equal to the minimum specified in advance.
(7) (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; prev. par. 6 – SG 33/12) In case the number of the candidates, meeting the selection criteria and the minimum requirements, is below the minimum indicated in the notice, the contracting authority may continue the procedure, by inviting all candidates, who possess the necessary resources. In this case the contracting authority may not invite for participation in the negotiations other persons, who have not submitted applications for participation, or candidates, who do not possess the necessary resources.
(8) (prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006; prev. par. 7, amend. – SG 33/12) When assigning public procurements under Art. 3, par. 2, where after preliminary selection the contracting authority finds out that the number of applicants meeting the selection criteria and to the minimum requirements is too low to guarantee real competition, the contracting authority may:
1. publish again the initial notice and to repeat the stage of selection of the newly submitted applications, or
2. terminate the procedure.
(9) (new – SG 33/12) In cases referred to in par. 8, item 1 the contracting authority shall invite the applicants, shortlisted after the first and the second publishing, to participate in negotiations.
(10) (new – SG 33/12) The contracting authority may not invite to participate in negotiations persons, who have not filed application for participation, or applicants who have not the required capacities.
(11) (prev. par. 4, amend. – SG 37/06, in force from 01.07.2006, prev. par. 8, amend. – SG 33/12) Within 5 work days after the date of adoption of the protocol, containing final selection results, the contracting authority shall nominate by a decision the applicants to be invited for participation in the contracting. The decision shall include also applicants, not meeting the requirements announced by the contracting authorities and the justifications thereof.
(12) (prev. text of par. 6, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012; prev. par. 9, amend. – SG 33/12) Within three days term from taking the decision under par. 8 the contracting authority shall send in simultaneously to all applicants, and to applicants under par. 4, item 3 he/she shall send written invitations for participation in the negotiations.

Art. 89. (1) The invitation for participation in the negotiating shall contain:
1. date and place of holding the negotiating;
2. requirement for extra evidence for the declared circumstances, where necessary;
3. (amend. – SG 37/06, in force from 01.07.2006) deadline for receiving of the initial offer, which may not be less than 10 days after sending of the invitation;
4. (amend. – SG 37/06, in force from 01.07.2006) the address, to which the offer should be sent;
5. (new – SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) the date of publication of the notice for public procurement.
(2) (amend. – SG 93/11, in force from 26.02.2012) The commission shall hold the negotiation with the invited applicants following the order of submission of initial offers.
(3) The proposals made and the achieved agreements with each candidate shall be indicated in individual written records to be signed by the members of the commission and by the candidate.
(4) (new – SG 93/11, in force from 26.02.2012) The commission shall apply the provision of Art. 70, where it is found out that the proposal submitted by any of the applicants, having been obtained as a result of negotiations, is by more than 20 per cent more favourable than the average cost of the proposals of the remaining applicants in terms of the same assessment criterion.
(5) (prev. par. 4, amend. – SG 93/11, in force from 26.02.2012) After holding the negotiations the commission shall work out a report to the contracting authority in which the results of the negotiations are indicated and it shall suggest:
1. rating of the applicants, or
2. termination of the procedure.
(6) (prev. par. 5, amend. – SG 93/11, in force from 26.02.2012; suppl. – SG 33/12) The contracting authority shall nominate a contractor by a justified decision within the term referred to in Art. 73, par. 1. The decision shall indicate ranking of applicants, who have been withdrawn and the justification thereof.
(7) (new – SG 93/11, in force from 26.02.2012) The contracting authority shall conclude a contract with the participant, nominated as a contractor. The contract may be concluded with the participant ranked second, subject to compliance with the provisions of Art. 74, par. 2.
(8) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) The contracting authority shall provide to the applicants access to the protocol subject to the provisions of Art. 79, par. 14.

Section II.
Procedure of Negotiation without notice
Art. 90. (1) The contracting authority may assign public procurement through a procedure of negotiation without notice only where:
1. (amend. - SG 37/06, in force from 01.07.2006) the open or the limited procedure is terminated as per art. 39, par. 1, item 1 and the initially announced conditions are not amended essentially;
2. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) in the cases under art. 39, par. 1, item 3, they invite for participation in the procedure only the participants who have presented offers and meet the requirements, indicated in the notice for the open or limited procedure or the competitive dialogue;
3. the assigning the public procurement to another person would lead to violation of copyright or other rights of intellectual property, or of exclusive rights acquired by virtue of a law or administrative act;
4. (amend. – SG 93/11, in force from 26.02.2012) there is a need of undertaking of urgent measures, caused by the occurrence of a force majeur, which the contracting authority could not or has not been obliged to foresee or to prevent by making due effort therefore, and for the overcoming of which the terms for holding of an open or limited procedure or of a procedure of negotiation with notice cannot be met;
5. the goods subject to delivery are produced for the purpose of research, experimenting, scientific or development activity and are of limited quantity which does not allow the formation of a market price or reimbursement of the expenses thereof;
6. extra deliveries by the same supplier are necessary for partial replacement or for increase of the deliveries should the replacement of the supplier compel the contracting authority to acquire goods of different technical characteristics which will lead to incompatibility or to technical difficulties in the operation and maintenance;
7. (suppl. – SG 94/08, in force from 01.01.2009; suppl. – SG 93/11, in force from 26.02.2012) the service is assigned upon holding a project competition, sending invitations for participation in the negotiating to the first rated participant or to all rated participants in compliance with the terms of the competition;
8. due to unforeseen circumstances it is necessary to assign an extra service or construction to the same contractor under the following terms:
a) the extra service or construction may not, technically or economically, be separated from the object of the main contract without considerable difficulties for the contracting authority or, although they may be separated, they are essentially necessary for the fulfilment of the procurement;
b) (amend. – SG 93/11, in force from 26.02.2012) the total cost of orders, by which additional services or construction works are ordered, does not exceed 50 percent of the value of the basic procurement;
9. necessary is the repetition of a service or construction by the same contractor not later than three years from the assigning of the first procurement in the presence of the following terms:
a) the first procurement has been assigned by way of open or limited procedure and the notice for it indicates a possibility of such assigning;
b) the total value of this procurement is included in determining the value of the first procurement;
c) the new procurement corresponds to the basic project, in fulfilment of which the first procurement has been assigned;
10. (revoked - SG 37/06, in force from 01.07.2006);
11. (amend. – SG 93/11, in force from 26.02.2012) subject of the procurement is the delivery of goods determined in a list proposed by the State Commission for the commodity exchanges and marketplaces and approved by the Council of Ministers with the regulations for implementation of the law.
12. (new - SG 37/06, in force from 01.07.2006) for a short period of time arise favourable conditions for delivery of goods at prices, lower than the market ones, achieved at an auction for sale of the property of trade companies, announced in liquidation or bankruptcy proceedings;
13. (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) the procurement order is for services of category No. 21 of Attachment No. 2 to Art. 5, par. 1, item 2 for the price referred to in Art. 14, par. 3.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) In the cases of para 1, items 6 the contract for additional procurement, may not be longer than three years.

Art. 91. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The contracting authority shall motivate in the decision for assigning public procurement through a procedure of negotiation without notice the choice of this procedure.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) By the decision of par. 1 the contracting authority shall approve an invitation for participation in a procedure, containing:
1. subject of the procurement, including the quantity and/or the scope and a description of the special items, if there are any;
2. contracting authority requirements for the fulfillment of the procurement;
3. where applicable – assessment criteria for the offers, and where the criterion is the lowest evaluated tender – also the parameters for complex assessment with their relative share or ranking by importance in a descending order, where for objective reasons it is impossible to show their relative share, and also methods of complex assessment of offers;
4. place and date of negotiations;
5. other requirements at contracting authority option.
(3) (new - SG 93/11, in force from 26.02.2012) The requirements of par. 2 shall not apply in cases referred to in Art. 90, par. 1, item 11 and 12.

Art. 92. (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The invitation for participation in a procedure of negotiation without notice shall be sent to the selected persons and to the Agency.

Art. 92a. (new - SG 93/11, in force from 26.02.2012) (1) The contracting authority shall appoint a commission following the provisions of art. 34 – 36 for holding the procedure.
(2) The commission shall hold the negotiations with the applicants for determination of the terms and conditions of the contract according to the requirements of the contracting authority indicated in the invitation for the participation. The results of negotiations shall be registered in a record, which shall be signed by the commission and by the participant.
(3) Where the contracting authority has invited more than one participant, the proposals made and the reached agreements with each of them shall be indicated in a separate record.
(4) The commission shall apply the provision of Art. 70, where it is found out that the proposal of any of the participants, achieved as a result of negotiations, is by more than 20 per cent more favourable than the average cost of the proposals of remaining participants in terms of the same assessment criterion.
(5) After holding the negotiations the commission shall issue a report to the contracting authority containing the result of negotiations and shall suggest:
1. conclusion of contract with the sole participant, or
2. rating of the participants in cases referred to in par. 3 or
3. termination of the procedure.
(6) The contracting authority shall nominate a contractor by a justified decision within the term, referred to in Art. 73, par. 1.
(7) The contracting authority shall conclude a contract with the participant, nominated as a contractor. The contract may be concluded with the second rated participant subject to compliance with the provisions of Art. 74, par. 2.
(8) (amend. – SG 33/12) The contracting authority shall provide access to the protocol to the applicants subject to compliance with the provision of Art. 79, par. 14.
(9) (amend. – SG 33/12) In the cases under art. 90, par. 1, item 11 the provisions of para 1 – 8 shall not apply and the contract shall be concluded subject to compliance with the rules of the respective commodity exchange.
(10) (suppl. – SG 33/12) In the cases under art. 90, par. 1, item 12 the provisions of para 1 – 8 shall not apply and the contract shall be concluded by the order of Part three of the Commercial law.

Art. 93. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The contracting authority may not apply Art. 91, par. 2, Art. 92 and 92a, where contracts are being concluded on the grounds of:
1. Article 90, par. 1, item 3 with subject of procurement natural gas, thermal or electrical energy or drinking water with the companies, holding the exclusive rights;
2. Article 90, par. 1, item 4;
3. Article 90. Par. 1, item 13 with subject of procurement of defense in proceedings.

Chapter seven.
"A" FRAME AGREEMENT (NEW - SG 37/06, IN FORCE FROM 01.07.2006)
Art. 93a (New – SG 37/06, in force from 01.07.2006) (1) Frame agreement is the agreement, concluded between one or more contracting authorities and one or more potential contractors of public procurement, whose purpose shall be to determine in advance the terms of the contracts, which the parties intend to conclude for certain period of time, not longer than 4 years, including with regard to the prices, and if possible – the amounts provided. As an exception the term of the frame agreement may be longer than 4 years, provided that the contracting authority shall point out the motives for that in the notice.
(2) When the contracting authority concludes frame agreement with several persons, they may not be less than threesome, on the condition that there is sufficient number of potential contractors, who meet the preliminary announced conditions of the contracting authority
(3) The contracting authority may conclude frame agreement for assignment of public procurement on the basis of each conducted procedure, excluding the procedure of negotiation without notice. At concluding a frame agreement, the criteria under art. 37 shall be applied.
(4) In the cases of concluding a contract on the basis of frame agreement, the parties shall not be entitled to change essentially the conditions, specified by the frame agreement.
(5) The frame agreement may not be concluded or applied, if it prevents, restricts or violates the competition.

Art. 93b. (1) (New – SG 37/06, in force from 01.07.2006; prev. Art. 93b - SG 93/11, in force from 26.02.2012) When all conditions have been determined in the frame agreement, the contracting authority shall conclude a public procurement contract, and shall apply these conditions.
(2) (new - SG 93/11, in force from 26.02.2012) Where the frame agreement does not set out all the conditions and it is concluded with one person only, the contracting authority shall request in writing from this person to fill up her/his offer.
(3) (new - SG 93/11, in force from 26.02.2012) Where the frame agreement does not set out all the conditions and it is concluded with more than one person, for every contract which is to be concluded, the contracting authority shall:
1. address a written invitation to the persons which are parties to the frame agreement;
2. set an appropriate term for receiving of offers, taking into account the subject and the time, necessary for the offers to be sent;
3. keep the offers, submitted in sealed non-transparent envelopes until the expiration of the term for their receipt;
4. appoint a commission which shall consider and rate the offers in compliance with the criterion, specified in the frame agreement, subject to compliance with the provisions of Art. 70 – 72.

Art. 93c. (New – SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012). The contracting authority shall nominate a contractor by the order of art. 73 and shall conclude a contract following the procedure of art. 74.

Art. 93d. (New – SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Contracts for public procurement based on a frame agreement concluded by a central authority for public procurements, shall be assigned by the individual contracting authorities in compliance with the provision of Art. 93b.

Chapter seven.
"B" DYNAMIC PURCHASING SYSTEMS (NEW – SG 37/06, IN FORCE FROM 01.07.2006)
Art. 93e. (New – SG 37/06, in force from 01.07.2006) (1) (amend. – SG 94/08, in force from 01.01.2009) The dynamic purchasing system is entirely electronic process for performing customary deliveries, whose market characteristics respond to the contracting authority’s requirements. The system acts for a period not longer than 4 years and during the term of its effect is open for including every candidate, who meets the criteria for selection and has presented an advance offer, which corresponds to the specifications. As an exception the term of action of the system may exceed 4 years, provided that the contracting authority states the reasons for that in the notice.
(2) The dynamic purchasing system shall be created by way of open procedure.
(3) In the system shall be included every candidate, who:
1. meets the requirements of the contracting authority, pointed out in the notice;
2. has presented an advance offer, that corresponds to the specifications, defined by the contracting authority;
3. has presented all documents, pointed out by the contracting authority in the notice
(4) The advance offers under par. 3, item 2 may be amended at any time during the term of action of the system in such manner, as to correspond to the specifications.
(5) At generating a system under par. 1 and assigning public procurement using the said system the contracting authority shall use electronic means only.

Art. 93f. (New – SG 37/06, in force from 01.07.2006) (1) At creating dynamic purchasing system the contracting authority shall:
1. publish notice for public procurement, in which shall be explicitly pointed out the creation of the system;
2. define the technical specifications under the procedure of art. 30-33, the type of the deliveries, as well as the whole necessary information regarding the system, the kind and the technical characteristics of the used electronic means.
(2) From the publishing of the notice for creation to the expiry of the term of action of the system the contracting authority shall provide via electronic means full, direct and unlimited access to the technical specifications, as well as to all additional documents, provided that in the notice obligatory shall be indicated the internet address, where they shall be accessible.

