info@ooyes.net (Web Design and Outsourcing) Content Menagement System Ooyes CMS (http://www.ooyes.net) http://www.rssboard.org/rss-specification Fri, 18 May 2012 06:14:09 -0700 61 info@solicitorbulgaria.com (SolicitorBulgaria) Copyright Solicitorbulgaria.com - SOLICITOR LTD Legal articles and news about Bulgarian Law and Business - Legislation articles http://solicitorbulgaria.com/index.php info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 332 Chapter Twenty-NineTAXABLE AMOUNTTaxable Amount for Tax on Entertainment ExpensesArticle 211. The taxable amount for assessment of the tax on expenses referred to in Item 1 of Article 204 herein shall be the expenses charged for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses Provided in KindArticle 212. The taxable amount for assessment of the tax on expenses referred to in Item 2 of Article 204 herein shall be the expenses on fringe benefits provided in kind debited with the income related to the said expenses for the relevant month.Taxable Amount for Tax on Fringe Benefit Expenses on Contributions(Premiums) for Supplementary Social Insurance and Life AssuranceArticle 213. (1) The taxable amount for assessment of the tax on expenses referred to in Item 2 (a) of Article 204 herein shall be the excess of the said expenses over BGN 60 per month per hired person.(2) Where the taxable persons incur any coercively enforceable public obligations at the time of charging of the expenses, the taxable amount for assessment of the tax on expenses shall be the full amount of the expenses charged.Taxable Amount for Tax on Fringe Benefit Expenses on Food VouchersArticle 214. (1) The taxable amount for assessment of the tax on expenses referred to in Item 2 (b) of Article 204 herein shall be the excess of the said expenses over BGN 40 per month per hired person.(2) Where the conditions for exemptions from tax under Article 209 herein are not fulfilled, the taxable amount for assessment of the tax on expenses shall be the full amount of the expenses charged.Taxable Amount for Tax on Expenses Related to Maintenance, Repair andOperation of Means of TransportArticle 215. (1) The taxable amount for assessment of the tax on expenses referred to in Item 3 of Article 204 herein shall be the expenses on maintenance, repair and operation of means of transport, charged during the calendar month, debited with the income charged from insurance benefits associated with the means of transport, up to the amount of the expenses on repair incurred whereto the benefit applies.(2) Where means of transport are used concurrently to carry out activity as a regular business and to service management operations, upon determination of the taxable amount referred to in Paragraph (1):1. the expenses on operation shall relate to the management operations on the basis of the total kilometres covered for the said operations during the current month;2. the expenses on maintenance and repair shall relate to the management operations on the basis of the kilometres covered for the said operations in relation to the total kilometres covered by the relevant means of transport during the last preceding twelve months, including the current month.(3) Where the taxable amount referred to in Paragraph (1) is a negative quantity, it shall be deducted successively from the taxable amount for the succeeding months.Chapter Thirty(Heading amended, SG No. 110/2007, effective 1.01.2007) RATE OF TAX, DECLARING AND REMITTANCE OF TAX ON EXPENSESRate of TaxArticle 216. The rate of the tax on expenses referred to in Article 204 herein shall be 10 per cent.Tax Declaring and Remittance(Heading amended, SG No. 110/2007, effective 1.01.2007) Article 217. (1) (New, SG No. 110/2007, effective 1.01.2007) The tax on expenses shall be declared by the annual tax return submitted by the taxable person.(2) (Redesignated from Article 217, SG No. 110/2007, effective 1.01.2007) The tax on expenses shall be remitted on or before the 15th day of the month next succeeding the month in which the expense was charged. Where the taxable person has overremitted any tax on expenses or any corporation tax, the said tax may be deducted from the tax on expenses due.PART FIVEALTERNATIVE TAXESChapter Thirty-OneGENERAL DISPOSITIONSAlternative TaxArticle 218. (1) The taxable persons specified in this Part shall be liable, instead of corporation tax, to an alternative tax in respect of the activities specified in this Part.(2) In respect of all other activities, the persons referred to in Paragraph (1) shall be liable to corporation tax, with the exception of public-finance enterprises.Chapter Thirty-TwoTAX ON GAMBLING ACTIVITYSection IGeneral DispositionsRecord-keepingArticle 219. (1) The taxable persons under this Chapter shall be obligated to keep daily and monthly records of the amounts received and paid for participation in the games of chance in standard forms as endorsed by the Minister of Finance.(2) Paragraph (1) shall not apply:1. to the gambling activity specified in Section V herein;2. to any games of chance where the value of the bet consists in an increased charge for a telephone or another telecommunication link;3. where a computer system has been provided for monitoring the drawings and the proceeds in the conduct of the games, as well as for control on the formation and distribution of profits, ensuring the transmission of the requisite data to the National Revenue Agency.(3) The tax on the ancillary and auxiliary activities, within the meaning given by the Gambling Act , shall be declared by an annual tax return in a standard form, which shall be submitted not later than the 31st day of March of the next succeeding year to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.Section IITax on Gambling Activities of Toto and Lotto, Betting on Outcome ofSports Competition and Uncertain EventsGeneral DispositionsArticle 220. The gambling activities of toto and lotto, betting on the outcome of a sports competition and uncertain events shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 221. Taxable persons under this Section shall be the organizers of the games of chance of toto and lotto, betting on the outcome of a sports competition and uncertain events.Taxable AmountArticle 222. The taxable amount for assessment of the tax on gambling activity under this Section shall be the value of the bets taken for each game.Rate of TaxArticle 223. The rate of tax on gambling activity under this Section shall be 10 per cent.Declaring of TaxArticle 224. The tax on gambling activity under this Section shall be declared prior to determining the results of each game by means of a tax return in a standard form.Tax RemittanceArticle 225. The tax on gambling activity under this Section shall be remitted:1. in respect of games conducted daily: within three business days after determining the results for the last preceding seven calendar days;2. in respect of games conducted over a period not exceeding seven days: within three business days after determining the results but before determining the results of the next succeeding game;3. in respect of games conducted over a longer period: within seven days after determining the results.Income from Ancillary and Auxiliary ActivitiesArticle 226. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 10 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section IIITax on Gambling Activity of Lotteries, Raffles and Bingo and KenoNumbers LotteriesGeneral DispositionsArticle 227. The gambling activity of lotteries, raffles and bingo and keno numbers lotteries shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 228. Taxable persons under this Section shall be the organizers of the games of chance: lotteries, raffles, and bingo and keno numbers lotteries.Taxable AmountArticle 229. The taxable amount for assessment of the tax on gambling activity under this Section shall be the nominal value of the bet as specified in coupons, cards, tickets or other tokens certifying participation.Rate of TaxArticle 230. The rate of tax on gambling activity under this Section shall be 12 per cent.Declaring of TaxArticle 231. The tax on gambling activity under this Section shall be declared monthly, on or before the 10th day of the next succeeding month, by means of a return in a standard form.Tax RemittanceArticle 232. (1) The tax on gambling activity under this Section shall be remitted prior to receiving the tokens certifying participation or to effecting the importation of any such tokens.(2) The enterprises designated by the Minister of Finance or by another authority specified by a law, which print tokens certifying participation or which effect the importation thereof, shall provide the tokens certifying participation solely upon presentation of documents on tax paid.Refund of TaxArticle 233. (1) Any tax paid on any unused tokens shall be refunded by the National Revenue Agency territorial directorate exercising competence over the place of registration of the person:1. after completion of each stage (drawing) of the periodic lottery games, or2. when the activity of the organizer has been discontinued in pursuance of Article 81 (2) of the Gambling Act.(2) The unused tokens certifying participation, as well as the decision on discontinuance of the activity in the cases referred to in Item 2 of Paragraph (1), shall be attached to the claim for refund under the Tax and Social-Insurance Procedure Code.Income from Ancillary and Auxiliary ActivitiesArticle 234. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 12 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section IVTax on Gambling Activity of Games where Value of Bet Consists inIncreased Charge for Telephone or Another Telecommunication LinkGeneral DispositionsArticle 235. The gambling activity of games where the value of the bet consists in an increased charge for a telephone or another telecommunication link shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 236. Taxable persons according to the procedure established by this Section shall be the organizers of the games of chance where the value of the bet consists in an increased charge for a telephone or another telecommunication link.Taxable AmountArticle 237. The taxable amount for assessment of the tax under this Section shall be the increase in the charge for the telephone or telecommunication link.Rate of TaxArticle 238. The rate of tax under this Section shall be 12 per cent.Declaring of Bets Made and of TaxArticle 239. (1) The organizer of the game of chance shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 20th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.(2) The telephone or telecommunication network operator shall declare the bets made and the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said operator on or before the 20th day of the month next succeeding the month of conduct of the games, by means of a return in a standard form.Tax RemittanceArticle 240. (1) The tax on gambling activity under this Section shall be withheld and remitted by the licensed telephone or telecommunication network operator on or before the 20th day of the month next succeeding the month of conduct of the games.(2) The telephone or telecommunication network operator shall be obligated to satisfy itself that the organizer of the game of chance has obtained authorization from the State Commission on Gambling and to present to the National Revenue Agency territorial directorate the contract where under the said operator takes the bets, incorporating a clause on the increase in the charge for the telephone or telecommunication link.Income from Ancillary and Auxiliary ActivitiesArticle 241. (1) Any income accruing from ancillary and auxiliary activities within the meaning given by the Gambling Act shall attract an alternative tax on the value of the said income at the rate of 12 per cent.(2) The tax shall be remitted on or before the 15th day of the month next succeeding the month of charging of the income referred to in Paragraph (1).Section VTax on Gambling Activity Using Gambling DevicesGeneral DispositionsArticle 242. The gambling activity using gambling slot-machines, devices for betting on the results of horse or dog races, roulettes and other gambling devices in a gambling casino, shall attract a tax on gambling activity which shall be final.Taxable PersonsArticle 243. Taxable persons under this Section shall be the organizers of games of chance played on gambling slot-machines, devices for betting on the results of horse or dog races, roulettes and other gambling devices in a gambling casino.Tax AssessmentArticle 244. The tax under this Section shall be assessed in respect of the devices entered in the authorization and operated:1. gambling slot-machines, respectively each player's place at such machines;2. devices for betting on the results of horse or dog races;3. roulettes at a casino, gambling tables and in respect of other gambling devices at a casino.Amount of TaxArticle 245. (1) The amounts of the tax on gambling activity under this Section are set as follows:1. in respect of a gambling slot-machine, respectively, each players' place at such a machine: BGN 300 per quarter;2. in respect of a facility for betting on the results of horse or dog races: BGN 300 per quarter for each device;3. in respect of roulette at a casino per gambling table: BGN 18,000 per quarter for each device;4. in respect of any other gambling device at a casino: BGN 3,000 per quarter for each device.(2) No tax shall be due for the quarters prior to the grant and after the withdrawal of the authorization to organize games of chance played on the relevant device.(3) The tax shall be due in full amount for the quarter in which the authorization to organize games of chance played on the relevant device is granted or withdrawn.Declaring of TaxArticle 246. The organizer of a game of chance shall declare the tax under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 15th day of the month next succeeding the quarter.Tax RemittanceArticle 247. (1) The tax under this Section shall be remitted within the time limits for declaring of the said tax.(2) The tax shall be remitted in respect of each gambling establishment by a separate payment order, wherein the location and address of the said establishment shall be stated.(3) The persons under this Section shall transmit a copy of the payment order to the National Revenue Agency territorial directorate exercising competence over the location of the gambling hall, the betting establishment or the casino and to the gambling control authority.Chapter Thirty-ThreeTAX ON PUBLIC-FINANCED ENTERPRISE' INCOMEGeneral DispositionsArticle 248. Any income accruing to any public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent of movable and immovable property, shall attract a tax on income according to the procedure established by this Chapter.Taxable AmountArticle 249. (1) The taxable amount for assessment of the tax on income shall be monthly and annual.(2) The monthly taxable amount shall be the income accruing to the public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent or movable and immovable property, charged during the relevant month.(3) The annual taxable amount shall be the income accruing to the public-financed enterprise from any transactions covered under Article 1 of the Commerce Act, as well as from rent or movable and immovable property, charged during the relevant year.Rates of TaxArticle 250. (1) The rate of tax on income shall be 3 per cent.(2) The rate of tax on income accruing to the municipalities shall be 2 per cent.Tax RetentionArticle 251. (1) Any public-financed scientific research enterprise, public higher school, state-owned and municipal school included in the system of public education shall be allowed to retain 50 per cent of the tax on income due there from in respect of the economic activity thereof as is directly related or auxiliary to the implementation of the core activity thereof.(2) The tax so retained shall be shown as a written-off obligation to the State.Declaring of TaxArticle 252. Any public-financed enterprises subject to levy of a tax on income for the relevant year shall submit an annual tax return in a standard form on or before the 31st day of March of the next succeeding year.Tax RemittanceArticle 253. (1) The tax on income, as assessed on the monthly taxable amount, shall be remitted by public-financed enterprises on or before the 15th day of the month next succeeding the month of charging of the income.(2) Where the sum total of the monthly taxable amounts for the year is less than the annual taxable amount, the tax due shall be remitted on or before the 31st day of March of the next succeeding year.(3) Where the sum total of the monthly taxable amounts for the year is greater than the annual taxable amount, the overremitted tax may be deducted from the taxes on income due after submission of the annual tax return.Chapter Thirty-FourTAX ON VESSELS OPERATION ACTIVITYGeneral DispositionsArticle 254. (1) The taxable persons, specified in this Chapter, may elect that the vessels operation activity thereof attract a tax on vessels operations activity.(2) The tax referred to in Paragraph (1) shall be levied on the taxable persons which have elected to be liable for the said tax for a period not exceeding five years.Taxable PersonsArticle 255. Taxable persons according to the procedure established by this Chapter shall be the persons carrying out maritime merchant shipping which simultaneously fulfil the following conditions:1. they are corporations registered under the Commerce Act, or permanent establishments of a corporation which is resident for tax purposes in another Member State of the European Community, or a Member State of the European Economic Area, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community or the European Economic Area;2. they operate their own vessels or chartered vessels, or manage vessels under a contract of management, as well as charter vessels;3. they do not refuse to train apprentices on board the vessels, with the exception of the cases where the number of apprentices exceeds one per fifteen officer members of the ship's complement;4. they man the vessel with Bulgarian citizens or with nationals of other Member States of the European Community or of the European Economic Area;5. vessels flying the Bulgarian flag or a flag of another Member State of the European Community or of the European Economic Area account for at least 60 per cent of the net tonnage of the vessels operated.Restrictions on Scope of TaxArticle 256. The taxable persons shall not have the right to apply the procedure for taxation under this Chapter in respect of:1. any seagoing vessels of a net tonnage under 100 tons;2. any fishing vessels;3. any pleasure vessels, with the exception of passenger vessels;4. any vessels which the taxable persons have provided for management or under a bareboat charter, with the exception of the cases where any such vessels have been provided to the State;5. any rigs for extraction of subsurface resources, any oil production platforms, and any vessels engaged in dredging operations and in tugging and towage operations.Taxable AmountArticle 257. (1) The taxable amount per vessel per day of service shall be determined as follows:1. in respect of any vessel of a net tonnage of up to 1,000 tons inclusive: BGN 3.50 for each 100 tons or fraction;2. in respect of any vessel of a net tonnage from 1,001 up to 10,000 tons inclusive: BGN 35 plus BGN 3.00 for each 100 tons or fraction;3. in respect of any vessel of a net tonnage from 10,001 up to 25,000 tons inclusive: BGN 305 plus BGN 2.50 for each 100 tons or fraction above 10,000 tons;4. in respect of any vessel of a net tonnage in excess of 25,001 tons: BGN 680 plus BGN 1 for each 100 tons or fraction above 25,000 tons.(2) The taxable amount per ship for a calendar month shall be determined by multiplying the taxable amount for the relevant vessel per day of service, as determined according to the procedure established by Paragraph (1), by the days of service of the relevant vessel during the calendar month.(3) The taxable amount for assessment of the tax under this Chapter shall be the sum total of the taxable amounts determined for each vessels according to the procedure established by Paragraph (2).Rate of TaxArticle 258. The rate of tax under this Chapter shall be 10 per cent.Declaring of TaxArticle 259. (1) The taxable persons shall exercise the right of choice thereof to levy of a tax under this Chapter by means of submission of a declaration in a standard form on or before the 31st day of December of the last preceding year.(2) The taxable persons shall submit an annual tax return in a standard form on the tax due under this Chapter on or before the 31st day of March of the next succeeding year.Tax RemittanceArticle 260. The taxable persons shall remit the tax due under this Chapter monthly, not later than at the end of the next succeeding month.PART SIXADMINISTRATIVE PENALTY PROVISIONSChapter Thirty-FiveADMINISTRATIVE VIOLATIONS AND SANCTIONSArticle 261. (1) Any taxable person, which fails to submit a tax return under this Act, which fails to submit any such return when due, or which fails to state or misstates any particulars or circumstances leading to underassessment of the tax due or to undue reduction, retention of or exemption from tax, shall be liable to a pecuniary penalty of BGN 500 or exceeding this amount but not exceeding BGN 3,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 6,000.Article 262. (1) Any taxable person, which fails to submit any supplement to the annual tax return or which states any untrue particulars or circumstances in any such supplement, shall be liable to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 2,000.Article 263. (1) Any taxable person, which accounts for any business transaction in breach of the accounting policies thereof and this leads to a misdetermination of the accounting financial result of the said person, shall be liable to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000 for each such breach.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 2,000.Article 264. (1) Any managing director, liquidator or trustee in bankruptcy, or holder of the position of liquidator or trustee in bankruptcy, who by any act or omission has committed any violation specified in Articles 261, 262 or 263 herein, shall be liable to a pecuniary penalty or a fine of BGN 200 or exceeding this amount but not exceeding BGN 1,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty or a fine of BGN 400 or exceeding this amount but not exceeding BGN 2,000.Article 265. (Amended, SG No. 110/2007) Any taxable person, who or which fails to issue an accounting source document for the accounting for income, shall be liable to the sanction under Article 182 of the Value Added Tax Act unless subject to a severer sanction.Article 266. (Amended, SG No. 110/2007) Any taxable person, who or which fails to fulfil the obligation thereof under Article 10 (4) herein, shall be liable to the sanction under Article 185 of the Value Added Tax Act. Article 267. (Amended, SG No. 110/2007) Any taxable person, who effects a hidden profit distribution, shall be liable to a pecuniary penalty to the amount of 20 per cent of the expense charged constituting a hidden profit distribution.Article 268. (1) Any organizer of games of chance, which fails to fulfil the obligation thereof to keep daily and monthly records under Article 219 herein, shall be liable to a pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 10,000.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty of BGN 4,000 or exceeding this amount but not exceeding BGN 20,000.Article 269. (1) Any enterprise referred to in Article 232 herein, printing tokens certifying participation or importing such tokens, which provides the tokens certifying participation without presentation thereto of the documents on the tax paid, shall be liable to a pecuniary penalty equivalent to the unremitted tax.(2) Any repeated violation under Paragraph (1) shall be punishable by a pecuniary penalty in a double amount, and the Minister of Finance shall disqualify the enterprise affected from printing or importing tokens certifying participation in the games covered under Section III of Chapter Thirty-Two herein for a period not exceeding six months.Article 270. (1) Any organizer of games of chances referred to in Article 228 herein, which conducts such games without having paid the full amount of the tax due, shall be liable to a pecuniary penalty equivalent to double the amount of the tax due but in any case not less than BGN 2,000.(2) The pecuniary penalty referred to in Paragraph (1) shall furthermore be imposed on any organizer of games of chance referred to in Article 228 herein which offers, sells or provides to any participant in the game of chance any token certifying participation which does not satisfy the statutorily established requirements as to the printing, form, type and cost price, or at a price exceeding the nominal value as printed on the relevant token certifying participation. No sanction shall be imposed where the tokens certifying participation have been revalued in respect of the series and the nominal value according to an inventory memorandum certified by a representative of the Ministry of Finance, a representative of the enterprise printing the tokens, and a revenue authority of the competent National Revenue Agency territorial directorate exercising competence over the place of registration of the organizer.(3) Any repeated violation under Paragraphs (1) and (2) shall be punishable by a pecuniary penalty equivalent to the double amount of the tax due but in any case not less than:1. BGN 4,000 and disqualification from practice of the activity according to the procedure established by Article 272 herein, where the repeated violation is under Paragraph (1);2. BGN 6,000 and disqualification from practice of the activity according to the procedure established by Article 272 herein, where the repeated violation is under Paragraph (2).Article 271. The pecuniary penalties referred to in Articles 269 and 270 herein shall be imposed notwithstanding the sanctions provided for in other laws, and the control authorities under the Gambling Act shall be notified of the violations as ascertained.Article 272. (1) The administrative sanction of disqualification from practice of activity shall be imposed for a period of one month or exceeding this period but not exceeding six months.(2) In the cases under Article 270 (2) herein, the revenue authorities shall seize and destroy the tokens certifying participation which do not satisfy the statutorily established requirements as to the printing, form, type and cost price, or any such tokens which are sold at a price exceeding the nominal value as printed thereon. The expenses shall be for the account of the taxable person.(3) In the cases of imposition of an administrative sanction of disqualification from practice of activity, a coercive administrative measure of sealing of the establishment or establishments and prohibition of access thereto shall furthermore be imposed.Article 273. (1) The implementation of the administrative sanction of disqualification from practice of activity shall be discontinued by the imposing authority at the request of the taxable person sanctioned according to an administrative procedure and after the said person has proved that the pecuniary penalty as imposed has been fully paid.(2) In the cases referred to in Paragraph (1), the revenue authority shall furthermore decree unsealing of the establishment, which shall be performed with the obligation to cooperate on the part of the tax subject.Article 274. The penalty decrees in the part thereof imposing the administrative sanction of disqualification from practice of activity and a coercive administrative measure of sealing of the establishment or establishments and denial of access thereto, as well as the decrees referred to in Article 273 herein, shall be subject to anticipatory enforcement unless the court orders otherwise.Article 275. Any person, which fails to fulfil the obligation thereof under Article 187 (3) herein, shall be liable to a pecuniary penalty of BGN 1,000 or exceeding this amount but not exceeding BGN 3,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 2,000 or exceeding this amount but not exceeding BGN 6,000.Article 276. Any taxable person, which fails to fulfil the obligations thereof under Article 92 (3) or (4) herein, shall be liable to a pecuniary penalty of BGN 500 or exceeding this amount but not exceeding BGN 2,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 1,500 or exceeding this amount but not exceeding BGN 5,000 for each unfulfilled obligation.Article 277. (1) Any taxable persons, which have applied the procedure for taxation under Chapter Thirty-Four herein without qualifying for the right of choice, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 30,000 and, upon a repeated commission of the violation, to a pecuniary penalty of BGN 40,000 or exceeding this amount but not exceeding BGN 60,000.(2) The persons referred to in Paragraph (1) shall have no right to apply the procedure for taxation on the net tonnage of vessels for a period of five years.Article 278. (1) The written statements ascertaining the violations shall be drawn up by the authorities of the National Revenue Agency, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official authorized thereby.(2) The ascertainment of violations, the issue, appeal against and enforcement of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act .SUPPLEMENTARY PROVISIONS 1. Within the meaning given by this Act:1. "The country" shall be the geographical territory over which the Republic of Bulgaria exercises the State sovereignty thereof, as well as the continental shelf and the exclusive economic zone where within the Republic of Bulgaria exercises sovereign rights in conformity with international law.2. "Permanent establishment" shall be a permanent establishment within the meaning given by Item 5 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code .3. "Financial asset" shall be the asset as defined in the applicable accounting standards, including the compensation instruments within the meaning given by Article 2 of the Transactions in Compensation Instruments Act. Where the person is not an enterprise within the meaning given by the Accountancy Act, the applicable accounting standards for the purposes of sentence one shall be the international accounting standards applicable in the country for the relevant year.4. "Dividend" shall be the distribution in favour of a person, arising from the holding that such person has in the capital of another person, resulting in a reduction of the owners' equity of the latter, including:(a) income from shares;(b) income from participating interests, even in unincorporated associations, and from other corporate rights, where treated as income from shares;(c) hidden profit distribution.Any distribution which, according to accounting legislation, has been accounted for at the distributing person as an expense shall not be a dividend, with the exception of the cases of hidden profit distribution.5. (Amended, SG No. 110/2007) "Hidden profit distribution" shall be:(a) any expenses charged by a taxable person without being connected with the economic activity carried out thereby or exceeding the customary market levels, in the cases where made in favour of shareholders, members or any parties related thereto;(b) any expenses on interest payments charged (unless the conditions of the loan are agreed in conformity with requirements provided for in a statutory instrument) where at least three of the following conditions are fulfilled:(aa) the loan exceeds the owners' equity of the payer of the income at the 31st day of December of the last preceding year;(bb) the repayment of the loan or the payment of interest thereon is not limited by a fixed period;(cc) the repayment of the loan or the payment of interest thereon depends on the existence or on the amount of profits accruing to the payer of the income;(dd) the repayment of the loan depends on satisfaction of the claims of other creditors or on the payment of dividends.6. "Share in a liquidation surplus" shall be the distribution of a share in the property of a person upon the dissolution thereof in favour or another person or upon cessation of membership of that other person.7. "Interest payment" shall be income from debt claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, including interest paid on deposits with banks and income (premiums) from debentures and bonds. For the purposes of Part Three herein, any income which constitutes a dividend, penalty charges for late payments and damages shall not be regarded as interest payments.8. "Copyright and licence royalties" shall be payments of any kind received as a consideration for: the use of, or the right to use, any copyright of scientific, artistic or literary work, including cinematograph films and television films and recordings for transmission by radio or television or software; of any patent, trade mark, industrial design or utility model, drawing, plan, secret formula or process, as well as for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. The payment for acquisition of a right to use software in which only a copy of the relevant program is incorporated shall not be considered to be copyright and licence royalties in case the rights to copy, reproduce, distribute, modify, publicly display or make commercial use in any other form are not granted.9. "Technical assistance fees" shall be the payments from a source inside the Republic of Bulgaria for erection or installation of tangible assets, as well as any services of a consulting nature and marketing research as provided by any non-resident person.10. "Franchising" shall be a totality of industrial or intellectual property rights relating to trademarks, trade names, logotypes, utility models, designs, copyright, know-how or patents, granted in return for a royalty, to be used for sale of goods and/or provision of services.11. "Factoring" shall be a transaction whereby single or periodic monetary claims arising from a supply of goods or a provision of services are transferred, regardless of whether the person who has acquired the claims (the factor) assumes the risk of collection of the said claims in consideration of the payment of a reward.12. "Foreign tax credit" shall be the right, enjoyable under conditions as specified by this Act, to deduct a profits tax or a tax on income already paid abroad.13. "Related parties" shall be the parties within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.14. "Market price" shall be the price within the meaning given by Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.15. "Transfer between a permanent establishment and another division of the same enterprise" shall be the term referred to in Item 6 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.16. "Accounting financial result" shall be the profit (loss) according to the profit-and-loss account (income statement) for a specified period before charging the tax expenses on the profit.17. "Undistributable expenses" shall be all selling expenses, administrative, financial and extraordinary expenses which do not relate to a particular activity only and are associated with the implementation of any activity:(a) in respect of which corporation tax retention is enjoyable, or(b) subject to levy of corporation tax, performed by not-for-profit legal entities.18. "Undistributable income" shall be all financial and extraordinary income which does not arise from the implementation of a particular activity only and is associated with implementation of any activity in respect of which corporation tax retention is enjoyable.19. "Expenses on provisions for debts" shall be the expenses on provisions as accounted for, which meet the criteria for recognition of a provision according to the applicable accounting standards, including:(a) the expected excesses of the total amount of expenses over income and the expected losses under construction contracts;(b) the termination and post-employment benefits, equity compensation benefits and other long-term employee benefits.20. "Debt capital", within the meaning given by Article 43 (6) herein, shall be the total liabilities of the enterprise, excluding the investment grants and subsidies.21. "Disposition effected on a regulated Bulgarian securities market" shall be any transactions:(a) (amended, SG No. 52/2007) concluded on the official and the second-tier regulated market in the country within the meaning given by the Markets in Financial Instruments Act , excluding block trades and other transactions in securities which, according to the Rules and Regulations of the regulated market, are subject only to registration on the regulated market;(b) (amended, SG No. 52/2007) concluded under the terms and according to the procedure of tender offering under Section II of Chapter Eleven, as well as the transactions under the terms and according to the procedure of repurchase or redemption by collective investment schemes which have been admitted to public offering in the Republic of Bulgaria, licensed investment companies of the closed-end type, according to the procedure established in the Markets in Financial Instruments Act. 22. (Amended, SG No. 110/2007) "Documented cost of acquisition of securities or interests" shall be the cost of acquisition of the relevant securities which the person has documented according to the procedure established by the relevant statutory instruments. Where securities or interests of a particular type, issued by a particular person, have been acquired at different prices and part of the said securities or interests are subsequently sold and it is impossible to prove which of the said securities or interests are sold, the cost of acquisition of the securities or interests sold shall be the weighted average price arrived at on the basis of the cost of acquisition of the securities or interests held at the time of the sale. Sentence two shall apply in all cases of acts of disposition of securities or interests. Where new shares or interests are acquired as a result of a distribution which has not led to a reduction of the owners' equity of the person distributing the shares or interests, the documented cost of acquisition of the shares or interests held shall be recalculated. After acquisition of the new shares or interests under the foregoing sentence, the documented cost of acquisition of each share or interest, including the newly acquired ones, shall equal the sum total of the documented costs of acquisition of the shares or interests prior to the acquisition of the new shares or interests, divided by the total number of shares or interests held after the acquisition, including the newly acquired ones.23. "Computer peripheral equipment" shall be all devices which are connected to the basic input/output system of a computer or are controlled by a computer but are not essential for the functioning of the said computer.24. "Development activity" shall be the activity of developing, designing, building and testing new goods, materials, manufacturing technologies and industrial systems and other industrial property items, as well as improving existing products and technologies.25. "Tax loss from a source outside Bulgaria", for the purposes of Articles 73 and 74 herein, shall be the sum total of the losses from all permanent establishments in the respective foreign State.26. "Financial institutions" shall be:(a) (amended, SG No. 110/2007, effective 1.01.2007) the credit and financial institutions under the Credit Institutions Act; (b) the insurers, reinsurers and non-resident persons carrying on insurance or reinsurance business through a permanent establishment under the Insurance Code;(c) (supplemented, SG No. 52/2007) the investment intermediaries under the Markets in Financial Instruments Act and the management companies under the Public Offering of Securities Act ;(d) the companies carrying on business for the provision of supplementary social insurance.