Art. 93g. (New – SG 37/06, in force from 01.07.2006) (1) The advance offer for participation in the dynamic purchasing system may be submitted at any time during the term of action of the system.
(2) For considering the offers under par. 1 the contracting authority shall appoint a commission by the procedure of art. 34-36.
(3) The commission shall consider any advance offer submitted and on the basis of the announced criteria and rules, shall propose to the contracting authority to include or to refuse inclusion of the candidate in the dynamic purchasing system.
(4) The contracting authority shall be obliged to take a decision in 15 days period of time, considered from the submitting the advance offer and to notify the candidate of his/her including in the dynamic purchasing system or of the refusal to be included in three days term from the date of the decision.

Art. 93h. (New – SG 37/06, in force from 01.07.2006) (1) Before assignment of each public procurement contract for delivery the contracting authority shall publish simplified notice, with which shall invite all interested persons to present advance offers in compliance with art. 93f, par. 1, item 2 and shall fix a term for submitting the advance offers, which shall not be shorter than 15 days from the sending of the notice.
(2) The advance offers shall be assessed and the candidates shall be included in the system by the procedure of art. 93g, par. 2-4.

Art. 93i. (New – SG 37/06, in force from 01.07.2006) (1) After taking the decisions under art. 93g, par. 4 the contracting authority shall send to everybody included in the dynamic purchasing system an invitation to present offers for each individual public procurement contract for delivery within the frames of the system.
(2) In the invitation under par. 1 the contracting authority shall fix term for presenting the offers and may make additional clarifications in connection with the criteria for assigning the public procurement contract.

Art. 93j. (New – SG 37/06, in force from 01.07.2006) (1) The commission under art. 93g, par. 2 shall consider and classify rate the offers and shall propose to the contracting authority to conclude a public procurement contract for delivery with the participant, whose offer has received the highest assessment on the basis of the criteria, specified in the notice or in the invitation under art. 93i.
(2) The contracting authority shall choose a contractor by the procedure of art. 74.

Art. 93k. (New – SG 37/06, in force from 01.07.2006) (1) The dynamic purchasing system may not be applied if it prevents, restricts or violates the competition.
(2) The access to the dynamic purchasing system and the participation in it shall be liberated and free of charge for all interested persons.

Chapter eight.
PROJECT COMPETITION
Section I.
Preparation of a Project Competition
Art. 94. (1) (new - SG 37/06, in force from 01.07.2006) The provisions of this chapter shall apply at conducting project competition:
1. organized as a part of procedure for assigning public procurement for service;
2. with awarding prizes and/or payments for the participants in the competition.
(2) (prev. text of art. 94 - SG 37/06, in force from 01.07.2006) Project competition shall be held for acquiring:
1. development concept for working a development scheme, development plan, land reallocation plan, or forest development project;
2. initial project for working out projects, including landscape, architectural, constructive, technological, installation, as well as projects for works of art and for restoration and rehabilitation of cultural monuments;
3. project in the sphere of data processing;
4. other projects.
(3) (new - SG 37/06, in force from 01.07.2006; amend. SG 79/06) The terms and the procedure for conducting competitions in the spatial planning and investment designing, shall be determined by an ordinance of the Council of Ministers.

Art. 95. (1) The project competition may be open or limited.
(2) (amend. - SG 37/06, in force from 01.07.2006) In an open competition all interested persons may present projects;
(3) In a limited competition projects may be presented only by candidates who, on the grounds of a preliminary selection, have been invited by the contracting authority.

Art. 96. (1) The contracting authority shall take a decision for holding a project competition by which he shall approve the notice for participation and the competition programme.
(2) The competition programme shall contain:
1. the project task and instructions for its fulfilment;
2. all technical data necessary for the fulfilment of the project;
3. the criteria for assessment of the project, their relative weight and the method of determining the complex assessment of the project.
(3) The price of the competition programme may not be higher than the actual cost of its working.

Art. 97. (1) (suppl. SG 31/05, in force from May 1, 2005; amend. - SG 93/11, in force from 26.02.2012) The contracting authority shall send an notice for holding a project competition to the Registry Agency in the Public Procurement Register at least:
1. fifty two days before the deadline for receiving the projects in an open competition;
2. thirty seven days before the deadline for receiving applications for participation in a limited competition.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) The notice for a project competition shall be worked out according to the form under art. 19, para 7.
(3) (revoked - SG 37/06, in force from 01.07.2006)
(4) In a limited competition the contracting authority may restrict by the notice the number of the participants to be invited to present projects, but their number may not be less than 5.
(5) (new - SG 37/06, in force from 01.07.2006) In the notice for a limited competition the contracting authority shall point out objective and non-discriminatory criteria or rules, which shall be applied in the selection of the candidates.

Section II.
Holding a Project Competition
Art. 98. (1) (new - SG 37/06, in force from 01.07.2006) The applications for participation in a limited project competition may be submitted in writing by the order of art. 57, par. 1, 3, 4 and 5, by fax or by telephone. If the application has been submitted by telephone, it must be confirmed in writing before the deadline for receiving the applications.
(2) (new - SG 37/06, in force from 01.07.2006) In the applications for a limited project competition the contracting authority may include a requirement that the applications for participation, sent by fax, must be confirmed by post or by electronic means.
(3) (prev. text of art. 98, amend. - SG 37/06, in force from 01.07.2006) The contracting authority shall implement a preliminary selection and shall send invitations to the approved candidates to present projects by the order of art. 79, 80 and art. 81, par. 1.

Art. 99. (1) For considering and rating the projects the contracting authority shall appoint a jury consisting of at least three members.
(2) The members of the jury shall meet the requirements of art. 35.
(3) When the participants in the competition are required to have a certain professional qualification or legal capacity at least 1/3 of the members of the jury shall have the same or equivalent qualification or legal capacity.
(4) (new - SG 37/06, in force from 01.07.2006) At taking decisions and expressing opinion on the projects the jury shall be independent.

Art. 100. (1) (suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 93/11, in force from 26.02.2012) The contracting authority shall appoint an official who will accept the competition projects, which shall be presented by the order of art. 57, par. 1 or 6.
(2) The person under para 1 shall be obliged to keep secret the circumstances having become known to him in connection with the competition projects, for which he shall present a written declaration.
(3) (amend. - SG 37/06, in force from 01.07.2006) The presented competition projects shall be numbered by the order of their receiving and a list of the numbers and their corresponding names of the participants shall be made. The list shall be put in an envelope which shall be sealed and should not be opened until the date of announcing the results from the competition.
(4) In an open competition the participants shall present data and proof of their professional qualification and legal capacity in a separate opaque envelope which shall be opened after rating the projects.

Art. 101. (amend. - SG 37/06, in force from 01.07.2006) (1) The jury shall consider the projects and shall draw up written records for their rating. The rating of the projects shall be carried out in compliance with the criteria, indicated in the notice for opening the procedure.
(2) The jury shall compile a written statement on the rating of the projects, signed by all members.
(3) In the written statement shall also be indicated the remarks of the commission and the issues, which must be additionally elucidated or clarified, if necessary.
(4) In the cases under par. 3 the jury shall inform the participants and shall give them a chance to answer the questions, after which it shall amend or supplement the written statement, if necessary.
(5) Upon open competition the jury shall propose for removal from the rating of the participants in the competition, who do not meet the requirements under par. 1.
(6) The contracting authority shall announce by decision the rating of the participants in the competition, according to the written statement of the jury, as well as the prizes and/or the other payments.
(7) The contracting authority shall send information about the conducted competition to the Agency for entering in the Public Procurement Register not later than 7 days after taking the decision under par. 6.
(8) The information under par. 7 shall be prepared according to the form under art. 19, par. 7.
(9) The information under par. 7, the notice of which contradicts a law, shall not be entered in the Public Procurement Register. In this case the contracting authority shall provide reasons for that before the Agency.

Chapter eight.
"a" ASSIGNING OF PUBLIC PROCUREMENT THROUGH A PUBLIC INVITATION (NEW – SG 93/11, IN FORCE FROM 26.02.2012)
Art. 101a. (new – SG 93/11, in force from 26.02.2012) (1) (amend. – SG 33/12The terms and conditions and the procedure under this Chapter shall be applied for assignment of public procurements referred to in Art. 14, par. 4.
(2) (amend. – SG 33/12) For assigning of procurements referred to in Art. 14, par. 4, the contracting authority shall collect offers by publishing an invitation.

Art. 101b. (new – SG 93/11, in force from 26.02.2012) (1) The invitation shall be issued in a standard form, approved by the Executive Director of the Agency, and shall contain the following minimum information:
1. name and address of the contracting authority;
2. description of the subject of the procurement, and where applicable – also quantities or scope;
3. contracting authority’s requirements for the implementation of the procurement;
4. assigning criteria, and where the selection is based on the criterion of "economically most favourable offer" - also the complex assessment parameters with their relative share;
5. deadline for receiving of offers.
(2) (suppl. – SG 33/12) The contracting authority shall publish the invitation on the public procurements portal in an order, determined by the regulation for the implementation of the law, and shall specify a term for public access thereto, which may not be shorter than 7 days. The term shall start elapsing from the day, following the day of publication. At the same time, the invitation shall be published on the Buyer’s profile.
(3) The contracting authority may publish an notice about the invitation also in printed media, and also may send it to selected by it persons, without changing the conditions of par. 1, items 2 – 5. The notice may not contain more information than the one contained in the invitation, published on the portal.
(4) The term referred to in par. 1, item 5 may not be shorter than the term of public access to the invitation.
(5) In case of amendment of initially announced terms and conditions the contracting authority shall be obliged to apply again the procedure or collection of offers under par. 1 – 3.

Art. 101c. (new – SG 93/11, in force from 26.02.2012) (1) The offer referred to in Art. 101a, par. 2 must contain minimum the following:
1. information about the person, making the offer;
2. proposed fulfillment of the requirements of Art. 101b, par. 1, item 3;
3. budget proposal;
4. validity term, where applicable.
(2) The content of the offer shall be presented in a sealed non-transparent envelope.

Art. 101d. (new – SG 93/11, in force from 26.02.2012) (1) The receipt, consideration and assessment of offers shall be carried out by officials, appointed by the contracting authority.
(2) After the receipt of offers, the persons referred to in par. 1 shall submit declarations about the particulars referred to in Art. 35, par. 1, items 2 and 3.
(3) The persons of par. 1 shall determine the order of consideration of offers and shall produce a record of results of their work. The record shall be presented to the contracting authority for approval.

Art. 101e. (new – SG 93/11, in force from 26.02.2012) The contracting authority may assign the implementation of the procurement also in cases, where only one offer has been submitted.

Art. 101f. (new – SG 93/11, in force from 26.02.2012) (1) (amend. – SG 33/12) The contracting authority shall conclude a written contract, which includes all proposals from the offer of the nominated contractor.
(2) (amend. – SG 33/12) Where a contract is signed, the nominated contractor shall submit documents, issued by competent bodies, certifying missing circumstances referred to in Art. 47, par. 1, item 1 and declarations of missing circumstances referred to in Art. 47, par. 5, except for the cases, where the procurement is being assigned by a contracting authority referred to in Art. 7, item 2.

Art. 101g. (new – SG 93/11, in force from 26.02.2012) The contracting authority shall be obliged to keep all documents, related to the assignment of procurements subject to this Chapter, for a period of three years after the finalization of the fulfillment of the contract.

Part three.
ASSIGNING PUBLIC PROCUREMENT BY CONTRACTING AUTHORITYS CARRYING OUT ACTIVITIES OF WATER SUPPLY, POWER SUPPLY, TRANSPORT AND POSTAL SERVICES
Chapter nine.
GENERAL RULES FOR ASSIGNING PUBLIC PROCUREMENT
Section I.
General Provisions
Art. 102. (amend. - SG 37/06, in force from 01.07.2006) (1) The provisions of Part Three shall be applied by:
1. a contracting authority under art. 7, items 5 and 6;
2. a contracting authority under art. 7, items 1, 3 and 4 at carrying out some of the activities under art. 7a – 7e.
(2) Public procurement, the object of which comprises activities under art. 7a – 7e and other activities according to the law, shall be subject to the rules, applicable to the activity, which is the main object of the procurement.
(3) (amend. – SG 93/11, in force from 26.02.2012) In case with respect to one of the activities – subject of public procurement, are applicable the special regulations of this Chapter, and with regards to the other activity – the general provisions of the law, and if it is impossible objectively to define which one of the activities is the main subject of the public procurement, it shall be assigned by the order of the general provisions of the law.
(4) (amend. – SG 93/11, in force from 26.02.2012) In case with respect to one of the activities – subject of public procurement, are applicable the special regulations of this Chapter, and the other activity is neither subject to the general, nor the special provisions of the law, and if it is impossible objectively to define which one of the activities is the main subject of the public procurement, it shall be assigned by the order of this Chapter.

Art. 103. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall take a decision for assigning public procurement by way of open procedure, limited procedure and procedure of negotiation with notice in all cases when the prerequisites for conducting procedure of negotiation without notice are not present.
(2) The contracting authority shall take a decision for assigning public procurement by way of procedure of negotiation without notice only in case:
1. the open procedure, the limited procedure or the procedure of negotiation with notice has been terminated since no offer or application for participation has been filed or no candidates or participants have been admitted and the initially announced terms have not been changed substantially;
2. the assigning of the public procurement to another person would lead to violation of copyright or other rights of intellectual property or of exclusive rights acquired by virtue of a law or administrative act;
3. (amend. – SG 93/11, in force from 26.02.2012) there is a need of undertaking of urgent measures, caused by the occurrence of a force majeur, which the contracting authority could not or has not been obliged to foresee or to prevent by making due effort therefore, and for the overcoming of which the terms for holding of an open or limited procedure or of a procedure of negotiation with notice cannot be met;
4. the subject of the contract aims research, experimenting, scientific or development activity and does not aim profit or reimbursement of the expenses for this activity and as far as the assigning of such contract does not harm the competitive assignment of subsequent contracts, which are especially aimed at the achievement of these goals;
5. necessary are extra deliveries by the same supplier designated for a partial replacement or for increase of the deliveries, whereas the change of the supplier will compel the contracting authority to acquire goods with different technical characteristics, which will lead to incompatibility or to technical difficulties in the operation and maintenance;
6. (suppl. – SG 94/08, in force from 01.01.2009; suppl. – SG 93/11, in force from 26.02.2012) the service is assigned by way of a project competition, sending invitations for participation in the negotiations to the first rated participant or to all rated participants in compliance with the terms of the competition;
7. due to unforeseen circumstances it is necessary to assign an extra service or construction to the same contractor under the following terms:
a) the extra service or the construction cannot, technically or economically, be separated from the object of the basic contract without considerable difficulties for the contracting authority or, although they can be separated, they are essentially necessary for the fulfilment of the procurement;
b) (amend. – SG 93/11, in force from 26.02.2012) the total value of the orders by which additional services or construction are being assigned, does not exceed 50 percent of the cost of the basic procurement;
8. necessary is a repetition of construction by the same contractor in the presence of the following terms:
a) the first procurement has been assigned by an open procedure, limited procedure and procedure of negotiation with notice and the notice for it indicated the possibility of such assignment;
b) the total value of this procurement is included in determining the value of the first procurement;
c) the new procurement corresponds to the basic project in fulfilment of which the first procurement was assigned;
9. (amend. – SG 93/11, in force from 26.02.2012) subject of the procurement is the delivery of goods determined by a list, proposed by the State Commission for the commodity exchanges and marketplaces and approved by the Council of Ministers with the regulations for implementation of the law;
10. the procurement shall be assigned on the basis of a frame agreement concluded by the order of the law;
11. for a brief period occur favourable conditions for delivery of goods at prices lower than the market prices, including at sale of property of trade companies announced in liquidation or in bankruptcy;
12. (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) the order is for services of category No. 21 of Attachment No. 3 to Art. 5, par. 1, item 2 for a cost referred to in Art, 14, par. 3.
(3) In the cases of para 2, item 5 and 8 the contract for additional procurement may not be longer than three years.
(4) In the cases under par. 2, item 9 the contract shall be concluded by the order of the Law for the commodity exchanges and market-places.
(5) (suppl. – SG 33/12) In the cases under par. 2, item 11 the contract shall be concluded by the order of Part three of the Commercial law.