(e) (new, SG No. 110/2007, effective 1.01.2007) the health insurance companies under Article 91 of the Health Insurance Act. 27. "Unprocessed plant and animal produce" shall be any primary product derived from plants and animals which is used in its natural form, without undergoing any form of technological treatment or processing resulting in physical and chemical alterations of the composition thereof.28. "Manufacturing activities", for the purposes of Article 184 herein, shall be the process of creation of a new product by means of mechanical, physical or chemical conversion (treatment or processing) of raw and prime materials for the purpose of subsequent sale and biological transformation of live animals or plants.29. (Amended, SG No. 110/2007, effective 1.01.2007) "Initial investment" shall be an investment in new material and immaterial assets, which are eligible expenditures relating to:1. the setting-up of a new establishment;2. the extension of an existing establishment;3. diversification of the output of an establishment into new additional products;4. a fundamental change in the existing production process.An investment in an asset which replaces an existing asset shall not qualify as initial investment;30. (Amended, SG No. 110/2007, effective 1.01.2007) "Enterprise in difficulty" shall be an enterprise meeting one of the following criteria:(a) in the case of a limited liability company or a joint-stock company: where more than 50 per cent of the registered capital thereof has disappeared, and more than 25 per cent of that capital has been lost over the last preceding twelve months;(b) in respect of all other corporations: where more than 50 per cent of the owners' equity thereof has disappeared, and more than 25 per cent of that capital has been lost over the last preceding twelve months;(c) (amended, SG No. 110/2007, effective 1.01.2007) where the corporation fulfils the criteria under the Commerce Act or under the law of the place of registration for institution of bankruptcy proceedings.31. (Amended, SG No. 110/2007, effective 1.01.2007) "De minimis aid" shall be the aid within the meaning given by Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid.32. "Market rate of interest" shall be the interest that would have been paid under the same conditions for credit extended or received under any form whatsoever under a transaction between parties who or which are not related. The market rate of interest shall be determined according to the conditions of the market, taking into account all quantitative and qualitative characteristics of the transaction: form, amount and currency of the resources provided, period of the provision thereof, type, amount and liquidity of the collateral security, credit risk and other risks related to the transaction, profile of the borrower or lessee, as well as all other conditions and circumstances influencing the rate of interest.33. "Advertising expenses" shall be the expenses incurred for the promotion of goods and service, including gifts which bear the trade name or the trade mark of the taxable persons, within the limits of the customary for the activity carried out by the person.34. "Expenses on fringe benefits provided in kind" shall be the perquisites accounted for as expenses covered under Article 294 of the Labour Code and provided according to the procedure and manner defined in Article 293 of the Labour Code or according to a procedure and manner determined by the management of the enterprise. The said perquisites must be available to all factory and office workers and to the persons hired under a management and control contract. Where monetary relationships under any form whatsoever exist between the employer of commissioning entity and the persons referred to in sentence two in respect of the perquisites received, this shall not represent provision of expenses on fringe benefits in kind.35. "Operator", within the meaning given by Article 209 herein, shall be any person which has obtained authorization from the Minister of Finance and which engages in the activities of printing, organizing, control and settlement in connection with food vouchers according to a procedure established by an ordinance of the Minister of Finance.36. "Food vouchers" shall be a type of paper medium of exchange provided through an employer to factory and office workers, including persons hired under management contracts, which are used as a medium of payment at restaurants, fast-food outlets and food trading establishments, according to a contract for provision of services concluded with an operator.37. "Passenger car" shall be such car as defined in the Road Traffic Act.38. "Extra bus services" shall be bus services running according to an endorsed transportation scheme in a mode allowing the vehicles to stop and passengers to alight and board at request where this is legally possible, complementing the principal urban transport services without fully duplicating them.39. "Expenses on maintenance, repair and operation of means of transport" shall be the accounting expenses, related to the maintenance, repair and operation of the means of transport, incurred on:(a) fuel, lubricants and other consumables;(b) spare parts;(c) repair work, including painting and collision-repair services;(d) technical inspections and parking;(e) vehicle care products and accessories.40. "Means of transport" shall be the means of transport as specified in Section Four of Chapter Two of the Local Taxes and Fees Act, regardless of whether entered in a register kept according to Bulgarian legislation.41. "Vessels operation activities" shall be:(a) the effecting of carriage by sea by means of vessels of a net tonnage exceeding 100 tons, the chartering of any such vessels, as well as the sale of vessels subject to tonnage taxation, which have been acquired not less than five years prior to the sale thereof;(b) carriage by land, related to the carriage by sea, administrative and insurance services and other services provided to customers in connection with the effecting of the carriage by sea;(c) financial operations and value adjustments resulting from exchange rate fluctuation, related to the management of the working capital used for the vessels operation;(d) extraordinary activities related to the vessels operation, which do not come within the scope of Littera (a) to (c) and which generate a turnover which does not exceed 0.25 per cent of the turnover generated by the activities referred to in Littera (a) and (b).42. "Days of service" shall be the days on which the vessel is engaged in carriage and/or performs any activities related to carriage. The days of service shall exclude the time for repairs or in a port, as well as the time during which the vessel is not engaged in carriage and/or does not perform any activities related to carriage due to detention or force majeure.43. "Net tonnage" shall be the measure, in tons, of the useful deadweight (cargo carrying capacity) of a vessel as certified by a tonnage certificate of the vessel.44. "Repeated violation" shall be any violation which is committed within one year after the entry into effect of a penalty decree whereby the offender was penalized for a violation of the same kind.45. (New, SG No. 110/2007, effective 1.01.2007) "Agricultural products", "processing of agricultural products" and "marketing of agricultural products" shall have the meaning given to these terms by Article 2 [sic, must be Article 1, paragraph 2 - Translator's Note] of Commission Regulation (EC) No 1998/2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid.46. (New, SG No. 110/2007, effective 1.01.2007) "Eligible expenditure on material assets" for the purposes of Items 29 and 48 shall be land, buildings, machinery and plant/equipment. The initial investments shall furthermore include the machinery and plant/equipment acquired under a financial lease contract where the contract contains an obligation to purchase the asset at the expiry of the term of the contract.47. (New, SG No. 110/2007, effective 1.01.2007) "Eligible expenditure on immaterial assets" for the purposes of Items 29 and 48 shall be assets obtained as a result of transfer of technology by the acquisition of patent rights, licences, know-how or unpatented technical knowledge.48. (New, SG No. 110/2007, effective 1.01.2007) "Large investment project" shall be an initial investment which includes eligible expenditure on material and immaterial assets combined in an economically indivisible way, where the eligible expenditure exceeds the lev equivalent of EUR 50 million, determined according to the official exchange rate of the lev against the euro. The initial investment related to a large investment project must be undertaken within a period of three years. A large investment project may not be divided into sub-projects or stages, if this would lead to circumvention of the provisions in this Act.49. (New, SG No. 110/2007, effective 1.01.2007) "Net turnover" shall have the meaning given to this term by the Accountancy Act. 50. (New, SG No. 110/2007, effective 1.01.2007) "Equity method" shall have the meaning given to this term by accounting legislation.51. (New, SG No. 110/2007, effective 1.01.2007) "Proportionate consolidation method" shall have the meaning given to this term by accounting legislation.52. (New, SG No. 110/2007, effective 1.01.2007) "Jointly controlled entity" shall have the meaning given to this term by accounting legislation. 2. This Act transposes the provisions of Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees and of Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees with regard to the involvement of employees.TRANSITIONAL AND FINAL PROVISIONS 3. This Act shall supersede the Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended in Nos. 21 and 153 of 1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111 of 1999, Nos. 105 and 108 of 2000, Nos. 34 and 110 of 2001, Nos. 45, 61, 62 and 119 of 2002, Nos. 42 and 109 of 2003, Nos. 18, 53 and 107 of 2004, Nos. 39, 88, 91, 102, 103 and 105 of 2005, Nos. 30, 34, 59 and 63 of 2006). 4. The adjustments of the financial result (accounting profit/loss) for tax purposes consequent to the application of Article 23 of the Corporate Income Tax Act as superseded until the 31st day of December 2006 shall be considered to be adjustments of the accounting financial result upon determination of the tax financial result according to the procedure and according to the relevant provision of this Act. 5. The accounting income and expenses from subsequent valuations (revaluations and impairments) of depreciable assets, which are charged until the 31st day of December 2003 and which are not recognized for tax purposes until the 31st day of December 2006 according to the procedure established by Article 23 of the Corporate Income Tax Act as superseded, shall be recognized for tax purposes in the year of write-off the relevant asset in the tax depreciation schedule, with the exception of the cases of shrinkage. 6. (1) The depreciable assets available in the tax depreciation schedule as at the 31st day of December 2006, with the exception of such specified in Paragraph (2), shall be considered to be taxable depreciable assets within the meaning given by Article 48 herein.(2) The following assets available in the tax depreciation schedule shall be written off therein as at the 1st day of January 2007:1. the positive goodwill;2. the assets which are not used in any activity in respect of which a tax financial result is formed;3. the assets which are not classified as held for sale or are part of a group for exemption classified as held for sale;4. the assets where the taxable person has been dissolved through liquidation or has been dissolved through adjudication in bankruptcy.(3) (Amended, SG No. 110/2007, effective 1.01.2007) Article 66 herein shall not apply in the cases of write-off of any assets under Item 1 and 2 of Paragraph (2). 7. (1) The tax depreciable value of any tax depreciable asset available as at the 1st day of January 2007 shall be the depreciable value of the said asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded.(2) The tax depreciation charged of any tax depreciable asset available as at the 1st day of January 2007 shall be the tax-recognized amount of the expenses on depreciations for the relevant asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded.(3) The tax value of any tax depreciable asset available as at the 1st day of January 2007 shall be the tax carrying value of the said asset as at the 31st day of December 2006 under the Corporate Income Tax Act as superseded. 8. The values of the tax depreciable assets available in the tax depreciation schedule as at the 1st day of January 2007 shall remain unchanged compared to the said values as at the 31st day of December 2006. 9. (1) The revaluation reserve in the tax depreciation schedule shall be written off therein as at the 1st day of January 2007. The said write-off shall follow the procedure and manner specified in 10 or 11 herein. The taxable person shall opt for the application of 10 or 11 herein.(2) The "revaluation reserve," within the meaning given by Paragraph (1), shall be the revaluation reserve (the subsequent valuations reserve) which is included in the tax depreciation schedule as at the 31st day of December 2006.(3) Where a revaluation reserve (subsequent valuations reserve) other than the one which should have been included according to Article 22 of the Corporate Income Tax Act as superseded is included in the tax depreciation schedule as at the 31st day of December 2006, the said reserve shall be adjusted for the purposes of Paragraph (1).(4) Sole traders shall write off the revaluation reserve according to a procedure and in a manner applicable to the taxable persons under this Act. 10. (1) The taxable persons shall adjust on a single occasion the values of the depreciable assets in the tax depreciation schedule as at the 1st day of January 2007 as a result of the write-off of the revaluation reserve.(2) The tax-recognized amount of the expenses on depreciations for a specific depreciable asset as at the 31st day of December 2006 shall be credited with the written off revaluation reserve for the relevant asset, as a result of which the tax depreciation of the said asset charged as at the 1st day of January 2007 shall be increased and the tax value of the asset as at the 1st day of January 2007 shall be decreased. After the increase, the tax depreciation charged for the relevant asset may not exceed the tax depreciable value of the asset as at the 1st day of January 2007.(3) Where the revaluation reserve for a specific asset exceeds the tax carrying value of the said asset as at the 31st day of December 2006, the said asset shall be written off in the tax depreciation schedule as at the 1st day of January 2007, with the tax-recognized amount of the expenses on depreciations of other assets of the same category, determined within the meaning given by Article 22 of the Corporate Income Tax Act as superseded, being credited with the amount of the excess. Where the values of the assets of the said category are insufficient to fulfil the requirement of sentence one, the tax-recognized amount of the expenses on depreciations of assets of the other categories shall be increased.(4) After the write-off of the revaluation reserve, the total amount of the tax values of all assets available in the tax depreciation schedule as at the 1st day of January 2007 must equal the total amount of the tax carrying values of all assets as at the 31st day of December 2006, debited with the revaluation reserve as written off.(5) Paragraphs (1) to (4) shall not apply were the total amount of the revaluation reserve as written off exceeds the total amount of the tax carrying values of all assets available in the tax depreciation schedule as at the 31st day of December 2006. The taxable persons shall write off all assets available in the tax depreciation schedule as at the 31st day of December 2006 in the said schedule as at the 1st day of January 2007. The accounting financial result shall be credited with the difference between the total amount of the revaluation reserve and the total amount of the tax carrying values of all assets as at the 31st day of December 2006 upon determination of the tax financial result, inter alia upon determination of the quarterly prepayments according to the procedure established by 11 herein. 11. (1) Upon determination of the tax financial results, inter alia upon determination of the quarterly prepayments, the accounting financial result shall be credited with the revaluation reserve as written off as follows:1. for 2007: with one-third of the revaluation reserve as written off;2. for 2008: with one-third of the revaluation reserve as written off;3. for 2009: with one-third of the revaluation reserve as written off.(2) Upon dissolution of any taxable person, with the exception of the cases of dissolution upon transformation through change of the legal form under Article 264 of the Commerce Act , upon determination of the tax financial result for the year of dissolution the accounting financial result shall be credited with the portion of the revaluation result as written off whereby the accounting financial result has not been credited according to the procedure established by Paragraph (1).(3) The taxable person may credit the accounting financial result thereof with the revaluation reserve as written off on a single occasion upon determination of the tax financial result thereof for 2007, inter alia upon determination of the quarterly prepayments. In this case Paragraphs (1) and (2) shall not apply. 12. The provision of Item 6 of Article 55 (1) herein shall apply to any tax tangible fixed assets acquired after the 31st day of December 2006. 13. For the purposes of Article 55 herein, the depreciable asset referred to in Item 55 (f) of 1 of the Supplementary Provisions of the Corporate Income Tax Act as superseded shall be allocated to Category V. 14. For the purposes of Article 55 herein, the depreciable asset, formed according to the Corporate Income Tax Act as superseded as a result of the tax-unrecognized portion of the excess of the sum total of the accounting depreciation quotas over the tax-recognized amount of the depreciations of the assets as a whole for the period commencing on the 1st day of January 1998 and ending on the 31st day of December 2002, shall be allocated to Category VII. 15. (Amended, SG No. 110/2007, effective 1.01.2007) The provision of Article 59 herein shall not apply to any tax depreciable asset for which the charging of tax depreciations was discontinued at the 31st day of December 2006 according to the Corporate Income Tax Act as superseded by reason of withdrawal from use of the said asset. The charging of tax depreciations for the asset referred to in sentence one shall be resumed as from the beginning of the month of re-commissioning of the said asset. 16. The provision of Article 63 herein shall apply to any subsequent expenses completed after the 31st day of December 2006. 17. For the purposes of Article 66 (1) herein, where the residual value is not included in the depreciable value of the asset within the meaning given by the Corporate Income Tax Act as superseded, the accounting carrying value of the asset shall be debited with the residual value thereof upon determination of the tax financial result. 18. Article 68 herein shall apply to any assets acquired after the 31st day of December 2005. 19. Article 45 herein shall not apply in the cases where the financial result for tax purposes has been credited with the subsequent valuation reserve (revaluation reserve) according to the procedure established by Article 23 of the Corporate Income Tax Act as superseded. 20. Any unrecognized expenses on interest payments after the 1st day of January 2004 according to Article 26 of the Corporate Income Tax Act as superseded, subject to deduction and not deducted until the 31st day of December 2006, shall be deducted according to the procedure established by Article 43 herein until the lapse of five years since the year of non-recognition of the said expenses for tax purposes. 21. The portion of the provisions for claims taxed for tax purposes (under the accounting legislation effective until the 31st day of December 2001) in the non-financial enterprises, whereby the financial result has not been debited according to the procedure established by Article 23 (3) of the Corporate Income Tax Act as superseded during succeeding years, shall be treated as unrecognized expense on subsequent valuation of a claim according to the procedure established by Article 34 of this Act. 22. Any losses formed after the 1st day of January 2002 and subject to carry-forward, which have not been deducted until the 31st day of December 2006 according to the procedure established by Chapter Four of the Corporate Income Tax Act as superseded, shall be deducted according to the procedure established by Chapter Eleven herein. 23. Article 95 herein shall not apply to any income and expenses originating as a result of any income and expenses, accounted for prior to the 1st day of January 2007, in respect of which there existed a difference between the amount as accounted for according to the accounting policies and the amount as determined by a regulatory authority according to a statutory instrument. 24. The right to enjoy the reduction referred to in Article 60 (1) or the retention referred to in Articles 61d or 61e of the Corporate Income Tax Act as superseded in respect of the corporation tax due for 2006 shall furthermore vest in any taxable person which has not submitted a notification to the competent National Revenue Agency territorial directorate according to Article 51a of the Corporate Income Tax Act as superseded, subject to the condition that the said person fulfil all requirements provided for in the Act for the relevant corporation tax reduction or retention. 25. Corporation tax retention shall be allowed according to the procedure established by Article 187 herein until the 31st day of December 2010. 26. (Repealed, SG No. 110/2007, effective 1.01.2007). 27. The annual taxable profit (loss), the annual corporation tax due, all alternative taxes, the taxes on expenses and the withholding taxes for 2006, which are declarable according to the procedure established by the Corporate Income Tax Act as superseded, shall be declared by means of submission of the relevant tax returns and within the time limits under the said Act. 28. (1) The taxes due for 2006 under the Corporate Income Tax Act as superseded shall be remitted within the time limits and according to the procedure established by the said Act.(2) The right referred to in Article 92 (5) herein shall be enjoyable by the taxable persons even upon declaring the corporation tax for 2006. 29. The standard forms of annual tax returns for 2006 under the Corporate Income Tax Act as superseded shall be endorsed not later than the 10th day of January 2007 by an order of the Minister of Finance, which shall be promulgated in the State Gazette. 30. (Amended, SG No. 110/2007, effective 1.01.2007) Any provisions, which are included in the historical cost of a tax depreciable asset but are not included in the depreciable value of the said asset according to the Corporate Income Tax Act as superseded, shall be considered as provisions which are not included in the tax depreciable value of the asset according to Article 53 (1) herein. 31. (Repealed, SG No. 110/2007). 32. The Tax and Social-Insurance Procedure Code (promulgated in the State Gazette No. 105 of 2005; amended in Nos. 30, 33, 34, 59, 63, 73 and 82 of 2006) shall be amended and supplemented as follows:1. In Article 141:(a) in Paragraph (1), the words "thirty days" shall be replaced by "sixty days";(b) in Paragraph (2):(aa) in sentence one at the end, there shall be added "and has not eliminated the deficiencies within fifteen days after the date of request by the revenue authority";(bb) in sentence two, the words "there are no" shall be replaced by "there are";(c) in Paragraph (3), after the words "application of the CADT" there shall be inserted "or failure to rule within the period under Paragraph (1)";(d) Paragraphs (4) and (5) shall be amended to read as follows:"(4) Any opinion on lack of grounds for application of the CADT shall be appealable by the recipient of the income or by the payer, if authorized to do so by the recipient of the income. Any such appeal shall follow the procedure for appeal of audit acts, and the appeal shall be lodged care of the territorial directorate whereto the request has been submitted.(5) If there is an opinion on application of the CADT under Paragraph (1) or (2), the tax liabilities for the relevant income may be revised solely if there are grounds under Article 133 (2)."2. In Article 142 (1) and (2) , the figure "25,000" shall be replaced by "50,000". 33. This Act shall enter into force on the 1st day of January 2007.This Act was adopted by the 40th National Assembly on the 14th day of December 2006 and the Official Seal of the National Assembly has been affixed thereto.Act to Amend and Supplement the Corporate Income Tax Act(SG No. 110/2007, effective 1.01.2008)TRANSITIONAL AND FINAL PROVISIONS 56. (Effective 1.01.2007, SG No. 110/2007) Any overremitted corporation tax, profits tax and municipal tax under the Corporate Income Tax as superseded (promulgated in the State Gazette No. 115/1997; corrected in No. 19/1998; amended in Nos. 21 and 153/1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111/1999, Nos. 105 and 108/2000, Nos. 34 and 110/2001, Nos. 45, 61, 62 and 119/2002, Nos. 42 and 109/2003, Nos. 18, 53 and 107/2004, Nos. 39, 88, 91, 102, 103 and 105/2005, Nos. 30, 34, 59 and 63/2006; superseded, No. 105/2006), which is not deducted, refunded or set off at the 31st day of December 2006, may be deducted according to the procedure established by Article 94 of the effective Corporate Income Tax Act. 57. (Effective 1.01.2007, SG No. 110/2007) Any taxable person, which has retained tax under Article 58 of the Profits Tax Act as repealed (promulgated in the State Gazette No. 59/1996 [sic, must be 1996 - Translator's Note]; amended in No. 110/1996, Nos. 16, 49, 86 and 89/1997; repealed, SG No. 115/1997) or under Article 20 as repealed of the Investment Promotion Act, which adopts the application of International Accounting Standards, shall not apply Chapter Thirteen to the change in accounting policies in respect of the accounting for the tax retained. Upon determination of the tax financial result for the year of transition to International Accounting Standards and for the succeeding years, the financial result shall be credited with the part of the financing accounted for in connection with the tax retained which is not recognized as income before transition to International Accounting Standards, the amount of the increase being allocated by year as applicable in proportion to the expenses accounted for during the said years in connection with fulfilment of the conditions for retention of the tax. Where the tax retained is invested in depreciable assets, the increase referred to in sentence two shall be allocated by year on the basis of the accounting expenses on depreciation accounted for the said assets during the years as applicable. 58. (Effective 1.01.2007, SG No. 110/2007) The tax reliefs according to the procedure established by Section IV of Chapter Twenty-Two, with the exception of Article 187 of the Corporate Income Tax Act, shall be enjoyable until the 31st day of December 2013. The tax relief referred to in Article 184 of the Corporate Income Tax Act, constituting regional aid, shall be enjoyable where implementation of the relevant initial investment commenced after the 31st day of December 2006 but before the 1st day of January 2014. 59. (Effective 1.01.2007, SG No. 110/2007) The tax relief referred to in Article 184 of the Corporate Income Tax Act, of which the Minister of Finance has notified the European Commission according to the procedure established by Article 8 of the State Aids Act, constituting regional aid, shall become effective after adoption of a positive decision by the European Commission regarding the accordance of the said relief with the Guidelines on national regional aid for 2007 to 2013 of the European Commission. Provided that the European Commission adopts a positive decision until the 31st day of March 2008, the tax relief may be applied for 2007 as well. After the adoption of a positive decision by the European Commission, the Minister of Finance need not prepare individual notifications on the taxable persons applying Article 184 of the Corporate Income Tax Act, with the exception of such implementing large investment projects under Article 189 of the Corporate Income Tax Act. 60. The tax depreciable assets at the 31st day of December 2007, which are written off for accounting purposes but are not written off in the tax depreciation schedule in pursuance of Item 2 of Article 22 (12) of the Corporate Income Tax Act as superseded because a flow of economic benefit is not expected there from or in pursuance of item 1 of article 60 (3), shall be written off in the tax depreciation schedule at the 1st day of January 2008. The provision of Article 66 (2) of the effective Corporate Income Tax Act shall apply, inter alia upon determination of the quarterly tax prepayments for 2008. Sentences one and two shall not apply to any assets which are written off for accounting purposes because they are completely depreciated. 61. The provision of Article 140 (7) of the Corporate Income Tax Act shall not apply to any transformation whereof the date of recordation in the Commercial Register precedes the 1st day of January 2008. 62. Any accounting income and expenses, profits and losses, accounted for by a partner in a jointly controlled entity as a result of application of the proportionate consolidation method, shall not be recognized for tax purposes where the jointly controlled entity is a taxable person. 63. (1) Upon determination of the tax financial result of any financial institutions, the accounting financial result thereof shall be debited with the dividends distributed by resident legal persons during the current year, where the investment is accounted for according to the equity method.(2) Upon determination of the tax financial result of any taxable persons other than financial institutions, the accounting financial result thereof shall be debited with the dividends distributed by resident legal persons for the period commencing with the acquisition and ending with the write-off of the investment, where the investment is accounted for according to the equity method. The debiting under sentence one shall be effected in the year of write-off of the investment.(3) Paragraphs (1) and (2) shall not apply to:1. any dividends distributed from profits which are realized prior to the acquisition of the investment by the taxable person, or2. any dividends distributed by licensed special-purpose investment companies under the Special-Purpose Investment Companies Act. 64. (1) Upon determination of the financial result of any resident parent company which is a financial institution, the accounting financial result thereof shall be debited with the dividends distributed by a subsidiary thereof from a Member State during the current year, where the investment in the subsidiary is accounted for according to the equity method.(2) Upon determination of the tax financial result of a resident parent company other than a financial institution, the accounting financial result thereof shall be debited with the dividends distributed by a subsidiary thereof from a Member State for the period commencing with the acquisition and ending with the write-off of the investment in the subsidiary, where the investment is accounted for according to the equity method. The debiting under sentence one shall be effected in the year of write-off of the investment.(3) Paragraphs (1) and (2) shall be furthermore applied by a permanent establishment in the country upon distribution of dividends by a non-resident person, where the conditions under Items 1 to 3 of Article 105 (2) of the Corporate Income Tax Act are fulfilled.(4) Where dividends have been distributed according to the procedure established by Paragraphs (1) or (3) within two years after the time of acquisition of at least 15 per cent of the capital of the company distributing the dividends, the taxable person shall have the right to debit the financial result thereof according to the procedure established by Paragraph (1). In case the taxable person ceases to hold at least 15 per cent of the capital of the company prior to the lapse of the two years, the tax financial result and the corporation tax due for the year in which Paragraph (1) is applied, shall be adjusted in a way as if Paragraph (1) was not applied. Default interest according to the standard procedure shall be due for the period commencing on the date on which the corporation tax had to be remitted and ending on the date of remittance of the said tax.(5) Paragraphs (1) to (4) shall not apply to any dividends distributed from profits which are realized prior to the acquisition of the investment by the taxable person. 65. 62, 63 and 64 of this Act shall apply upon determination of the tax financial result for 2007. 66. 16 and 17 of this Act shall apply to any assets acquired after the 31st day of December 2007......................................................................... 68. This Act shall enter into force on the 1st day of January 2008, with the exception of 7, 21, 24, 38 to 45, 49, 50, Items 3 to 7 of 54, Items 1 to 4 of 55 and 56 to 59 herein, which shall enter into force on the 1st day of January 2007.Annex 1to Item 1 of Article 100(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Companies in the Member States of the European Union Referred to in Item 1 of Article 100 Herein(a) companies incorporated under Council Regulation (EC) No 2157/2001 on the Statute for a European company (SE) and Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees, [and cooperative societies] included [sic, actually incorporated - Translator's Note] under Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society (SCE) and Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees;(b) companies under Belgian law known as: "sociйtй anonyme"/"naamloze vennootschap", "sociйtй en commandite par actions"/"commanditaire vennootschap op aandelen", "sociйtй privйe а responsabilitй limitйe"/"besloten vennootschap met beperkte aansprakelijkheid", "sociйtй cooperative а responsabilitй limitйe"/"cooperative vennootschap met beperkte aansprakelijkheid", "sociйtй en nom collectif"/"vennootschap onder firma", "sociйtй en commandite simple"/"gewone commanditaire vennootschap", public undertakings which have adopted one of the above-mentioned legal forms, as well as other companies constituted under Belgian law and which are subject to the Belgian Corporate Tax;(c) companies under Czech law known as: "akciovб spolecnost", "spolecnost s rucenim omezenэm";(d) companies under Danish law known as "aktieselskab" and "anpartsselskab". Other companies subject to tax under the Corporation Tax Act, in so far as their taxable income is calculated and taxed in accordance with the general tax legislation rules applicable to "aktieselskaber";(e) companies under German law known as: "Aktiengesellschaft", "Kommanditgesellschaft auf Aktien", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsverein auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaft", "Betriebe gewerblicher Art von juristischen Personen des цffentlichen Rechts", as well as other companies constituted under German law and subject to German corporate tax;(f) companies under Estonian law known as: "tдisьhing", "usaldusьhing", "osaьhing", "aktsiaselts", "tulundusьhistu";(g) companies under Greek law known as: ??????? ???????", "??????? ????????????з ??????з" (?.?.?) and other companies constituted under Greek law and subject to Greek corporate tax;(h) companies under Spanish law known as: "sociedad anуnima", "sociedad comanditaria por acciones", "sociedad de resposabilidad limitada", as well as those public law bodies which operate under private law. Other entities constituted under Spanish law and subject to Spanish corporate tax ( Impuesto sobre Sociedades');(i) companies under French law known as: "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй par actions simplifiйe", "sociйtй d'assurances mutuelles", "caisses d'йpargne et de prйvoyance", "sociйtйs civiles", which are automatically subject to corporation tax, "coopйratives", "unions de coopйratives", industrial and commercial public establishments and undertakings, as well as other companies constituted under French law which are subject to the French Corporate Tax;(j) companies incorporated or existing under Irish laws, bodies registered under the Industrial and Provident Societies Act, building societies incorporated under the Building Societies Acts and trustee savings banks within the meaning of the Trustee Savings Banks Act, 1989;(k) companies under Italian law known as "societа per azioni", "societа in accomandita per azioni", "societа a responsabilitа limitata", "societа ccoperativa", "societа di mutual assicurazione", as well as private and public entities whose activity is wholly or principally commercial;(l) under Cypriot law: "???????з", as defined in the Income Tax laws;(m) companies under Latvian law known as: "akciju sabiedriba", "sabiedriba ar ierobezotu atbildibu";(n) companies incorporated under the law of Lithuania;(o) companies under Luxembourg law known as "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй coopйrative", "sociйtй coopйrative organisйe comme une sociйtй anonyme", "association d'assurances mutuelles", "association d'йpargne-pension", "enterprise de natura commerciale, industrielle ou miniиre de l'Йtat, des communes, des syndicats de communes, des йtablissements publics et des autres personnes marales de droit public", as well as other companies constituted under Luxembourg law which are subject to the Luxembourg Corporate Tax;(p) companies under Hungarian law known as: "kцzkereseti tбrsasбg", "berйti tбrsasбg", "kцzцs vбllat", "korlбtolt felelцssйgь tбrsasбg", "rйszvйnytбrsasбg", "egyesьlйs", "szцvetkezet";(q) companies under Maltese law known as: "Kumpaniji ta' Responsabilita Limitata", "Socjetajiet en commandite li l-kapital taghhom maqsum fazzjonijiet";(r) companies under Dutch law known as "naamloze vennootschap", "besloten vennootschap met beperkte aansprakelijkheid", "Open commanditaire vennootschap", "Coцperatie", "onderlinge waarborgmaatschappij", "Fonds voor gemene rekening", "vereniging op cooperative grondslag", "vereniging welke op onderlinge grondslag als verzekeraar of kredietinstelling optreedt", as well as other companies constituted under Dutch law which are subject to the Dutch Corporate Tax;(s) companies under Austrian law known as: "Aktiengesellschaft", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsvereine auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaften", "Betriebe gewerblicher Art von Kцrperschaften des цffentlichen Rechts", "Sparkassen";(t) companies under Polish law known as: "spуlka akcyjna", "spуlka z ograniczona odpowiedzialnoscia";(u) commercial companies or civil law companies having a commercial form, as well as cooperatives and public undertakings, incorporated under Portuguese law;(v) companies under Slovenian law known as: "delniska druzba", "komanditna druzba", "druzba z omejeno odgovornostjo";(w) companies under Slovak law known as: "akciovб spolocnost", "spolocnost s rucenнm obmedzenэm", "komanditnб spolocnos";(x) companies under Finnish law known as "osakeyhtiц"/"aktiebolag", "osuuskunta"/"andelslag", "sддstцpankki"/"sparbank" and "vakuutusyhtiц"/"fцrsдkringsbolag";(y) companies under Swedish law known as "aktiebolag", "fцrsдkringsaktiebolag", "ekonomiska fцreningar", "sparbanker", "цmsesidiga fцrsдkringsbolag";(z) companies incorporated under the law of the United Kingdom of Great Britain and Northern Ireland.(aa) (new, SG No. 108/2007) companies under Romanian law known as "sosietati pe actiuni", sosietati оn comandita pe actiuni", "sosietati cu raspundere limitata". Annex 2to Item 3 of Article 100 and Item 1 of Article 108 (2)(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Taxes in the Member States of the European Union- impфt des sociйtйs/vennootschapsbelasting in Belgium,- selskabsskat in Denmark,- Kцrperschaftsteuer in the Federal Republic of Germany,- ????? ?????? ???? ?? ???? ???????? ????????????? ????????? [in Greece],- impuesto sobre sociedades in Spain,- impфt sur les sociйtйs in France- corporation tax in Ireland,- imposta sul reddito delle persone giuridiche in Italy,- impфt sur le revenu des collectivitйs in Luxembourg,- venflootschapsbelasting in the Netherlands,- imposto sobre o rendimento das pessoas colectivas in Portugal,- corporation tax in the United Kingdom of Great Britain and Northern Ireland,- Kцrperschaftsteuer in Austria- yhteisцjen tulovero/inkomstskatten fцr samfund in Finland,- statlig inkomstskatt in Sweden,- Dan z prнjmu prбvnickэch osob in the Czech Republic,- Tulumaks in Estonia,- ????? ??????????? in Cyprus,- uznemumu ienakuma nodoklis in Latvia,- Pelno mokestis in Lithuania,- Tбrsasбgi adу in Hungary,- Taxxa fuq l-income in Malta,- Podatek dochodowy od osуb prawnych in Poland,- Davek od dobicka pravnih oseb in Slovenia,- Dan z prнjmu prбvnickэch osob in Slovakia.