Art. 104. (amend. - SG 37/06, in force from 01.07.2006) (1) In open procedure, when the contracting authorities have sent an advance notice, the term for receiving offers may be reduced to 22 days from the date, on which the notice for opening the procedure has been sent.
(2) In case the notice for opening the procedure has also been sent by electronic means, the term under par. 1 may be reduced by 7 days.

Art. 104a. (new - SG 37/06, in force from 01.07.2006) The term for receiving applications for participation in limited procedures and procedures of negotiation with notice may not be shorter than 37 days from the date, on which the notice has been sent.
(2) The term under par. 1 may be reduced by 7 days, if the notice has also been sent by electronic means.
(3) The term for receiving offers in limited procedure and procedure of negotiation with notice may be fixed by an agreement between the contracting authority and the candidates, determined at the preliminary selection. An agreement shall be admitted only on the condition that all candidates are given the same term for preparation and submission of offers.
(4) In case an agreement under par. 3 has not been reached, the term shall be determined by the contracting authority and may not be shorter than 24 days from the date of sending the invitation for presenting offers or for participation in the negotiations.
(5) In the cases under par. 4, when the contracting authority provides full access to the documentation for participation by electronic means and if in the notice has been pointed out an electronic address, where it can be found, the term may be reduced by 5 days.

Section II.
System of Preliminary Selection of Contractors
Art. 105. (1) The contracting authorities may create and use systems of preliminary selection of contractors of public procurement.
(2) (new - SG 37/06, in force from 01.07.2006) The systems of preliminary selection may include different stages of selection.
(3) (prev. text of par. 2, amend. - SG 37/06, in force from 01.07.2006) The systems of preliminary selection shall be based on objective criteria and rules, which shall be determined by the contracting authority and can be amended by him/her if necessary.
(4) (prev. text of par. 3, amend. - SG 37/06, in force from 01.07.2006) The criteria and the rules for selection shall include requirements for economic and financial status under art. 50, para 1, and/or technical capacity and/or qualification under art. 51, par. 1 and may also include the requirements of art. 47, par. 1 and 2.
(5) (new - SG 37/06, in force from 01.07.2006) Where the criteria and the selection rules include technical specifications, the provisions of art. 30 – 32 shall be applied.
(6) (new - SG 37/06, in force from 01.07.2006) In case the selection criteria of the candidates contain requirements for economic and financial status and technical capacities, and/or qualification, the candidate may refer to the resources of third persons, regardless of the legal relations between him/her and the third persons. In these cases the candidate must provide the contracting authority with evidence that the resources are available within the whole term of validity of the system of preliminary selection. In case the candidate is an association of natural and/or legal persons, he/she may refer to the resources of a person, included in the association, or to third persons under the same conditions.
(7) (new - SG 37/06, in force from 01.07.2006) The criteria and the rules for selection under par. 3 shall be provided upon request by the candidates. The actualization of these criteria and rules shall be announced to the persons, included in the system of preliminary selection.
(8) (prev. text of par. 4, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The contracting authorities shall send an notice for the systems of preliminary selection, created by them, to contractors to the Agency for entering in the Public Procurement Register. Where the system has a term of more than three years, the notice shall be published every year.
(9) (prev. text of par. 5, amend. - SG 37/06, in force from 01.07.2006; revoked – SG 33/12)
(10) (prev. text of par. 6 - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Where the description of the subject of the system of preliminary selection and/or of the criteria and rules for selection is of a big volume the contracting authority shall include in the notice a brief description, and the detailed requirements shall be included in the documentation.
(11) (prev. text of par. 7 - SG 37/06, in force from 01.07.2006) When the contracting authority uses a system of preliminary selection he/she shall choose the candidates for participation in limited procedures and procedures of negotiation in compliance with the requirements of this system.
(12) (prev. text of par. 8, amend. - SG 37/06, in force from 01.07.2006) When a contracting authority considers that the system of preliminary selection of another person meets his requirements, he shall notify the interested persons that he will use it.

Art. 106. (1) Application for participation in the system of preliminary selection may be filed at any time within the term of validity of the system.
(2) (amend. - SG 37/06, in force from 01.07.2006) For considering the applications for participation in the system of preliminary selection the contracting authority shall appoint a commission by the order of art. 34 - 36.
(3) (suppl. – SG 37/06, in force from 01.07.2006) The commission shall consider every filed application and, on the grounds of the announced objective criteria and rules, shall propose to the contracting authority to include or refuse the inclusion of the candidate in the system of preliminary selection.
(4) The contracting authority shall be obliged to take a decision within 6 months from filing the application for inclusion in the system of preliminary selection.
(5) Where the decision under para 4 requires more than 4 months the contracting authority shall notify the candidate within two months from filing the application for the reasons and for the date by which the decision will be taken.
(6) Within 15 days from the date of the decision under para 4 the contracting authority shall notify the candidate about his inclusion in the system of preliminary selection or his refusal to do so. The refusal shall be motivated.
(7) (amend. - SG 37/06, in force from 01.07.2006) In taking a decision under para 4 or when the criteria and rules are changed the contracting authority may not:
1. impose on the candidates requirements of administrative, technical or financial nature which do not regard the other candidates;
2. require inspections or proof repeating already presented by the candidate evidence.
(8) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The contracting authority shall maintain lists of the candidates included in the systems of preliminary selection of contractors of public procurement who may be divided into categories depending on the subject of the procurement which the system concerns. In the cases of art. 105, para 12 the contracting authority shall be obliged to submit information for the system and the lists to other contracting authorities.
(9) The contracting authority may terminate the participation in the system of preliminary selection of a candidate who has ceased to meet the announce criteria. He shall be obliged to inform him about that at least 15 days before the date of termination motivating it.

Section III.
Frame Agreement (revoked - SG 37/06, in force from 01.07.2006)
Art. 107. (revoked - SG 37/06, in force from 01.07.2006)

Art. 108. (revoked - SG 37/06, in force from 01.07.2006)

Chapter ten.
SPECIAL RULES
Art. 109. (1) (suppl. SG 31/05, in force from May 1, 2005, prev. text of art. 109, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) Under the terms of art. 23 the contracting authorities as per art. 7, items 5 and 6 may send to the Registry Agency in the Public Procurement Register a preliminary notice or preliminary notice-invitation for the planned public procurement or frame agreements for the next 12 months. The type of the notice shall be chosen by the contracting authority.
(2) (new - SG 37/06, in force from 01.07.2006) The contracting authority may publish in the buyer profile the preliminary notice for the planned procurement or frame agreements for the following 12 months under the terms of art. 23, par. 2.

Art. 110. (amend. - SG 37/06, in force from 01.07.2006) When the contracting authority publishes a preliminary notice for large projects, which have been included in previous advance notice, they may not repeat this information by indicating the notice containing it.

Art. 111. (suppl. – SG 37/06, in force from 01.07.2006; amend. – SG 33/12) The contracting authority may open a limited procedure or a procedure of negotiation with notice and by:
1. (revoked - SG 37/06, in force from 01.07.2006);
2. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) preliminary notice-invitation published by the order of art. 23;
3. (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 33/12) notice of the system of preliminary selection under art. 105, para 8.

Art. 112. (1) (amend. - SG 37/06, in force from 01.07.2006) The preliminary notice-invitation shall serve as an invitation for declaring interest in participation in the procedure by the potential candidates.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 93/11, in force from 26.02.2012) The preliminary notice-invitation shall be prepared according to the form under art. 19, par. 7.
(3) The preliminary notice-invitation shall also contain the following information, if available by the date of its ending:
1. possibility of concluding frame agreements;
2. possibility of assigning an extra procurement;
3. initial or final date of fulfilment of the procurement;
4. term of the contract;
5. requirements for the economic and financial status of the candidate, as well as for his technical capacity and/or qualification;
6. terms and size of the guarantee for participation and of the performance guarantee for fulfilment of the contract;
7. (new - SG 37/06, in force from 01.07.2006) criteria for selection of a contractor and the relative weight of the indices in the complex assessment of the offer;
8. (prev. text of item 8 – SG 37/06, in force from 01.07.2006) place and term of obtaining, price and way of payment of the documentation for participation in the procedure;
9. (prev. text of item 8, suppl. – SG 37/06, in force from 01.07.2006; amend. - SG 82/09, in force from 16.10.2009; suppl. – SG 93/11, in force from 26.02.2012) other information determined by the form referred to in Art. 19, par. 7.

Art. 113. (amend. - SG 37/06, in force from 01.07.2006) (1) The contracting authority shall provide upon request by the interested persons the technical specifications, which he/she uses frequently in the contracts for delivery, construction or the technical specifications, which he/she intends to apply at assignment of public procurement, provided for in the preliminary notices.
(2) In case the technical specifications are based on documents, which the interested persons have at their disposal, the indication of these documents shall be enough.

Art. 114. (amend. - SG 37/06, in force from 01.07.2006) (1) Where the procedure of negotiation with notice or the limited procedure has been announced by a preliminary notice-invitation the contracting authority shall send an invitation for participation in the procedure to all candidates having declared interest within the term, indicated in the advance notice-invitation.
(2) The invitation for participation in the procedure shall be sent simultaneously to all candidates not later than 12 months from the date of sending the preliminary notice-invitation. The invitation shall be sent at least 37 days before the deadline for receiving applications for participation, and if it is sent by electronic means, the term for receiving applications may be reduced by 7 days.
(3) Where the preliminary notice-invitation does not contain the information under art. 112, para 3 the contracting authority shall submit this information to the candidates by the invitation under para 1, also indicating:
1. address and date of submission of an application for participation;
2. documents, which shall be attached to the application for participation.
(4) Where from the date of publishing the preliminary notice-invitation, the contracting authority has provided direct and unlimited access to the information under art. 112, par. 3 by electronic means, in the invitation for participation in the procedure shall be indicated the Internet address where this information is provided.
(5) The contracting authority shall hold the preliminary selection by the order of art. 77 - 79.
(6) During the selection of the candidates in a limited procedure or a procedure of negotiation with notice the contracting authority may not:
1. impose to a candidate terms of administrative, technical or financial nature, which do apply to the other candidates;
2. require checks or proof, which reiterate evidence, already presented by the candidate.

Art. 115. Where the procedure of negotiation or the limited procedure has been announced through an notice for a system of preliminary selection the contracting authority shall make a preliminary selection of the candidates for participation according to the requirements of this system.

Art. 116. (revoked - SG 37/06, in force from 01.07.2006)

Art. 117. (1) (amend. - SG 37/06, in force from 01.07.2006) The consideration, assessment and rating of the offers and the choosing of a contractor of the procurement in a limited procedure shall be carried out by the order of art. 68 - 74.
(2) (amend. - SG 37/06, in force from 01.07.2006) The consideration, assessment and rating of the offers and the choosing of a contractor of the procurement in a procedure of negotiation shall be carried out by the order of art. 88 - 89.

Art. 118. (1) (amend. - SG 37/06, in force from 01.07.2006) The contracting authority may remove an offer for delivery where the share of the goods with origin from third countries outside exceeds 50 percent of the total value of the goods included in it.
(2) (new - SG 37/06, in force from 01.07.2006) The provision of par. 1 shall not apply, if there is a contract concluded between the European Union or the Republic of Bulgaria and a third country, which provides for Bulgarian persons comparable and efficient access to participate in public procurement in this country.
(3) (prev. text of par. 2 - SG 37/06, in force from 01.07.2006) The origin of the goods shall be determined in compliance with the current customs legislation.
(4) (prev. text of par. 3 - SG 37/06, in force from 01.07.2006) Where two or more offers are equivalent regarding the criterion for assessment of the offers rated with priority shall be the offers which cannot be removed according to para 1. The prices of the offers shall be considered equivalent if the difference between them does not exceed three percent.
(5) (prev. text of par. 4, amend. - SG 37/06, in force from 01.07.2006) One offer may not be preferred to another according to para 4 when its acceptance would oblige the contracting authority to buy goods with technical characteristics which differ from those of the existing ones, which would lead to incompatibility or to technical difficulties of operation and maintenance.

Art. 118a. (new - SG 37/06, in force from 01.07.2006) (1) Where a public procurement is assigned, whose object is research and development activity, by way of open, limited procedure or procedure of negotiation with notice, the contracting authorities may not point out object and quantity in the information of a concluded contract, in case their publishing would violate the trade secret. In such cases the information shall contain all data from the notice.
(2) Where a public procurement is assigned, whose object is research and development activity, by way of procedure of negotiation without notice under art. 103, par. 2, item 4; the contracting authority may not point out object and quantity in the information of a concluded contract.
(3) In case of concluded contract by means of system of preliminary selection, the information for concluded contract shall contain at least the data for the contractor, included in the list under art. 106, par. 8.

Art. 118b. (new - SG 37/06, in force from 01.07.2006) (1) In case an activity under art. 7a – 7e is subject to competition, the supervising authority in the respective sphere may notify the Agency by sending a statement, along with proof for excluding this activity of the application field of the law.
(2) Within one month term the Agency shall send the documents under par. 1 to the European commission for taking a decision.