- Impozit pe profit in Romania. Annex 3to Item 1 of Article 137(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Companies in the Member States of the European Union Referred to in Item 1 of Article 137 Herein(a) companies incorporated under Council Regulation (EC) No 2157/2001 on the Statute for a European company (SE) and Council Directive 2001/86/EC supplementing the Statute for a European company with regard to the involvement of employees, included under Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society (SCE) and Council Directive 2003/72/EC supplementing the Statute for a European Cooperative Society with regard to the involvement of employees;(b) companies under Belgian law known as "sociйtй anonyme"/"naamloze vennootschap", "sociйtй en commandite par actions"/"commanditaire vennootschap op aandelen", "sociйtй privйe а responsabilitй limitйe"/"besloten vennootschap met beperkte aansprakelijkheid", "sociйtй cooperative а responsabilitй limitйe"/"cooperative vennootschap met beperkte aansprakelijkheid", "sociйtй en nom collectif"/"vennootschap onder firma", "sociйtй en commandite simple"/"gewone commanditaire vennootschap", public undertakings which have adopted one of the above-mentioned legal forms, as well as other companies constituted under Belgian law and subject to the Belgian Corporate Tax;(c) companies under Czech law known as: "akciovб spolecnost", "spolecnost s rucenim omezenэm";(d) companies under Danish law known as "aktieselskab" and "anpartsselskab"; other companies subject to tax under the Corporation Tax Act, in so far as their taxable income is calculated and taxed in accordance with the general tax legislation rules applicable to "aktieselskaber";(e) companies under German law known as: "Aktiengesellschaft", "Kommanditgesellschaft auf Aktien", "Gesellschaft mit beschrдnkter Haftung", "Versicherungsverein auf Gegenseitigkeit", "Erwerbs- und Wirtschaftsgenossenschaft", "Betriebe gewerblicher Art von juristischen Personen des цffentlichen Rechts", as well as other companies constituted under German law and subject to German corporate tax;(f) companies under Estonian law known as: "tдisьhing", "usaldusьhing", "osaьhing", "aktsiaselts", "tulundusьhistu";(g) companies under Greek law known as: "??????? ???????", "??????? ????????????з ??????з" (?.?.?);(h) companies under Spanish law known as: "sociedad anуnima", "sociedad comanditaria por acciones", "sociedad de resposabilidad limitada", as well as those public law bodies which operate under private law;(i) companies under French law known as "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй par actions simplifiйe", "sociйtй d'assurances mutuelles", "caisses d'йpargne et de prйvoyance", "sociйtйs civiles", which are automatically subject to corporation tax, "coopйratives", "unions de coopйratives", industrial and commercial public establishments and undertakings, as well as other companies constituted under French law which are subject to the French Corporate Tax;(j) companies incorporated or existing under Irish laws, bodies registered under the Industrial and Provident Societies Act, building societies incorporated under the Building Societies Acts and trustee savings banks within the meaning of the Trustee Savings Banks Act, 1989;(k) companies under Italian law known as: "societа per azioni", "societа in accomandita per azioni", "societа a responsabilitа limitata", "societа ccoperativa", "societа di mutual assicurazione", as well as private and public entities whose activity is wholly or principally commercial;(l) under Cypriot law: "???????з", as defined in the Income Tax laws;(m) companies under Latvian law known as: "akciju sabiedriba", "sabiedriba ar ierobezotu atbildibu";(n) companies incorporated under the law of Lithuania;(o) companies under Luxembourg law known as: "sociйtй anonyme", "sociйtй en commandite par actions", "sociйtй а responsabilitй limitйe", "sociйtй coopйrative", "sociйtй coopйrative organisйe comme une sociйtй anonyme", "association d'assurances mutuelles", "association d'йpargne-pension", "enterprise de natura commerciale, industrielle ou miniиre de l'Йtat, des communes, des syndicats de communes, des йtablissements publics et des autres personnes marales de droit public", as well as other companies constituted under Luxembourg law which are subject to the Luxembourg Corporate Tax;(p) companies under Hungarian law known as: "kцzkereseti tбrsasбg", "berйti tбrsasбg", "kцzцs vбllat", "korlбtolt felelцssйgь tбrsasбg", "rйszvйnytбrsasбg", "egyesьlйs", "kцzhasznъ tбrsasбg", "szцvetkezet";(q) companies under Maltese law known as: "Kumpaniji ta' Responsabilita Limitata", "Socjetajiet en commandite li l-kapital taghhom maqsum fazzjonijiet";(r) companies under Dutch law known as: "naamloze vennootschap", "besloten vennootschap met beperkte aansprakelijkheid", "Open commanditaire vennootschap", "Coцperatie", "onderlinge waarborgmaatschappij", "Fonds voor gemene rekening", "vereniging op cooperative grondslag" and "vereniging welke op onderlinge grondslag als verzekeraar of kredietinstelling optreedt", as well as other companies constituted under Dutch law which are subject to the Dutch Corporate Tax;(s) companies under Austrian law known as: "Aktiengesellschaft", "Gesellschaft mit beschrдnkter Haftung", "Erwerbs- and Wirtschaftsgenossenschaften";(t) companies under Polish law known as: "spуlka akcyjna", "spуlka z ograniczona odpowiedzialnoscia";(u) commercial companies or civil law companies having a commercial form, as well as other legal persons carrying on commercial or industrial activities, which are incorporated under Portuguese law;(v) companies under Slovenian law known as: "delniska druzba", "komanditna druzba", "druzba z omejeno odgovornostjo";(w) companies under Slovak law known as: "akciovб spolocnost", "spolocnost s rucenнm obmedzenэm", "komanditnб spolocnost ";(x) companies under Finnish law known as: "osakeyhtiц"/"aktiebolag", "osuuskunta"/"andelslag", "sддstцpankki"/"sparbank" and "vakuutusyhtiц"/"fцrsдkringsbolag";(y) companies under Swedish law known as: "aktiebolag", "fцrsдkringsaktiebolag", "ekonomiska fцreningar", "sparbanker", "цmsesidiga fцrsдkringsbolag";(z) companies incorporated under the law of the United Kingdom of Great Britain and Northern Ireland.(aa) (new, SG No. 108/2007) companies under Romanian law known as "sosietati pe actiuni", sosietati оn comandita pe actiuni", "sosietati cu raspundere limitata". Annex 4to Item 3 of Article 137(Supplemented, SG No. 108/2007, effective 1.01.2007) List of Taxes in the Member States of the European Union- impфt des sociйtйs/vennootschapsbelasting in Belgium,- selskabsskat in Denmark,- Kцrperschaftsteuer in the Federal Republic of Germany,- ????? ?????? ???? ?? ???? ???????? ????????????? ????????? in Greece,- impuesto sobre sociedades in Spain,- impфt sur les sociйtйs in France,- corporation tax in Ireland,- imposta sul reddito delle societа in Italy,- impфt sur le revenu des collectivitйs in Luxembourg,- venflootschapsbelasting in the Netherlands,- imposto sobre o rendimento das pessoas colectivas in Portugal,- corporation tax in the United Kingdom of Great Britain and Northern Ireland,- Kцrperschaftsteuer in Austria,- yhteisцjen tulovero/inkomstskatten fцr samfund in Finland,- statlig inkomstskatt in Sweden,- Dan z prнjmu prбvnickэch osob in the Czech Republic,- Tulumaks in Estonia,- ????? ??????????? in Cyprus,- uznemumu ienakuma nodoklis in Latvia,- Pelno mokestis in Lithuania,- Tбrsasбgi adу in Hungary,- Taxxa fuq l-income in Malta,- Podatek dochodowy od osуb prawnych in Poland,- Davek od dobicka pravnih oseb in Slovenia,- Dan z prнjmov prбvnickэch osob in Slovakia.- impozit pe profit in Romania. - For more information visit www.solicitorbulgaria.com id: 332 Mon, 04 Aug 2008 06:10:43 -0700 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT2.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-3 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter EighteenINTRA-COMMUNITY DIVIDENDSSection IDefinitionsCompany of Another Member StateArticle 100. "Company of another Member State" shall be any company in respect of which the following conditions are simultaneously fulfilled:1. the company takes a legal form in accordance with Annex 1 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company attract a tax covered under Annex 2 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Resident Parent CompanyArticle 101. "Resident parent company" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are… For more information visit http://www.solicitorbulgaria.com id: 333 Chapter EighteenINTRA-COMMUNITY DIVIDENDSSection IDefinitionsCompany of Another Member StateArticle 100. "Company of another Member State" shall be any company in respect of which the following conditions are simultaneously fulfilled:1. the company takes a legal form in accordance with Annex 1 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company attract a tax covered under Annex 2 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Resident Parent CompanyArticle 101. "Resident parent company" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are simultaneously fulfilled:1. the profits of the company attract corporation tax;2. the company has a minimum holding of 15 per cent in the capital of a company of a Member State, inter alia through a permanent established in another Member State of the European Community, for an uninterrupted period of at least two years.Parent Company of Member StateArticle 102. "Parent company of a Member State" shall be any company of another Member State of the European Community which has a minimum holding of 15 per cent in the capital of a resident subsidiary, inter alia through a permanent established in another Member State of the European Community, for an uninterrupted period of at least two years.Resident SubsidiaryArticle 103. "Resident subsidiary" shall be any resident commercial corporation or unincorporated association in respect of which the following conditions are simultaneously fulfilled:1. the profits of the company attract corporation tax;2. a parent company of a Member State has a minimum holding of 15 per cent in the capital of the company for an uninterrupted period of at least two years.Subsidiary of Member StateArticle 104. "Subsidiary of a Member State" shall be any company of another Member State of the European Community the capital of which includes a minimum holding of 15 per cent by a resident parent company for an uninterrupted period of at least two years.Section IITax Treatment upon Distribution of DividendsDividends Distributed by Subsidiary of Member StateArticle 105. (1) Any accounting income charged in a resident parent company as a result of distribution of dividends by a subsidiary of the said company of a Member State shall not be recognized for tax purposes.(2) The accounting income charged in a permanent establishment in the country as a result of distribution of dividends by non-resident persons shall not be recognized for tax purposes where the following conditions are simultaneously fulfilled:1. the permanent establishment is of a company of another Member State;2. the company referred to in Item 1 has, inter alia through the permanent establishment thereof, a minimum holding of 15 per cent in the capital of the non-resident person distributing the dividends for an uninterrupted period of at least two years;3. the non-resident person distributing the dividends is a company of another Member State.Non-fulfilment of Condition for Exemption from TaxationArticle 106. (1) Where income from dividends has been charged within a period of up to two years from the time of acquisition of a minimum holding of 15 per cent in the capital of a company of a Member State, the taxable person shall have the right not to recognize the said income for tax purposes.(2) In case the company ceases to have a minimum holding of 15 per cent in the capital before the lapse of the two years, the unrecognized income from dividends referred to in Paragraph (1) shall be considered as being recognized for tax purposes for the year of accounting for the said income. The tax financial result and the corporation tax due for the year of accounting for the dividends shall be adjusted in a way as if the income from dividends were recognized for tax purposes. Default interest shall be due according to the standard procedure for the period commencing on the date on which the corporation tax was to be remitted and ending on the date of remittance of the said tax.Unrecognized Expenses Related to Unrecognized Income from DividendsArticle 107. (Repealed, SG No. 110/2007). Dividends Distributed by Resident Subsidiary in Favour of Parent Companyof Member StateArticle 108. (1) Any dividends charged by a resident subsidiary in favour of a parent company of a Member State shall not be subject to levy of a withholding tax.(2) Any dividends charged by resident legal persons in favour of a permanent establishment in another Member State shall not be subject to levy of a withholding tax according to the procedure established by Part Three herein where the following conditions are simultaneously fulfilled:1. a tax under Annex 2 hereto or a similar profits tax is levied on the profits from a permanent establishment and the permanent establishment has no option or the possibility of being exempt from the levy of such tax;2. the permanent establishment is of another resident person or of a company of another Member State;3. the resident person/company referred to in Item 2 has, inter alia through the permanent establishment, a minimum holding of 15 per cent in the capital of the resident person distributing the dividends for an uninterrupted period of at least two years;4. the resident persons referred to in Items 2 and 3 are commercial corporations or unincorporated associations and the profits thereof attract corporation tax.Collateral SecurityArticle 109. (1) Where the provisions of Article 108 herein are applied and the two-year period for having a minimum holding of 15 per cent in the capital has not lapsed at the date of making a decision on distribution of dividend, a tax shall not be withheld at source according to the procedure established by Part Three herein but collateral security shall be furnished to the revenue authority.(2) Any such collateral security must cover the full amount of the withholding tax due.(3) Any such collateral security may be created solely by means of a money deposit or a bank guarantee. The said collateral security shall be accepted in Bulgarian leva and no interest shall be payable thereon.(4) The collateral security shall be released upon fulfilment of the condition referred to in Paragraph (1).CooperativesArticle 110. The provisions of this Chapter shall furthermore apply, mutatis mutandis, in respect of the cooperatives, the cooperative unions and the enterprises thereof.Tax EvasionArticle 111. The provisions of this Chapter shall not apply in all cases of tax evasion or tax avoidance, inter alia in the cases of hidden profit distribution.Chapter NineteenTRANSFORMATION OF COMPANIES AND COOPERATIVES AND TRANSFER OF ENTERPRISESection IGeneral DispositionsApplicabilityArticle 112. The provisions of this Chapter shall apply upon transformation of any companies and cooperatives and upon transfer of an enterprise.Date of TransformationArticle 113. The date of transformation for tax purposes shall be the date of entry of the transformation in the Commercial Register.Last Tax Period upon cessation of transferring companyArticle 114. Last Tax Period upon cessation of transferring company shall be the period from the beginning of the year to the date of transformation. For transferring companies which are newly established during the year of transformation, Last Tax Period shall be the period from the date of establishment to the date of transformation.Taxation for Last Tax PeriodArticle 115. (1) The transferring companies and the permanent establishments of non-resident persons shall be subject to corporation tax for the last tax period according to the standard procedure established by this Act. The taxation shall be final.(2) For tax purposes, the assets and liabilities available at the date of transformation shall be considered as having been sold at market prices and shall be written off.(3) Upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset or liability and the accounting value thereof at the date of transformation. Any temporary tax differences related to the asset or liability shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(4) Paragraphs (2) and (3) shall not apply upon transformation under the terms and according to the procedure established by Sections II and III herein.Tax Treatment of Transformation through Change of Legal FormArticle 116. (1) Articles 115 and 117 herein shall not apply in the cases of transformation through change of the legal form under Article 264 of the Commerce Act. The newly formed company shall assume all obligations for determination of the tax financial result and remittance of the corporation tax due for the full year of transformation.(2) For tax purposes, all rights and obligations arising from any acts performed by the transferring company for the current and prior periods, including the adjustments of the tax financial results, shall be considered as having been performed by the newly formed company.Tax Treatment of Transformation by Transfer of Property to Sole OwnerArticle 116a. (New, SG No. 110/2007) (1) Upon transformation by transfer of property to the sole owner under Article 265 of the Commerce Act, all rights and obligations arising from steps performed by the transforming corporation for the current and prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the sole trader.(2) The sole trader shall submit a tax return on corporation tax for the last tax period of the transferring company according to the procedure established by Article 117 (1) herein and shall remit the said tax within the time limit under Article 117 (2) herein.(3) After the transformation, the sole trader shall make quarterly tax prepayments in the year of transformation.(4) The sole trader may not carry forward any tax losses formed by the transferring company.(5) The sole trader may not recognize for tax purposes any unrecognized expenses on interest payments in the transferring company resulting from application of the thin capitalization regime.(6) The transferring company shall not apply Article 115 (2) and (3) herein.Declaring and Remittance of Tax for Last Tax PeriodArticle 117. (1) (Amended and supplemented, SG No. 110/2007) In the cases of dissolution of transferring companies, the newly formed companies or the acquiring companies shall submit a tax return on the corporation tax for the last tax period of the transferring company within thirty days after the date of transformation. The tax return shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the newly formed company or the acquiring company. Upon transformation through division, the tax return shall be submitted by one of the newly formed or acquiring companies.(2) The corporation tax for the last tax period shall be remitted by the newly formed companies or the acquiring companies within thirty days after the date of transformation after deduction of the tax prepayments made.(3) (New, SG No. 110/2007) Paragraphs (1) and (2) shall furthermore apply in the cases of dissolution of a transferring company under Section II of this Chapter.Tax Prepayments by Acquiring Companies or Newly Formed CompaniesArticle 118. (1) After the transformation, the acquiring companies or the newly formed companies shall make quarterly tax prepayments in the year of transformation.(2) Upon transformation through change of the legal form under Article 264 of the Commerce Act, the newly formed company shall make monthly or quarterly tax prepayments according to the standard procedure established by this Act on the basis of the tax financial result of the transferring company.Carry-Forward of Tax Loss upon Transformation and Transferof EnterpriseArticle 119. (1) Upon transformation under the Commerce Act, the acquiring companies or newly formed companies may not carry forward any tax losses formed by the transferring companies.(2) Upon sale of an enterprise under Article 15 of the Commerce Act, the transferee may not carry forward any tax losses formed by the transferor.(3) Paragraph (1) shall not apply upon transformation through change of the legal form under Article 264 of the Commerce Act.Regulation of Thin CapitalizationArticle 120. (1) Upon transformation under the Commerce Act, the acquiring companies or newly formed companies may not recognize for tax purposes any unrecognized expenses on interest payments in the transferring companies resulting from application of the thin capitalization regime.(2) Upon sale of an enterprise under Article 15 of the Commerce Act, the transferee may not recognize for tax purposes any unrecognized expenses on interest payments at the transferor resulting from application of the thin capitalization regime.(3) Paragraph (1) shall not apply upon transformation through change of the legal form under Article 264 of the Commerce Act.Expenses on Conduct of TransformationArticle 121. (1) The accounting expenses incurred in connection with the transformation shall not be recognized for tax purposes at the transferring company. The unrecognized expenses shall be recognized for tax purposes upon determination of the tax financial result of the acquiring company or the newly formed company in the year during which the transformation was implemented.(2) Where any circumstances occur determining that the transformation will not be implemented, the expenses referred to in Paragraph (1) shall be recognized for tax purposes at the transferring companies in the year of occurrence of the said circumstances, if the requirements of this Act are complied with.Tax Treatment upon Opting for Earlier Date of Transformation forAccounting PurposesArticle 122. (1) (Amended and supplemented, SG No. 110/2007) Upon opting for an earlier date of transformation for accounting purposes according to the procedure established by Article 263g (2) of the Commerce Act, all steps performed by the transferring companies for the account of the newly formed companies or acquiring companies as from the said date and until the date of transformation for tax purposes shall be considered as having been performed for tax purposes by the transferring companies.(2) (Supplemented, SG No. 110/2007) In the cases referred to in Paragraph (1), all accounting income and expenses, profits and losses, accounted for by the newly formed companies or acquiring companies shall be recognized for tax purposes at the transferring company. The said income and expenses, profits and losses shall not be recognized for tax purposes at the newly formed companies or acquiring companies. The accounting income and expenses, profits and losses for the purposes of sentences one and two shall be those as would have been accounted for by the transferring company without providing for the earlier date for accounting purposes according to the procedure established by Article 263g (2) of the Commerce Act. (3) The adjustments upon determination of the tax financial result, resulting from any acts referred to in Paragraph (1), shall be performed by the transferring companies.Cooperative Organizations and State-Owned EnterprisesArticle 123. The provisions of this Chapter in respect of the transformation of commercial corporations shall furthermore apply in the cases of:1. restructuring of cooperative organizations;2. dissolution, closure or formation of state-owned enterprises within the meaning given by Article 62 (3) of the Commerce Act under conditions of universal succession.Liability upon Transformation and RestructuringArticle 124. (1) Upon transformation of commercial corporations or upon restructuring of cooperative organizations, the newly formed or acquiring companies/cooperative organizations shall incur solidary liability for the tax liabilities of the transferring companies or cooperative organizations up to the extent of the rights received.(2) Upon transfer of an enterprise under Article 15 of the Commerce Act, the transferee shall incur solidary liability for the tax liabilities of the transferor up to the extent of the rights received.(3) The rights received shall be valued at market prices.Section IISpecific Regime of Taxation upon TransformationApplicabilityArticle 125. (1) This Section shall apply upon merger by acquisition, merger by the formation of a new company, division, partial division, transfer of assets and exchange of shares or interests within the meaning given by Articles 126 to 131 herein, concerning resident companies and/or companies from another Member State of the European Community.(2) This Section shall furthermore apply, mutatis mutandis, in the cases of restructuring of cooperative organizations, including such of other Member States of the European Community, where the conditions specified therein exist.Merger by AcquisitionArticle 126. (1) "Merger by acquisition" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. all assets and liabilities of one or more transferring companies are transferred to another existing acquiring company, the transferring companies being dissolved without going into liquidation;2. the shareholders or members of the transferring companies are issued shares or interests in the acquiring company.(2) "Merger by acquisition" shall furthermore be any transformation whereupon all assets and liabilities of a transferring company are transferred to an acquiring company holding all shares or interests in the transferring company, and the transferring company is dissolved without going into liquidation.Merger by Formation of New CompanyArticle 127. "Merger by the formation of a new company" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. all assets and liabilities of two or more transferring companies are transferred to a newly formed company, the transferring companies being dissolved without going into liquidation;2. the shareholders or members of the transferring companies are issued shares or interests in the newly formed company.DivisionArticle 128. "Division" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. (supplemented, SG No. 110/2007) all assets and liabilities of a transferring company are transferred to two or more existing (acquiring) or newly formed companies, the transferring company being dissolved without going into liquidation;2. the shareholders or members of the transferring company are issued shares or interests in each of the existing or newly formed companies, in proportion to the shares or interests held by the shareholders or members in the transferring company.Partial DivisionArticle 129. "Partial division" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. (supplemented, SG No. 110/2007) one or more branches of activity of a transferring company is transferred to one or more existing (acquiring) or newly formed companies, without the transferring company being dissolved and leaving therein at least one branch of activity;2. the shareholders or members of the transferring company are issued shares or interests in the existing or newly formed companies in proportion to the shares or interests held thereby in the transferring company.Transfer of AssetsArticle 130. (Supplemented, SG No. 110/2007) "Transfer of assets" shall be a transformation whereupon one, more or all branches of activity of a transferring company are transferred to one or more existing (acquiring) or newly formed companies in exchange for shares or interests issued by the existing or newly formed companies in favour of the transferring company, without the transferring company being dissolved.Exchange of Shares or InterestsArticle 131. "Exchange of shares or interests" shall be any transformation in respect of which the following conditions are simultaneously fulfilled:1. as a result of the transformation, the acquiring company holds more than one-half of the voting shares or of the interests in the acquired company or, if already having such holding in the capital, acquires a further holding in the shares or interests;2. the shareholders or members of the acquired company exchange the shares or interests thereof for the issue of shares or interests in the acquiring company.Additional Cash Payments and Non-Issue of Shares or InterestsArticle 132. (1) In the cases of merger by acquisition, merger by the formation of a new company, division, partial division, transfer of assets and exchange of shares or interests, for the purpose of achieving a parity of exchange, cash payments not exceeding 10 per cent of the nominal value of the shares or interests issued as a result of the transformation may be effected to the shareholders or members of the transferring companies or acquired companies.(2) (Amended, SG No. 110/2007) In the cases of merger by acquisition, division and partial division, shares or interests need not be issued where this is admissible by the Commerce Act. Issue of Shares or InterestsArticle 133. Within the meaning given by this Chapter, issue of shares or interests shall be in place where newly issued or held own shares or interests are provided by a newly formed, receiving or acquiring company.Branch of ActivityArticle 134. "Branch of activity" shall be the totality of assets and liabilities of a company which, from an organizational, functional and financial point of view, constitute an independent business.Transferring CompaniesArticle 135. "Transferring companies," within the meaning given by this Section, shall be:1. a resident transferring company;2. a transferring company from another Member State of the European Community;3. a permanent establishment in the country of a transferring company from another Member State of the European Community.Receiving CompaniesArticle 136. "Receiving companies," within the meaning given by this Section, shall be:1. a resident newly formed or receiving company;2. a newly formed or receiving company from another Member State of the European Community;3. a permanent establishment in the country of a newly formed or receiving company from another Member State of the European Community.Company from Another Member State of the European CommunityArticle 137. "Company from another Member State of the European Community," within the meaning given by this Section, shall be any company which simultaneously fulfils the following conditions:1. the company takes a legal form in accordance with Annex 3 hereto;2. the company is resident for tax purposes in another Member State of the European Community, according to the relevant tax legislation and by virtue of a convention for the avoidance of double taxation with a third State is not considered to be resident for tax purposes in another State outside the European Community;3. the profits of the company are subject to a tax covered under Annex 4 hereto or to a similar profits tax and the company has no option or the possibility of being exempt from the levy of such tax.Legal SuccessionArticle 138. For the purposes of this Section, upon transformation all rights and obligations arising from any acts performed by the transferring companies for the current period and the prior periods in respect of the assets and liabilities transferred under Item 1 of Article 139 herein, including the adjustments upon determination of the tax financial result, shall pass to the receiving companies.Assets and Liabilities Subject to TransformationArticle 139. The assets and liabilities subject to transformation under this Section shall be allocated to the following categories:1. assets and liabilities whereof the results of exploitation before and after the transformation are involved upon determination of the tax financial result under this Act;2. assets and liabilities whereof the results of exploitation before the transformation were involved and, as a result of the transformation, cease to be involved upon determination of the tax financial result under this Act;3. assets and liabilities whereof the results of exploitation before the transformation were not involved and, as a result of the transformation, become involved upon determination of the tax financial result under this Act.Assets and Liabilities Transferred under Item 1of Article 139 HereinArticle 140. (1) The accounting profits or losses originating upon write-off of any assets and liabilities referred to in Item 1 of Article 139 herein as a result of the transformation shall not be recognized for tax purposes.(2) The temporary tax differences related to any assets and liabilities referred to in Item 1 of Article 139 herein, which have originated before the transformation, shall not be recognized for tax purposes at the time of transformation and shall be considered as having originated at the receiving companies.(3) Where any asset or liability is recognized according to accounting legislation at the receiving company at a value diverging from the pre-transformation value of the said asset or liability, the difference between the two values shall form a temporary tax difference from a subsequent valuation or the temporary tax difference referred to in Paragraph (2) shall be adjusted thereby.(4) (Supplemented, SG No. 110/2007) The subsequent valuations reserve (revaluation reserve) in respect of any assets referred to in Item 1 of Article 139 herein, which are not tax depreciable assets, shall be transferred by the transferring company and shall be considered as having originated at the receiving company. The transferring company shall not apply Article 45 herein. Where the transferred subsequent valuations reserve (revaluation reserve) referred to in sentence one is not accounted for at the receiving company, the accounting financial result shall be credited with the amount of the reserve where the reserve is a positive quantity or, respectively, the accounting financial result shall be debited with the amount of the reserve where the reserve is a negative quantity, in the year of write-off of the relevant asset whereto the reserve is related.(5) (Supplemented, SG No. 110/2007) Any tax depreciable assets acquired under Item 1 of Article 139 herein shall be posted in the tax depreciation schedule of the receiving company at values equal to the values of the said assets in the tax depreciation schedule of the transferring company at the time of transformation. A copy of the tax depreciation schedule of the transferring company at the time of transformation shall be delivered to the revenue authority together with the copy of the statement referred to in Paragraph (6).(6) (Amended, SG No. 110/2007) Upon transformation of each asset or liability referred to in Item 1 of Article 139 herein, a statement shall be prepared according to the procedure established by Article 141 herein.(7) (New, SG No. 110/2007) Where, as a result of the transformation, the receiving company recognizes according to accounting legislation any assets or liabilities which were not recognized at the transferring company, the post-transformation income and expenses accounted for in connection with the said assets and liabilities shall not be recognized for tax purposes. Where the assets referred to in sentence one are depreciable for tax purposes, the said assets shall be posted in the tax depreciation schedule of the receiving company and tax depreciations shall not be charged for the said assets. The accounting profit which has originated at the receiving company as a result of the transformation and, respectively, the income accounted for in connection with any negative goodwill generated, shall not be recognized for tax purposes.(8) (New, SG No. 110/2007) Where any asset of the transferring company is not recognized according to accounting legislation at the receiving company, the accounting financial result shall be debited with the amount of the said asset upon determination of the tax financial result of the receiving company for the year of transformation, inter alia upon determination of the quarterly tax prepayments. Where any liability of the transferring company is not recognized according to accounting legislation at the receiving company, the accounting financial result shall be credited with the amount of the said liability upon determination of the tax financial result of the receiving company for the year of transformation, inter alia upon determination of the quarterly tax prepayments. The temporary tax differences related to any asset or liability referred to in sentence one, which have originated before the transformation, shall be recognized at the receiving company during the year of transformation according to the standard procedure established by the law.(9) (New, SG No. 110/2007) Paragraphs (3), (6) and (8) shall not apply to:1. any tax depreciable assets;2. any assets and liabilities under deferred taxes;3. the goodwill, where the accounting income and expenses accounted for in connection therewith are not recognized for tax purposes;4. any amounts which are assets for the transferring company and liabilities for the receiving company;5. any amounts which are liabilities for the transferring company and assets for the receiving company;6. any shares or interests of the receiving company held by the transferring company;7. any own shares purchased by the transferring company;8. any subscribed capital unpaid of the transferring company;9. any assets and liabilities referred to in Item 2 of Article 139 herein.(10) (New, SG No. 110/2007) Paragraph (4) shall not apply to the financial assets and liabilities subsequent valuations reserve established by financial institutions, where the accounting financial result has been adjusted according to the procedure established by Article 97 herein for the profits and losses from the said subsequent valuations. This reserve shall not be stated in the statements referred to in Article 141 herein.Statements of Assets and Liabilities Referred to inItem 1 of Article 139 HereinArticle 141. (1) The statement referred to in Article 140 (6) herein, prepared by the transferring companies, shall contain the following information on each asset and liability as at the date of transformation:1. type and designation;2. accounting value;3. temporary tax difference;4. (new, SG No. 110/2007) subsequent valuations reserve (revaluation reserve).(2) A copy of the statement referred to in Paragraph (1) as prepared shall be delivered to the receiving companies and to the revenue authority not later than at the end of the month next succeeding the month of transformation.(3) In the cases referred to in Article 140 (3) herein, a new statement shall be prepared by the receiving companies and a copy of the said statement shall be delivered to the revenue authority together with the annual tax return. The said statement shall contain the following information on each asset and liability:1. type and designation;2. accounting value;3. pre-transformation temporary tax difference;4. post-transformation temporary tax difference, determined according to the procedure established by Article 140 (3) herein;5. (new, SG No. 110/2007) subsequent valuations reserve (revaluation reserve).(4) Where the values of the assets and liabilities are adjusted according to accounting legislation as a result of the transformation after submission of the statement referred to in Paragraph (3), the receiving company shall prepare an adjusting statement. The adjusting statement shall be delivered to the revenue authority not later than at the end of the month next succeeding the month of occurrence of the circumstances necessitating the adjustment.(5) The statements referred to in Paragraphs (1) and (3) shall indicate data identifying the transferring companies and receiving companies, as well as the date of transformation and the judgment of court on entry of the said transformation.(6) (New, SG No. 110/2007) The copies of the statements covered under this Article and of the tax depreciation schedule referred to in Article 140 (5) herein shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the receiving companies on a magnetic or optical data carrier, or by electronic means.Assets and Liabilities Transferred under Item 2of Article 139 HereinArticle 142. (1) The accounting profits or losses originating upon write-off of any assets and liabilities referred to in Item 2 of Article 139 herein, related to a permanent establishment of a resident company in another Member State of the European Community, shall not be recognized for tax purposes.(2) The temporary tax differences related to any assets and liabilities referred to in Paragraph 1 herein, shall not be recognized for tax purposes at the time of transformation and during the succeeding years.(3) For tax purposes, outside the cases referred to in Paragraph (1), the assets and liabilities referred to in Item 2 of Article 139 herein, available at the date of transformation, shall be considered as having been sold at market prices and shall be written off.(4) In the cases referred to in Paragraph (3), upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset or liability and the accounting value thereof at the date of transformation. Any temporary tax differences related to the asset or liability shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.Assets and Liabilities Transferred under Item 3of Article 139 HereinArticle 143. (1) The assets and liabilities referred to in Item 3 of Article 139 herein shall be valued for tax purposes at the receiving companies at the value of the said assets and liabilities determined according to national accounting legislation.(2) The tax depreciable assets referred to in Item 3 of Article 139 herein shall be posted in the tax depreciation schedule according to the standard procedure established by this Act.Carry-Forward of Tax LossesArticle 144. (1) Upon transformation under this Section, the receiving companies shall not have the right to carry forward the tax losses formed by the transferring companies.(2) Paragraph (1) shall not apply in the cases of merger by acquisition or merger by the formation of a new company under this Section, as a result of which a permanent establishment of a company from another Member State of the European Community commences the legal existence thereof in the country and the said company has not had a permanent establishment in the country before the transformation.Tax Losses by Permanent EstablishmentArticle 145. (1) Any tax losses not carried forward at the time of transformation, formed by a permanent establishment of a resident company in another Member State of the European Community, shall not be deducted.(2) Upon determination of the tax financial result, the accounting financial result shall be credited with the tax losses carried forward at the time of transformation, formed by a permanent establishment of a resident company in another Member State of the European Community, which have not been deducted from the profits of the permanent establishment.Regulation of Thin CapitalizationArticle 146. (1) Upon transformation under this Section, the receiving companies shall not have the right to recognize for tax purposes any unrecognized expenses on interest payments in the transferring companies resulting from application of the thin capitalization regime.(2) Paragraph (1) shall not apply in the cases of merger by acquisition or merger by the formation of a new company under this Section, as a result of which a permanent establishment of a company from another Member State of the European Community commences the legal existence thereof in the country and the said company has not had a permanent establishment in the country before the transformation.Tax Prepayments by Receiving CompaniesArticle 147. (1) After transformation under this Section, the receiving companies shall make quarterly tax prepayments in the year of transformation.(2) In the cases referred to in Article 144 (2) herein, the receiving companies shall make monthly or quarterly tax prepayments according to the standard procedure established by this Act on the basis of the tax financial result of the transferring companies.Write-Off of HoldingArticle 148. (1) Where a receiving company has a holding in the capital of a transferring company, the accounting profits or losses in connection with the write-off of the said holding in the capital shall not be recognized for tax purposes.(2) The income referred to in Paragraph (1) shall not be subject to levy of a tax withheld at source according to the procedure established by Part Three herein.Tax Treatment of Shareholders of Members of Transferring Companies andAcquired CompaniesArticle 149. (1) The accounting profits or losses originating at shareholders or members of transferring companies or acquired companies as a result of an acquisition of shares or interests in receiving or acquiring companies shall not be recognized for tax purposes in the year of accounting for the said profits or losses and shall form a temporary tax difference from a subsequent valuation.(2) The temporary tax differences, originating at the shareholders or members before the transformation, which are related to the written off shares or interests in the transferring companies or acquired companies, shall not be recognized for tax purposes at the time of transformation.(3) The temporary tax differences referred to in Paragraphs (1) and (2) shall be considered as having originated in respect of the newly acquired shares or interests and shall be recognized according to the standard procedure established by this Act.(4) The income accruing to any non-resident legal persons which are shareholders or members of resident transferring or acquired companies from acquisition of shares or interests as a result of transformation shall be taxed or shall be exempted from tax withheld at source according to the standard procedure established by this Act at the date of transformation.(5) The tax withheld at source referred to in Paragraph (4) shall be due from the shareholder or member upon disposition in any form whatsoever of the newly acquired shares or interests and shall be remitted within sixty days after any such disposition.(6) (Amended, SG No. 110/2007) On or before the 31st day of January of the relevant year, the non-resident legal persons referred to in Paragraphs (4), (5) and (8) shall submit a declaration to the Sofia Territorial Directorate of the National Revenue Agency, certifying thereby that the said persons have not disposed of the shares or interests newly acquired as a result of the transformation. Any such persons shall submit the declaration referred to in sentence one annually, until the year of disposition of the newly acquired shares or interests.(7) Upon failure to submit the declaration referred to in Paragraph (6) when due, in addition to becoming liable to the administrative sanction, for the purposes of this Act the non-resident legal person shall furthermore be presumed to have disposed of the newly acquired shares or interests.(8) (New, SG No. 110/2007) Upon acquisition of shares or interests as a result of transformation through partial division, income shall not accrue to a non-resident legal person, unless shared of the transferring company are cancelled upon the partial division. For the purposes of assessment of the tax at source upon subsequent disposition of the shares or interests referred to in sentence one, the documented cost of acquisition of the said shares or interests shall be zero.Taxation of Transferring Company upon Transfer of AssetsArticle 150. (1) The accounting profits or losses originating at a transferring company as a result of a transfer of assets shall not be recognized for tax purposes in the year of accounting for the said profits or losses and shall form a temporary tax difference from a subsequent valuation.(2) The temporary tax difference referred to in Paragraph (1) shall be considered as having originated in respect of the newly acquired shares or interests and shall be recognized for tax purposes according to the standard procedure established by the Act.(3) Where the shares or interests referred to in Paragraph (1) are held by the transferring company for an uninterrupted period of at least five years, the temporary tax difference referred to in Paragraph (1) shall not be recognized for tax purposes at the time of transformation and during the succeeding years.Tax EvasionArticle 151. The provisions of this Section shall not apply where the transformation has as its objective tax evasion or tax avoidance. Tax evasion shall be presumed, inter alia, where the transformation is not carried out for valid commercial reasons or where the said transformation conceals the disposition of assets.Section IIITransfer of Registered Office of European Company or EuropeanCooperative SocietyApplicabilityArticle 152. Within the meaning given by this Chapter, "transfer of the registered office of a European company or a European cooperative society" shall be an operation whereby:1. the company, without being dissolved or without incorporation of a new legal person, transfers the registered office thereof from the country to another Member State of the European Community, according to Article 8 of Council Regulation (EC) No 2157/2001 or according to Council Regulation (EC) No 1435/2003, while the assets and liabilities of the company must remain effectively connected with the permanent establishment in the country and the results of exploitation of the said assets must be involved upon determination of the tax financial result, or2. the company, without being dissolved or without incorporation of a new legal person, transfers the registered office thereof from another Member State of the European Community to the country according to Article 8 of Council Regulation (EC) No 2157/2001 or according to Council Regulation (EC) No 1435/2003, while the assets and liabilities of the company must remain effectively connected with the company which commences the legal existence thereof as a result of this operation, and the results of exploitation of the said assets must be involved upon determination of the tax financial result.Legal SuccessionArticle 153. (1) For tax purposes, upon transfer of the registered office of a European company or a European cooperative society under the terms established by Item 1 of Article 152 herein:1. all acts performed by the said company for the current period and the prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the permanent establishment;2. corporation tax shall not be levied on the company for the period from the beginning of the year until the date of the operation;3. corporation tax shall not be levied on the permanent establishment for the period commencing at the beginning of the year according to the standard procedure, and the activity carried out by the company in the year of the operation shall be considered as having been carried out by the permanent establishment;4. the permanent establishment shall have the right to carry forward any tax losses not carried forward and formed by the company according to the standard procedure.(2) For tax purposes, upon transfer of the registered office of a European company to a European cooperative society under the terms established by item 2 of Article 152 herein:1. all acts performed by the said permanent establishment for the current period and the prior periods, including the adjustments of the tax financial result, shall be considered as having been performed by the company;2. corporation tax shall not be levied on the permanent establishment for the period from the beginning of the year until the date of the operation;3. corporation tax shall not be levied on the company for the period commencing at the beginning of the year according to the standard procedure, and the activity carried out by the permanent establishment in the year of the operation shall be considered as having been carried out by the company;4. the company shall have the right to carry forward any tax losses not carried forward and formed by the permanent establishment according to the standard procedure.Provisions Applicable upon Transfer of Registered OfficeArticle 154. The provisions of Section II of this Chapter in respect of the assets and liabilities, profits and losses and temporary tax differences shall furthermore apply upon a transfer of the registered office of a European company or a European cooperative society.Chapter TwentySPECIFIC RULES FOR DETERMINATION OF TAX FINANCIAL RESULT UPON TRANSFERSBETWEEN PERMANENT ESTABLISHMENT IN COUNTRY AND ANOTHER DIVISION OF SAMEENTERPRISE SITUATED OUTSIDE COUNTRYIncome from Transfer to Another Division of EnterpriseArticle 155. (1) The accounting income, accounted for at market value and originating upon a transfer from a permanent establishment in the country to another division of the same enterprise situated outside the country, shall be recognized for tax purposes where:1. the particular transfer coincides with the ordinary transactions of the said permanent establishment with third parties, or2. the ordinary activity of the said permanent establishment consists in similar transfers to the other divisions of the enterprise.(2) Any accounting income arising from cash resources provided by the permanent establishment to another division of the same enterprise situated outside the country shall not be recognized for tax purposes with the exception of financial institutions for which raising of cash resources and extending of loans is a core activity.(3) Any accounting expense related to a transfer from a permanent establishment to another division of the same enterprise situated outside the country shall not be recognized for tax purposes where accounting income, which is recognized for tax purposes, does not arise at the said permanent establishment as a result of the transfer. Where, as a result of a transfer to another division of the same enterprise, situated outside the country, the permanent establishment charges accounting income at the amount of the costs actually incurred (at cost price), the accounting expenses charged in connection with the said transfer shall be recognized for tax purposes.Expenses upon Transfer from Another Part of EnterpriseArticle 156. (1) Any accounting expenses accounted for at market value in connection with any goods, services and rights which are the result of a transfer from another division of the same enterprise, situated outside the country, shall be recognized for tax purposes in the permanent establishment in the country where the said expenses are accounted for within the ordinary activity of the permanent establishment related to a sale of the transferred goods, services or rights in an altered or unaltered state.(2) Any accounting expenses, accounted for at market value and originating upon transfer of any goods and services from another division of the same enterprise, situated outside the country, to a permanent establishment in the country, shall be recognized for tax purposes in the permanent establishment where:1. the particular transfer coincides with the ordinary transactions of the said division of the enterprise with third parties, or2. the ordinary activity of the said division of the enterprise consists in similar transfers to the other divisions of the enterprise.(3) Any accounting expenses accounted for according to the costs actually incurred (cost price) and originating upon transfer of any services from another division of the same enterprise situated outside the country, outside the cases referred to in Paragraphs (1) and (2), shall be recognized for tax purposes in the permanent establishment in the country. Sentence one shall furthermore apply in respect of the administrative management services received in direct connection with the permanent establishment.(4) Any accounting expenses, accounted for at costs actually incurred (cost price) and originating upon transfer of rights related to know-how, patents and other items of intellectual or industrial property, from another division of the same enterprise situated outside the country, outside the cases referred to in Paragraph (1), shall be recognized for tax purposes in the permanent establishment in the country. Where the said items are produced or acquired by the branch of activity of the enterprise which transfers the said items and which specialized in the creation or acquisition of any such items, the accounting expenses, accounted for at market value, shall be recognized for tax purposes.(5) Where the rights transferred under Paragraph (4) satisfy the criteria for a tax intangible fixed asset, the expenses on the acquisition thereof under Paragraph (4) shall not be recognized for tax purposes and the amounts shall be posted in the tax depreciation schedule. The tax depreciable value of the said rights shall be determined according to the standard procedure established by this Act.(6) Any accounting expenses arising from cash resources received in the permanent establishment from another division of the same enterprise situated outside the country shall not be recognized for tax purposes with the exception of:1. the financial institutions, for which raising of cash resources and extending of loans is a core activity, or2. the cases in which the cash resources are provided by a third party as an interest-bearing loan for the purposes of the permanent establishment and are used exclusively in the activity of the permanent establishment; in such case, the accounting expenses accounted for at the amount of the interest payments due to the third party shall be recognized for tax purposes upon compliance with the other provisions of this Act.Treatment of Assets upon Transfer from or toAnother Part of EnterpriseArticle 157. (1) Any assets provided to the permanent establishment in the country by another division of the same enterprise situated outside the country, which are related to the activity of the permanent establishment, outside the cases referred to in Article 156 (1) herein, shall be valued for tax purposes at the costs actually incurred (cost price) by the division of the enterprise transferring the said assets. The tax depreciable assets referred to in sentence once, which are used in the activity of the permanent establishment for a period of at least two years, shall be posted in the tax depreciation schedule according to the standard procedure established by this Act.(2) Where the tax depreciable assets referred to in Paragraph (1) are provided for temporary use for a period not exceeding two years, the permanent establishment in the country shall be recognized, for tax purposes, the accounting expenses charged to the amount of the depreciations charged by the transferring division of the enterprise for the said assets. The expenses charged may not exceed the annual tax depreciation which would have been charged if the maximum permissible annual rates of tax depreciation under Article 55 herein were used.(3) For tax purposes, the assets transferred shall be considered as having been sold at market prices at the time of transfer of assets manufactured or acquired by the permanent establishment in the country to another division of the enterprise situated outside the country and shall be written off.(4) In the cases referred to in Paragraph (3), upon determination of the tax financial result, the accounting financial result of the permanent establishment shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the asset and the accounting value thereof at the date of transfer. The temporary tax differences related to the said asset shall be recognized according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(5) Paragraphs (3) and (4) shall not apply where accounting income (profit) or costs (losses) originate from the transfer of the assets. The standard procedure established by this Act shall apply in such cases.Chapter Twenty-OneTAX REGULATION UPON DISSOLUTION THROUGH LIQUIDATION OR THROUGHADJUDICATION IN BANKRUPTCY AND UPON DISTRIBUTION OF SHARE IN LIQUIDATIONSURPLUSSection IGeneral DispositionsArticle 158. Upon dissolution through liquidation or through adjudication in bankruptcy, for the period until the expungement thereof, the taxable person shall fulfil the obligations thereof according to the standard procedure established by this Act and in compliance with the requirements of this Chapter, inter alia submitting the requisite financial statements, which shall be prepared and presented according to accounting legislation.Section IICorporation Tax upon DissolutionAssessment of Tax upon DissolutionArticle 159. (1) Corporation tax shall be due at the date of entry of the dissolution in the Commercial Register.(2) The corporation tax referred to in Paragraph (1) shall be assessed on the basis of the tax profit for the period from the beginning of the year until the date of entry of the dissolution.(3) The prepayments remitted since the beginning of the year and until the date of entry of the dissolution shall be deducted upon assessment of the tax.Remittance of Tax upon DissolutionArticle 160. (1) The corporation tax due under Article 159 herein shall be remitted within thirty days after the date of entry of the dissolution.(2) The corporation tax remitted upon dissolution shall be deducted from the annual corporation tax due for the year of dissolution or from the corporation tax due for the last tax period, where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy, as the case may be, is in one and the same year as the date of dissolution.(3) Where the date of dissolution and the date of submission of the motion for expungement upon liquidation, or the date of dissolution upon bankruptcy, as the case may be, are in different years, the financial statement prepared as at the date of dissolution and the financial statement prepared as at the 31st day of December of the year of dissolution of the taxable person shall be submitted with the annual tax return on the year of dissolution.Section IIICorporation Tax on Last Tax PeriodLast Tax PeriodArticle 161. (1) The last tax period of any taxable person dissolved through liquidation shall commence on the 1st day of January of the year in which the motion for expungement under Article 273 (1) of the Commerce Act was submitted and shall end on the date of submission of the said motion.(2) The last tax period of any taxable person dissolved through adjudication in bankruptcy shall commence on the 1st day of January of the year in which the expungement was effected and shall end on the date of expungement.(3) The last tax period of any permanent establishment of a non-resident person shall commence on the 1st day of January of the year in which the activity of the said establishment was discontinued and shall end on the date of discontinuance of the said activity.(4) The taxable person shall be liable to corporation tax in respect of the tax profit realized during the last tax period according to the standard procedure established by this Act. The corporation tax due shall be final.(5) For tax purposes, the assets manufactured or acquired by the permanent establishment in the country at the date of dissolution shall be considered as having been sold at market prices and shall be written off. Upon determination of the tax financial result for the last tax period of the permanent establishment, the tax financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the assets referred to in sentence one and the accounting value of the said assets at the date of transformation. The temporary tax differences related to the asset shall be recognized during the last tax period according to the standard procedure established by this Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.Declaring of Tax on Last Tax PeriodArticle 162. (1) The tax return on the last tax period, determined under Article 161 (1) herein, shall be submitted on the date of submission of the motion for expungement together with a copy of the said motion.(2) The tax return on the last tax period, as determined under Article 161 (2) herein, shall be submitted by the holder of the position of trustee in bankruptcy within thirty days after the date of expungement of the taxable person together with a copy of the judgement of court on the expungement.(3) The tax return on the last tax period, as determined under Article 161 (3) herein, shall be submitted on the date of discontinuance of the activity.(4) Where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy, as the case may be, or the discontinuance of the activity of a permanent establishment is before the 31st day of March and the annual tax return for the last preceding year has not been submitted, the taxable person or the holder of the position of trustee in bankruptcy shall submit the said return within the time limits referred to in Paragraphs (1), (2) and (3).(5) Where the date of dissolution and the date of submission of the motion for expungement upon liquidation, or the date of expungement upon bankruptcy, as the case may be, are in one and the same year, the financial statement prepared at the date of dissolution and the financial statement prepared at the date of submission of the motion for expungement or at the date of expungement, as the case may be, shall be submitted with the tax return referred to in Paragraphs (1) and (2).Remittance of Tax on Last Tax PeriodArticle 163. (1) The corporation tax due on the last tax period, determined under Article 161 (1) herein, shall be remitted on or before the date of submission of the motion for expungement of the taxable person. The said tax shall be final.(2) In the cases referred to in Article 161 (2) herein, the corporation tax due on the last tax period shall be remitted on or before the date of expungement.(3) In the cases referred to in Article 161 (3) herein, the corporation tax due on the last tax period shall be remitted on or before the date of discontinuance of activity. The said tax shall be final.(4) Where the date of submission of the motion for expungement upon liquidation or the date of expungement upon bankruptcy or the discontinuance of activity of a permanent establishment is before the 31st day of March and the corporation tax for the preceding year has not been remitted, the taxable person shall remit the corporation tax for the preceding year within the time limits referred to in Paragraphs (1), (2) and (3).Tax Treatment upon Continuation of Activity after Date of Submission ofMotion for Expungement by Taxable Person Dissolved through LiquidationArticle 164. (1) Any taxable person, dissolved through liquidation, which continues the activity thereof after submission of a motion for expungement, shall fulfil the obligations thereof according to the standard procedure established by this Act for the period from the date of submission of the motion for expungement until the date of expungement, inter alia declaring and remitting the corporation tax due. The liquidator shall incur solidary liability with the taxable person for the tax liabilities of the said person which have arisen in connection with the continuation of activity.(2) The last period for tax purposes in the cases referred to in Paragraph (1) shall commence on the 1st day of January of the year in which the expungement was effected and shall end on the date of expungement or shall commence on the date of submission of the motion for expungement and shall end on the date of expungement, when the said two dates are in one and the same year.(3) The taxable person shall be liable to corporation tax in respect of the tax profit realized during the last tax period under Paragraph (2) according to the standard procedure established by this Act. The said tax shall be final.(4) The tax return on the last period for tax purposes in the cases referred to in Paragraph (1) shall be submitted by the holder of the position of liquidator within thirty days after the date of expungement of the taxable person together with a copy of the judgment of court on the expungement. Where the date of expungement is before the 31st day of March and the annual tax return on the preceding year has not been submitted, the holder of the position of liquidator shall submit the said return within the time limit referred to in sentence one.(5) The corporation tax due for the last period for tax purposes in the cases referred to in Paragraph (1) shall be remitted on or before the date of expungement. Where the date of expungement is before the 31st day of March and the corporation tax for the preceding year has not been remitted, the taxable person shall remit the corporation tax for the preceding year within the time limit referred to in sentence one.Tax Treatment upon Distribution of Share in Liquidation SurplusArticle 165. (1) The assets distributed as a share in a liquidation surplus at the time of distribution for tax purposes shall be considered as having been sold by the taxable person at market prices and shall be written off.(2) In the cases referred to in Paragraph (1), upon determination of the tax financial result, the accounting financial result shall be credited with the profit and shall be debited with the loss arrived at as a difference between the market price of the assets and the accounting value thereof at the date of distribution of the share in a liquidation surplus. The temporary tax differences related to the said assets shall be recognized according to the standard procedure established by the Act. Article 66 (1) and (2) herein shall apply upon determination of the tax financial result.(3) Any accounting income and expenses, accounted for in connection with the distribution of a share in a liquidation surplus in the form of assets, shall not be recognized for tax purposes.Chapter Twenty-TwoREDUCTION, RETENTION AND EXEMPTION FROM LEVY OF CORPORATION TAXSection IGeneral DispositionsConcept of RetentionArticle 166. "Corporation tax retention" shall be the right of any taxable person not to remit to the executive budget the amounts of corporation tax as assessed according to the procedure established by this Act, which subsist in the patrimony of the taxable person and are spent for purposes prescribed by a law.General Requirement for Corporation Tax Retention or ReductionArticle 167. (1) Corporation tax shall be retained or reduced and, respectively, the accounting financial result shall be debited according to the procedure established by this Chapter, subject to the condition that the taxable person does not incur at the 31st day of December of the relevant year:1. any coercively enforceable public obligations, and2. any obligations for sanctions under effective penalty decrees related to violation of statutory instruments regarding public obligations, and3. any interest payments in connection with a failure to remit the obligations referred to in Items 1 and 2 when due.(2) Fulfilment of the requirement covered under Paragraph (1) shall be certified by the taxable person in the annual tax return.Accounting for Retained and Reduced Corporation TaxArticle 168. (1) The retained corporation tax and the corporation tax reduction according to the procedure established by this Chapter shall be accounted for in owners' equity.(2) (Repealed, SG No. 110/2007). Partial Recognition of Undistributable Income or ExpensesArticle 169. (1) The portion of the undistributable income or expenses, corresponding to the activities in respect of which the corporation tax retention is enjoyed, shall be arrived at by multiplying the total amount of the undistributable income or expenses by the proportion of the net sales accruing from the activities in respect of which the corporation tax retention is enjoyed and all net sales.(2) The undistributable amounts whereby the accounting financial result is adjusted, which cannot be related to any single specific activity and which are associated with the performance of an activity in respect of which a retention is enjoyed, shall be allocated to the activity in respect of which the corporation tax is retained, and the tax financial result in respect of the said activity shall be determined on the basis of the proportion referred to in Paragraph (1).Declaring of Retained or Reduced Corporation TaxArticle 170. Where any taxable person is allowed to retain or reduce corporation tax on different grounds according to the procedure established by this Chapter, the said person shall mandatorily declare in the annual tax return the sequence in which the said person has enjoyed the different grounds for corporation tax retention or reduction.Retention of Additionally Ascertained Corporation TaxArticle 171. (1) Any taxable person, who has been allowed to retain corporation tax in a prior year, shall furthermore have the right to retention in respect of the additionally ascertained undeclared corporation tax for the relevant prior year, subject to the condition that the said person fulfils all requirements provided for in this Chapter for the relevant corporation tax retention.(2) The time limit for fulfilment of the said requirements shall begin to run as from the date of ascertainment of the additional corporation tax.Cessation of Right to RetentionArticle 172. (1) The right to reduction or retention according to the procedure established by this Chapter shall cease upon transformation of a taxable person, with the exception of transformation through change of the legal form according to the procedure established by Article 264 of the Commerce Act, as well as upon transfer of an enterprise under Article 15 of the Commerce Act.(2) Paragraph (1) shall furthermore apply upon restructuring of cooperative organizations.Non-fulfilment of RequirementsArticle 173. (1) Where any requirements of this Chapter for subsequent use (spending) of retained corporation tax are not fulfilled, the said tax shall be due according to the standard procedure established by this Act for the year for which the said tax applies.(2) Paragraph (1) shall not apply where, in the cases of transformation, the receiving companies or newly formed companies fulfil the obligations of the transferring companies in compliance with the terms and procedure established by this Chapter, referring to the transferring companies. In the cases referred to in sentence one, the receiving companies or newly formed companies shall incur solidary liability for the retained corporation tax of the transmitting companies.(3) Paragraph (2) shall furthermore apply upon restructuring of cooperative organizations.Section IIExemption from Levy of Corporation TaxCollective Investment Schemes and Investment Companiesof Closed-End TypeArticle 174. Any collective investment scheme, which has been admitted to public offering in the Republic of Bulgaria, and any licensed investment company of the closed-end type under the Public Offering of Securities Act, shall be exempt from the levy of corporation tax.Special Purpose Investment CompaniesArticle 175. Any special purpose investment company under the Special Purpose Investment Companies Act shall be exempt from the levy of corporation tax.Bulgarian Red CrossArticle 176. The Bulgarian Red Cross shall be exempt from the levy of corporation tax.Section IIIGeneral Tax ReliefsTax Incentives upon Hiring of Unemployed PersonsArticle 177. (1) Any taxable person shall have the right to debit the accounting financial result thereof upon determination of the tax financial result, where the said person has hired a person under an employment relationship for not less than twelve successive months who, at the time of the hiring thereof, was:1. registered as unemployed for more than one year, or2. a registered unemployed person who had attained the age of 50 years, or3. an unemployed person of reduced working capacity.(2) The debiting shall be performed by the amounts paid for labour remuneration and the contributions remitted for the account of the employer to the public social insurance funds and the National Health Insurance Fund during the first twelve months after the hiring. The said debiting shall be performed on a single occasion during the year wherein the twelve-month period lapses.(3) Debiting shall not be performed in respect of any amounts received under the Employment Promotion Act.(4) Debiting shall not be performed where tax relief under Article 192 herein has been enjoyed in respect of the persons hired.Enterprises Hiring People with DisabilitiesArticle 178. (1) Any legal person, which is a specialized enterprise or a cooperative within the meaning given by the Integration of Persons with Disabilities Act, which as at the 31st day of December of the relevant year, is affiliated to the nationally representative organizations of and for people with disabilities, shall be allowed to retain 100 per cent of the corporation tax due there from if:1. not less than 20 per cent of the total number of employees are blind and visually impaired persons;2. not less than 30 per cent of the total number of employees are hearing-impaired persons;3. not less than 50 per cent of the total number of employees are people with other disabilities.(2) The legal persons referred to in Paragraph (1) shall be allowed to retain the corporation tax due there from in proportion to the number of people with disabilities or occupational rehabilitees to the total of number of employees, where the conditions for the number of hired persons under Paragraph (1) are not fulfilled.(3) Retention shall be admissible where the tax retained is spent entirely on integration of people with disabilities or on the maintenance and creation of jobs for occupational rehabilitees during the two years next succeeding the year for which the retention is enjoyed. The said resources shall be planned, spent and accounted for by ordinances of the national organizations of and for people with disabilities in consultation with the Minister of Finance.Agricultural ProducersArticle 179. (1) Any legal person, which is registered as an agricultural producer, shall be allowed to retain 60 per cent of the corporation tax due there from in respect of the tax profit derived thereby from unprocessed plant and animal produce, inter alia from apicture, sericulture, freshwater fisheries in man-made water bodies and hothouse horticulture.(2) Retention shall be admissible where the tax retained is invested in tax tangible and intangible fixed assets needed for performance of the activities specified in Paragraph (1) not later than before the end of the year next succeeding the year for which the retention is enjoyed.Air Traffic Services AuthorityArticle 180. (1) The Air Traffic Services Authority State-Owned Enterprise shall be allowed to retain 60 per cent of the corporation tax due there from in respect of the tax profit derived thereby from the core activity thereof.(2) Retention shall be admissible where the tax retained is invested in and spent on implementation of the European programmes for integration and harmonization of the national air traffic control systems of the European countries and on maintenance of the pecuniary reserve provided for in the Civil Aviation Act.Social and Health Insurance FundsArticle 181. (1) Any social and health insurance fund, which has been established by a law, shall be allowed to retain 50 per cent of the corporation tax due there from in respect of the economic activity thereof which is directly related or auxiliary to the implementation of the core activity thereof.(2) Retention shall be admissible where the tax retained is invested in the core activity not later than before the end of the year next succeeding the year for which the retention is enjoyed.Section IV(Heading amended, SG No. 110/2007, effective 1.01.2007) De Minimis or Regional State Aid in the Form of Tax ReliefsTaxable Persons which May Not Enjoy Tax ReliefsArticle 182. (1) (Redesignated from Article 182 and amended, SG No. 110/2007, effective 1.01.2007) A tax relief constituting regional aid shall not apply in respect of any taxable persons which:1. are active in the sectors of coal, steel, shipbuilding, synthetic fibres manufacture, fisheries, as well as production of agricultural products listed in Annex I to the Treaty establishing the European Community, for the respective activity, or2. (amended, SG No. 110/2007, effective 1.01.2007) are placed in liquidation, or are subject to rehabilitation proceedings, or3. are defined as enterprises in difficulty.