Art. 119. For all unsettled issues in Part Three shall apply the provisions of Part Two respectively.

Part three.
"a" ASSIGNMENT OF PUBLIC PROCUREMENTS IN THE FIELD OF DEFENSE AND SAFETY (NEW – SG 33/12)
Chapter eleven.
"a" GENERAL RULES (NEW – SG 33/12)
Section I.
General provisions (New – SG 33/12)
Art. 119a. (new – SG 33/12) (1) The provisions of this section shall apply for assignment of public procurements under Art. 3, par. 2 for amounts referred to in Art. 14, par. 2.
(2) In case regarding one of the activities – subject to public procurement, the provisions of this section are applicable, and regarding the other activity – the provisions of section two or of section three are applicable, it shall be assigned subject to compliance with the provisions of this section, provided that due to objective reasons assignment of a joint procurement is justified.
(3) In case regarding one of the activities – subject to public procurement, the provisions of this section are applicable, and another activity within the subject is beyond the application field of the law and for objective reasons assignment of a joint procurement is justified, the law shall not apply for this procurement.
(4) No taking of a decision shall be allowed for assignment of public procurement for the purposes of application of this section or excluding of the procurement from the application field of the law.

Art. 119b. (new – SG 33/12) (1) The Contracting Authorities may receive supplies or services from or through a central public procurements body, being:
1. a contracting authority in the meaning of Art. 8a, par. 2, established by an act of the Council of Ministers, or
2. an European public body, which is not a contracting authority.
(2) Where contracting authorities receive supplies or services subject to compliance with par. 1, it shall be deemed that they have complied with the provisions of the law, as long as:
1. the body referred to in par. 1, item 1 has complied with the provisions of this section, too;
2. the applied by the body under par. 1, item 2 regulations meet the provisions of this section and of the appealing regulations.
(3) The central body and the contracting authority shall be responsible for the lawfulness of the respective procedure, being conducted by them.

Section II.
Procedures (New – SG 33/12)
Art. 119c. (new – SG 33/12) (1) Public procurements under this section shall be assigned through a limited procedure and a contracting procedure with prior notification, unless there are conditions for conducting a procedure of competitive dialogue and contracting without notice.
(2) Contracting authority may assign public procurement through competitive dialogue, where the provisions of Art. 83a, par. 1 and 2 are met.
(3) Contracting authorities shall take a decision for assignment of public procurements through contracting without notice, where:
1. the limited procedure, the competitive dialogue or the contracting procedure with prior notification has been terminated, because no application forms have been filed or there are no shortlisted applicants, or no offer has been submitted and the initially announced terms and conditions have not been amended significantly;
2. the limited procedure, the competitive dialogue or the contracting procedure with prior notification has been terminated, because the submitted offers do not comply with the initially announced terms and conditions, only applicants having submitted offers fin the terminated procedure, and the initially announced terms and conditions have not been amended sigificantly;
3. where there is a necessity to undertake immediate actions as a result of a crisis and therefore the terms for conducting of a limited procedure or of a contracting procedure with prior notification cannot be met, including these referred to in Art. 76, par. 3 and Art. 86, par. 3, including in cases under Art. 119f, par. 1, item 2, item "a";
4. there is a need of undertaking of immediate actions, arising out of occurrence of an event of force majeur, which the contracting authority, having taken due care thereof, could not or has not been obliged to foresee or prevent and for the overpassing of which the terms for conduction of a limited procedure or of a contracting procedure with prior notification cannot be met;
5. for technical reasons or for reasons related to protection of exclusive rights public procurement may be assigned only to a particular contractor;
6. the subject of the public procurement is research or development, except for the cases referred to in Art. 4, item 4 and Art. 13, par. 1, item 4;
7. the goods – subject of delivery, are produced for study, experimenting, research or development purposes and are in a limited amount, which does not allow calculation of a market price or refunding of expenses for this activity;
8. additional supplies by the same supplier are needed, meant for partial replacement or for increasing of supplies, whereby changing of supplier will make the contracting authority acquire goods with different technical parameters and this will result in incompatibility or in significant technical difficulties during the operation and maintenance;
9. public procurement subject is supply of goods, marketed on the stock exchange;
10. for a short period of time unfavorable condition occur for supply of goods at prices, which are lower than the market prices, including in case of sale of assets of business companies in a procedure of winding up or in announced insolvency;
11. due to unforeseen circumstances, assignment of additional service or construction works to the same contractor is necessary, subject to the following terms and conditions:
a) the additional service or construction works may not technically or economically be separated from the subject of the main contract without significant difficulties for the contracting authority, or, even they can be separated, they are critically necessary for the implementation of the order;
b) the total cost of orders, by which additional services or construction works are assigned, does not exceed 50 per cent of the cost of the main order;
12. repetition of the service or of construction works is required by the same contractor subject to existence of the following terms and conditions:
a) the first order has been assigned under a limited procedure or a contracting procedure with prior notification, or a competitive dialogue and the notice thereof indicates opportunity for such assignment;
b) the total cost of the new order is included for calculation of the cost of first order;
c) the new order corresponds to the basic project, in fulfillment of which the first order has been assigned;
13. the subject of the order is related to provision of air and sea transport services to armed forces or to security forces of the country, located or to be located outside its territory, where the contracting authority must provide these services by contractors guaranteeing the validity of their offers only for such short terms, that the term for conducting of a limited procedure or of a contracting procedure with prior notification, including the shorter terms referred to in Art. 76, par.3 and Art. 86, par. 3 may not be met.
(4) In cases referred to in par. 3, item 8 the contract for additional public procurement may not be for more than 5 years, except for in case of exceptional circumstances, which shall be determined by taking into account the life cycle of the supplied products, facilities or systems and technical difficulties, which the change of the supplier may cause.
(5) In cases referred to in par. 3, item 12 the procedure may be opened not later than within 5 years after the assignment of the first public procurement, except for in cases of exceptional circumstances, which require the procedure to be conducted within this term.
(6) In cases referred to in par. 3, item 9 the contract shall be concluded subject to the rules of the respective stock exchange.
(7) In cases referred to in par. 3, item 10 the contract shall be concluded subject to the provisions of section Three of the Commercial law.

Art. 119d. (new – SG 33/12) (1) Contracting authorities may conclude a frame agreement for assignment of public procurements based on a limited procedure, public procurement with prior notification or a competitive dialogue.
(2) Frame agreements shall be concluded for a period not exceeding 7 years. As an exception, the term of the frame agreement may be longer, where in consideration of the estimated life cycle of the supplier goods, facilities or systems, the change of the contractor may cause technical difficulties. The contracting authority shall indicate the justification thereof in the notice.
(3) The all matters not covered by the frame agreement the provisions of Art. 93a – 93d shall apply.

Chapter ten.
"b" SPECIAL RULES (NEW – SG 33/12)
Section I.
Terms and conditions for implementation of public procurement (New – SG 33/12)
Art. 119e. (new – SG 33/12) (1) Where according to Art. 26, par. 2 the notice indicates that the public procurement contains or requires classified information, in the documentation, submitted together with the call for proposals, the contracting authority shall specify for the participants and their sub-contractors requirements for protection of classified information.
(2) In cases referred to in par. 1, in addition to the documents referred to in Art. 51, par. 1, item 12 the contracting authority may:
1. request presentation of a permit, a certificate or an approval for access to classified information in the meaning of the Law for the protection of classified information for the selected sub-contractors;
2. include in the draft contract clauses, obliging the contractor:
a) to present the document referred in item 1 also for the sub-contractors, selected in the course of implementation of public procurement;
b) to protect the classified information, made available to him/her in the course of the procedure, during and after the accomplishment of public procurement;
c) in contracts with sub-contractors, selected before and during the implementation of the public procurement, to include clauses under item "b" for protection of classified information.
(3) In cases referred to in Art. 51, par. 1, item 12 the contracting authority shall recognize the permits for access to classified information, issued in compliance with the laws of the European Union Member State, where the applicant or the participant is based, in case of an existing and enforced international treaty or a bilateral agreement for protection of classified information, to which the Republic of Bulgaria is a party. This does not exclude the opportunity the contracting authority, subject to the terms and conditions and following the procedure of the Law for the protection of classified information, to request carrying out of additional research in the respective European Union Member State.

Art. 119f. (new – SG 33/12) (1) Where in compliance with the provision of Art. 26, par. 2 the contracting authority has included in the notice requirements for safety of supplies, it may:
1. request the offer to contain also:
a) licenses or other appropriate documents, issued in the respective European Union Member State, evidencing that the participant will be in a position to fulfill the obligations regarding the export, transfer and transit of goods, related to the public procurement;
b) indication of all restrictions, related to disclosure, transfer or use of goods and services or the results thereof, arising out of control over the export or out of agreements in the field of defense;
c) evidences, that the organization and the location of the supply chain of the participant allow compliance with these requirements, and also a declaration, that possible changes in the supply chain in the course of implementation of order will not have an adverse effect;
d) each accompanying documentation, received in the national bodies of the participant regarding implementation of additional needs, required by the contracting authority, having occurred as a result of a crisis;
2. include in the draft contract clauses, obliging the contractor:
a) to set up and/or maintain the capacity, required for meeting additional needs, required by the contracting authority as a result of a crisis, subject to compliance with the agreed terms and conditions and the procedure;
b) to carry out maintenance, upgrading or adaptation of supplies, covered by the public procurement;
c) to notify the contracting authority without delay of any change, having occurred in his/her organization, the supply chain or industrial strategy, which may affect the implementation of the order;
d) in case of termination of production, to provide to the contracting authority all special equipment required for production of spare parts, components, fixing components and special testing equipment, including technical drawings, licenses and operation instructions, subject to terms and conditions and following a procedure agreed upon prior to occurrence of the respective circumstance.
(2) The contracting authority may not put requirements to the participant, which may cause contravention to the license criteria for export, transfer or transit of the respective European Union Member State.

Art. 119g. (new – SG 33/12) (1) Where a participant intends to hire subcontractors, he/she shall be obliged to:
1. indicate in the offer the proposed subcontractors, the type of works to be carried out and the share of their participation;
2. present documents, evidencing compliance of selection criteria of each individual one in consideration of the type and share of their participation;
3. notify the contracting authority of every change of subcontractors, having occurred in the course of implementation of the public procurement contract.
(2) The contracting authority shall eliminate a participant if the proposed by him/her subcontractors do not meet the selection criteria.

Art. 119h. (new – SG 33/12) (1) The contracting authority may oblige the participant, nominated for a contractor, to select the subcontractors for all or for some of the works proposed for subcontracting subject to compliance with the provisions of Art. 119i – 119k. This opportunity shall be indicated in the notice.
(2) The contracting authority shall indicate in the decision for nomination of a contractor for which works, proposed for subcontracting the subcontractors must be selected subject to compliance with the provisions of Art. 119i – 119k.
(3) The contracting authority shall not have the right to put restrictions, based on subcontractors’ national identity.

Section II.
Selection of subcontractors (new – SG 33/12)
Art. 119i. (new – SG 33/12) Where the participant, nominated for a contractor, is an employer under Art. 7, he/she shall conclude subcontracts for the amount specified in Art. 14, par. 2 through a procedure referred to in Art. 119c, par. 1.

Art. 119j. (new – SG 33/12) (1) Where the participant nominated as a contractor is not an employer under Art. 7 and has to meet a requirement under Art. 119h, par. 1, he/she shall issue a notice in compliance with the form, approved by the regulation of Art. 45a, par. 9 or following the provision of Art. 19, par. 7 – for subcontracts for an amount specified in Art. 45a, par. 2, item 7 and in the European Union Official Journal subject to compliance with the provisions of Art. 45a, par. 7, 10 and 11.
(3) In cases referred to in par. 1 the subcontractors shall be selected subject to compliance with the principles of transparency and competition.

Art. 119k. (new – SG 33/12) (1) For selection of a subcontractor under Art. 119i and 119j the selection criteria, indicated by the contracting authority for the public procurement, shall apply. The participant, nominated as a contractor, may set out also other criteria, which correspond to these indicated by the contracting authority.
(2) The selection criteria under par. 1 should be objective, non-discriminatory, to me related to the subject of the subcontract and to be proportional to its scope.

Art. 119l. (new – SG 33/12) (1) The contracting authority shall have the right to reject subcontractors, selected by the participant, nominated as a contractor only in case they do not meet the selection criteria, applicable to the participants and indicated in the notice and in the documentation. In this case the participant nominated as a contractor shall be obliged again to apply the procedure referred to in Art. 119i – 119k.
(2) In cases referred to in par. 1 the contracting authority shall issue a justified decision, which it shall send to the participant nominated as a contractor within three days after its issuance.

Art. 119m. (new – SG 33/12) The decisions of the participant nominated as a contractor, related to selection of s subcontractor, shall not be subject to appeal in cases, where the participant, nominated as a contractor is not an employer under Art. 7.

Art. 119n. (new – SG 33/12) The responsibility for the fulfillment of a public procurement contract shall be borne by the contractor even in cases where he/she has concluded subcontracts.

Part four.
APPEAL AND CONTROL (TITLE AMEND. - SG 37/06, IN FORCE FROM 01.07.2006)
Chapter eleven.
APPEAL (TITLE AMEND. - SG 37/06, IN FORCE FROM 01.07.2006)
Art. 120. (Amend. - SG 37/06, in force from 01.07.2006; amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) (1) Following the procedure under this Chapter every decision of the contracting authorities shall be subject to appeal regarding:
1.assigning public procurement, including by implementing a frame agreement, dynamic purchasing system or preliminary selection system;
2.concluding a frame agreement;
3.establishing dynamic purchasing system or preliminary selection system;
4.a project competition.
(2) The decisions under paragraph 1 shall be subject to appeal before the Commission for Protection of the Competition regarding their legal compatibility, including the presence of discriminatory economic, financial, technical or qualification requirements in the notice, the documentation or in any other document, relating to the procedure.
(3) (new – SG 33/12) Subject to appeal following the provisions of this Chapter shall also be the decisions under Art. 119l, par. 2.
(4) (new – SG 93/11, in force from 26.02.2012; prev. par. 3 – SG 33/12) Contracting authority’s acts or omissions shall be subject to appeal following the provisions of this Chapter, by which the access to or participation of persons in the procedure is hindered. Contracting authority’s acts for issuing of decisions under par. 1 shall not be subject to individual appeal.
(5) (prev. par. 3 – SG 93/11, in force from 26.02.2012; prev. par. 4 – SG 33/12) The appeal could be lodged in 10-days term, considered from:
1. (amend. – SG 93/11, in force from 26.02.2012) after expiration of the term under Art. 27a, par. 3 – against the decision for opening of the procedure and/or the decision for a change;
2. (new – SG 93/11, in force from 26.02.2012) publication of the decision for opening of a procedure under Art. 76, par. 3 of Art. 86, par. 3 or of contracting without notice;
3. (prev. item 2, amend. and suppl. – SG 93/11, in force from 26.02.2012; amend. and suppl. – SG 33/12) the receipt of the decision under Art. 79, paragraph 12, Art. 83d, para 11, Art. 83g, para 1, Art. 88, paragraph 11, Art. 93g, par. 4, Art. 106, par. 4 and Art. 119m, par. 2;
4. (prev. item 3– SG 93/11, in force from 26.02.2012) the receipt of the decision for choosing a contractor or for concluding the procedure;
5. (prev. item 4 – SG 93/11, in force from 26.02.2012) publishing the voluntary transparency notice in the public procurement register or in Official journal of the European union – against the decision for choosing a contractor.
(6) (new. – SG 93/11, in force from 26.02.2012; prev. par. 5, amend. – SG 33/12) The term of appealing of the decision of par. 5, item 1 shall start elapsing from the receipt of documentation, if the following conditions are not fulfilled at the same time:
1. the appeal is against requirements, which are not mentioned in the notice;
2. the documentation is not published at the same time with the notice;
3. the documentation has been received after the term referred to in Art. 27a, par. 3.
(7) (new – SG 93/11, in force from 26.02.2012; prev. par. 6, amend. – SG 33/12) The appeal under par. 4 shall be filed within 10 days after the notification of the respective action, and if the person has not been notified – from the date, on which the term for accomplishment of the respective action has expired.
(8) (prev. par. 4, amend. – SG 93/11, in force from 26.02.2012; prev. par. 7 – SG 33/12) The appeal may be submitted by:
1. (amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) every interested person – in the cases under par. 5, items 1, 2 and 4, par. 6 and 7;
2. (amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) every interested candidate in the procedure – in the cases under par. 5, item 3 and par. 7;
3. (amend. – SG 93/11, in force from 26.02.2012) every interested candidate or participant – in the cases under par. 4, item 4 and par. 6.
(9) (new – SG 93/11, in force from 26.02.2012; prev. par. 8, amend. – SG 33/12) Within the term of par. 5, item 1 an appeal against the decision for opening of the procedure and/or the decision for a change may submit also professional associations and organizations in the respective branch for protection of interests of their members.
(10) (prev. par. 5, amend. – SG 93/11, in force from 26.02.2012; prev. par. 9, amend. – SG 33/12) In the cases referred to in para 5, items 1 and 5, where the publishing dates in the Public procurement register and in the Official Journal of the European Union differ from each other, the term for appeal starts from the later date.
(11) (prev. par. 6, amend. – SG 93/11, in force from 26.02.2012; prev. par. 10, amend. – SG 33/12) The appeal against the decision for rating of the participants in the project competition shall be submitted by every interested candidate or interested participant in the term under paragraph 5.

Art. 120a. (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) (1) (suppl. – SG 33/12) The appeal against a decision, act or omission of the contracting authority, except for this for nomination of a contractor shall not suspend the procurement assignation procedure, except in those cases where a temporary measure has been requested – "stay of the procedure".
(2) In case the temporary measure under paragraph 1 has been requested with the appeal, the public procurement assignation procedure shall be suspended until entering into force of:
1. the ruling, which discard the temporary measure request, or
2. the decision regarding the appeal, in case a temporary measure has been imposed.

Art. 120b. (new – SG 52/10) An appeal against the decision for designation of a contractor shall suspend the procedure for assigning public procurement till the dispute is completely resolved, unless a preliminary execution has been permitted.

Art. 121. (amend. - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) The appeal shall be submitted at the same time to the Commission for Protection of Competition and to the contracting authority, whose decision, act or omission is subject to the appeal.
(2) The appeal shall be written in Bulgarian language and shall contain:
1. name of the authority, before which it is lodged;
2. name, seat and address of management and information of the court registration of the appellant – legal person; the name, the address and information of the identity of the appellant, if he/she is a natural person;
3. (amend. – SG 52/10) name and address of the contracting authority;
4. information of the public procurement and the decision, the action or inaction, which is appealed;
5. the complaints and the request of the appellant;
6. signature of the person, lodging the complaint, or his/her proxy.
(3) A request for a temporary measure shall be made simultaneously with the submission of the appeal.
(4) (amend. – SG 93/11, in force from 26.02.2012) To the appeal to the Commission for protection of competition shall be attached:
1. a copy of the decision subject to appeal, where it is not published in the Public procurements register;
2. (amend. – SG 33/12) evidences of meeting the term referred to in Art. 120, par. 5 and 7;
3. a document of paid state fee, determined by a tariff, approved by the Council of Ministers;
4. an evidence of the appeal being sent to the contracting authority;
5. other evidences, if the appellant has any.
(5) (amend. – SG 93/11, in force from 26.02.2012) If the appeal does not meet the requirements under par. 2 and par. 4, items 1 – 3, or a document for paid state fee has not been presented, the Commission for Protection of Competition shall inform the appellant thereof and shall provide him/her with three days term for removal of the irregularities.
(6) The Commission for Protection of Competition shall not initiate proceedings, in case:
1. (amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) the appeal has been lodged after the expiry of the term under art. 120, par. 5 and 7;
2. the irregularities have not been removed within the term under par. 5;
3. a document for paid state fee has not been presented;
4. (revoked – SG 52/10; new – SG 93/11, in force from 26.02.2012) the appeal has been filed prior to expiration of the term, referred to in Art. 27a, par. 3;
5. (new – SG 94/08, in force from 01.01.2009) the appeal has been withdrawn prior to their initiation.
(7) (amend. – SG 52/10) In the cases under par. 6, the chairperson of the Commission for Protection of Competition shall return the appeal by an order, which shall be subject to appeal before a three-member board of the Supreme Administrative Court within 3 days term from its notice.
(8) The contracting authority is entitled to remedy the infringement before the Commission for Protection of Competition rules on the appeal.

Art. 121a. (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) (1) (amend. and suppl. – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) In three days term from receiving the appeal or correcting its irregularities the chairman of the Commission for Protection of Competition shall initiate a procedure and shall appoint a member of the commission to monitor the research. The contracting authority shall be notified of the initiated procedure.
(2) (new – SG 93/11, in force from 26.02.2012) The contracting authority shall send an opinion on the appeal, supported as a request by evidences, within three days after the receipt of the notification of par. 1.
(3) (prev. par. 2 – SG 93/11, in force from 26.02.2012) In case a request for imposing a temporary measure has been made with the appeal the Commission for Protection of Competition shall give a well-grounded opinion on it in a closed session in 7-days term from the initiation of the procedure.
(4) (prev. par. 3 – SG 93/11, in force from 26.02.2012; suppl. – SG 33/12) Based on the opinion of the contracting authority and the evidence, presented by the parties, the Commission for Protection of Competition shall make a statement regarding the request following an assessment of the possible consequences from imposing the temporary measure with regard to all interests, that could be eventually harmed, including the public interest and the interests, related to the defense and security.
(5) (prev. par. 4 – SG 93/11, in force from 26.02.2012) The Commission for Protection of Competition shall not be obliged to impose a temporary measure, in case the negative consequences for all interests overweigh compared to the benefits of its imposing.
(6) (prev. par. 5 – SG 93/11, in force from 26.02.2012) Ruling on the temporary measure shall not bind the Commission for Protection of Competition regarding the decision on the merits of the case, as well as it shall not concern the other requests of the appellant.
(7) (prev. par. 6, amend. – SG 93/11, in force from 26.02.2012) The ruling for pronouncing on the temporary measure shall be subject to appeal before three members of the Supreme Administrative court in three days term following its notice to the parties. The court shall pronounce in a closed session within 14 days after the initiation of the proceedings under the private appeal. To all non-regulated matters regarding the proceedings of the appeal the provisions of Chapter Thirteen of the Code of Administrative procedure shall apply.
(8) (new – SG 93/11, in force from 26.02.2012) The appeal of the ruling for imposition of a temporary measure shall not suspend the procedure before the Commission for Protection of Competition.

Art. 121b (New – SG 52/2010) (1) (amend. – SG 93/11, in force from 26.02.2012) In case the decision for selection of a contractor is a subject to appeal, the contracting authority may within the term for presentation of the opinion referred to in Art. 121a, par. 2 request from the Commission for Protection of Competition to permit preliminary execution of the decision. A request for preliminary execution, filed after this term, shall not be considered by the Commission for protection of competition.
(2) The contracting authority shall provide reasons for its request under para 1 and shall enclose evidence supporting its statements.
(3) In a closed session the Commission for Protection of Competition shall rule on the request for allowing a preliminary execution in three days term from receiving the statement.
(4) (suppl. – SG 33/12) The Commission for Protection of Competition shall allow a preliminary execution of the decision for assignation of a contractor as an exception, where necessary, in order to preserve the life or health of the citizens, to protect state or public interests of great importance, including these, related to the defense and security, or if as a result of the delay of the execution a significant damage is done or a damage difficult to repair may occur.
(5) The preliminary execution under paragraph 4 shall not be allowed in case it is justified by economic interests, related to expenses made for:
1. a delay of the contract execution;
2. opening a new procedure for procurement assignation.
(6) (new – SG 33/12) The commission for protection of competition shall allow preliminary execution of the decision for selection of a contractor in all cases where the implementation of a large-scale program in the field of defense of security, which is of a vital importance for country interests, could be seriously impaired.
(7) (prev. par. 6 – SG 33/12) The ruling shall be subject to appeal before the Supreme Administrative Court in three days term from its notice to the parties.
(8) (amend. – SG 93/11, in force from 26.02.2012; prev. par. 7 – SG 33/12) The Supreme Administrative Court shall pass judgement on the ruling in a closed session in 14-days term from starting the procedure regarding the private appeal.

Art. 122. (amend. - SG 37/06, in force from 01.07.2006; amend. SG 52/2010) (1) When there is an on-going procedure against a decision for assignation of a contractor and no preliminary execution has been allowed, the Commission for Protection of Competition shall inspect ex officio for the presence of a pending procedure against another decision of the contracting party related to the same procedure.
(2) In case that the Commission for Protection of Competition finds out that there is a pending procedure under paragraph 1, it shall suspend the proceedings, started with an appeal against the decision for assignation of a contractor.
(3) The proceedings shall be resumed ex officio or at a request by one of the parties following the invalidation of the reason for suspending.

Art. 122a. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 33/12) The research shall cover the circumstances with respect to the appeal, filed within the term set up in Art. 120, par. 5 and 7 and shall be carried out by a work team from the administration of the Commission for protection of competition, appointed by an order of the Chairman. The research shall be monitored by a member of the commission referred to in Art. 121a, par. 1, who shall issue instructions, where appropriate.
(2) (new – SG 33/12) Where public procurement contains or requires classified information, including with a subject under Art. 3, par. 2, the employees from the administration of the Commission for protection of competition, involved in the proceedings for consideration of the file must hold a permit for access to classified information up to a certain level according to the provisions of the Law for protection of classified information.
(3) (prev. par. 2- SG 33/12) In the proceedings before the Commission for Protection of Competition shall be admitted written and oral evidence, as well as expert statements.
(4) (amend. – SG 52/10; prev. par. 3 – SG 33/12) Where expert statements are used in the proceedings before the Commission for Protection of the Competition, the sums designated for consideration of the experts shall be deposited in advance by the party, who has demanded the expertise. Upon instituting an expertise at the initiative of the Commission for Protection of the Competition, the expenses for the expert consideration shall be assigned to the appellant, if the appeal has been left without consideration or the proceedings have been terminated, and to the contracting authority – in the cases under art. 122d, par. 1, item 2, 4 or 5.
(5) (prev. par. 4 – SG 33/12) The parties to the proceedings, the state bodies and the officials shall be obliged to provide support to the Commission for Protection of Competition in fulfilment of its liabilities, assigned by the law.
(6) (prev. par. 5 – SG 33/12) All evidence, collected in connection to the proceedings, may not be announced, if they represent production, trade or other secret, protected by a law. In case they contain data, representing classified information, shall be applied the procedure, stipulated by the Law for the protection of the classified information.
(7) (prev. par. 6 – SG 33/12) After concluding the research, the parties shall be given a chance to get acquainted with the evidence collected concerning the file.
(8) (prev. par. 7 – SG 33/12) The parties shall be obliged to present all evidence not later than the day before the session for consideration of the appeal.

Art. 122b. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 33/12) Upon completion of the research, the work team shall present to the monitoring member of the commission a report containing factual and legal analysis of the case, and also a proposal for the way of conclusion of the proceedings.
(2) (new – SG 33/12) The monitoring member of the commission shall notify the chairperson of the accomplishment of the research. By a resolution, the chairperson shall schedule an open session for consideration of the file.
(3) (amend. – SG 59/07, in force from 01.03.2008; prev. par. 2 – SG 33/12) The parties shall be summoned by the order of the Civil procedure code. At the summoning the term under art. 56, par. 3 of the Civil procedure code shall not be applied.
(4) (prev. par. 3 – SG 33/12) The parties may use defense counseling.

Art. 122c. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 102/08; amend. – SG 54/10; amend. - SG 73/11, in force from 21.10.2011) The sessions shall be valid, when at least four of the members of the Commission for Protection of Competition are present.
(2) (new – SG 33/12) Where public procurement contains or requires classified information, including with a subject under Art. 3, par. 2, the members of the Commission for protection of competition involved in the proceedings for consideration of the file, must hold a permit for access to classified information up to a certain level according to the provisions of the Law for protection of classified information.
(3) (amend. – SG 102/08; amend. – SG 54/10; amend. – SG 54/10; amend. - SG 73/11, in force from 21.10.2011; prev. par. 2 – SG 33/12) The Commission for Protection of Competition shall state decisions and adjudications by open voting and a majority of 4 votes. In case at the session are present less than 7 members, the decision shall be enacted only if at least 4 members of the Commission have voted for it.
(4) (amend. – SG 102/08; revoked, prev. par. 3 – SG 33/12)) A member of the Commission may not participate in research proceedings under this Law, in case he/she is interested in the outcome f it or if there are reasonable doubts in his/her impartiality. The said member shall be struck off on their own initiative or upon request by the parties.
(5) (revoked – SG 102/08)
(6) (amend. – SG 33/12) The session shall start with deciding on preliminary issues regarding procedure legitimacy. The parties in the proceedings may be asked questions.
(7) When it is considered that the circumstances regarding the appeal are clarified, the chairperson shall give the parties an opportunity to express their opinion.
(8) Upon clarification of the dispute from factual and legal point of view the chairperson shall close the session.