(2) (New, SG No. 110/2007, effective 1.01.2007) A tax relief constituting de minimis aid shall not apply in respect of:1. any taxable persons which are active in the fishery and aquaculture sector according to Council Regulation (EC) No 104/2000 on the common organization of the markets in fishery and aquaculture products;2. any taxable persons which are active in the primary production of agricultural products listed in Annex I to the Treaty establishing the European Community; 3. any taxable persons which are active in the processing and marketing of agricultural products listed in Annex I to the Treaty establishing the European Community; 4. any taxable persons which are active in the coal sector according to Council Regulation (EC) No 1407/2002 on State aid to the coal industry;5. any enterprise in difficulty;6. the investment in any road freight transport vehicles, where provided by a taxable person performing road freight transport for hire or reward;7. investment in any assets used in export-related activities towards third countries or Member States.(3) (New, SG No. 110/2007, effective 1.01.2007) Any tax relief constituting regional aid may not be enjoyed, either, by a taxable person in respect of which any of the conditions under Paragraph (1) occurs during the period of implementation of the relevant initial investment.(4) (New, SG No. 110/2007, effective 1.01.2007) Any tax relief constituting de minimis aid may not be enjoyed, either, by a taxable person in respect of which a condition under Paragraph (2) occurs during the period of investment.Municipalities with Unemployment Rate Above National AverageArticle 183. (1) The municipalities where the rate of unemployment is by 35 per cent or more higher than the national average shall be designated annually by an order of the Minister of Finance on a motion by the Minister of Labour and Social Policy, which shall be promulgated in the State Gazette.(2) The municipalities where the rate of unemployment is by 50 per cent or more higher than the national average shall be designated annually by an order of the Minister of Finance on a motion by the Minister of Labour and Social Policy, which shall be promulgated in the State Gazette.(3) A municipality whereof the administrative centre is situated in another municipality shall be included in the list referred to in Paragraphs (1) and (2) on the basis of the average weighted level of unemployment in the relevant municipalities, determined on the basis of the size of the economically active population therein.Tax Relief for Carrying Out Manufacturing Activities in Municipalitieswith Unemployment Rate Above National AverageArticle 184. (Amended, SG No. 110/2007, effective 1.01.2007) Any taxable person shall be allowed to retain up to 100 per cent of the corporation tax [due there from] in respect of the tax profit derived thereby from the manufacturing activities carried out, including processing of materials supplied by customers, where the following conditions are simultaneously fulfilled:1. the taxable person carries out manufacturing activities solely in municipalities where the rate of unemployment for the year preceding the current year was by 35 per cent or more higher than the national average for the same period;2. (amended, SG No. 110/2007, effective 1.01.2007) the conditions covered under:(a) Article 188 - in the cases of de minimis aid, or(b) Article 189 - in the cases of regional aidare fulfilled.Specific Cases of RetentionArticle 185. (1) Where a municipality drops out of the scope of municipalities referred to in Article 183 herein as a result of an increase in employment, the person which has acquired the right to corporation tax retention shall preserve the said right during the next five successive years, reckoned from the year during which the region drops out of the list, subject to fulfilment of the rest of the conditions for retention.(2) Where the taxable person satisfied the conditions referred to in Item 1 of Article 184 herein in the year preceding the year in which the municipality dropped out of the scope of municipalities referred to in Article 183 herein but did not carry out manufacturing activity during the said period owing to performance of preparatory work and the said manufacturing activity commences during a subsequent year, the right to tax retention shall accrue as from the year of commencement of the manufacturing activity and shall be preserved during the next four successive years, subject to fulfilment of the rest of the conditions for retention.Investment Tax CreditArticle 186. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Any taxable person shall have the right to reduce the corporation tax due there from for 2007 by up to 10 per cent of the value of the material and immaterial fixed assets acquired according to accounting legislation, where the conditions covered under Article 188 herein are fulfilled.(2) The right referred to in Paragraph (1) shall accrue subject to the condition that the assets acquired are used in an activity implemented in municipalities where the rate of unemployment for the year preceding the current year was by 50 per cent or more higher than the national average for the same period.Tax Relief for CooperativesArticle 187. (1) (Amended and supplemented, SG No. 110/2007, effective 1.01.2007) Any cooperative and any enterprise formed thereby, which is affiliated to a cooperative union within the meaning given by Chapter Four of the Cooperatives Act, shall be allowed to retain up to 60 per cent of the corporation tax [due there from] where the conditions for de minimis aid under Articles 188 herein are fulfilled.(2) Any cooperative and any enterprise formed thereby shall transfer 50 per cent of the corporation tax so retained to the investment funds of the cooperative unions within the time limits for crediting the said tax to Budget Revenue.(3) Annually, on or before the 31st day of March, the cooperative unions shall account to the Ministry of Finance for the raising and the spending of the corporation tax so retained on the assigned purpose. Should it be established that the conditions for retention have not been fulfilled, the tax retained which has accrued to the cooperative unions shall be refunded thereby to the executive budget with the interest due.Tax Relief Constituting De Minimis AidArticle 188. (Amended, SG No. 110/2007, effective 1.01.2007) (1) A tax relief constituting de minimis aid shall be available where the sum total of de minimis aids received by the taxable person during the last three years, including the current years, regardless of the form or source of acquisition of the said aids, does not exceed the lev equivalent of EUR 200,000, and in respect of taxable persons in the road transport sector, the lev equivalent of EUR 100,000, determined according to the official exchange rate of the lev against the euro. These ceilings shall apply regardless of whether the aid is financed in whole or in part by resources of the European Community. The sum total of de minimis aids received shall furthermore include the reduced or retained corporation tax due from the taxable person for the last three years, including the corporation tax which is subject to reduction or retention for the current year. The sum total of de minimis aids received shall not include the retained corporation tax in respect of which the conditions of Article 189 herein are fulfilled.(2) The retained tax under Article 184 herein and the part of the retained tax under Article 187 herein, which is not transferred to the investment funds of the cooperative unions, must be invested in material or immaterial fixed assets according to accounting legislation within four years after the beginning of the year for which the tax is retained.(3) The retained tax, invested in the assets referred to in Paragraph (2), and the reduction of the tax under Article 186 herein, shall be cumulated with other State aid approved by decision of the European Commission or authorized under Article 9 of the State Aids Act in respect of the said assets, up to the maximum permissible intensity of the aid determined by the National Regional State aid map (OJ No. C 73 of 30 March 2007).(4) The taxable person shall declare the amount of de minimis aids received, regardless of the form or source of acquisition of the said aids, during the last three years, including the current year, in the annual tax return for the year for which the corporation tax is retained.Tax Relief Constituting Regional AidArticle 189. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Taxable persons must fulfil the following conditions for the grant of regional aid:1. the retained corporation tax must be invested in material and immaterial assets which form part of an initial investment;2. the initial investment must be made within four years after the beginning of the year for which the tax was retained;3. the initial investment must be made in municipalities where the rate of unemployment for the year of retention is by 35 per cent or more higher than the national average for the same period;4. the activity related to the initial investment must continue to be implemented in the respective municipality for a period of at least five years after the year of completion of the initial investment; this circumstance shall be declared annually by the annual tax returns until the lapse of the five-year period;5. at least 25 per cent of the value of the material and immaterial assets forming part of the initial investment must be self-financed or debt-financed by the taxable person; the corporation tax retained, as well as other resources containing any State aid element whatsoever, shall not be treated as self-financing or debt-financing;6. the material and immaterial forming part of the initial investment must have been acquired under market conditions not differing from the conditions between unrelated parties; the immaterial assets forming part of the initial investment must be depreciable assets;7. the value of the eligible expenditure on the immaterial assets forming part of the initial investment must not exceed 50 per cent of the sum total of eligible expenditure on the material and immaterial assets forming part of the initial investment;8. the immaterial assets forming part of the initial investment must be used solely in the activity of the taxable person and must be included in the assets thereof for a period of at least five years;9. the tax retained must not exceed 50 per cent of the present value of the material and immaterial assets forming part of the initial investment, determined at the 31st day of December of the year of retention; the interest rate for the purposes of determination of the present value of the initial investment shall be the reference interest rate for the year of retention set by the European Commission;10. the projected amount of the initial investment and the period of implementation thereof shall be declared by the annual tax return for the year for which the corporation tax is retained.(2) The retained corporation tax shall be cumulated with other State aid approved by decision of the European Commission or authorized under Article 9 of the State Aids Act in respect of the same initial investment, up to the maximum permissible intensity of the aid determined by the National Regional State aid map.(3) In the cases where the tax relief is granted for a large investment project which has received aid from all sources whereof the total value exceeds the lev equivalent of EUR 37.5 million, determined according to the official exchange rate of the lev against the euro, the tax relief may be enjoyed for the relevant year solely if:1. the taxable person has notified the revenue authority of the project at the latest before commencement of the implementation thereof;2. a positive decision from the European Commission has been received following a notification procedure provided for in Article 88 (3) of the Treaty establishing the European Community. The Minister of Finance shall inform the European Commission according to the procedures established in the State Aids Act. The taxable person shall be obligated to provide the Minister of Finance with the information necessary for the transmission of a notification to the European Commission.(4) Where Paragraph (3) must not be applied to a large investment project, the tax relief may be enjoyed solely if the adjusted regional aid ceiling for large investment project is complied with as laid down in the Decision of the European Commission approving a National Regional State aid map.(5) For the purposes of Paragraph (3), the value of the aid and the value of the eligible expenditure on the material and immaterial assets included in a large investment project shall be determined at present value at the date of notification of the European Commission according to the procedure established by the Article 88 (3) of the Treaty establishing the European Community. For the purposes of Paragraph (4), the value of the aid and the value of the eligible expenditure on the material and immaterial assets included in a large investment project shall be determined at present value at the date of commencement of the implementation of the project.Restrictions upon Enjoyment of Tax ReliefsArticle 190. (Amended, SG No. 110/2007, effective 1.01.2007) (1) A taxable person may not enjoy more than one tax relief under this Section during one and the same year.(2) The assets in which a tax retained according to Article 188 (2) herein is invested shall be excluded from the scope of the initial investment.Section VTax Reliefs Satisfying Requirements for Permissible State Aid forEmploymentTaxable Persons which May Not Enjoy Tax ReliefsArticle 191. The tax relief under this Section may not be enjoyed by any taxable persons which:1. carry out activities in the sectors of coal, steel, transport and shipbuilding, for the respective activity, or2. are subject to bankruptcy proceedings, are placed in liquidation, or are subject to rehabilitation proceedings, or3. are defined as enterprises in difficulty, or4. receive any aids to export-related activities, namely aids directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to export activity, or5. receive any aids contingent upon the use of domestic over imported goods.Tax Relief for Employment PromotionArticle 192. (1) Upon determination of the tax financial result, the accounting financial result may be debited with the compulsory social insurance contributions remitted for the current year for the account of the employer in respect of the newly created jobs, where the conditions covered under Article 193 herein are fulfilled. The said reduction shall be enjoyable on a single occasion in the year during which the persons are appointed.(2) The right referred to in Paragraph (1) shall accrue subject to the condition that the jobs have been created in municipalities where the rate of unemployment for the year preceding the current year is by 50 per cent or more higher than the national average for the same period.General ConditionsArticle 193. (1) Any taxable persons which apply this Section must fulfil the conditions for the grant of State aid for employment according to European Commission Regulation (EC) No 2204/2002, including:1. the average number of employees for the current year must have increased compared to the preceding year as a result of the newly created jobs, and persons registered as unemployed must be appointed to the newly created jobs under an employment contract;2. the newly created jobs must be maintained for a minimum period of three years;3. the State aid referred to in Article 192 herein, together with other State aids for employment in respect of the same newly created jobs, must not exceed 50 per cent of the relevant percentage according to the applicable regional aid map, as adopted by a Council of Ministers decree, of the cost of wages and compulsory social insurance contributions for the newly created jobs for two years;4. the State aid referred to in Article 192 herein, together with other regional aids and State aids for employment, must not exceed 50 per cent of the relevant percentage according to the applicable regional aid map, as adopted by a Council of Ministers decree, of the sum total of the initial investment and the cost of wages and compulsory social insurance contributions for newly created jobs, related to the initial investment, for two years.(2) Where the State aid for employment referred to in Article 192 herein, including other State aids for employment, exceeds BGN 30 million for three years, the reduction shall be valid where the conditions under this Section are fulfilled and the taxable person has been granted a permissibility authorization by the European Commission under the terms and according to the procedure established by the State Aids Act.(3) The fulfilment of the conditions under this Section shall be declared by the annual tax return.PART THREEWITHHOLDING TAXChapter Twenty-ThreeSCOPE OF TAXATIONWithholding Tax on Income from Dividend and Shares in LiquidationSurplusArticle 194. (1) A tax withheld at source shall be levied on any dividends and shares in a liquidation surplus, as distributed (apportioned) by any resident legal person in favour of:1. any non-resident legal persons, with the exception of the cases where the dividends accrue to a non-resident legal person through a permanent establishment in the country;2. any resident legal persons which are not merchants, including any municipalities.(2) The tax referred to in Paragraph (1) shall be final and shall be withheld by the resident legal persons distributing dividends or shares in a liquidation surplus.(3) Paragraph (1) shall not apply where the dividends and shares in a liquidation surplus are distributed in favour of:1. any resident legal person which participates in the capital of the company as a representative of the State;2. any common fund.Tax Withheld on Income of Non-resident PersonsArticle 195. (1) Any income which has its source inside the country, referred to in Article 12 (2), (3), (5) and (8) herein, accruing to any non-resident legal person, were not accruing through a permanent establishment, shall be subject to levy of a tax withheld at source which shall be final.(2) The tax referred to in Paragraph (1) shall be withheld by the resident legal persons, the sole traders or the permanent establishments in the country which charge the income to the non-resident legal persons, with the exception of the income referred to in Article 12 (3) and (8) herein.(3) Where the payer of the income is not a taxable person covered under Article 2 herein and in respect of the income referred to in Article 12 (3) and (8) herein, the tax shall be withheld from the recipient of the income.(4) Paragraphs (1) and (2) shall furthermore apply where the non-resident person, acting through a permanent establishment, charges the said income to other divisions of the enterprise thereof situated outside the country, with the exception of the cases where accounting expenses are not recognized for tax purposes or accounting expenses or assets, accounted for at the costs actually incurred (cost price) are recognized for tax purposes of a permanent establishment.(5) The prepayments in connection with the income referred to in Paragraph (1) shall not be subject to levy of a tax withheld at source.Securities Traded on Regulated MarketArticle 196. Any income from disposition of shares in public companies, negotiable rights attaching to shares in public companies, and shares in and units of collective investment schemes, shall not attract a tax withheld at source where the said disposition is effected on a regulated Bulgarian securities market.Chapter Twenty-FourTAXABLE AMOUNTTaxable Amount for Withholding Tax on Dividend IncomeArticle 197. The taxable amount for assessment of the tax withheld at source on any income accruing from dividends shall be the gross amount of the dividends distributed.Taxable Amount for Withholding Tax on Liquidation Surplus ShareArticle 198. The taxable amount for assessment of the tax withheld at source on any income accruing from shares in a liquidation surplus shall be the difference between the market price of the claim by the relevant shareholder or member and the documented cost of acquisition of the shares or interests thereof.Taxable Amount for Withholding Tax on Non-resident Persons' IncomeArticle 199. (1) The taxable amount for assessment of the tax withheld at source on the income referred to in Article 195 (1) herein shall be the gross amount of the said income, with the exception of the cases referred to in Paragraphs (3) and (4).(2) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from interest payments under financial lease contracts, in the cases where the contract does not stipulate the rate of the said interest, shall be determined on the basis of the market rate of interest.(3) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from acts of disposition of financial assets shall be the positive difference between the selling price of the said assets and the documented cost of acquisition thereof.(4) The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from disposition of immovable property shall be the positive difference between the selling price and the documented cost of acquisition of the immovable property.(5) The selling price, for the purposes of Paragraphs (3) and (4), shall be the valuable consideration under the transaction, including the reward other than money, which shall be valued at market prices as at the date of charging of the income.(6) Upon termination of a financial lease contract before expiry of the term of validity thereof and without passing of the right of ownership to the relevant assets which are subject of the contract, the non-refundable lease payments shall be considered income from use of property acquired by the non-resident legal person at the time of termination. The withholding tax on the income from interest payments, remitted until the time of termination of the lease contract, shall be deducted from the withholding tax due on income from use of the property.Chapter Twenty-FiveRATES OF TAXRates of TaxArticle 200. (1) (Amended, SG No. 110/2007) The rate of tax on the income covered under Article 194 herein shall be 5 per cent.(2) The rate of tax on the income covered under Article 195 herein shall be 10 per cent.Chapter Twenty-SixDECLARING OF TAXDeclaring of Tax. Certificate on Tax Withheld onNon-resident Persons' IncomeArticle 201. (1) (Supplemented, SG No. 110/2007) The persons, who or which have withheld and remitted the tax at source under Articles 194 and 195 herein, and the persons who or which have charged the income referred to in Article 12 (3) and (8) herein, shall declare this circumstance to the National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable, by means of a declaration in a standard form. Any such declaration shall be submitted each quarter not later than at the end of the month next succeeding the quarter during which the tax was remitted.(2) Where the payer of the income is not registrable, the tax declaration shall be submitted to the Sofia Territorial Directorate of the National Revenue Agency.(3) In the cases where the payer of the income is a person who or which is not obligated to withhold and remit a tax, the declaration shall be submitted by the recipient of the income before submission of the request for the issuance of a certificate referred to in Paragraph (4) or within the time limit referred to in Paragraph (1), whichever of the two is the earlier.(4) A certificate on the tax remitted according to the procedure established by this Act on income accruing to non-resident legal persons shall be issued in a standard form at the request of the interested party. Any such certificate shall be issued by the National Revenue Agency territorial directorate where the tax is subject to remittance.Chapter Twenty-SevenTAX REMITTANCETax RemittanceArticle 202. (1) Any payers of income withholding the tax at source under Article 194 herein shall be obligated to remit the taxes due as follows:1. within three months after the beginning of the month next succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in the cases where the owner of the income is a resident of a State wherewith the Republic of Bulgaria has an effective convention for the avoidance of double taxation;2. not later than at the end of the month next succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in all other cases.(2) Any payers of income withholding the tax at source under Article 195 herein shall be obligated to remit the taxes due as follows:1. within three months after the beginning of the month next succeeding the month of charging of the income: in the cases where the owner of the income is a resident of a State wherewith the Republic of Bulgaria has an effective convention for the avoidance of double taxation;2. not later than at the end of the month next succeeding the month of charging of the income: in all other cases.(3) The tax due referred to in Paragraphs (1) and (2) shall be remitted to the relevant National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable.(4) Where any payer of income referred to in Paragraph (2) is not a taxable person and in respect of any income referred to in Article 12 (3) and (8) herein, the tax shall be remitted by the recipient of the income within the time limit referred to in Paragraph (2), and the income shall be considered to be charged as from the date of receipt of the said income by the non-resident legal person. The tax due shall be remitted to the relevant National Revenue Agency territorial directorate exercising competence over the place of registration or over the place where the payer of the income is registrable. Where the payer of the income is not registrable, the tax shall be remitted to the Sofia Territorial Directorate of the National Revenue Agency.(5) Any overremitted tax shall be refunded by the National Revenue Agency territorial directorate whereto the tax is subject to remittance.LiabilityArticle 203. Where the tax referred to in Articles 194 and 195 herein has not been withheld and remitted according to the relevant procedure, the said tax shall be due solidarily by the persons which incur tax liability for the relevant income.PART FOURTAX ON EXPENSESChapter Twenty-EightGENERAL DISPOSITIONSScope of TaxationArticle 204. A tax on expenses shall be levied on the following expenses supported by documents:1. any business entertainment expenses;2. any expenses on fringe benefits provided in kind to factory and office workers and to persons hired under a management and control contracts (hired persons); the expenses on fringe benefits provided in kind shall furthermore include:(a) the expenses on contributions (premiums) for voluntary retirement and health insurance and voluntary unemployment and/or vocational-training insurance, and/or life assurance and life assurance linked to an investment fund;(b) the expenses on food vouchers;3. the expenses related to operation of means of transport where used to service management operations.Expenses on Fringe Benefits Not Provided in KindArticle 205. Any expenses on fringe benefits, which are not provided in kind and which constitute income of a natural person, shall be taxed under the terms and according to the procedure established by the Income Taxes on Natural Persons Act.Recognition of Tax on ExpensesArticle 206. (1) The expense and the tax thereon shall be recognized for tax purposes in the year of charging and shall not form a temporary tax difference according to the procedure established by Chapter Eight herein.(2) The tax on expenses shall be final.Taxable PersonsArticle 207. (1) Taxable persons in respect of the tax referred to in Items 1 and 3 of Article 204 herein shall be the persons which are subject to levy of corporation tax.(2) Taxable persons in respect of the tax referred to in Item 2 of Article 204 herein shall be all employers or commissioning entities under management and control contracts.Exemption from Taxation of Fringe Benefit Expenses on Contributionsand Premiums for Supplementary Social Insurance and Life AssuranceArticle 208. No tax shall be levied on any expenses on fringe benefits referred to in Item 2 (a) of Article 204 herein not exceeding the amount of BGN 60 per month per hired person, where the taxable persons do not incur any coercively enforceable public obligations at the time of incurrence of the expenses.Exemption from Taxation of Fringe Benefit Expenses on Food VouchersArticle 209. (1) No tax shall be levied on any expenses on fringe benefits referred to in Item 2 (b) of Article 204 herein not exceeding the amount of BGN 40 per month, provided in the form of food vouchers to each hired person, where the following conditions are simultaneously fulfilled:1. (amended, SG No. 110/2007) the agreed basic monthly remuneration of the person in the month of provision of the vouchers is not lesser than the average monthly agreed basic remuneration of the said person for the last preceding three months;2. the taxable person does not incur any coercively enforceable public obligations at the time of provision of the vouchers;3. the vouchers are provided to the taxable person by a person which has obtained authorization to carry on operator business from the Minister of Finance on the basis of a competitive procedure;4. the amounts on the vouchers as provided, paid by the taxable person to the operator, may be used solely for settlement through bank transfer with the persons which have concluded a contract for provision of services with the operator, or for refunding to the taxable person, up to the amount of the nominal value of the vouchers, in the cases where the said vouchers have not been used;5. the persons wherewith the operator has concluded a contract for provision of services to the hired persons are registered under the Value Added Tax Act .(2) The right to carry on operator business shall be limited to a person which has obtained authorization from the Minister of Finance and which:1. has a paid up share (registered) capital of at least BGN 2 million at the time of submission of the documents for the grant of authorization;2. is registered under the Value Added Tax Act;3. is not subject to bankruptcy proceedings or is not placed in liquidation;4. does not incur any coercively enforceable public obligations at the time of submission of the documents for authorization;5. is represented by any persons who:(a) have not been convicted of a premeditated offence at public law, unless rehabilitated;(b) have not been members of a supervisory body or a management body of any corporation dissolved through bankruptcy during the two years last preceding the date of the judgment on institution of bankruptcy proceedings, if any creditors have been left unsatisfied.(3) The authorization shall be granted by the Minister of Finance on the basis of a competitive procedure and shall be withdrawn when the person ceases to satisfy the requirements covered under Paragraph (2).(4) The grant, refusal of authorization or withdrawal of an authorization granted shall be effected by a written order of the Minister of Finance.(5) Any refusal to grant an authorization and any withdrawal of an authorization shall be appealable according to the procedure established by the Administrative Procedure Code.(6) The procedure for the conduct of a competitive procedure, for the grant and withdrawal of an authorization, the terms and a procedure for the printing of vouchers, the number of vouchers issued, the terms for organization and control of the conduct of operator business shall be established by an ordinance of the Minister of Labour and Social Policy and the Minister of Finance.Exemption from Taxation of Fringe Benefit Expenses on Transportationof Factory and Office Workers and Persons Hired under Managementand Control ContractArticle 210. (1) No tax shall be levied under Item 2 of Article 204 herein on any expenses on fringe benefits incurred on transportation of factory and office workers and of persons hired under a management and control contract from the place of residence to the place of work and back.(2) Paragraph (1) shall not apply where any such transportation is carried out by passenger car or by extra bus services.(3) Paragraph (1) shall furthermore apply where the transportation of factory and office workers is carried out by passenger car to inaccessible and remote areas and the taxable person cannot ensure the implementation of the activity thereof without incurrence of the expense. For more information visit www.solicitorbulgaria.com id: 333 Mon, 04 Aug 2008 06:23:41 -0700 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT1.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEBASIC PROVISIONSChapter OneGENERAL PROVISIONSArticle 1. This Act shall regulate the customs administration structure and organization and the activities performed by its authorities.Article 2. (1) (Amended and supplemented, SG No. 63/2000) Customs authorities' activities shall consist of performance of customs supervision and control on the country's customs territory upon the imports, exports and transit of goods to, from and through the Republic of Bulgaria, the collection of customs duties, the imposition of administrative penal provisions and investigations of crimes in the cases, under the terms and procedures provided for in the Criminal Procedure Code. (2) Customs supervision shall be a set of actions undertaken with the purpose of ensuring compliance with the customs legislation and with other provisions applicable to goods subject to customs supervision.(3) Customs control shall be the performance by the customs authorities of specific acts such as examinations of goods,… For more information visit http://www.solicitorbulgaria.com id: 336 PART ONEBASIC PROVISIONSChapter OneGENERAL PROVISIONSArticle 1. This Act shall regulate the customs administration structure and organization and the activities performed by its authorities.Article 2. (1) (Amended and supplemented, SG No. 63/2000) Customs authorities' activities shall consist of performance of customs supervision and control on the country's customs territory upon the imports, exports and transit of goods to, from and through the Republic of Bulgaria, the collection of customs duties, the imposition of administrative penal provisions and investigations of crimes in the cases, under the terms and procedures provided for in the Criminal Procedure Code. (2) Customs supervision shall be a set of actions undertaken with the purpose of ensuring compliance with the customs legislation and with other provisions applicable to goods subject to customs supervision.(3) Customs control shall be the performance by the customs authorities of specific acts such as examinations of goods, transport, trade, accounting and other documents of natural and legal persons, of vehicles, luggage and other goods carried through the state border, other such actions with a view of ensuring compliance with customs legislation and observance of other provisions applicable to goods subject to customs supervision, as well as collection of customs duties.Article 3. Persons and vehicles, as well as goods carried by, or on, them shall cross the state border through the border control crossing points and shall be subject to customs supervision and control, which shall be carried out in places specially designated for this purpose. The procedure under which customs supervision and control shall be carried out shall be established in the Regulations on the Application of this Act, referred to hereinafter as "the Regulations."Article 4. (1) (Amended and supplemented SG No. 37/2003) Any person shall be obliged to inform the customs authorities forthwith about any goods left with, found by or seized by them, including vehicles, known or supposed to be imported without performing the respective customs formalities. These goods shall be presented to the customs authorities.(2) (Amended SG No. 37/2003) If the owner of goods left, found or seized, including vehicles, is a foreign person, an unknown person or a native person whose address is unknown and claims them within six months from the day of presenting them before the customs authorities, the person shall perform the respective formalities for obtaining a customs clearance of the goods after paying all the expenses incurred by for the customs office in relation to them.(3) Goods left, found or seized, including vehicles, shall be deemed abandoned in favour of the state when:1. (amended SG No. 37/2003) the owner is a foreign person, an unknown person or a native person whose address is unknown and six months have elapsed from the day of their presentation before the customs authorities;2. (amended SG No. 37/2003) the owner is a native person with a known address in the country and three months have elapsed since the day of delivering the notice of the customs office on moving the goods. The notice shall be sent within one week from the day of presenting the goods before the customs authority.Article 5. (1) (Supplemented SG No. 45/2005) Any person, including state authorities within their competence, shall support the customs authorities in the performance of their activities. They shall be obliged within 14 days after receiving a request from the customs authorities to provide information on the facts and circumstances specified therein.(2) No one shall be permitted to dispose with goods under customs supervision without the knowledge and the permission of the customs authorities.(3) (New SG No. 37/2003) Actions performed in violation of Paragraph 2 shall be null and void in relation to the customs authorities.Article 6. Any person related to the operations on importing, exporting or transiting goods, shall be obliged, for the purpose of customs supervision and control, to present to the customs authorities, on their demand and in a term specified by them, all information and documents on the specific operations regardless of their carrier.Chapter TwoCUSTOMS ADMINISTRATIONSection IStructure and OrganizationArticle 7. (Amended, SG No. 83/1999 and SG No. 63/2000) (1) The Customs administration shall be a centralized administrative structure, organized within the Customs Agency under the Minister of Finance, which shall be a legal person financed by the state budget, with a seat in Sofia.(2) The Customs Agency shall be structured into a Central Customs Directorate and regional customs directorates. The general and the specialized administrations within the Central Customs Directorate shall be organized in departments.(3) The regional customs directorate shall be structured as a regional customs department and customs offices. The general and the specialized administrations within the regional customs department shall be organized in departments.(4) The customs office shall be structured as a territorial customs office and customs bureaus and/or customs posts. The general and the specialized administrations within the customs office shall be organized in departments.(5) The Central Customs Directorate shall organize, manage, control and report on the activities of the customs administration, and shall perform customs activities.(6) The regional customs department shall organize, manage, control and report on the activities of the customs offices included in the structure of the regional customs directorate, shall perform customs activities, and shall provide information services to the customs offices and to the Central Customs Directorate.(7) The territorial customs office shall organize, manage, control and report on the activities of the customs bureaus and/or customs posts and jointly with them shall be the main executor of customs supervision and control.(8) (Supplemented, SG No. 91/2005) The general management and control over the activities of the customs administration shall be performed by the Minister of Finance or by one of the Deputy-Ministers designated by him. Officials from the inspectorate to the Minister of Finance shall be entitled to access to any data and documents in the customs administration in connection with the inspections conducted by them.(9) The Customs Agency may publish specialized printed editions.Article 8. (Amended, SG No. 63/2000) Regional customs directorates, customs offices, customs bureaus and customs posts shall be created, transformed and closed down by the Minister of Finance on a proposal of the Director of the Customs Agency. The Director of the Customs Agency shall define their structure and staff number within the framework of the total staff number of the Customs Agency.Article 9. (Amended, SG No. 63/2000) (1) The Customs Agency shall be managed and represented by a Director, who shall be appointed and discharged by the Minister of Finance, in coordination with the Prime Minister.(2) In performing his functions the Director of the Customs Agency shall be assisted by Deputy-Directors. The number of Deputy Directors shall be specified in the Agency's Rules of Organization.(3) The Deputy-Directors of the Customs Agency shall be appointed and discharged by the Minister of Finance upon a proposal submitted by the Agency's Director.(4) The structure of the Customs Agency shall include an inspectorate subordinated directly to the Agency's Director, which will exercise control over the activities of the customs administration.Article 10. (1) Any legally able Bulgarian citizen, who has never been convicted for a premeditated crime of a general nature, and has never been legally debarred from the right to occupy such a position, and meets the requirements for work in the customs administration, may be appointed as customs officer.(2) Customs officers shall be prohibited:1. to be sole traders, unlimited partners or to participate personally or through proxies in the management of commercial companies, cooperatives or other economic organizations;2. to sign additional employment contracts, save as associates in research institutes and lecturers in educational establishments.3. (new, SG No. 37/2003, amended SG No. 95/2003) to be in a hierarchic relationship of management and control with a spouse, a direct relative without limitation, on a collateral line up to the fourth degree inclusive and by marriage up to the fourth degree inclusive.(3) (New SG No. 63/2000) Customs officers occupying their position under a regular labour contract need to comply also with the requirements under Article 7 of the Civil Servants Act. (4) (New SG No. 37/2003) On appointment customs officers shall sign a sworn statement on the circumstances under Paragraphs 1 and 2.(5) (New SG No. 37/2003, supplemented SG No. 38/2004) On appointment and dismissal and every year by 31 May at the latest customs officers shall be obliged to declare before the Director of the Customs Agency their property state as well as the property state of their spouses and minor children on a statement form approved by the Minister of Finance.(6) (New, SG 37/2003, amended, SG No. 105/2005) On a written request of the Director of the Customs Agency the authorities of the National Revenue Agency shall provide information on the income and property of customs officers.(7) (New SG No. 37/2003) The provisions of the Personal Data Protection Act shall apply in relation to the protection and the access to the data under Paragraphs 5 and 6.(8) (New SG No. 37/2003) Incompatibility under Paragraphs 1 and 2 as well as the failure to submit the statement under Paragraph 5 shall be grounds for unilateral termination of labour or official relations with the customs officer without prior notice.Article 11. (Amended, SG No. 63/2000) (1) The Council of Ministers, upon proposal submitted by the Minister of Finance, shall adopt Rules of Organization of the Customs Agency and shall determine the staff number in the Agency and in the Central Customs Directorate.(2) The Rules of Organization of the Customs Agency may stipulate additional requirements for occupying positions in the customs administration.(3) The Minister of Finance, upon proposal submitted by the Director of the Customs Agency, shall approve Rules of Organization and Operation of the Regional Customs Directorates.Article 12. The customs authorities shall collect fees for additional services rendered and in cases as defined in the Regulations. The fees shall not account as customs duties. The amount of such fees shall be specified by the Council of Ministers.Article 13. (Amended SG No. 63/2000) The Customs Agency shall collect revenues from contracts concluded with natural or legal persons for activities approved by the Minister of Finance within the zones of the border checkpoints and other places where these activities require additional customs control.Article 14. (Amended, SG No. 83/1999) (1) (Amended, SG No. 63/2000) The Customs Agency shall be the administrator of:1. the revenues under Article 12;2. the revenues under Article 13;3. ninety per cent of the revenues under Article 240, Item 2;4. (amended, SG No. 37/2003) the revenues from the use of real estate that is owned by the state and from provision of information;5. (supplemented, SG No. 45/2005) twenty per cent of the fines and pecuniary sanctions collected for customs and currency violations; twenty per cent of the fines collected for customs and currency violations;6. (amended, SG No. 63/2000, effective 1.01.2000) revenues from printed editions under Article 7, Item 9;7. incomes from the holiday facilities;8. (new, SG No. 63/2000, effective 1.01.2000, supplemented SG No. 37/2003) the revenues under Article 17, Item 3 of the Foreign Exchange Act and under Article 251, Paragraph 2 of the Criminal Code; 9. (new, SG No. 63/2000, effective 1.01.2000, amended, SG No. 59/2007) the payments under Article 78, Paragraphs 6 and 8 of the Code of Civil Procedure. (2) (Amended, SG No. 63/2000, effective 1.01.2001, supplemented, SG No. 109/2007) The Minister of Finance, upon proposal of the Director of the Customs Agency, shall determine the employees who are to receive additional remuneration for their participation in prevention of customs and foreign exchange violations and offences, for their participation in detection of excise legislation and for material incentives.(3) (New, SG No. 63/2000, effective 1.01.2001) The funds under Paragraph 2 shall amount to twenty five per cent of the annual amount of the funds for salaries in the budget of the Customs Agency for the respective year and shall be incorporated in the State Budget Act for the same year.(4) (New, SG No. 63/2000, effective 1.01.2001) The procedure for determining the individual amount of the additional remuneration under Paragraph 2 shall be established by an ordinance issued by the Minister of Finance.Section IIFunctions and ResponsibilitiesArticle 15. (1) The customs administration shall:1. participate in the development the customs policy of the Republic of Bulgaria and shall implement it;2. participate in the development and implementation of international agreements related to customs activity;3. maintain international customs relations;4. collect, process, analyse, file and provide information concerning customs activity and develop customs statistics. The terms and procedure for the performance of these activities shall be set forth in an ordinance issued by the Minister of Finance;5. ensure training and retraining of customs officers;6. (new, SG No. 37/2003) insure customs officers against accidents and with life insurance at the expense of its own budget.(2) The customs authorities shall:1. perform customs supervision and control on goods, vehicles and persons in the zones of the border checkpoints and throughout the state's customs territory;2. calculate, collect or require security for duties levied on imports, exports or transit of goods;3. enforce, within their competence, the tariff and trade policy measures of the Republic of Bulgaria;4. protect, within their competence, the economic interests of the country;5. (amended and supplemented SG No. 63/2000, SG No. 37/2003) conduct customs intelligence and investigation for combating customs and currency violations;6. organize and perform prevention and detection of the illegal traffic of drugs and precursors;7. exercise foreign exchange control within the limits of their competence assigned by law;8. issue decisions on the application of customs rules;9. (new, SG No. 63/2000, repealed, SG No. 86/2005) 10. (new, SG No. 63/2000) perform activities related to establishing administrative violations and imposition of administrative sanctions;11. (new, SG No. 63/2000) participate in operative and investigative activities jointly with bodies of the Ministry of the Interior, under the terms and procedures of the Ministry of the Interior Act; 12. (new, SG No. 37/2003) apply border control measures for protecting intellectual property rights.(3) (New, SG No. 63/2000) The terms and procedures of interaction between the customs bodies and the bodies of the Ministry of the Interior for prevention and detection of customs and foreign exchange violations shall be stipulated by a joint instruction of the Minister of Finance and the Minister of the Interior.(4) (Previous (3), SG No. 63/2000) The customs authorities shall perform other activities as assigned by law.Section IIIPowers of the Customs AuthoritiesArticle 16. (1) While performing their professional duties customs officers shall be entitled:1. to conduct inspections related to customs supervision and control of goods, vehicles and persons in the zones of border checkpoints and throughout the customs territory of the country;2. to undertake the necessary measures, allowed by law, for performing customs control;3. to require the presentation or delivery of goods, documents, data or other information carriers related to customs supervision and control;4. to require presentation of personal identification documents;5. to require written or oral explanations;6. to perform follow-up customs control of goods and documents related to importation, exportation and transit;7. to collect sums: for customs duties for imported and exported goods; for unfulfilled liabilities and guarantees; for payment of the equivalent amount for goods confiscated in favour of the state when they are missing or expropriated and for any state receivables, collectable by the customs authorities;8. to levy, according to the procedure established by the law, distrait and injunctions for securing due customs duties and other state receivables collectable by them;9. to carry out individual searches of persons crossing the state border;10. (amended, SG No. 63/2000, amended and supplemented, SG No. 45/2005) to conduct searches and seize goods that have been or should have been subject to customs supervision and control and related documentation in offices, official and other premises, as well as personal searches of the persons located therein, in compliance with the procedures of the Criminal Procedure Code; 11. to execute controlled deliveries jointly with the competent authorities of the Ministry of the Interior and with the permission of the respective prosecution office.(2) (Repealed, SG No. 63/2000).(3) The customs officers shall be entitled to carry firearms and use them in cases of inevitable self-defence as a last resort;(4) (New SG No. 76/2002) When exercising the powers under Paragraph 1, Item 1 specialised control bodies of the Customs Agency shall be entitled to stop vehicles inside the country under terms and procedures pursuant to Article 15, Paragraph 3;(5) (New SG No. 76/2002, amended, SG No. 105/2005) On a written request of the Director of the Customs Agency, the directors of regional customs directorates and the heads of customs offices the authorities of the National Revenue Agency shall provide information on follow-up transactions related to the quantity, type, value and origin of goods subject to import-export operations, on sums subject to payment or reimbursement under the Value Added Tax Act and the Excise Tax Act, as well as on violations established by the internal revenue bodies, perpetrated by persons engaging in import and export activities;(6) (New SG No. 37/2000, amended, SG No. 105/2005) The procedure and modalities for electronic exchange of information between the customs administration and the National Revenue Agency shall be specified in a joint instruction of the director of the Customs Agency and the executive director of the National Revenue Agency.(7) (New, SG No. 45/2005) When conducting inspections within the framework of follow-up control or in the course of a customs investigation for establishing customs liabilities or violations, when there is information on withholding facts and circumstances that are substantial for the inspection or the investigation as well as in case of hindering their conduct, the customs authorities may carry out searches and seizures under the procedure of the Criminal Procedure Code. In these cases the customs authorities conducting the inspection or the investigation shall have the powers of the authorities of pre-trial proceedings.(8) (New, SG No. 45/2005) The provisions of the Criminal Procedure Code shall apply also to the powers and procedural actions of customs authorities under Paragraph 1, Item 10 when conducting inspections under Paragraph 7 as well as concerning the rights and obligations of the inspected persons in relation to the grounds of the search and the seizure, the authorities that are carrying them out and the attending persons, as well as in relation to the protection of the inspected persons.Article 17. (1) While performing their professional duties the customs officers shall be obliged:1. to observe the organization of work at the customs office;2. to protect the property, rights and freedoms of persons;3. to present a customs sign and an official identification card;4. (supplemented, SG No. 63/2000) to wear uniform when this is required for the respective positions under the Rules of Organization of the Customs Agency;5. (new, SG No. 37/2003) to observe the norms of conduct of the customs officer approved with an order of the Minister of Finance;6. (amended and supplemented, SG 63/2000, renumbered from Item 5, SG No. 37/2003, supplemented, SG No. 91/2005) not to divulge circumstances and facts they have become aware of during or in relation to the performance of their official duties specified herein as official secret except on the request of a state body when provided by law at the request of the officials from the inspectorate to the Minister of Finance or of another customs body when performing its powers herein. The terms and procedures for providing information about circumstances and facts constituting official secret to another customs body shall be defined by the Director of the Customs Agency.(2) Violations of the duties under Paragraph 1 shall be subject to disciplinary sanctions.Article 17a. (New, SG No. 45/2005) (1) The customs authorities shall collect and process personal data for the purposes of customs supervision and control.(2) The administrator of the personal data shall be the Director of the Customs Agency who shall assign personal information processing to persons authorised by him/her under the terms and procedures of the Personal Data Protection Act. (3) Personal data collected and processed by the customs authorities may be provided to authorities of a foreign state in compliance with international agreements to which Bulgaria is a party under the terms and procedures of the Personal Data Protection Act. Chapter ThreeRIGHTS AND LIABILITIES OF PERSONSSection IRepresentationArticle 18. (1) Any person may be represented before the customs authorities for performing the actions and formalities laid down herein and in the statutory instruments for the implementation of this act, including by a customs agent.(2) The Regulations shall establish the terms and procedures applicable to performing representation by a customs agent.(3) The representative must be a native person, save in cases expressly specified herein.(4) The customs authorities shall require any person stating that he/she is acting as an agent to produce evidence in writing thereof.Section IIDecisions of the Customs AuthoritiesArticle 19. (1) When a person requests that the customs authorities take a decision in relation to the application of customs rules that person shall supply all the information and documents required by those authorities.(2) The decision under Paragraph 1 shall be taken and notified to the applicant within a term defined in the Regulations. Where a request for a decision is made in writing, the decision shall be made within the period laid down in the Regulations, starting from the date on which the said request is received by the customs authorities. Such a decision shall be notified to the applicant in writing.(3) When the customs authorities are unable to take a decision within the specified term due to the need of collecting additional information they shall be obliged to inform the applicant before its expiry stating the grounds and the period of time they shall need in order to give the requested ruling.(4) Decisions of the customs authorities, which either reject requests or are detrimental to the persons, shall be substantiated.Article 20. (1) A decision favourable to the respective person which is based on incorrect or incomplete information shall be annulled when:1. the applicant knew or should reasonably have known that the information was incorrect or incomplete, and2. such decision could not have been taken on the basis of correct or complete information.(2) The person shall be notified of the annulment of the decision.(3) The annulment shall take effect from the date on which the decision was taken.Article 21. (1) In cases different than those referred to in Article 20, a decision favourable to the interested person shall be revoked or amended when one or more of its conditions were not or are no longer fulfilled.(2) A decision favourable to the interested person may be revoked when this person fails to fulfil an obligation imposed on him/her under that decision.(3) The person to whom the decision is addressed shall be notified of its revocation or amendment.(4) (Amended SG No. 63/2000) The revocation or amendment of the decision shall take effect from the date of notification referred to in Paragraph 3. In exceptional cases when the legitimate interests of the interested person so require, the Central Customs Directorate may defer the date when revocation or amendment takes effect.Section IIIInformationArticle 22. (1) The customs authorities shall present to any interested person information concerning the application of customs legislation. The customs authority may refuse to respond when the request does not relate to importation or exportation operations actually envisaged.(2) The information under Paragraph 1 shall be supplied free of charge. The costs incurred shall be paid when they are connected with analyses, with expert review of the goods, with their return to the applicant, etc.Article 23. (1) (Supplemented, SG No. 37/2003) The customs authorities shall issue binding tariff information or binding information concerning the origin of goods with a decision upon written request and in accordance with the procedures set forth in Article 19.(2) The information under Paragraph 1 shall be binding on the customs authorities and on its holder only in respect of the tariff classification of goods or of defining the origin of a specific product when the customs formalities on the goods are completed after the date on which the information was supplied.(3) In the course of customs clearance of the goods the holder of the received information shall certify before the customs authorities the exact compliance:1. between goods reported and goods described in the information for tariff purposes;2. between goods reported and the circumstances defining the way the goods acquired their origin and the circumstances described in the information for the purposes of the origin.(4) The binding information shall be valid for a period of three years from the date of issue. The binding information shall be annulled when it is based on inaccurate or incomplete information from the applicant regardless of the terms under Article 20, Items 1 and 2.(5) Tariff information shall cease to be valid:1. on the adoption of a statutory instrument when it no longer conforms to its provisions;2. when it is incompatible with the interpretation of the nomenclatures referred to in Article 26. Incompatibility with the interpretation may be:(a) (amended SG No. 37/2003) on a national level, due to changes of the national interpretation notes to the customs tariff nomenclature or by decision of the court;(b) on an international level due to issuing of a classification opinion or an amendment to the explanatory notes to the nomenclature of the Harmonized Commodity Description and Coding System adopted by the World Customs Organisation;3. on its revocation or amendment under the provisions of Article 21 when the holder of the information is notified of its revocation or amendment.(6) The information about origin shall cease to be valid:1. on the adoption of a new statutory instrument or the Republic of Bulgaria signs an international agreement when it no longer conforms to their provisions;2. when it is no longer compatible:(a) on a national level - with the explanatory notes and opinions adopted for the purposes of interpreting the rules or upon a decision of the court;(b) on an international level - with the International Agreement on Rules of Origin established by the World Trade Organization or with the explanatory notes or opinions on origin adopted for interpreting the Agreement;3. on revocation or amendment pursuant to Article 21 provided the holder is notified of its revocation or amendment.(7) (Amended SG No. 63/2000) The holder of binding information which ceases to be valid pursuant to Paragraph 5, Items 2 or 3 and Paragraph 6, Items 2 and 3 may still use that information for a period not longer than six months from the date of respective acts come into force under terms and procedures specified in the Regulations.(8) When the statutory instruments or the agreement pursuant to Paragraph 5, Item 1 and Paragraph 6, Item 1 provide for a different period than the one under Paragraph 7, the period specified by them shall apply.(9) The classification or definition of the goods' origin in the binding tariff information shall be applied only for:1. determining import or export customs duties;2. (new SG No. 37/2003) calculating export subsidies and any other financial grants in cases of exportation or importation of goods as part of the agricultural policy of the Republic of Bulgaria;3. (previous (2) SG No. 37/2003) using export licences and import and export certificates which are presented for the acceptance of the customs statement of the goods provided these certificates are issued on the basis of this binding information.PART TWOELEMENTS ON THE BASIS OF WHICH IMPORT AND EXPORT DUTIES AND OTHERMEASURES PROVIDED IN RESPECT OF TRADE WITH GOODS ARE APPLIED(Title - SG No. 37/2003)Chapter FourCUSTOMS TARIFF. TARIFF CLASSIFICATION(Title - SG No. 37/2003)Article 24. (Amended SG No. 63/2000, SG No. 37/2003) (1) Goods carried across the state border of the Republic of Bulgaria shall be charged with import or export customs duties unless otherwise provided herein, in another act or in an international agreement to which the Republic of Bulgaria is a party.(2) Import or export customs duties due on the occurrence of the customs debt shall be based on the Customs Tariff of the Republic of Bulgaria.Article 25. (Amended SG No. 37/2003) Other measures in relation to specific fields related to trade with goods provided for in statutory instruments and beyond the ones specified in Article 24 shall be introduced according to the tariff classification of those goods.Article 26. (Amended SG No. 37/2003) (1) The Customs Tariff shall include:1. the Combined Nomenclature of the Republic of Bulgaria2. any other nomenclature which is based in whole or in part on the Combined nomenclature of the Republic of Bulgaria or adds subsections to it and which is adopted with a statutory instrument regulating specific fields in relation to applying tariff measures related to trade with goods;3. the rates and other elements charging duties applicable to goods included in the Combined Nomenclature in relation to:a. customs duties, andb. charging the import of goods in compliance with agricultural policy or in compliance with specific provisions applicable to goods obtained from the processing of agricultural products;4. preferential tariff measures including in agreements to which the Republic of Bulgaria is a party providing for granting preferential tariff treatment;5. preferential tariff measures adopted unilaterally by the Republic of Bulgaria in favour of countries, groups of countries or territories;6. autonomous measures introduced by the Council of Ministers which temporarily reduce or abolish applicable import customs duties in relation to certain goods (autonomous suspension measures); the terms and procedures for introducing autonomous suspension measures shall be specified with an ordinance of the Council of Ministers;7. other tariff measures provided for in other statutory instruments.(2) In compliance with the rules for charging with a single customs rate the measures under Paragraph 1, Items 4, 5 and 6 shall apply instead of the ones specified in Item 3 on the reporting person's request when the goods conform to the conditions laid down for these measures. The request may be granted also at a later date in case the respective conditions are met.(3) When the application of the measures under Paragraph 1, Items 4, 5 and 6 is restricted to a certain volume or cost of imports their application shall cease:1. in the case of tariff quotas, as soon as the stipulated limit on the volume or cost of imports is reached;2. in the case of tariff ceilings, as from a time fixed by a statutory instrument.Article 26a. (New SG No. 37/2003) (1) Before the end of each calendar year the Council of Ministers shall adopt the Combined Nomenclature of the Republic of Bulgaria and shall determine customs duty rates in compliance with the linked duty rates of the Republic of Bulgaria under the List of Obligations and Concessions attached to the General Agreement on Tariffs and Trade of 1994 (conventional customs duty rates) which shall apply as from the first day of the following year.(2) The Combined Nomenclature, the conventional customs duty rates and the autonomous customs duty rates shall be published in the State Gazette.Article 27. (Amended SG No. 37/2003) (1) The tariff classification of goods shall be the determination pursuant to the rules established with a statutory instrument of.1. the sub-positions of the nomenclature under Article 26, Paragraph 1, Item 1 or of any other nomenclature under Article 26, Paragraph 1, Item 2. or2. the sub-positions of any other nomenclature which is wholly or partially based on the Combined Nomenclature of the Republic of Bulgaria or adds subsections thereto and which is adopted with a statutory instrument regulating specific areas in relation to the application of measures different from the tariff measures related to trade with goods.(2) Additional tariff classification rules may be specified with an ordinance of the Minister of Finance in compliance with:1. the explanatory notes to the Harmonised Commodity Description and Coding System;2. the explanatory notes to the Combined Nomenclature applied in the European Union member-states;3. the opinions on commodity classification adopted by the Harmonised System Committee of the World Customs Organisation;4. the decisions on commodity classification applied in the European Union member-states.Article 28. (1) (Amended SG No. 63/2000, SG No. 37/2003) The terms under which certain commodities may be entitled to a more favourable tariff treatment due to their nature or specific designation shall be established in the Regulations. When permission is required the provisions of Articles 92 and 93 shall apply.(2) (Amended SG No. 37/2003) In the meaning of Paragraph 1 "more favourable tariff treatment" shall be understood to mean any reduction or abolition of (suspension from) import customs duties, even within the frameworks of the tariff quota.Chapter FiveORIGIN OF GOODSSection INon-Preferential OriginArticle 29. The non-preferential origin of goods specified in Articles 30, 31 and 32 shall serve for the purposes of:1. (amended SG No. 37/2003) applying the Customs Tariff, with the exception of the preferential tariff measures referred to in Article 26, Paragraph 1, Items 4 and 5;2. applying measures other than the tariff measures established by an act of the Council of Ministers;3. the preparation and issue of certificates of origin.Article 30. (1) Goods originating in a country shall be the goods wholly obtained or produced in that country.(2) Goods wholly obtained or produced in a given country shall be the following:1. minerals extracted within that country;2. vegetable products harvested therein;3. live animals raised therein;4. products derived from live animals raised therein;5. products of hunting or fishing carried out therein;6. products of sea-fishing and other products extracted from the sea, outside the inland sea waters and the territorial sea waters of that country by vessels registered in the country and flying the flag of that country;7. goods obtained or produced on board factory-ships from the products referred to in Item 6 originating in that country provided such factory- ships are registered in that country and fly its flag;8. products taken from the seabed or its subsoil outside the inland sea of the territorial sea provided that country has exclusive rights to exploit that seabed or subsoil;9. waste and scrap products, derived from manufacturing operations performed in the country and used articles provided they were collected therein and are fit only for the recovery of raw materials;10. goods which are produced in the country exclusively from goods referred to in Items 1 to 9, or from their derivatives at any stage of production.(3) Whereas Paragraph 2 shall apply, the customs territory of the country shall include its inland sea waters and the territorial sea.Article 31. (1) Goods whose production involves more than one country shall be deemed to originate in the country where they underwent their last, substantial, economically justified processing or treatment in an enterprise equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture.(2) Any processing or treatment in respect of which it is established or there is sufficient data that that its sole objective was to circumvent the provisions applicable in the Republic of Bulgaria towards goods from specific countries, shall under no circumstances be deemed to confer on the goods thus produced the origin of the country where it is carried out.Article 32. (1) The documents certifying the origin of goods shall be presented when required by a customs or other statutory instrument.(2) Notwithstanding the presentation of a document ascertaining the origin of goods the customs authorities shall be entitled in the event of reasonable doubt to require other evidence confirming that the reported origin complies with the rules for non preferential origin established in the Republic of Bulgaria.Section IIPreferential OriginArticle 33. (Amended SG No. 37/2003) The conditions for acquiring preferential origin of goods with the purpose of applying the measures under Article 26, Paragraph 1, Items 4 and 5 shall be regulated by:1. the international agreements of the Republic of Bulgaria establishing preferential tariff measures;2. the statutory instruments on preferential tariff measures adopted unilaterally by the Republic of Bulgaria.Chapter SixCUSTOMS VALUEArticle 34. The customs value shall be the value of goods in Bulgarian national currency determined for customs purposes. The provisions of this chapter shall regulate the determination of the customs value of goods for the purposes of applying the Customs Tariff of the Republic of Bulgaria, as well as of non-tariff measures established by a statutory instrument.Article 35. (1) The customs value of imported goods determined under this article shall be the contract value which shall be the price of goods actually paid or payable when they are sold for export to the Republic of Bulgaria, adjusted in accordance with Article 38, provided:1. there is no restriction as to the disposal or use of the goods by the buyer, other than restrictions which:(a) are established by statutory instruments of the Republic of Bulgaria;(b) specify the geographical area in which the goods may be resold, or(c) do not substantially affect the value of the goods;2. the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;3. no part of the proceeds of any subsequent resale, granted right to use or dispose with the goods by the buyer shall accrue directly or indirectly back to the seller, unless an adjustment can be made in accordance with Article 38; and4. the buyer and seller are not related persons, or, when the buyer and seller are related persons provided the contract value is acceptable for customs purposes under Paragraph 2.(2) Circumstances that shall be taken into consideration in the case of related persons:1. in determining whether the transaction value is acceptable for the purposes of Paragraph 1 the fact that the buyer and the seller are related persons shall not in itself be sufficient grounds for regarding the transaction value as unacceptable. Where necessary the circumstances of the sale shall be examined and the transaction value shall be accepted provided the relationship did not influence the price. If in the light of information provided by the buyer or another source the customs authorities have grounds to consider that the relationship has influenced the price, they shall communicate their grounds to the reporting person and he shall be given a reasonable opportunity to respond. If the reporting person so requests the communication of the grounds shall be in writing;2. in a sale between related persons the contract value shall be accepted and the goods valued in accordance with Paragraph 1 when the reporting person proves that such value closely approximates one of the following values determined at or about the same time:(a) the contract value in sales of identical or similar goods sold for export to the Republic of Bulgaria, between buyers and sellers who are not related persons;;(b) the customs value of identical or similar goods, as determined under Article 36, Paragraph 2, Item 3;(c) the customs value of identical or similar goods, as determined under Article 36, Paragraph 2, Item 3.(3) In applying Paragraph 2, Item 2 due account shall be taken of differences in commercial levels, the levels listed in Article 38 and costs incurred by the seller in sales in which he and the buyer are not related persons and when such costs are not incurred by the seller in sales in which he and the buyer are related persons. The methods set forth in Paragraph 2, Item 2 shall be applied at the initiative of the reporting person and only for comparison purposes, and not as a basis for determining the customs value.(4) The price actually paid or payable shall be the total payment made or to be made by the buyer to or for the benefit of the seller and shall include all payments made or to be made as a condition of the sale by the buyer to the seller or by the buyer to a third party to satisfy an obligation of the seller. The payment need not necessarily take the form of a transfer of money but may be made by way of a letter of credit or negotiable instrument and may be made directly or indirectly.(5) Activities, including marketing activities, undertaken by the buyer on his own account, other than those for which an adjustment is provided in Article 38, shall not be considered to be an indirect payment to the seller even when they might be regarded as of benefit to the seller or have been undertaken by agreement with the seller, and their cost shall not be added to the price actually paid or payable in determining the customs value of imported goods. "Marketing activities" in the meaning herein shall be any activities related to the advertising or the promotion of the sale of the valued goods and all warranty activities in relation to the goods.Article 36. (1) When the customs value cannot be determined under Article 35, it is to be determined by applying sequentially the provisions of Paragraph 2, Items 1 to 4 until the first provision in the sequence allows its application An exception from the specified procedure shall be admissible for the application of Items 3 and 4 if the reporting person requests the sequence of these Items to be reversed. It is only when such value cannot be determined under a particular subparagraph in the sequence specified that the provisions of the next subparagraph can be applied in a sequence established by virtue of this paragraph.(2) The customs value as determined under this Article shall be:1. the contract value of identical goods sold for export to the Republic of Bulgaria and exported at or about the same time as the goods to be valued;2. the contract value of similar goods sold for export to the Republic of Bulgaria and exported at or about the same time as the goods being valued;3. the value based on the unit price at which the imported goods for identical or similar imported goods are sold within the Republic of Bulgaria in the greatest aggregate quantity to persons not related to the sellers;4. the computed value, consisting of the sum of:(a) the cost of materials and manufacture or other operations related to the processing of the imported goods,(b) a sum of the profit and general expenses equal to that usually calculated for sales of goods of the same class or type as the goods being valued which are manufactured by producers in the country of export for export to the Republic of Bulgaria,(c) the cost referred to in Article 38, Paragraph 1, Item 5.(3) Any additional conditions and rules for the application of Paragraph 2 shall be determined by the Regulations.Article 37. (1) When the customs value of imported goods cannot be determined under Articles 35 or 36, it shall be determined through methods compatible with the principles and the general provisions of the Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade, and the provisions of this chapter.(2) No customs value shall be determined under Paragraph 1 on the basis of:1. the selling price in the Republic of Bulgaria of goods produced in the Republic of Bulgaria;2. a system which provides for the acceptance for customs purposes of the higher of two alternative values;3. the price of goods on the domestic market of the country of exportation;4. production costs, other than the computed values which have been determined for identical or similar goods in accordance with Article 36, Paragraph 2, Item 4;5. prices for goods sold for export which was not intended for the Republic of Bulgaria;6. minimum customs values;7. arbitrary or fictitious values.Article 38. (1) In determining the customs value under Article 35 to the price actually paid or payable for the imported goods the following shall be added:1. (amended, SG No. 63/2000) the following costs, to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods:(a) commissions and brokerage, except purchase commissions;(b) the cost for containers which, for customs purposes, are treated as being one with the goods in question;(c) packing cost, including labour and materials.2. The value, apportioned as appropriate, on the following goods and services when supplied directly or indirectly by the buyer free of charge or at discount prices for use in connection with the production and sale for export of the imported goods, insofar as such value has not been included in the price actually paid or payable:(a) materials, components, parts and the like incorporated in the imported goods;(b) tools, dies, moulds and the like used in the production of the imported goods;(c) materials consumed in the manufacture of the imported goods;(d) engineering, development, artwork, design work, and plans and sketches undertaken elsewhere than in the Republic of Bulgaria and necessary for the production of the imported goods;3. royalties and license fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;4. the value of any part of the proceeds of any subsequent resale, granting the right to dispose of or use the imported goods that accrues directly or indirectly to the seller;5. expenses for:(a) transport of the imported goods to their entry point into the territory of the Republic of Bulgaria;(b) loading/unloading and handling operations associated with the transport of the imported goods to entry border crossing point of the Republic of Bulgaria;(c) insurance of the imported goods.