Art. 122d. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 93/11, in force from 26.02.2012) The Commission for Protection of Competition at closed session shall pronounce a decision, with which it shall:
1. leave the appeal without consideration;
1a. (new – SG 33/12) revoke the illegitimate decision for opening of a public procurement procedure;
2. repeal the decision and shall return the file for continuation of the procedure for assigning public procurement from the last legal decision or action or for termination of the proceedings;
3. establish illegitimacy of the decision and shall impose the provided sanctions under par. 4 and 5;
4. announce the decision of the contracting authority null and void;
5. revoke the illegitimate action or establish the illegitimate omission and send the file back for continuation of the procedure of assignment of public procurement of the last legitimate decision or action or for termination of the procedure;
6. revoke the decision, where it finds out that the contract has been concluded in violation of Art. 41, par. 3 or 5 and it establishes a violation of the law, having affected the opportunity of the appellant to participate in the procedure or to be nominated as a contractor.
(2) (amend. – SG 93/11, in force from 26.02.2012) In the cases under par. 1, items 2 and 5 the Commission for Protection of Competition may provide obligatory instructions concerning the course of the procedure for assigning public procurement.
(3) (amend. - SG 94/08, in force from 01.01.2009; amend SG 52/2010; suppl. – SG 93/11, in force from 26.02.2012) In case the contracting authority concludes a contract before or during the proceedings, he/she shall be obliged to notify the Commission for Protection of Competition immediately thereof.
(4) (Amend. - SG 52/2010; amend. – SG 93/11, in force from 26.02.2012) The Commission for Protection of Competition shall establish the illegitimacy of the decision and shall impose sanctions of 10 percent of the cost of the concluded contract, where it as admitted preliminary execution, but at the time of pronouncement of the decision it finds out violation of the law, having affected the opportunity of the appellant to participate in the procedure or to be nominated as a contractor.
(5) (New SG 52/2010; amend. – SG 93/11, in force from 26.02.2012) In case the contract has been concluded in violation of the provisions of Art. 41, paragraph 3 or a violation of the law has been identified, having affected the opportunity of the appellant to participate in the procedure or to be nominated as a contractor, the Commission for protection of competition shall impose a sanction of three per cent of the cost of the concluded contract.
(6) (New SG 52/2010) In the cases under paragraphs 4 and 5, provided that the cost of the contracts is not pointed in them, the specific amount of the sanction shall be imposed by the Commission for Protection of Competition on the grounds of an expertise for assessment of the expected value of the concluded contract. At appointing an expert examination the expenses for remuneration of the expert shall be payable by the contracting authority.
(7) (prev. text of para 5 – SG 52/10) The decision of the Commission for Protection of Competition shall be in writing and shall contain:
1. the name of the body who has issued it;
2. the factual and the legal grounds for its issuance;
3. motives;
4. the exposition;
5. the body before which the decision can be appealed and the term thereof.
(8) (prev. text of para 6 – SG 52/10) A member of the commission, who does not agree with the decision, shall sign it with reserves, which shall be attached to it.
(9) (new – SG 93/11, in force from 26.02.2012) The Commission for protection of competition shall pronounce on the liability for the expenses under the terms and conditions and following the provision of Art. 143 of the Code of Administrative Procedure.

Art. 122e. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 52/10) The Commission for Protection of Competition shall pronounce on the appeal in one month term from initiating the proceedings.
(2) (amend. – SG 52/10) The decision, along with the motives, shall be worked out and announced not later than 7 days from the pronouncing on the appeal.

Art. 122f. (new - SG 37/06, in force from 01.07.2006) (1) The decision of the Commission for Protection of Competition shall be subject to appeal before three-member board of the Supreme Administrative Court within 14 days term after it has been announced to the parties.
(2) (amend. – SG 52/10) The Supreme Administrative Court shall pronounce with a decision within one month from the receipt of the appeal and this decision shall be final.
(3) (new – SG 93/11, in force from 26.02.2012) To all non-regulated matters regarding the appeal proceedings the provisions of Chapter Twelve of the Code of Administrative procedure shall apply.

Art. 122g. (new - SG 37/06, in force from 01.07.2006) (1) The Commission for Protection of Competition shall terminate the proceedings by a definition:
1. upon establishing inadmissibility of the appeal;
2. if the appellant – natural person, has died, or the legal person has been terminated.;
3. upon withdrawal of the appeal.
(2) (amend. – SG 52/10; amend. – SG 93/11, in force from 26.02.2012) The definitions under par. 1 shall be subject to appeal by the order of art. 121a, par. 7.

Art. 122h. (new - SG 37/06, in force from 01.07.2006; suppl. – SG 52/10) To all unsettled issues, regarding the procedure of appealing before the Commission for protection of the competition, shall be applied the order for appealing individual administrative acts pursuant to the Administrative Procedure Code.

Art. 122i (new - SG 37/06, in force from 01.07.2006; suppl. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10) (1) (suppl. – SG 33/12) Declaring a concluded contract or a frame agreement null and void on the grounds of art. 41b, para 1, may be claimed by:
1. (amend. – SG 93/11, in force from 26.02.2012) every interested person – in the cases under art. 41b, para 1, items 1 and 2;
2. (amend. – SG 93/11, in force from 26.02.2012) every interested person and interested candidate – in the cases under art. 41b, para 1, item 3, letters "a" and "b";
3. (amend. – SG 93/11, in force from 26.02.2012) interested candidate and/or interested participant – in the cases under art. 41b, para 1, item 3, letter "c".
(2) The claim shall be submitted following the order of the Code of civil procedure.
(3) (amend. and suppl. – SG 33/12) Invalidity of a contract or of a frame agreement under para 1 may be claimed up to two months from publishing the information about their conclusion in the Public Procurement Register, and if it has not been published – from finding out about it, but no later than a year after the conclusion.
(4) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Where the contracting authority has published information of a concluded contract on the grounds of Art. 4, item 2, 4 and 5, Art. 12, par. 1, items 2 – 9, 11 - 153 and Art. 13, par. 1, and has provided justification for the respective grounds, the two-month term referred to in par. 3 shall apply.
(5) (new – SG 93/11, in force from 26.02.2012; suppl. – SG 33/12) Where the contracting authority has published information of a concluded contract or a frame agreement before finalization of the appealing proceedings, the two-month term for claiming illegitimacy on the grounds of Art. 41b, par. 1, item 3 shall start elapsing after entering into force of the decision by which the appealed decision of the contracting authority has been revoked.

Art. 122k. (new - SG 37/06, in force from 01.07.2006; amend. – SG 52/10) In case the contract or the frame agreement are declared null and void, each of the parties should give back to the other one everything received in relation to the said contract. If this is impossible the relations shall be settled by giving back the money equivalent of the items, received pursuant to the contract.

Art. 122l. (new - SG 37/06, in force from 01.07.2006 amend. – SG 52/10) Following the conditions of art. 203, para 1, art. 204, para 1 and 3 and art. 205 from the Administrative Procedure Code every interested person shall be entitled to claim indemnification for damages, suffered as a result of violations during the procurement procedure and concluding public procurement contract.

Art. 122m (New - SG 52/10; amend.– SG 93/11, in force from 26.02.2012) The Commission for Protection of Competition shall send to the Public Procurement Agency its decisions under 122d and the rulings under art. 121a, para 3, art. 121b,para3 and art.122g, para1, in 7-days term from the notice thereof.

Art. 122n (New - SG 52/10) The Commission for Protection of Competition shall send to the Public Procurement Agency its decisions under 122d and the rulings under art. 121a, para 2, art. 121b,para3 and art.122g, para1, in 7-days term from the notice thereof.

Art. 122o (New - SG 52/10; revoked - SG 33/12)

Chapter eleven.
"A" CORRECTIVE MECHANISM REGARDING INFRINGEMENTS, ESTABLISHED BY THE EUROPEAN COMMISSION
Art. 122p. (New - SG 52/10) (1) On the day of the receipt or no later than following working day the Permanent Representation of the Republic of Bulgaria to the European Union shall forward the notification, received from the European Commission regarding infringements of contracting authorities found during the conducting a procedure till concluding the contract for assigning public procurement, to the Public Procurement Agency, the administration of the Council of Ministers, the Ministry of Foreign affairs and to the Ministry of Economics, Energy and Tourism.
(2) The Executive director of the Public Procurement Agency shall forward the notification under para 1 to the contracting authority concerned, who shall send back a reply in 5-days term.
(3) The respective evidence shall be enclosed to the reply by the contracting authority in case:
1. it acknowledges the assertions of the European Commission as reasonable and abates the violation, or
2. the infringement, referred to in the notification is already subject to appeal.
(4) Except the cases under para 3, provided the contracting authority establishes the lack of violation, it shall immediately send a well-grounded opinion to the Public Procurement Agency together with evidence enclosed.
(5) The contracting authority shall be obliged to suspend all actions, related to carrying out the procedure or concluding a public procurement contract, considered from the moment of the receipt of notification under para 2 until the final settlement of the argument.
(6) In the cases referred to in para 4 the Executive director of the Agency shall:
1. exercise his/her rights under art. 19, para 2, item 4, in case the violation, referred to in the notification under para 1, is a result of the contracting authority’s actions;
2. bring the case before a competent state body, in case the violation originates from the implementation of a legal act, that is not in compliance with the European union law.
(7) In 5-days term the body referred to in para 6, item 2 shall notify the Agency via a motivated opinion and shall specify the respective measures, in case such are provided.
(8) The Executive director of the Public Procurement Agency shall draw in a reply to the European Commission, containing the following:
1. confirmation that the violation is abated – in the cases pursuant to para 3, item 1;
2. information for the on-going procedure for appeal of violations – in the cases under para 3, item 2;
3. information for undertaking measures regarding removal of infringements – in the cases referred to in para 6, item 1 and para 7.
(9) The reply under para 8 together with the evidence attached thereto shall be sent to the Permanent Representation of the Republic of Bulgaria to the European Union, the administration of the Council of Ministers, the Ministry of Foreign Affairs and to the Ministry of Economics, Energy and Tourism in 17-days term following the receipt of the notification under para 1 in the Public Procurement Agency.
(10) The Permanent Representation of the Republic of Bulgaria to the European Union shall provide the European commission with the reply under para 8 no later than 21 days considered from the date of receiving the notification under para 1.

Art. 122q . (New - SG 52/10) The information exchange under art. 122m could be carried out in electronic manner by an electronic signature or via fax.

Art. 122r. (New - SG 52/10) The contracting authorities shall be obliged to notify the agency in writing:
1.in 7-days term considered from entering into force of the decision of the Commission for protection of competition - regarding the appeal’s result in the cases under art. 122p, para 3, item 2;
2.in three days term considered from opening the procedure, in case the procedure, referred to in the notification under art. 122p, para 1, has been suspended by an enacted decision and a new procedure is started, connected to the same subject entirely or to a certain extent.

Art. 122s. (New - SG 52/10) In the cases referred to in Art. 122r the Executive director of the Agency shall notify the European Commission following the order of Art. 122p, para 9 in 7-days term considered from receiving the notification.

Chapter twelve.
CONTROL
Art. 123. (1) (amend. - SG 33/06) The control over the fulfilment of this law shall be exercised by the Audit Office and by the bodies of the Agency for state financial inspection.
(2) (amend. - SG 37/06, in force from 01.07.2006) Subject to control by the Audit Office shall be the contracting authorities under art. 7, who fall within the jurisdiction of the Law for the Audit Office.
(3) (amend. - SG 33/06, amend. - SG 37/06, in force from 01.07.2006) The contracting authorities under art. 7, falling within the jurisdiction of the Law of the State Financial Inspection shall be inspected by the bodies of the Public Financial Inspection Agency for the observance of this law within the frames of financial inspection.
(4) (amend. - SG 33/06; amend.– SG 93/11, in force from 26.02.2012) The bodies of the State Financial Inspection shall carry out permanent follow up inspections regarding the observance of the regime of the public procurement of contracting authorities, who do not fall into the scope of the Law for the State Financial Inspection on the grounds of an approved annual plan.
(5) (amend. - SG 33/06) The orders for carrying out inspections by the bodies of the Public Financial Inspection Agency shall be issued by the director of the Agency or by official authorised by him.
(6) The orders under para 5 shall not be subject to appeal.
(7) (amend. - SG 33/06) The director of the Public procurement Agency may require from the bodies of the Public Financial Inspection Agency to exercise their legal capacity in a concrete case.

Art. 124. (1) (amend. - SG 33/06) In carrying out inspections under art. 123 the bodies of the Public Financial Inspection Agency shall have the right:
1. to free access to the inspected object;
2. to inspect the whole documentation related to the assignment of public procurement and to activities requiring assigning of public procurement;
3. to require from the officials in the inspected objects documents, information and references in connection with the public procurement;
4. (new - SG 98/08) to search through premises, transport vehicles, as well as other places where documentation of the inspected object is being stored, to confiscate documents, saved computer data and carriers of such in order to provide evidence – in cooperation with the bodies of the Ministry of Interior and provided that they have been authorized thereof by the court.
(2) (amend. - SG 33/06, amend. - SG 37/06, in force from 01.07.2006) The persons in the inspected objects shall be obliged to render assistance to the bodies of the Public Financial Inspection Agency and to submit the necessary documents, information and references related to the public procurement.

Art. 125. In carrying out inspections under art. 123 the control bodies shall be obliged:
1. to legitimize themselves by official cards and by an order for carrying out the inspection;
2. to register precisely the results from the control activity;
3. not to make public and not to distribute information having become known to them on carrying out the inspections.

Art. 126. (1) (amend. - SG 33/06) For the results from the inspection the control bodies of the Public Financial Inspection Agency shall work out a report containing the findings supported by proof.
(2) The report under para 1 shall be presented to the contracting authority.
(3) For established administrative offences the control bodies shall issue acts for administrative offences.
(4) In the presence of data for committed offences the materials from the inspection shall be sent to the prosecution.
(5) (amend. - SG 33/06) For found violation of the procedures for assigning public procurement the respective parts of the report for the financial inspection carried out and of the report under para 1 for the established violation of the procedures shall be sent in due time to the director of the Public Procurement Agency.
(6) (amend. - SG 33/06) Information for the results from the control exercised regarding the observance of this law may be submitted only by the director of the Public Financial Inspection Agency or by officials authorised by him, as well as by the director of the Public Procurement Agency the cases under para 5.

Chapter thirteen.
ADMINISTRATIVE PENAL PROVISIONS
Art. 127. (1) (amend. - SG 33/06, amend. - SG 37/06, in force from 01.07.2006; amend.– SG 93/11, in force from 26.02.2012) The acts for establishing offences under this law shall be drawn up by officials of the Public Financial Inspection Agency within 6 months from the day on which the violator has been discovered by Agency bodies, but not later than three years from its commitment.
(2) The penal provisions shall be issued by the Minister of Finance or by officials authorised by him.
(3) The establishing of offences, the issuance, the appeal and the fulfilment of the penal provisions shall be carried out by the order of the Law for the administrative offences and sanctions.

Art. 127a. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 33/12) Upon non-fulfilment of decisions and/or definitions of the Commission for protection of the competition, which have entered into force, or of the obligation under art. 122, par. 5, a fee shall be imposed on natural persons, respectively a property sanction on legal persons and sole traders, amounting from 5 000 to 100 000 BGN.
(2) The Commission for Protection of Competition shall establish the committed offence and impose the penalties under par. 1, which shall be subject to appeal before the Supreme Administrative Court.
(3) The property sanctions and the fees under decisions of the Commission for protection of the competition, which have entered into force, shall be collected by the order of the Tax-insurance procedure code.

Art. 127b. (new - SG 37/06, in force from 01.07.2006) The Commission for Protection of Competition shall send the decisions under art. 127a, par. 2 to the Public Procurement Agency in 7 days term from their announcing.

Art. 127c. (new – SG 98/10) (1) (suppl.– SG 93/11, in force from 26.02.2012) The acts for establishing offences under this Law, which have been found by bodies of the Bulgarian National Audit Office, shall be drawn up by authorized auditors within 6 months from the date on which the offender has been found by the National Audit Office bodies, however not later than three years from the commitment.
(2) Penal provisions shall be issued by the Chairperson of the Bulgarian National Audit Office or by officials authorized by the latter.
(3) The establishing of offences, the issuance, the appeal and the execution of the penal provisions shall be carried out by the order of the Law for the Administrative Offences and Sanctions.

Art. 127d (new– SG 93/11, in force from 26.02.2012) A contracting authority failing to adopt internal rules for assigning of public procurements referred to in Art. 8b, shall be penalized by a fine or a proprietary sanction from 100 to 500 BGN.

Art. 128. (1) (amend. - SG 37/06, in force from 01.07.2006; prev. text of Art. 128. amend. – SG 94/08, in force from 01.01.2009; amend. – SG 33/12) A contracting authority who violates the prohibition of art. 13a, art. 15, para 4 - 7 and Art. 119a, par. 4 shall be punished by a property sanction amounting from 10 000 to 30 000 BGN or a fine from 2000 to 8000 BGN, and the persons under art. 8, para 1 shall be punished by a fine of 2000 to 8000 BGN.
(2) (new – SG 94/08, in force from 01.01.2009) The punishments under para 1 shall also be imposed on a contracting authority who violates the prohibition as per Art. 8, para 2, sentence two.

Art. 128a. (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) A contracting authority who violates the terms under art. 64, art. 76, par. 1 – 3, art. 81, par. 1 – 3, art. 83b, par. 1 and 2, art. 86, par. 1 – 3, art. 93h, par. 1, art. 104, art. 104a, par. 1, 2 and 4 and art. 114, par. 2 at conducting procedure, shall be punished by a property sanction amounting from 2000 to 3000 or a fine from 1000 to 2000 BGN, and the person under art. 8, par. 2 or 3 – by a fine amounting from 1000 to 2000 BGN.

Art. 128b. (1) (new - SG 37/06, in force from 01.07.2006; amend. and suppl. – SG 94/08, in force from 01.01.2009; amend.– SG 93/11, in force from 26.02.2012; prev. Art. 128b – SG 33/12) A contracting authority who violates the prohibition under art. 25, par. 5 or 10, shall be punished by a property sanction amounting from 7000 to 25 000 BGN or a fine from 2000 to 7000 BGN, and the person under art. 8, par. 2 or 3 – by a fine amounting from 2000 to 7000 BGN.
(2) (new – SG 33/12) The punishments under par. 1 shall be imposed also to a contracting authority or to a person referred to in Art. 8, par. 2 or 3, who when assigning public procurements under Art. 3, par. 2 or 3 violates the restriction of Art. 119h, par. 3.

Art. 128c. (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend.– SG 93/11, in force from 26.02.2012) (1) A contracting authority having approved and sent for publication in the Public procurement register an notice for public procurement, which does not have the obligatory minimum content under Art. 25, par. 2, where applicable to a particular public procurement, shall be penalized by a proprietary sanction from 1000 to 2000 BGN or by a fine from 500 to 1000 BGN, and the person under art. 8, par. 2 or 3 – by a fine from 500 to 1000 BGN. The punishment shall not be imposed, where the respective part of the notice has been supplemented by a decision for amendment, published in compliance with the provisions and within the term referred to in Art. 27a, par. 3 or where the procedure has been terminated.
(2) A contracting authority, having violating the provision of Art. 27a, par. 4 regarding publication of a decision for amendment or failing to meet the requirement of Art. 37, par. 3, shall be penalized by a proprietary sanction from 1000 to 2000 BGN or by a fine from 500 to 1000 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 500 to 1000 BGN.
(3) A contracting authority having approved a tender documentation, in which the assessment methods of the offers with economically most favourable offer criterion do not meet the requirements of Art. 28, par. 2, shall be penalized by a proprietary sanction from 1000 to 2000 BGN or by a fine from 500 to 1500 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 500 to 1500 BGN.
(4) A contracting authority, having fixed a price of tender documentation in violation of the provision of Art. 28, par. 4 or a participation bond or a performance bond in violation of the provision of Art. 59, par. 2 or 3, shall be penalized by a proprietary sanction from 500 to 1000 BGN or by a fine from 200 to 500 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 200 to 500 BGN.
(5) A contracting authority having provided technical specifications in violation of Art. 32, par. 2 shall be penalized by a proprietary sanction from 7000 to 25 000 BGN or by a fine from 2000 to 7000 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 2000 to 7000 BGN.
(6) A contracting authority, which in the cases referred to in Art. 29, par. 2 fails to extend the term for receiving of offers or applications for participation, shall be penalized by a proprietary sanction from 500 to 2000 BGN or by a fine from 300 to 1000 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 300 to 1000 BGN.
(7) A contracting authority, having violated the provisions of Art. 73, par. 4, Art. 89, par. 8 or Art. 92a, par. 8 shall be penalized by a proprietary sanction from 500 to 2000 BGN or by a fine from 300 to 1000 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 300 to 1000 BGN.

Art. 128d. (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) A member of the commission for conducting public procurement, who violates art. 69, para 1, Art. 70, para 1 or Art. 72, para 1 and 2, shall be punished by a fine, amounting to 500 BGN.

Art. 128e. (1) (new - SG 37/06, in force from 01.07.2006; amend. and suppl. – SG 94/08, in force from 01.01.2009; prev. text of Art. 128e, amend. – SG 52/10) A contracting authority, who concludes a contract in violation of art. 41, par. 2, shall be punished by a property sanction amounting from 10 000 to 20 000 BGN or by a fine from 3000 to 5000 BGN, and the person under art. 8, par. 2 or 3 – by a fine amounting from 3000 to 5000 BGN.
(2) (new - SG 52/10) The property sanction under para 1 shall also be imposed on a contracting authority that concludes a contract prior to expiration of the term fixed in Art. 41, para 3, with the exception of the cases referred to in Art. 41a.
(3) (new - SG 52/10) The punishment under para 2 shall not be imposed in those cases where a sanction as per Art. 122d, para 5 has been imposed for the established violation.

Art. 128f. (new – SG 94/08, in force from 01.01.2009) An contracting authority, who does not adopt a decision for preliminary selection and a decision for selection of a contractor of the public procurement within the set term, shall be punished by a proprietary sanction from 1000 to 5000 BGN or by a fine from 200 to 2000 BGN, and the person as per Art. 8, para 2 or 3 shall be punished by a fine from 200 to 2000 BGN.

Art. 129. (1) (prev. text of art. 129, amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009) An contracting authority, who does not conduct a procedure for assigning public procurement in presence of a ground for that, or who amends a public procurement contract in violation of art. 43, par. 1, shall be punished by a property sanction amounting from 15 000 to 50 000 BGN, or by a fine from 3000 to 10 000 BGN, and the person under art. 8, par. 2 or 3 – by a fine amounting from 3000 to 10 000 BGN.
(2) (new - SG 37/06, in force from 01.07.2006) The penalties under par. 1 shall also be imposed on a contracting authority or a person under art. 8, par. 2 or 3, who on the basis of frame agreement concludes a contract, in which the terms differentiate substantially from the ones, defined in the frame agreement.
(3) (new – SG 94/08, in force from 01.01.2009; amend. – SG 33/12) The punishments under para 1 shall also be imposed on a person referred to in Art. 8, para 2 or 3, who concludes a contract in violation of Art. 5, para 4.
(4) (new - SG 93/11, in force from 26.02.2012) The punishments under par. 1 shall be imposed also to a contracting authority, which in violation of Art. 12, par. 5 fails to terminate a contract for communal services under Art. 12, par. 1, item 13.
(5) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) A contracting authority, having assigned a public procurement for the cost referred to in Art. 14, par. 4, without meeting the provisions of Art. 101a, 101b or 101f, shall be penalized by a proprietary sanction from 1000 to 2000 BGN or by a fine from 500 to 1000 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 500 to 1000 BGN.

Art. 129a. (new - SG 37/06, in force from 01.07.2006) (1) (amend. – SG 94/08, in force from 01.01.2009; amend. – SG 52/10; amend.– SG 93/11, in force from 26.02.2012) A contracting authority, who does not send the documents under art. 45a, par. 1, 3, 4, 5 and 46 or does not fulfill the obligations as per Art. 45a, paras 10 and 11, shall be punished by a property sanction amounting from 5000 to 15 000 BGN or by a fine from 1000 to 3000, and the person under art. 8, par. 2 or 3 shall be punished by a fine amounting from 1000 to 3000 BGN.
(2) (amend. – SG 94/08, in force from 01.01.2009; revoked – SG 52/10)

Art. 129b. (1) (new - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; prev. Art. 129b - SG 93/11, in force from 26.02.2012) A contracting authority, who does not preserve the documentation for conducting public procurement within the term under art. 58a, par. 6, shall be punished by a property sanction amounting from 1000 to 5000 BGN or by a fine amounting from 500 to 1500 BGN, and the person referred to in Art. 8, para 2 or 3 – by a fine from 500 to 1500 BGN.
(2) (new - SG 93/11, in force from 26.02.2012) A contracting authority not keeping all documents related to the assignment of public procurements under Chapter Eight "a" for the term referred to in Art. 101g, shall be penalized by a proprietary sanction from 500 to 1000 BGN or by a fine from 300 to 500 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 300 to 500 BGN.

Art. 130. (1) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; amend. – SG 33/12) A contracting authority under Art. 7, items 1 through 4 who conduct a competitive dialogue procedure of negotiation in the absence of the preconditions under Art. 83a, art. 84, art. 90 or art. 119c, par. 3 shall be punished by a property sanction from 10 000 to 20 000 BGN or by a fine from 3000 to 5000 BGN, and the person under art. 8, para 2 or 3 by a fine of 3000 to 5000 BGN.
(2) (amend. - SG 37/06, in force from 01.07.2006; amend. – SG 94/08, in force from 01.01.2009; suppl. – SG 33/12) A contracting authority under art. 7, item 5 and 6, who holds a procedure of negotiation without notice in the absence of the preconditions under art. 103, par. 2 or art. 119c, par. 3 shall be punished by a property sanction of 10 000 to 20 000 BGN or by a fine from 3000 to 5000 BGN, and the person under art. 8, para 2 or 3 – by a fine of 3000 to 5000 BGN.

Art. 130a. (1) (new - SG 94/08, in force from 01.01.2009; prev. art. 130a – SG 33/12) A contracting authority who concludes a frame agreement or creates a dynamic system for deliveries for a period longer than 4 years in violation of Art. 93а, para 1 or Art. 93e, para 1 or fails to fulfill his obligation for annual publication of an notice within a preliminary selection system with a term of more than three years, shall be punished by a property sanction of 10 000 to 20 000 BGN or by a fine from 3000 to 5000 BGN, and the person under art. 8, para 2 or 3 – by a fine of 3000 to 5000 BGN.
(2) (new – SG 33/12) The punishments under par. 1 shall be imposed also to a contracting authority or to a person referred to in Art. 8, par. 2 or 3, having concluded a frame agreement for assigning of public procurement under Art.3, par. 2 for a period exceeding 7 years, in violation of the provision of Art. 119d, par. 2.

Art. 131. (1) (amend. - SG 94/08, in force from 01.01.2009) A contracting authority, who terminates a procedure in the absence of the grounds under art. 39, para 1 or 2 shall be punished by a property sanction amounting from 2000 to 10 000 BGN or by a fine amounting from 1000 to 3000 BGN, and the person under Art. 8, para 2 or 3 shall be punished by a fine from 1000 to 3000 BGN.
(2) (amend.– SG 93/11, in force from 26.02.2012) A contracting authority who opens a new procedure in violation of art. 39, par. 6 shall be punished by a property sanction amounting from 2000 to 7000 BGN or by a fine from 1000 to 2000 BGN, and the person under art. 8, para 2 or 3 – by a fine amounting from 1000 to 2000 BGN.
(3) A contracting authority, who concludes a public procurement contract in violation of art. 42, para 1 shall be punished by a property sanction amounting from 5000 to 10 000 BGN or a fine from 2000 to 5000 BGN, and the person under art. 8, para 2 or 3 shall be punished by a fine from 2000 to 5000 BGN.

Art. 131a. (new – SG 52/10; prev. art. 131a – SG 33/12) A contracting authority, who fails to fulfill the obligation as per Art. 62, para 1 or 3 within the fixed term, shall be punished by a propriety sanction amounting to BGN 1000 to 5000 or by a fine amounting from BGN 500 to 1500, and the person under Art. 8, para 2 or para 3 – by a fine from BGN 500 to 1500.
(2) (new – SG 33/12) A contracting authority who utilizes a participation guarantee without availability of the grounds referred to in Art. 61, par. 2, shall be penalized with a proprietary sanction from BGN10 000 to 15 000 or with a fine from BGN1000 to 5000, and the person referred to in Art. 8, par. 2 or 3 – with a fine from BGN1000 to 5000.