(2) Additions to the price actually paid or payable shall be made under this article only on the basis of objective and quantifiable data.(3) No additions shall be made to the price actually paid or payable in determining the customs value except as provided in this article.(4) (New, SG No. 63/2000) In this chapter the term 'purchase commission' shall mean fees paid by an importer to his agent for the service of representing him in the supply of goods being valued.(5) (Previous (4) SG No. 63/2000) Notwithstanding Item 3 of Paragraph 1:1. charges for the right to reproduce the imported goods in the Republic of Bulgaria shall not be added to the price actually paid or payable for the imported goods in determining the customs value;2. payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a condition for the sale of the goods for export to the Republic of Bulgaria.Article 39. The customs value of the imported goods shall not include the following costs provided they are shown separately from the price actually paid or payable:1. transport costs of goods on the territory of the Republic of Bulgaria after their arrival;2. costs for construction, installation, assembly, maintenance or technical assistance, undertaken for the goods after their import;3. charges for the right to reproduce imported goods in the Republic of Bulgaria;4. purchase commissions;5. import duties, taxes, excise charges and fees payable in the Republic of Bulgaria by reason of the import or sale of the goods;6. interest under a financing arrangement of the buyer relating to the purchase of imported goods, irrespective of whether the credit is provided by the seller, by a bank or a third person, provided the interest is separated from the price payable, the financing agreement has been made in writing and the buyer can prove that:(a) such goods are sold at the moment of evaluation at the price reported as the price actually paid or payable, and(b) the reported interest rate does not exceed the level for such transactions prevailing in the country where, and at the time when, the financing was provided.Article 40. Specific rules may be laid down in the Regulations for determining the customs value of imported information carrier media intended for use in electronic data processing equipment and bearing data or instructions.Article 41. (Amended, SG No. 37/2003) The procedure for determining the customs value in specific cases shall be established by a Council of Ministers decree.Article 42. (1) The transfer of foreign exchange into Bulgarian currency for determining the customs value shall be done according to the exchange rate for foreign currencies announced by the Bulgarian National Bank.(2) The period of implementing the corresponding currency exchange rate shall be determined in the Regulations.Article 43. (1) The provisions of this chapter shall not affect the specific provisions for determining the customs value when importing goods under a different a customs destination.(2) Notwithstanding the provisions of Articles 35-37 the customs value of perishable goods usually delivered on consignment may at the request of the reporting person be determined under simplified procedures, defined in the Regulations.PART THREEENTRY OF GOODS INTO THE CUSTOMS TERRITORY OF THE REPUBLIC OFBULGARIA UNTIL THEY OBTAIN A CUSTOMS ASSIGNMENTChapter SevenENTRY OF GOODS INTO THE CUSTOMS TERRITORY OF THE REPUBLIC OF BULGARIAArticle 44. (1) From the time of their entry into the customs territory of the Republic of Bulgaria the goods shall be subject to customs supervision and may be subject to customs control in accordance with the provisions in force by the date of entry.(2) The goods shall remain under customs supervision until their customs status is determined. With the exception of cases referred to in Article 88, Paragraph 1 foreign goods shall remain under customs supervision also until their customs status is changed, or they enter a free zone or a free warehouse, or they are re exported or destroyed in accordance with Article 180.Article 45. (1) Goods brought into the customs territory of the country shall without delay be transported by the person bringing them into the country according to the instructions of the customs authorities to the designated customs office or to any other place designated by those authorities. Should this be necessary the customs authorities may specify the route for transporting the goods.(2) The person who assumes responsibility for the transport of goods after they have been brought into the customs territory of the Republic of Bulgaria shall become responsible for compliance with the obligation laid down in Paragraph 1.(3) Paragraph 1 shall not preclude the implementation of provisions of any other statutory instruments with respect to:1. parcels;2. tourist traffic;3. shipment of goods with negligible economic importance, on condition customs supervision and customs control possibilities are not thereby jeopardized.(4) Paragraphs 1,2 and 3 as well as Articles 46 to 60 shall not apply to goods which leave temporarily the customs territory of the Republic of Bulgaria, while being shipped between two points in that territory by sea or air, provided the carriage has been effected by a direct route by regular air service or shipping line without a stop outside of the customs territory of the Republic of Bulgaria.(5) Paragraph 1 shall not apply to goods on board a vessel or an aircraft crossing the territorial waters or airspace of the Republic of Bulgaria without having as their destination a port or airport on the country's customs territory.Article 46. (1) When, by reason of force majeure or unforeseeable circumstances, the person cannot comply with the obligation laid down in Article 45, Paragraph 1, he shall inform immediately the nearest customs authorities. When the goods are not destroyed or lost in total the customs authorities shall be informed of their exact location.(2) When, by reason of force majeure or unforeseeable circumstances, a vessel or an aircraft is forced to put into port or land temporarily in the customs territory of the Republic of Bulgaria and the obligation laid down in Article 38, Paragraph 1 cannot be complied with, the person bringing the vessel or aircraft into the customs territory of the country or any other person acting in his place shall inform immediately the customs authorities.(3) The customs authorities shall determine the measures in the cases referred to in Paragraphs 1 and 2 to be taken for customs supervision and, where appropriate, for ensuring the shipping of the goods to a customs office or to another location designated by them.Chapter EightPRESENTATION OF GOODS TO CUSTOMS AUTHORITIESArticle 47. Goods which have been transported pursuant to Article 45, Paragraph 1 shall be presented to the customs authorities by the person who has brought them into the customs territory of the Republic of Bulgaria or by the person who had undertaken the carriage of the goods following such entry.Article 48. For goods carried by travellers or placed under customs regime, but not presented to customs, other provisions for presentation may apply as provided in the Regulations.Article 49. Once goods have been presented to customs, they may be subject to examination or sample-taking, for specifying their customs assignment with the permission of the customs authorities.Chapter NineMANIFESTATION AND UNLOADING OF GOODS PRESENTED TO CUSTOMS AUTHORITIESArticle 50. (1) For goods presented to customs authorities a customs manifest shall be submitted.(2) The customs manifest shall be submitted immediately after the goods have been presented to customs. The customs authorities may allow a different period for submitting the manifest which shall not extend beyond the first working day following the day on which the goods were presented to customs.Article 51. (1) The manifestation of goods shall be done under terms and procedures specified in the Regulations. The customs authorities may accept also a commercial or other document instead of a customs manifest if it contains the particulars necessary for identification of the goods.(2) The customs manifest shall be submitted by:1. the person who has brought the goods into the customs territory of the Republic of Bulgaria or by the person who has undertaken the carriage of the goods following such entry; or2. the person in whose name the persons referred to in Item 1 had acted.Article 52. The cases when the customs authorities may submit a manifest ex officio or waive the submission of a customs manifest shall be defined in the Regulations.Article 53. (1) Goods shall be unloaded or reloaded from the vehicles carrying them solely with the permission of the customs authorities in places designated by them.(2) No permission shall be required in the event of a breakdown or other circumstances necessitating the immediate unloading of all or parts of the goods. In that case, the customs authorities shall be informed forthwith.(3) For the purpose of customs control and inspection of goods, including the vehicles carrying them, the customs authorities may at any time require goods to be unloaded and unpacked.Article 54. Goods shall be removed from their original location only with the permission of the customs authorities.Chapter TenOBLIGATION TO PERFORM FORMALITIES ON OBTAINING A CUSTOMSASSIGNMENT FOR THE GOODS PRESENTED TO THE CUSTOMS AUTHORITIES(Title - SG No. 37/2003)Article 55. (Supplemented SG No. 37/2003) Foreign goods presented to the customs authorities shall obtain an admissible customs assignment.Article 56. (1) (Amended SG No. 37/2003) The respective formalities for obtaining a customs assignment shall be performed for the manifested goods within the following deadlines:1. forty five days from the date of submitting the customs manifest for goods carried by sea;2. twenty days from the date of submitting the customs manifest for goods carried otherwise than by sea;(2) Depending on the specific circumstances the customs authorities may set deadlines shorter or longer than the periods referred to in Paragraph 1. The extension shall not exceed the period actually required in the specific case.Chapter ElevenTEMPORARY STORAGE OF GOODSArticle 57. Until obtaining a customs assignment the goods presented to the customs authorities shall have the status of "goods in temporary storage."Article 58. (1) Goods in temporary storage shall be stored only in places approved by the customs authorities and under conditions laid down by them.(2) (Supplemented, SG No. 153/1998) The customs authorities shall be entitled to require the person holding the goods to provide security for any customs debt that may arise under Article 199, Paragraph 1, Items 5, 6 and 7 as well as also taxes and excise duties.Article 59. Goods in temporary storage shall not be subject to handling other than the one intended for ensuring their preservation in an unchanged state without modifying their appearance or technical characteristics. This provision shall not prejudice the provisions of Article 49.Article 60. (1) (Amended SG No. 37/2003, SG No. 109/2007) Without prejudice to the provisions on arising of customs debts, for goods, in respect of which the respective formalities for obtaining an admissible customs assignment have not been performed, the customs authorities shall notify the consignee of those goods in writing with recorded delivery that within a period of thirty days from the date of receiving such notification the good would be treated as abandoned in favour of the state.(2) (Supplemented, SG No. 109/2007) After the expiry of the period referred to in Paragraph 1 the goods shall be considered as abandoned in favour of the state, unless the customs debt is discharged within the above term or is treated as not having arisen under the provisions of the customs legislation.(3) (Amended SG No. 37/2003, SG No. 109/2007) When the consignee of the goods is a foreign person, or an unknown person, a native person with address unknown or who cannot be located on the address indicated, no notification as referred in Paragraph 1 shall be sent and the goods shall be deemed abandoned in favour of the state after the expiration of six months from the day of their manifestation.(4) (Amended SG No. 37/2003, SG No. 109/2007) The customs authorities may, after assuming the responsibility and the costs from the holder of the goods, allow their transfer to a different location under customs supervision.Chapter TwelveFOREIGN GOODS WITH A TRANSIT STATUSArticle 61. The provisions of Article 45, with the exception of Paragraph 1, and of Articles 46 to 60, shall not apply when goods that have been placed under a transit regime are brought into the customs territory of the Republic of Bulgaria.Article 62. Once foreign goods which have been moved under the transit regime reach their destination in the customs territory of the Republic of Bulgaria and have been presented to the customs authorities in accordance with the provisions governing transit, Articles 49 to 60 shall apply.Chapter ThirteenOTHER PROVISIONSArticle 63. When circumstances so require, the customs authorities shall be entitled to order the destruction of the goods presented to them for customs clearance, after informing the holder of the goods thereof. The cost for destroying the goods shall be borne by the holder.Article 64. When the customs authorities find that goods have been brought illegally into the customs territory of the Republic of Bulgaria or have been withheld from customs supervision, they shall take the legal measures provided, including the sale of the goods.PART FOURCUSTOMS ASSIGNMENTSTITLE ONEGENERAL PROVISIONSArticle 65. (1) In case there are no statutory restrictions or prohibitions the goods may obtain the requested customs assignment under the conditions laid down in this Act irrespective of their type, quantity, origin, consignment or destination.(2) Paragraph 1 shall not preclude the imposition of prohibitions or restrictions in relation to national security, public order or morality, the protection of health and life of humans, animals or plants, the protection of the national heritage of artistic, historic or archaeological value or the protection of industrial and commercial property.(3) (New, SG No. 37/2003) When performing customs control under Paragraph 2, unless otherwise provided, the customs authorities may postpone with a substantiated decision for a period of up to five working days the permission for the assignment requested for the goods and shall inform forthwith the authorities competent for exercising supervision and control related to the respective prohibitions or restrictions.TITLE TWOCUSTOMS REGIMESChapter FourteenPLACING GOODS UNDER CUSTOMS REGIMESArticle 66. (1) All goods intended to be placed under a customs regime shall be subject to reporting for the appropriate regime.(2) Local goods reported for exportation, temporary exportation, outward processing, transit or customs warehousing regime shall be subject to customs supervision form the time of their reporting before the customs office until their leaving the customs territory of the Republic of Bulgaria or destruction or the invalidation of the export manifest.Article 66a. (New, SG No. 63/2000) (1) The Director of the Customs Agency may designate in an order individual customs institutions, which perform customs activities with respect to certain types of goods and/or in compliance with the customs regimes under which they will be placed.(2) The order under Paragraph 1 shall be published in the State Gazette.Article 67. (Amended, SG No. 63/2000) (1) The reporting before the customs authorities shall be made:1. in writing;2. electronically;3. orally;4. by means of any other act whereby the holder of the goods expresses his wish to place them under a customs regime.(2) The terms and procedure for reporting in the cases under Paragraph 1, Items 2, 3 and 4 of shall be established in the Regulations.Section IReporting in Writing under the Normal ProcedureArticle 68. (1) Reports in writing shall be made with a customs statement on a standard form and under a procedure established by the Minister of Finance.(2) (New SG No. 37/2003) The customs statement must be signed and shall contain all data required for applying the provisions of the customs regime for which the goods have been reported.(3) All documents specified statutorily for allowing the customs regime for which the goods have been reported shall be enclosed with the customs statement in order of allow the customs regime for which the goods have been reported.Article 69. Customs statements which comply with the provisions laid down in Article 68 shall be accepted by the customs authorities immediately, provided the reported goods are presented to them.Article 70. (1) (Amended, SG No. 63/2000) Reporting may be performed by any person, including an agent, who is able to present the goods in question or to have them presented to the competent customs authority, together with all the documents required for allowing the customs regime in respect of which the goods are reported.(2) (Amended, SG No. 63/2000) When the acceptance of a customs statement imposes particular obligations on a specific person, the reporting must be performed by that person or on his behalf.(3) The reporting person must be established in the Republic of Bulgaria. This condition shall not apply to persons who:1. (amended, SG No. 63/2000) report for transit or temporary importation; or2. report goods on an occasional basis, provided that the customs authorities consider the reporting to be admissible.Article 71. (1) Once the customs statement is accepted, on the request of the reporting person the customs authorities may allow him to amend one or more of the particulars in the statement. No goods other than those originally reported in the statement shall be included in the amendments.(2) No amendment shall be allowed when the request has been made after the customs authorities have:1. informed the reporting person that they intend to examine the goods;2. established an inaccurate data in the customs statement;3. allowed goods to be released.Article 72. (1) The customs authorities shall, at the request of the reporting person, invalidate a customs statement already accepted, when the reporting person proves that the goods were reported by mistake for the respective customs regime or that, as a result of special circumstances, remaining of the goods under the reported customs regime is unjustified.(2) When the customs authorities have informed the reporting person of their intention to examine the goods, the request for invalidation of the customs statement may be accepted after the examination has taken place.(3) The customs statement shall not be invalidated after the permission on releasing the goods, except in cases defined in accordance with the Regulations.(4) Invalidation of the customs statement shall not prevent the application of the penal provisions.Article 73. The date used for the purposes of applying the customs regime for which the goods were reported shall be the date of acceptance of the customs statement by the customs authorities unless otherwise provided for by a statutory instrument.Article 74. For verification purposes of the accepted customs statements the customs authorities may perform:1. document control of the customs statement and the documents accompanying it. The customs authorities may require the reporting person to present other documents for verifying the accuracy of the particulars contained in the customs statement;2. examination of the goods and taking samples for analysis or control.Article 75. (1) Transport of the goods to the places where they are to be examined, samples to be taken and all the handling necessities shall be carried out and be under the responsibility of the reporting person. The costs incurred shall be borne by the reporting person.(2) The reporting person shall be entitled to be present when the goods are examined and when the samples are taken. The customs authorities shall require the presence of the reporting person or his agent when the goods are examined or samples are taken, in order to facilitate the performance of the examination.(3) When samples are taken in accordance with the provisions in force the customs authorities shall not owe any compensation but shall bear the costs of their analysis or examination.Article 76. (1) When only a part of the goods covered by a customs statement is examined, the results of the examination shall be taken to apply to all the goods covered by that customs statement.(2) The reporting person may request a further examination of the goods if he considers that the results of the partial examination are not valid as regards to the remainder of the goods reported.(3) For the purposes of Paragraph 1, when a customs statement form contains several types of goods, the particulars relating to each of those types shall be deemed to constitute a separate customs statement.Article 77. (1) The results of the verification of the customs statement shall be used for the purpose of applying the customs regime under which the goods are placed.(2) When the customs statement is not verified, the provisions of the basis for applying the customs regime shall be the particulars reported in the customs statement.Article 78. (1) The customs authorities shall take the measures necessary to identify the goods as required in order to ensure compliance with the terms of the customs regime for which the goods have been reported.(2) Means of identification affixed to the goods or in cargo sections of vehicles may be removed or destroyed only by the customs authorities or with their permission. This provision shall not be applied in cases of force major or unforeseeable circumstances in view of ensuring the protection of the goods and vehicles.Article 78a. (New SG No. 37/2003) (1) The customs authorities shall postpone with a substantiated decision giving permission on releasing goods reported for import regime and shall inform forthwith the competent market supervision authorities when in the course of the inspection they establish that:1. the goods contain certain characteristics giving rise to reasonable doubts on the existence of serious and immediate risk for health and safety in case of their use in normal foreseeable conditions, or2. the goods are not accompanied by the documents required pursuant to the safety rules or are not marked in compliance with these rules.(2) When in the cases under Paragraph 1 the competent authorities consider that the goods do not represent serious and immediate risk for health and safety the customs authorities shall allow the release of the goods provided all other requirements and formalities for placing the goods under an import regime have been complied with.(3) In case the customs authorities are not notified within three working days from the day following the actions under Paragraph 1 by the competent market supervision authorities on measures adopted by them, the release of the goods shall be allowed provided all other requirements and formalities provided in applicable law for placing the goods under import regime have been complied with.(4) The customs authorities shall not allow the release of the goods and their placement under import regime when they have been notified by the competent market supervision authorities that the goods pose a serious and immediate risk for health and safety and prohibition measures have been taken in relation to their release on the market. In these cases the customs authorities shall place on the invoice and the other documents accompanying the goods the text "Dangerous product - import regime not allowed".(5) The customs authorities shall not allow the release of the goods and their placement under import regime when they have been notified by the competent market supervision authorities that the goods do not comply with applicable safety rules and prohibition measures have been taken in relation to their release on the market. In these cases the customs authorities shall place on the invoice and the other documents accompanied the goods the text "Product incompatible with requirements - import regime not allowed".(6) The provisions of this article shall apply to goods of which the customs authorities have been notified in advance by the market supervision authorities that they are subject to control on compliance with safety rules. The notification shall be performed under a procedure coordinated between the customs authorities and the market supervision authorities.(7) The article shall apply inasmuch a statutory instrument does not provide otherwise in relation to the organisation of border control of specific goods.Article 78b. (New SG No. 37/2003) The provisions of Article 78a shall not apply when veterinary and zoo-technical control and control in relation to protecting plants and animals have been regulated with a statutory instrument.Article 79. (1) (Amended SG No. 37/2003) In compliance with the provisions of Article 80, when the conditions for placing the goods under a specific regime are met and provided the goods are not subject to any prohibitive and restrictive measures, the customs authorities shall allow the release of the goods as soon as the particulars in the customs statement have been verified or accepted without verification. Permission for release of the goods shall be granted also when the verification cannot be completed within a reasonable period of time and the presence of the goods is no longer required its performance.(2) The release of the goods shall be allowed for the entire amount of goods reported in the same customs statement. When a customs statement covers several types of goods the particulars relating to each type shall be deemed to constitute a separate customs statement.Article 80. (1) When the acceptance of a customs statement gives rise to a customs liability, the release of the goods covered by this customs statement shall be allowed only if the customs liability has been paid or secured. This provision shall not apply to the temporary importation regime with partial exemption from import customs duties in compliance with the provisions of Paragraph 2.(2) When the regime for which the goods are reported requires security the customs authorities shall allow the release of the goods only after its institution.(3) Goods dangerous for health, for the environment, flammable and perishable goods may be released with the written permission of the customs authorities even before security is provided.Article 81. The customs authorities shall undertake the legally provided measures, including confiscation and sale in favour of the state, of goods which:1. cannot be released due to the following reasons:(a) it has been impossible to undertake or perform examination of the goods within the period prescribed by the customs authorities for reasons attributable to the reporting person;(b) the documents required for placing the goods under the requested customs regime have not been produced;(c) the import or export customs duties have nor been paid or secured within the prescribed term;(d) are subject to prohibition or restriction measures;2. (Amended SG No. 153/1998) are not removed within the period after giving the permission.Section IIReporting in Writing Under the Simplified ProcedureArticle 82. (1) In order to simplify customs formalities, while ensuring procedures for reporting and the terms specified in the regulations, the customs authorities shall grant permission:1. for submitting a simplified customs statement being the customs statement under Article 68 omitting certain of the particulars or not containing some of the required documents;2. instead of the customs statement under Article 68 to submit a commercial or administrative document, accompanied by an application for placing the goods under the respective customs regime.3. to perform the reporting of the goods for the respective customs regime through entering them in the accounting records of the reporting person. In this case the customs authorities shall be entitled to waive the requirement that the reporting person presents the goods.(2) The simplified customs statement, the commercial or administrative documents or the entry of the goods in the accounting records must contain the particulars necessary for identifying the goods. The entry of the goods in the accounting records must contain also the date on which it is done.(3) Except in cases to be determined in the Regulations, the reporting person shall be obliged to furnish a supplementary customs statement, which may be of general, periodic or recapitulative nature.(4) The supplementary customs statement under Paragraph 3 shall be considered a single document indivisible from the documents referred to in Paragraph 1, Items 1, 2 and 3 which shall take effect on the date of acceptance by the customs authorities. In the cases referred to in Paragraph 1, Item 3 entry in the records of the accounting documents shall have the same legal force as acceptance of the customs statement under 68.(5) Special simplified procedures for the transit regime shall be laid down in the Regulations.Section IIIOther Types of ReportingArticle 83. (1) (Supplemented, SG No. 63/2000, previous Article 83, SG No. 37/2003) When reporting before the customs authorities is made electronically, orally or through other means as referred to in Article 67, the provisions of Articles 68 to 82 shall apply mutatis mutandis without prejudice to the principles set out therein.(2) (New SG No. 37/2003) When reporting before the customs authorities is made electronically the customs authorities may not require the attachment of the documents under Article 68, Paragraph 3. In these cases the documents must be available to the customs authorities for the purposes of customs control.(3) (New SG No. 37/2003) The Minister of Finance shall specify the terms and procedures for reporting electronically to the customs authorities mutates mutandis.Section IVSubsequent Control of ReportingArticle 84. (1) After the permission for release of the goods the customs authorities shall be entitled, at their own initiative or at request of the reporting person, to perform subsequent control of the customs statement.(2) The customs authorities shall be entitled, after releasing the goods for the purpose of establishing the truthfulness of the customs statement, to perform control of the commercial documents and data relating to the import and export operations in respect of the goods reported or of subsequent commercial operations with them. Such control shall be carried out at the premises of the reporting person, of any other person directly or indirectly involved in the said operations as well as of any other person in possession of the said documents and data. The customs authorities may also examine the goods when it is possible for them to be produced.(3) When during a second inspection of the customs statement or subsequent control it is established that the respective customs regime has been applied on the basis of incorrect or incomplete information, the customs authorities shall take the necessary measures while taking into account the new circumstances.(4) Any person involved directly or indirectly in activities of importation, exportation and transit operations of goods shall be obliged to keep for a period of five years the entire documentation on the specific operations, regardless of the type of the carrier media used. The period shall start running from the end of the calendar year during which:1. for goods, processed under the importation customs regime, other than those mentioned in Item 2, or processed under the exportation customs regime, the corresponding customs statements have been accepted;2. for goods, processed under the importation customs regime with reduced or zero-rate duty due to their specific usage, these goods cease to be subject of customs control;3. for goods placed under another customs regime, the respective customs regime comes to an end;4. for goods placed in a free zone or a free warehouse, these goods leave the free zone or the free warehouse.Article 84a. (New, SG No. 45/2005) (1) Follow-up control on reporting shall be carried out in respect of all persons who are engaged or involved in an activity the control over which is assigned to the customs authorities by law.(2) In the course of follow-up control an inspection shall be carried out of the compliance with the law of the actions of the inspected person for applying the respective regimes, procedures and trade policy measures, as well as of the fulfilment of its obligations for paying public state receipts collected by the customs authorities.(3) Customs authorities shall be obliged to establish impartially the facts and circumstances under Paragraph 2 both to the detriment and in favour of the inspected person. In the course of the inspection the inspected person shall be entitled to receive information on the facts and circumstances established insofar as this would not impede its carrying out.(4) The inspection shall comprise the goods, the stocks, the accounting records, the trade, accounting and other documentation of the inspected person that is material for the specific case.(5) (Amended, SG No. 105/2005) The customs authorities shall be obliged to make clear to the inspected person and to the other participants in the proceedings under this Act their procedural rights provided for in the Tax and Social Insurance Procedure Code, according Criminal Procedure Code and to ensure the possibilities that they should be exercised.Article 84b. (New, SG No. 45/2005) (1) Follow-up control shall be exercised by customs officials in specialised units for follow-up control in the Central Customs Directorate and in the regional customs directorates. Should this be required follow-up control units may be created also in the territorial customs directorates under the procedure of Article 11, Paragraph 3.(2) The competence of the follow-up control units shall be determined according to the registered address, the permanent address respectively, of the inspected person. The competence of the follow-up control unit at the Central Customs Directorate shall be national.(3) Should it be needed to establish facts and circumstances related to the activity of the inspected person, its affiliate, facility, business or property which is within the competence of another follow-up control unit the Director of the Customs Directorate may permit that the entire inspection or individual actions be performed by that unit.(4) Should specific knowledge and qualifications be needed other customs officers who command them may participate in the inspection or expert opinions may be requested from them.Article 84c. (New, SG No. 45/2005) (1) An inspection within the follow-up control framework shall be carried out on the basis of an assignment order.(2) The order under Paragraph 1 shall be issued by:1. The Director of the Customs Agency or by officials from the Customs Agency authorised by him/her.2. A Director of a regional customs directorate and head of customs office and the Director of the Customs Agency shall be notified thereof.(3) The order under Paragraph 1 shall be issued in writing and shall contain:1. the legal and factual grounds for conducting the inspection;2. the names and positions of the customs officers who shall carry out the inspection;3. information on the inspected person;4. the inspection period;5. the type and scope of the inspection;6. the initial date of commencing the inspection and the time of its completion;(4) The order under Paragraph 1 shall be handed over to the inspected person by the customs officers at the start of the inspection. The inspected person may be notified in advance of the start of the inspection should this not threaten its objective.(5) The order under Paragraph 1 may be amended by a new substantiated order of the body that has assigned the inspection. The amendment shall be deemed done as of the date of issuing the new order which shall be handed over to the inspected person.(6) The period for carrying out the inspection within the follow-up control framework shall not exceed two months.(7) In case of justified need the period under Paragraph 6 may be extended by not more than four months with a new substantiated order of the body that has assigned the inspection.(8) The body that has assigned the inspection shall stop proceedings:1. in case of force majeure - as of the date of its occurrence;2. when judicial or administrative proceedings have been instituted that are material to the inspection's outcome - on presenting a certificate thereof issued by the body before which proceedings have been instituted;3. under other circumstances provided for by law.(9) The body that has assigned the inspection may direct that it be suspended for a certain period but for not longer than 30 days subject to a substantiated application by the inspected person and following a verification of the circumstances.(10) The period for carrying out the inspection shall not run as of the date of occurrence of the relevant circumstance for its suspension until the date of its resumption.(11) The inspection shall be resumed on an order of the body that has assigned it after the grounds for its suspension have become defunct. The resumption order shall be delivered to the inspected person.(12) Orders on assigning, amending, suspending and resuming an inspection shall not be subject to appeal.Article 84d. (New SG No. 45/2005) (1) The inspected person shall be obliged to cooperate with the customs authorities when they are clarifying facts and circumstances that are material to the inspection by:1. providing commercial, accounting and other documentation;2. providing explanations requested by the customs authorities;3. drawing up information memoranda;4. certifying information memoranda and copies of documents requested by the customs authorities;5. ensure access to official premises, warehouses and cash offices;6. ensure space and conditions for carrying out the inspection;7. appoint persons to grant cooperation in conducting the inspection.(2) The inspected person shall be obliged, within reasonable time specified by the customs authorities but not less than 24 hours, to provide any information, data, documents, papers, things, information carriers and other evidence relating to the facts and circumstances subject to establishment in the course of the inspection and to specify all persons, state and municipal bodies with which they may be found. This term may be extended should important reasons so require.(3) The inspected person shall be obliged to ensure to the customs authorities access to its IT system when collection, storing and processing of the information under Paragraph 2 is done by such a system.(4) In case it is impossible to carry out the inspection at the premises of the inspected person it shall be performed at the customs office. In this case the customs authorities shall compile a protocol and an inventory of the documents, things and other evidence that are handed over to them.Article 84e. (New SG No. 45/2005) (1) The evidence in the proceedings under this section may be factual data related to circumstances that are material to the purposes of the inspection, contribute to their clarification and are collected and verified under the procedure herein.(2) The evidence shall be collected and verified through written explanations, information memoranda and statements of the inspected persons or of their representatives, minutes on explanations of third persons who are not participating in the administrative proceedings, protocols on the actions of the customs authorities, expert opinions, official documents received through information exchange with the administrations of other states within international cooperation as well as through other means provided for by law.(3) Any person, state and municipal authority shall be obliged, within seven days after the receipt of a request by the customs authorities, to provide information, data, documents, papers, things, information carriers and other evidence relating to the facts and circumstances specified in the request. This term may be extended by the body that has assigned the inspection.(4) When conducting an inspection the customs authorities may request cooperation in writing from other bodies in performing actions for the purpose of establishing obligations or liabilities of the inspected person.