Art. 132. (1) (prev. text of art. 132, amend. - SG 37/06, in force from 01.07.2006; amend. - SG 94/08, in force from 01.01.2009; amend.– SG 93/11, in force from 26.02.2012) A contracting authority failing to send in time the information, subject to entry in the Public Procurement Register, shall be punished by a proprietary sanction from 1000 to 2000 BGN or by a fine from 500 to 1500 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 500 to 1500 BGN.
(2) (new – SG 52/10; amend.– SG 93/11, in force from 26.02.2012) A contracting authority failing to fulfill its obligation under Art. 44, para 10, shall be punished by a property sanction amounting from BGN 500 to 1000 or by a fine from 100 to 500 BGN, and the person referred to in Art. 8, par. 2 or 3 – by a fine from 100 to 500 BGN.
(3) (new - SG 37/06, in force from 01.07.2006; amend. - SG 94/08, in force from 01.01.2009; prev. text of para 2, amend. – SG 52/10; suppl.– SG 93/11, in force from 26.02.2012) A person referred to in Art. 8, para 2 or 3, who fails to fulfill an obligation as per Art. 19, para 44, Art. 20a, par. 2, Art. 122p, para 2 or 7, shall be punished by a fine amounting from 500 to 1500 BGN.

Art. 132a. (new - SG 37/06, in force from 01.07.2006; amend. - SG 94/08, in force from 01.01.2009) A person, who does not present documents, pieces of information and references to the bodies of the Public Financial Inspection Agency within the terms, fixed by them, in violation of art. 124, par. 2, shall be punished by a fine amounting from 200 to 500 BGN.

Art. 133. (1) (amend. - SG 37/06, in force from 01.07.2006; prev. Art. 133 - SG 93/11, in force from 26.02.2012) Where the offences under art. 128 – 132a are repeated the offenders shall be punished by a fine, respectively a material sanction in double size.
(2) (new – SG 93/11, in force from 26.02.2012; amend. – SG 33/12) Where the violations under Art. 128 – 132a, except for those referred to in Art. 129, par. 4, Art. 129b, par. 2 and Art. 132, par. 2, have been done in case of assignment of public procurements for the cost referred to in Art. 14, par. 3, the provided amounts of the fines and proprietary sanctions shall be reduced by half.

 

ΚΑΤΑΧΏΡΗΣΗ ΑΥΤΟΚΊΝΗΤΟ ΣΤΗΝ ΒΟΥΛΓΑΡΊΑ

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ΚΑΤΑΧΏΡΗΣΗ ΑΥΤΟΚΊΝΗΤΟ ΣΤΗΝ ΒΟΥΛΓΑΡΊΑ

Έχετε ποτέ σκεφτεί ποιο θα ήταν το όφελος από την εγγραφή ενός αυτοκινήτου στη Βουλγαρία. Τα οφέλη είναι μεγάλα:

Διαβάστε το παρακάτω άρθρο και θα καταλάβετε:

Έχετε ένα αυτοκίνητο στην Ελλάδα;

Γιατί να πληρώνουν υψηλούς φόρους. Εγγραφή αυτοκίνητό σας στη Βουλγαρία και θα αντικαταστήσει τις πινακίδες του αυτοκινήτου σας με τα βουλγαρικά.

1. Στη Βουλγαρία δεν υπάρχουν τέλη κυκλοφορίας, πληρώνετε φόρο μόνο δήμου για την αντιμετώπιση της ταξινόμησης αυτοκινήτων. Αυτό εξαρτάται από την ισχύ του κινητήρα και είναι μεταξύ 50 to150 λέβα λέβα ανά έτος.

2. MOT-Τεχνική αξιολόγηση ανά έτος είναι ο τρόπος φθηνότερα στη συνέχεια σε άλλες χώρες της ΕΕ και την Ελλάδα. Αυτό θα κοστίσει περίπου 45 λέβα ανά έτος και μπορείτε να το κάνετε αυτό σε οποιοδήποτε εξουσιοδοτημένο συνεργείο της περιοχής στη Βουλγαρία

3. Για να οδηγήσει το αυτοκίνητο σε δημόσιους δρόμους στο αυτοκόλλητα χρέωση κυβέρνηση θα μπορούσε να είναι για ένα χρόνο, έξι μήνες, έναν μήνα, ένα week.Price για τα αυτοκίνητα του αυτοκόλλητου για ένα έτος είναι περίπου 67 λέβα Τα αυτοκόλλητα είναι υποχρεωτική μόνο αν οδηγείτε το αυτοκίνητο στη Βουλγαρία αν οδηγείτε αλλού, όπου είναι. Ωστόσο, σας συνιστούμε να έχετε.

4.  ασφάλεια αυτοκινήτου κόμμα στη Βουλγαρία και ως εκ τούτου φθηνότερες στη συνέχεια σε άλλες χώρες της ΕΕ και την Ελλάδα. Κανονικά, η ασφάλιση αυτοκινήτου είναι μεταξύ 120 λέβα σε 240 λέβα ανά έτος και εξαρτάται από την ισχύ του κινητήρα.Βουλγαρικά ασφάλεια αυτοκινήτου είναι απολύτως έγκυρη σε όλη την Ευρώπη και εκτός Ευρώπης. Η ασφαλιστική κάλυψη όλων των ζημιών και των υποχρεώσεων που προκαλούνται σε τρίτους.Σημαντικό είναι να γνωρίζουμε ότι η ασφάλεια στη Βουλγαρία είναι στο αυτοκίνητο, όχι το όνομα του ατόμου. Αυτό σημαίνει ότι κάθε πρόσωπο που οδηγεί το αυτοκίνητο καλύπτεται για ζημίες που προκαλούνται σε αυτά που οφείλονται σε τροχαία ατυχήματα

Έτσι, αν έχετε αγοράσει και την ταξινόμηση ενός αυτοκινήτου στη Βουλγαρία μπορείτε να αποθηκεύσετε πολλά χρήματα και το αυτοκίνητο είναι απολύτως νόμιμο σε οποιαδήποτε ευρωπαϊκή χώρα όπως η Ελλάδα. Κανείς δεν θα μπορούσε να ρωτήσει γιατί το αυτοκίνητο πήρε το βουλγαρικό πινακίδες. Ο λόγος είναι ότι η Βουλγαρία είναι πλήρες μέλος των συνθηκών της ΕΕ, σχετικά με τις διεθνείς μεταφορές αυτοκινήτων και ασφάλισης.

Για να απολαύσετε αυτά τα οφέλη που μπορεί να έχουν μόνιμη κατοικία, εάν ζείτε στη Βουλγαρία ή αν δεν ζουν στη Βουλγαρία μπορείτε να δημιουργήσετε μια βουλγαρική εταιρεία, η οποία θα κατέχουν το αυτοκίνητο. Κάθε εταιρεία που είναι εγγεγραμμένη στη Βουλγαρία είναι μια βουλγαρική τοπικό πρόσωπο.

Όπως εξηγήθηκε παραπάνω βουλγαρική ασφάλιση ισχύει για το αυτοκίνητο και, αντίστοιχα, κάθε πρόσωπο που οδηγεί καλύπτεται / ασφαλισμένος / συμπεριλαμβανομένου του ιδιοκτήτη της βουλγαρικής εταιρείας που κατέχουν το αυτοκίνητο. Έτσι, θεωρούν την κατάστασή σας και ελάτε να εγγραφεί μια βουλγαρική εταιρεία, στη συνέχεια, μητρώο Ελλήνων το αυτοκίνητό σας και οδηγήστε το στην Ελλάδα. Δεν χρειάζεται καν έρθουν με το αυτοκίνητό σας τακτικά στη Βουλγαρία, μόνο για την τεχνική εξέταση και η ασφάλιση που σημαίνει ότι μόνο μία φορά ανά έτοςΌλα τα άλλα χρόνο μπορείτε να περάσετε στην Ελλάδα.

Η εγγραφή του αυτοκινήτου στη Βουλγαρία, θα σας κοστίσει  μόνο -150 euros και θα κατασκευαστεί εξ ολοκλήρου από τους εργαζόμενους της εταιρείας μας

Ταξινόμηση αυτοκινήτων στη Βουλγαρία ρυθμίζεται από το διάταγμα του Υπουργείου Εσωτερικών της Δημοκρατίας της Βουλγαρίας ορίζει τις διαδικασίες για την καταχώριση των μηχανοκίνητων οχημάτων που ανήκουν από τη βουλγαρική φυσικά και νομικά πρόσωπα / Εγγεγραμμένοι βουλγαρικές εταιρείες /. Ο παρών Νόμος ισχύει για τους πολίτες της ΕΕ και των μελών των οικογενειών τους, οι πολίτες των κρατών μερών της συμφωνίας για τον Ευρωπαϊκό Οικονομικό Χώρο και την Ελβετία που κατέχονται από ξένους πολίτες μόνιμος κάτοικος της Βουλγαρίας ή των ξένων υπηκόων που έχουν δημιουργήσει οι εταιρείες / επιχειρήσεις / στη Βουλγαρία. Το όχημα έχει πάρει άδεια εντός 14 ημερών από την απόκτηση κυριότητας ή μετά από την εισαγωγή στη Βουλγαρία. Κατά την αρχική εγγραφή των οχημάτων που εισάγονται από χώρες εκτός της ΕΕ, το φόρο προστιθεμένης αξίας καταβάλλεται. Τα οχήματα που ταξινομήθηκαν για πρώτη φορά σε μια χώρα μέλος της ΕΕ δεν υπόκεινται στο φόρο προστιθέμενης αξίας. Έτσι, αν εισάγουν ελληνικά το αυτοκίνητό σας στη Βουλγαρία για να λάβει άδεια κοτσίδες δεν πληρώνετε το φόρο προστιθέμενης αξίας.

Πόσο θα σας κοστίσει το όφελος της ύπαρξης μιας βουλγαρικής εταιρίας και η μεταφορά Ελλήνων το αυτοκίνητό σας στη Βουλγαρία.

Εμείς στο Δικηγορικό γραφείο  „Kupenov” είναι πάντα δίκαιη και οικονομικά αποδοτικό για τους πελάτες μας. Καθιέρωση μια βουλγαρική εταιρία θα σας κοστίσει μόνο € 250 για μια εταιρεία περιορισμένης ευθύνης, συμπεριλαμβανομένων όλων των τελών και επιβαρύνσεων ολοκλήρωσης. Ταξινόμησης αυτοκινήτων στη Βουλγαρία, θα σας κοστίσει 150 ευρώ.

Όσον αφορά την εταιρεία δεν χρειάζεται το εμπόριο ενεργά με τη Βουλγαρία ή στο εξωτερικό. Για να υπάρχει η εταιρεία δεν είναι κατ ‘ανάγκην να πληρώσει μια βουλγαρική φόρων, προκειμένου να κατέχουν ακίνητα ή αυτοκίνητα. Εάν έχετε μια επιχείρηση στη Βουλγαρία ή μια επιχείρηση στο εξωτερικό / εξαγωγή, εισαγωγή ή άλλη / μπορείτε να επωφεληθείτε από έχοντας μείωση φόρου από υποτίμηση του αυτοκινήτου ως περιουσιακό στοιχείο. Ποσοστό αποσβέσεις έως και 20% στη Βουλγαρία.

Οι ιδιοκτήτες των οχημάτων πρέπει να δηλώσουν τα αυτοκίνητα στο δήμο όπου υπάρχει μόνιμη κατοικία ή τη διεύθυνση της εταιρείας.

Τοπικοί φόροι για τα αυτοκίνητα έχει οριστεί σύμφωνα με την ισχύ του κινητήρα, προσαρμοσμένη με το συντελεστή ανάλογα με το έτος κατασκευής, ως εξής:

Η τιμή είναι στα βουλγαρικά λέβα

1. έως και 37 kW, συμπεριλαμβανομένων των 0,34 – 1,02 Lv. ανά 1 kW;

2. πάνω από 37 kW έως 55 kW, συμπεριλαμβανομένων των 0,40 – 1,20 Lv ανά 1 kW;

3. 55 kW έως 74 kW, συμπεριλαμβανομένων των 0,54 – 1,62 Lv ανά 1 kW;

4. 74 kW έως 110 kW, συμπεριλαμβανομένων των 1,10 – 3,30 Lv ανά 1 kW;

5. πάνω από 110 kW 1,23 – 3,69 Lv ανά 1 kW.

Αριθμός ετών από το έτος παραγωγής, τη μείωση των φόρων που οφείλονται από έναν παράγοντα:

Πάνω από 14 χρόνια-1

Πάνω από 5 μέχρι 14 ετών, συμπεριλαμβανομένων-1.5

Μέχρι 5 έτη, συμπεριλαμβανομένων-2.8

Έτσι, οι νέες είναι τόσο το αυτοκίνητο σας να σας πληρώσει λιγότερους φόρους που σημαίνει για μια νέα τέλη κυκλοφορίας των αυτοκινήτων θα μπορούσε να είναι έως και 3 φορές λιγότερο από το παλιό.

Υπάρχουν ακόμη περισσότερα οφέλη:

Για οχήματα με ισχύ κινητήρα περιορίζεται έως και 74 kW, συμπεριλαμβανομένων, εξοπλισμένα με καταλυτικούς ενεργές συσκευές, ο φόρος που καταβάλλεται έχουν μια έκπτωση 50%

Φόροι επί των οχημάτων πρέπει να καταβληθεί κατά την έναρξη του φορολογικού έτους μέχρι την πρώτη Απριλίου. Η πληρωμή των τοπικών φόρων που απαιτούνται για την τακτική ετήσια επιθεώρηση του οχήματος του οχήματος. Για την ετήσια τεχνική επιθεώρηση απαιτείται επίσης να έχουν μια ασφάλεια τρίτων.

Θα πρέπει να παρέχουν ένα απαγγείλει του φόρου που καταβάλλεται συν έναν τρίτο βουλγαρικό ασφαλιστικό να γίνονται δεκτοί για τεχνικό έλεγχο αλλιώς δεν μπορείς να πας σε τεχνικό έλεγχο και να μην έχουν το δικαίωμα να οδηγήσει το αυτοκίνητο σε δημόσιους δρόμους.

Παρακαλώ μην διστάσετε να επικοινωνήσετε μαζί μας για να πάρετε την πλήρη λεπτομερείς οδηγίες σχετικά με ένα αυτοκίνητο της Βουλγαρίας διαδικασία καταχώρησης.