(5) When special knowledge that the customs authorities do not possess is required to clarify circumstances and issues that have arisen in the course of the inspection on their initiative or on request by the inspected person the body that has assigned the inspection shall institute an expert examination. When the expert examination has been instituted on request by the inspected person the costs for its carrying out shall be at the expense.Article 84f. (New SG No. 45/2005) (1) In the course of an investigation the customs authorities may take action for securing evidence through distraint or through searches and seizures under the procedure of Article 16, Paragraph 7 and 8 of documents, papers and other information carriers, goods and data processing means, as well as through copying data from and on technical carriers allowing its reproduction, taking the necessary steps to preserve its authenticity.(2) Where no other possibility exists to secure evidence the customs authorities may seal off offices, pay desks, warehouses, trade and other premises for a period of 72 hours.(3) A statement shall be drawn up for the actions under Paragraphs 1 and 2 a copy of which shall be handed over to the inspected person.(4) Before the expiry of the term under Paragraph 2 the body that has assigned the inspection may request from the district court within the jurisdiction of which the facility is located to extend the period of the sealing off. The court shall issue a ruling in a closed sitting on the day the request is received and shall determine a term for the sealing off. The ruling shall not be subject to appeal.(5) The customs authorities shall lift the sealing off if before the expiry of the term under Paragraph 2 the district court has not allowed its extension.(6) The actions to secure evidence may be appealed against within three days before the body that has assigned the inspection, which shall take a substantiated decision not later than the day following the day of the receipt of the appeal. With its decision the body that has assigned the inspection may confirm in whole or in part or revoke the actions appealed against.(7) (Amended, SG No. 30/2006, effective 1.03.2007) Should the body under Paragraph 6 fail to make a decision within the term prescribed or in case the appeal is rejected the actions to secure evidence may be appealed against in respect of their compliance with the law within seven days after the expiry of the term for making a decision under Paragraph 6, of the receipt of the decision respectively, before the administrative court within the jurisdiction of which the body that has assigned the inspection is located. The court shall issue a ruling within 14 days, which shall not be subject to appeal.(8) The appeal shall not suspend the actions to secure evidence.(9) The decision under Paragraph 6 or the ruling under Paragraph 7, which order to discontinue the actions to secure evidence, shall be implemented by the customs authority that has undertaken them.Article 84g. (New SG No. 45/2005, amended, SG No. 105/2005) The provisions of Tax and Social Insurance Procedure Code shall apply to the issues relating to collection, verification and securing evidence and to preparing means of evidence that are not regulated respectively.Article 84h. (New SG No. 45/2005) In the course of conducting the inspection the customs authorities may impose interim security measures under the procedure of Chapter Twenty Six, Section Ia to prevent actions relating to disposition with the property of the inspected person that may result in impossibility or substantial difficulties to collect customs duties or other public state receivables.Article 84i. (New SG No. 45/2005) (1) The customs authorities carrying out an inspection within the framework of follow-up control may accept as established the levy elements determined by them as well as to accept as established the avoidance of trade policy measures when one of the following circumstances exists:1. lack or failure to present accounting information pursuant to the Accountancy Act or the way the accounting is kept does not allow to establish or to determine the amount of the public state receivables as well where the documents required to establish the amount of the public state receivables and to apply trade policy measures have been destroyed at variance with the established procedures;2. the required documents are missing or damaged in a way to make them unfit for use;3. the required additional information and data cannot be obtained since the inspected person has not been found at the registered address or at the permanent address following a conscientious and documented search by the customs authorities;4. in the course of the inspection the inspected person has failed to produce the relevant evidence within the time limit under Article 84d, Paragraph 2.(2) In the cases under Paragraph 1 the customs authorities shall take into consideration any of the circumstances related to the inspected person concerning:1. the type and nature of the activity carried out;2. the customs duties and other public state receivables paid;3. the transactions and the balance in the bank accounts;4. the official and private documents;5. the contracts concluded by the inspected person related to its business;6. the difference between the raw materials and resources supplied and input in production;7. aggregate information on the profit realised, respectively on the income or revenues from other persons engaged in the same or similar business under the same or similar conditions;8. price and other terms of the transactions concluded, including information on such transactions between persons related to the inspected person;9. the supplies received and carried out and the right to tax credit used;10. other evidence material to the specific case.(3) The circumstances under Paragraphs 1 and 2 shall be pointed out in the inspection report.(4) When the circumstances under Paragraph 1, Items 1,2 and 4 exist the customs authorities shall inform the inspected person that they accept as established the levy elements determined by them and that they accept as established the avoidance of the trade policy measures and shall determine a deadline for producing documents and an opinion.Article 84j. (New, SG No. 45/2005) (1) When in the course of an inspection evidence is collected within the time limit under Article 84c on customs violations committed or on a different amount of the customs duties and other public state receivables due, the customs authorities conducting the inspection shall hold with the inspected person a final discussion of the circumstances established in the course of the inspection and of the ensuing legal consequences unless the inspected person rejects the discussion in writing. Within seven days after the final discussion the inspected person may present an opinion in writing on the preliminary findings as well as new evidence.(2) Minutes shall be drawn up of the final discussion, which shall be signed by the customs officers who have conducted the inspection and by the inspected person.(3) In case the inspected person rejects the final discussion or does not sign the minutes under Paragraph 2 this fact shall be certified by two witnesses.Article 84k. (New, SG No. 45/2005) (1) Within 14 days after the expiry of the term under Article 84c, Paragraph 3, Item 6 a written report on the findings shall be drawn up which shall contain:1. number and date;2. the names and positions of the customs officers who have conducted the inspection;3. the factual and legal grounds for the inspection;4. information on the inspected person;5. the type and scope of the inspection;6. the actions carried out and the established facts and circumstances;7. the findings made;8 the steps taken to secure the evidence and the public state receivables;9. proposals on determining the amount of the customs duties and the other public state receivables and on instituting administrative penal proceedings;10. list of the evidence enclosed;11. signatures of the customs officers who have drawn up the report and of the head of the respective follow-up control unit.(2) The evidence enclosed with the report shall be an integral part thereof. The originals of the collected written evidence shall be enclosed with the copy of the report intended for the customs body that has assigned the inspection and certified copies thereof shall be enclosed with the copy intended for the inspected person.(3) The factual findings in the report must be supported with evidence and shall be deemed true unless proven otherwise.(4) Within seven days after its completion the inspection report and the evidence enclosed therewith shall be handed over to the inspected person against signature and shall be presented to the body that has assigned the inspection for follow-up action. In case it is impossible to hand over the report to the inspected person in person the customs authorities shall dispatch it by registered mail with a return receipt.(5) The inspected person may present written objections and produce additional evidence before the body that has assigned the inspection within 14 days after the date of receipt of the report.Article 84l. (New, SG No. 45/2005) The provisions of Article 211d shall apply to handing over notices and documents in the course of carrying out inspections within the framework of follow-up control.Chapter FifteenIMPORTATIONArticle 85. (1) Release for importation shall confer upon foreign goods the customs status of local goods.(2) Importation shall entail application of trade policy measures, completion of the formalities laid down in respect of importation of goods and the levying of the customs duties due.Article 86. (1) If after the date of acceptance of the importation customs statement but before the goods are released, the rate of customs duties or the charges with equivalent effect are reduced the reporting person may request application of the more favourable rates or charges. In such cases the provisions of Article 73 shall not apply.(2) Paragraph 1 shall not apply when the goods have not been released for reasons attributable to the reporting person.Article 87. When a consignment contains goods with different tariff classifications, the separate reporting of which leads to processing and costs disproportionate to the import duties chargeable, the customs authorities shall be entitled, at the request of the reporting person, to agree that import duties be charged on the whole consignment on the basis of the tariff classification of the goods with highest customs duty rate.Article 88. (1) (Amended SG No. 37/2003) Goods which due to their use for specific purposes are placed under import regime with reduced or zero rates of customs duties or with exemption of customs duties shall remain under customs supervision. Customs supervision shall come to an end when:1. the conditions laid down for granting a reduced or zero rate of duty or for exemption of import customs duties cease to apply;2. the goods are exported or destroyed; or3. the use of the goods for purposes other than those laid down for the application of a reduced or zero rate of duty or for exemption of customs duties is permitted subject to payment of the customs duties due.(2) The provisions referred to in Article 94 Paragraphs 2 and 3 and Article 96 shall apply, mutatis mutandis, to goods referred to in Paragraph 1.Article 89. Imported goods shall lose their status of local goods when:1. the import customs statement is invalidated after their release; or2. the import duties payable on those goods are repaid or remitted under terms and procedures laid down in the Regulations.Chapter SixteenSUSPENSIVE ARRANGEMENTS REGIMES AND CUSTOMS ECONOMIC REGIMESSection IGeneral ProvisionsArticle 90. (1) For the purposes of application of the regimes referred in Articles 91 to 96:1. the term "suspensive arrangements regime" shall refer to foreign goods, placed under the following regimes:(a) transit;(b) customs warehousing;(c) inward processing with deferred payment;(d) processing under customs control;(e) temporary importation.2. the term "customs economic regime" shall refer to goods placed under the following regimes:(a) customs warehousing;(b) inward processing;(c) processing under customs control;(d) temporary importation;(e) outward processing.(2) Goods placed under a deferred payment regime and goods under the inward processing regime in the form of the drawback system, that have undergone the formalities for import and the formalities provided in Article 128, Paragraph 4 shall be considered imported goods.(3) Imported goods, which under the inward processing regime or the customs control processing regime have undergone no form of processing, shall be considered goods in unaltered state.Article 91. The use of any customs economic regime shall be conditional upon authorization being issued by the customs authorities.Article 92. The authorizations referred to in Article 91 and in Article 106, Paragraph 1 shall be granted in compliance with the conditions provided for the respective regime:1. (amended and supplemented, SG No. 63/2000) to persons who are in a position to ensure the proper conduct of the operations; and2. (amended, SG No. 63/2000) when the customs authorities are in a position to ensure the supervision and control of the regime without having to introduce administrative requirements that do not correspond to the economic need for using the regime.Article 93. (1) The conditions under which the respective regime is applied shall be set out in the authorization.(2) The holder of the authorization shall be obliged to notify the customs authorities of any change occurring after its issuing which might influence its contents and the conditions for its application.Article 94. (1) In cases specified in the Regulations or when goods produced from goods under the suspensive arrangements customs regime shall not be considered as local, but as placed under the same customs regime.(2) For placing goods under the suspensive arrangements customs regime the customs authorities may require security for the customs debt.(3) Specific provisions may be laid down in the Regulations for providing the respective security for each customs regime with suspensive arrangementsArticle 95. (Amended and supplemented, SG No. 63/2000) (1) A customs economic regime with suspensive arrangements shall be concluded when the goods under this regime or the received compensating or processed products obtain a new permissible customs-approved assignment.(2) The customs authorities shall take all necessary measures prescribed in the Regulations in relation to the goods in respect of which the regime has not been concluded according to the conditions prescribed.Article 96. The rights and obligations of the holder of a customs economic regime may, on the conditions laid down by the customs authorities, be transferred consecutively to other persons who comply with the requirements for using the respective regime.Section IITransitArticle 97. (1) (Amended and supplemented, SG No. 37/2000) The transit regime shall allow the movement from one point to another point within the customs territory of the Republic of Bulgaria of:1. foreign goods without being charged with import customs duties and without being subject to trade policy measures;2. (amended, SG No. 63/2000, SG No. 37/2003; effective 1.11.2003) local goods in cases and under terms specified in the Regulations for which restrictive or promotional export measures have been provided for with the aim that these measures should not be avoided or used illegally.(2) (SG No. 37/2003; effective 1.11.2003) Movement as referred to in Paragraph 1 shall take place:1. under the provisions of the transit regime in the Republic of Bulgaria;2. under cover of a TIR Carnet used as transit guaranty document under the Customs Convention for International Transport of Goods under cover of TIR Carnet (TIR Convention 1975) where:(a) (amended, SG No. 37/2003; effective 1.11.2003) the movement began or is to end outside the country; or(b) (amended, SG No. 37/2003; effective 1.11.2003) the movement relates both to consignments of goods which must be unloaded in the country and to goods to be unloaded outside the country;3. under cover of an ATA Carnet used as transit guaranty document under the prescriptions of the Customs Convention for Temporary Admission of Goods (ATA Convention, 1961), as well as other international conventions, to which the Republic of Bulgaria is a party;4. (new, SG No. 37/2003; effective 1.11.2003) under the cover of form 302 (NATO MANIFEST 302) pursuant to the ratified, promulgated and effective international agreements of the Republic of Bulgaria with the North Atlantic Treaty Organisation, the NATO member-countries and the partner countries participating in "Partnership for Peace";5. (previous Item 4, SG No. 37/2003, effective 1.11.2003) by post (including parcel post).(3) The transit regime shall apply without prejudice to the specific provisions applicable to the movement of goods placed under an economic customs regime.Article 98. (Amended, SG No. 37/2003; effective 1.11.2003) (1) The transit regime shall end and the obligation of the holder of the regime shall be concluded when the goods placed under the regime and the required documents are presented at the customs office of destination in accordance with the provisions of the regime.(2) The customs authorities shall conclude the transit regime when they establish on the basis of comparing the information available at the sending with the information available at the receiving customs office that the transit regime has ended normally.Article 99. (Amended, SG No. 37/2003; effective 1.11.2003) The transit regime for carrying goods through the territory of another country shall be applied when:1. this possibility is provided under an international agreement;2. carriage through the other country is effected on the basis of a single transport document issued in the customs territory of the Republic of Bulgaria. In such cases the operation of that regime shall be suspended temporarily on the territory of the other country.Article 100. (Amended, SG No. 37/2003; effective 1.11.2003) (1) The persons responsible for the transit regime shall be obliged to provide security in order to ensure the payment of the customs debt and of the other public state receivables that might arise for the goods.:(2) The security may be:1. one-off, covering a single transit operation. or2. general, covering several transit operations when the customs authorities have permitted the person responsible to use such genera; security.(3) The permission under Paragraph 2, Item 2 shall be given to native person who:1. use regularly the transit regime or about whom the customs authorities know that they are capable of fulfilling their obligations for this regime, and2. have not committed serious or repeated violations of the customs or the tax legislation.(4) Persons who prove before the customs authorities that they meet higher reliability requirements may receive permission to use a general security of a reduced size or permission for exemption from the obligation to provide security. The additional criteria for this permission shall include:1. the correct use of the transit regime during a certain period;2. cooperation with the customs authorities, and3. in relation to the permission for exempting from the obligation to provide security - a sufficiently stable financial condition for covering the liability of the persons.(5) The detailed terms for applying the criteria as well as the procedure for giving the permission under Paragraph 4 shall be specified in the Regulations.(6) The permission for exempting from the obligation to provide security under Paragraph 4 shall not apply to transit operations comprising goods specified in the Regulations as high risk goods.(7) Taking into consideration the principles in Paragraphs 4 the use of a general security of a reduced size for the transit regime may be temporarily prohibited as an exceptional measure under special circumstances.(8) Taking into consideration the principles in Paragraphs 4 the use of a general security of a reduced size for the transit regime may be temporarily prohibited for goods which, when the general security regime is used, have been identified and are the subject of a wide range of fraud.(9) The measures under Paragraphs 7 and 8 shall be introduced with an order of the Director of the Customs Agency which shall be published in the State Gazette.Article 101. (Amended, SG No. 37/2003; effective 1.11.2003) No provision of security shall be required for:1. carriage by water or by air;2. carriage by electric lines and pipelines3. carriages by rail performed by the licensed railway carriers and carriage of postal Items, including parcels;4. carriage specified by a statutory instrument of the Council of Ministers.Article 102. (Amended and supplemented, SG No. 63/2000, amended, No. 37/2003; effective 1.11.2003) (1) The person responsible shall be the holder of the transit regime. The person responsible shall be obliged:1. to present the goods in the receiving customs office in an unchanged state within the prescribed term and in compliance with the measures taken by the customs authorities for their identification;2. to observe the provisions for the transit regime.(2) Notwithstanding the obligations of the person responsible under Paragraph 1 the carrier or the consignee who accepts the goods and knows that they have been placed under a transit regime shall also be obliged to present them in an unchanged state at the receiving customs office within the prescribed term and in compliance with the measures taken by the customs authorities for their identification.Article 103. (1) (Previous Article 103, SG No. 37/2003, effective 1.11.2003) The terms, procedure and exemptions in the application of the transit regime shall be established in the Regulations.(2) (New, SG No. 37/2003; effective 1.11.2003) While observing the measures provided for the goods in the Regulations it shall be allowed:1. to introduce through bilateral or multilateral agreements less strict formalities valid for certain types of goods or activities, pursuant to criteria specified in the agreements;2. to introduce with a Council of Ministers act less strict formalities for goods under certain conditions.Section IIICustoms WarehousingArticle 104. (1) The customs warehousing regime shall allow the placing and storage in a customs warehouse of:1. foreign goods which shall not be charged with import duties and shall not be subject to trade policy measures;2. local goods, for which pursuant to existing provisions the application of measures normally pertinent to export shall be used when placing them in a customs warehouse.(2) Customs warehouse shall mean any place approved by and under the supervision of the customs authorities where goods may be stored under certain conditions.(3) The cases in which the goods referred to in Paragraph 1 may be placed under the customs warehousing regime without being stored in a customs warehouse shall be determined in the Regulations.Article 105. (1) A customs warehouse may be either public or private. A public warehouse shall mean a warehouse available for use by any person for the warehousing of goods while a private warehouse shall mean a customs warehouse which can be used only for warehousing of goods by the warehouse keeper.(2) The warehouse keeper shall be a person authorized to manage the customs warehouse.(3) The depositor to the warehouse shall be the person bound by a customs statement to place the goods under customs warehousing regime or to whom these rights and obligations have been transferred.Article 106. (1) The opening and managing of a customs warehouse shall be allowed after the issue of an authorization by the customs authorities, unless the said authorities operate the customs warehouse themselves.(2) Any person wishing to open and manage a customs warehouse shall make a request in writing to the customs authorities containing the information required for granting the authorization and proving the economic viability for warehousing. The authorization shall lay down the conditions for opening and managing the customs warehouse.(3) The authorization shall be granted only to local persons.Article 107. The warehouse keeper shall be obliged:1. to ensure that while the goods are in the customs warehouse they are not removed from customs supervision;2. (amended SG No. 37/2003; effective 1.11.2003) to observe the obligations that arise from the storage of goods;3. to comply with the terms specified in the authorization.Article 108. (1) (Amended SG No. 37/2003) When the authorization concerns a public warehouse the responsibilities referred to in Article 107, Items 1 and/or 2 may be assigned exclusively upon the depositors in the warehouse.(2) The depositor shall be responsible at all times for complying with the obligations arising from the placing of goods under the customs warehousing regime.Article 109. The rights and obligations of a warehouse keeper maybe transferred to another person with the agreement of the customs authorities.Article 110. The customs authorities, without prejudice to the provisions laid down in Article 94, may demand that the warehouse keeper provides a guarantee in connection with the responsibilities specified in Article 107.Article 111. (1) The stock records of all goods placed under the customs warehousing regime shall be kept by a person approved by the customs authorities under terms and according to a procedure endorsed by them, except where the public warehouse is managed by the customs authorities.(2) Goods placed under the customs warehousing regime shall be entered in the records immediately after their entry in the warehouse.(3) Subject to the application of Article 92, the customs authorities may not require keeping stock records when:1. (amended SG No. 63/2000, supplemented, SG No. 37/2003; effective 1.11.2003) the responsibilities referred to in Article 107, Items 1 and/or 2 lie exclusively with the depositor; and2. the goods are placed under customs warehousing regime on the basis of a written report forming part of the normal procedure or a commercial or other document accompanied with a request for placing the goods under that customs regime.Article 112. (1) Where a reasonable economic need exists and customs supervision is not adversely affected thereby, the customs authorities shall be entitled to allow:1. local goods, other than goods referred to Article 104, Paragraph 1, Item 2 to be stored in a customs warehouse;2. foreign goods to be processed in the customs warehouse admitted under the inward processing regime, subject to the conditions provided for by that regime;3. foreign goods to be processed in the customs warehouse under the customs control processing regime, subject to the conditions provided for by that regime;4. formalities that may not be performed in a customs warehouse under Items 2 and 3 pursuant to the Regulations.(2) In the cases referred to in Paragraph 1 the goods shall not be placed under the customs warehousing regime.(3) The customs authorities may require the goods referred to in Paragraph 1 to be entered in the stock records under the procedure of Article 111.Article 113. (1) There shall be no limit to the length of time the goods may remain under the customs warehousing regime.(2) The Regulations may set certain cases where the customs authorities shall be entitled to set a time limit before the expiration of which the principal shall be obliged to apply for another customs assignment.Article 114. (1) While being under the customs warehousing regime, imported goods may be subject to the usual operations listed in the Regulations intended to ensure their preservation, improve their commercial appearance or quality or prepare them for distribution or resale.(2) The operations under Paragraph 1 shall be coordinated in advance with the customs authorities, which shall lay down the conditions for their performance.Article 115. (1) When specific circumstances so warrant, goods placed under the customs warehousing regime may temporarily be removed from the customs warehouse. The removal of the goods must be authorized in advance by the customs authorities, which shall lay down the conditions under which it may be carried out.(2) While they are outside the customs warehouse the goods may undergo the operations under Article 114 on the conditions set out therein.Article 116. The customs goods placed under customs warehousing regime may be transferred from one customs warehouse to another with the permission of the customs authorities.Article 117. (Amended SG No. 63/2000, SG No. 37/2003; effective 1.11.2003) (1) When a customs debt occurs for the import of goods and the customs value of these goods is determined on the basis of the price actually paid or payable that includes expenses for storing the goods and their preservation while the goods are kept in the warehouse, these expenses shall not be included in the customs value provided they have been separated from the price of the goods actually paid or payable.(2) When foreign goods have undergone the usual operations in the meaning of Article 114, on the request of the reporting person for determining the import customs duties, the data on the type, quantity and the customs value shall apply that would have been applicable at the moment of the occurrence of the customs debt for these goods had they not undergone the operations specified. The exceptions from these provisions shall be set out in the Regulations.(3) When foreign goods are placed under import regime pursuant to Article 82, Paragraph 1, Item 3 without they being presented before the customs authorities the type, customs value and the quantity of these goods at the moment of placing them under the customs warehousing regime shall be valid for determining the amount of the import customs duties provided these levy elements had been accepted or allowed by the customs authorities when placing the goods under the customs warehousing regime and the interested person has not submitted a request for applying the levy elements valid at the moment of the occurrence of the customs debt. The customs processing performed shall not prevent the application of the follow-up control provisions. For more information visit www.solicitorbulgaria.com id: 336 Mon, 04 Aug 2008 06:44:09 -0700 http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CUSTOMS_ACT1.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 335 Section IVInward ProcessingArticle 118. (1) Without prejudice to Article 119, the inward processing regime shall allow the following goods to be used in the customs territory of the Republic of Bulgaria in one or more processing operations:1. foreign goods intended for re-export in the form of compensatory products, without being subject to import duties or trade policy measures;2. (supplemented, SG No. 63/2000) imported goods with reimbursement of or exemption from the import duties chargeable if they are exported from the customs territory of the Republic of Bulgaria.(2) For the purposes of the inward processing customs regime, the following meanings shall apply:1. suspension payment system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 1;2. drawback system shall mean the inward proceeding regime as provided for in Paragraph 1, Item 2;3. processing operations shall mean:(a) the treatment of goods including installing or assembling them to other goods;(b) the processing of goods;(c) the repair of goods, including restoring them entirely;(d) the use of certain goods defined in the Regulations which are not contained in the compensating products but which allow or facilitate their production even if they are entirely or partially used in the manufacturing process;4. compensating products shall mean all products resulting from operations for improving the goods;5. equivalent goods shall mean all Bulgarian goods used instead of imported goods for the manufacture of the compensating products;6. rate of yield shall mean the quantity or percentage of compensating products obtained in the course of processing a given quantity of imported goods.Article 119. (1) The customs authorities shall allow:1. compensating products to be obtained from equivalent goods;2. compensating products obtained from equivalent goods to be exported from the customs territory of the Republic of Bulgaria before importation of the imported goods.(2) Equivalent goods must be of the same quality and have the same characteristics as the imported goods. In cases determined by the Regulations, equivalent goods may be allowed to be at a more advanced stage of manufacture than the imported goods.(3) Where Paragraph 2 applies the imported goods shall be regarded for customs purposes as equivalent goods and the equivalent - as imported goods.(4) (Amended and supplemented, SG No. 37/2003; effective 1.11.2003) The application of the measures in Paragraph 2 may be prohibited, restricted or facilitated under terms and procedures specified in the Regulations.(5) Where Paragraph 2, Item 2 applies and the compensating products would be subject to export customs duties and they were not exported or re- exported under an inward processing regime, the holder of the authorization shall provide security to ensure payment of the duties, should the imported goods not be imported within the period prescribed.Article 120. The authorization for inward processing shall be issued at the request of the person who carries out or orders the processing operations.Article 121. The authorization shall be issued to local persons or to foreign persons in respect of imports of a non-commercial nature:1. (supplemented SG No. 37/2003; effective 1.11.2003) when the imported goods can be identified in the compensating products with the exception of goods mentioned in Article 118, Paragraph 2, Item 3 (d) or in the cases referred to in Article 119, when compliance with the conditions laid down in respect of equivalent goods can be verified;2. (supplemented SG No. 37/2003; effective 1.11.2003) when the inward processing regime can help create more favourable conditions for exportation or re-exportation of compensating products, provided that the essential economic interests of producers in the Republic of Bulgaria are not adversely affected (trade conditions). The cases in which trade conditions shall be deemed complied with shall be specified in the Regulations.Article 122. (1) The customs authorities shall specify a term within which the compensating products must be exported or re exported or assigned another customs assignment. This term shall be determined taking into account the duration of the processing operations and disposing with the compensating products.(2) (Supplemented, SG No. 63/2000) The term shall run from the date on which the foreign goods are placed under the inward processing regime. The customs authorities may grant an extension of this term upon submission of a duly substantiated request by the holder of the authorization. The customs authorities may allow a term, which shall start running within a calendar month or quarter, to expire on the last day of the subsequent calendar month or quarter respectively.(3) Where the provisions of Item 2 of Article 119 (1) apply, the customs authorities shall specify the term for importing and reporting foreign goods for the regime. This term shall run from the date of acceptance of the export manifest relating to compensating products obtained from the equivalent goods.(4) Special terms may be laid down in the Regulations for certain imported goods or processing operations.Article 123. (1) The customs authorities shall set either the rate of yield of the processing operations or the method of determining such rate. The rate of yield shall be determined on the basis of the actual terms under which the processing operation is, or should be, carried out.(2) Based on acquired data for generally performed processing operations, the Regulations may set a standard rate of yield for processing operations for goods with the same characteristics under the same technological conditions, leading to the manufacture of a compensating product with constant quality.Article 124. The cases and conditions under which the goods in unaltered state or compensating products shall be considered to have been placed under regime for importation shall be specified in the Regulations.Article 125. (1) Subject to the provisions laid down in Article 126, when a customs liability occurs, its amount shall be determined on the basis of levying elements corresponding to the imported goods at the time of accepting the report for placing these goods under the inward processing regime.(2) (Amended, SG No. 63/2000) If at the time of acceptance of the customs statement for a preferential tariff treatment within tariff quotas or ceilings exists for identical goods as those reported, these goods may be eligible for the envisaged preferential treatment, provided at the moment of acceptance of the statement for placing the imported goods under an inward processing regime they complied with the terms for preferential tariff treatment.Article 126. Beyond the cases under Article 125 the compensating products:1. (amended, SG No. 63/2000) shall be subject to the import customs duties for these products when they are placed under importation and are included in a list attached to the Regulations and if they are in amounts which correspond to the rate of yield of the exported part of the compensating products, not included in that list. The holder of the authorization may request for the duty on those products to be assessed under the conditions referred to in Article 125;2. shall be subject to import customs duties determined in accordance with the provisions applicable to suspensive arrangements or free zone or free warehouse regime, if they had been placed under such regime or are in a free zone or in a free warehouse, and:(a) the person concerned may request the duty to be assessed in accordance with Article 125;(b) when the compensating products have been assigned one of the customs assignments specified, other than processing under customs control, the amount of the import customs duties shall not be less than the amount calculated in accordance with Article 125;3. may be assessed under the customs control processing regime if the imported goods may be placed under that regime;4. (supplemented SG No. 63/2000) shall enjoy a more favourable tariff treatment owing to their special purpose, provided such treatment is envisaged for the imported identical goods;5. (supplemented SG No. 63/2000) shall be exempt from import customs duties if such exemption is provided for the imported identical goods in the cases under Article 181, Paragraph 1.Article 127. (1) The compensating products or goods in unaltered state or parts thereof may be exported temporarily for the purpose of further processing operations outside the customs territory of the Republic of Bulgaria under the terms of the outward processing regime.(2) When a customs debt occurs in respect of re-imported products and goods under Paragraph 1, the following shall be charged:1. (supplemented SG No. 63/2000) the compensating products or goods in unaltered state under Paragraph 1 whose import customs duties shall be calculated pursuant to Articles 125 and 126, and2. the re-imported products after their processing outside the customs territory of the Republic of Bulgaria, the amount of import customs duties of which shall be calculated pursuant to the provisions of the outward processing regime under the same terms that would have been applied had the products exported under the said regime been admitted for importation before such exportation took place.Article 128. (1) (Amended SG No. 37/2003; effective 1.11.2003) The drawback system may be applied to all goods, with the exception of the cases for which, at the time the accepting the import customs statement:1. there are quantitative import restrictions for imported goods;2. tariff measure within quotas are applied to imported goods;3. import or export licences are required for imported goods or certificates within the agricultural policy;4. export subsidies or charges are provided for compensating products.(2) (Amended SG No. 37/2003; effective 1.11.2003) No drawback shall be performed if at the moment of accepting the export manifest of compensating products the presentation of import or export licences is required for them or certificates within the agricultural policy or export subsidies or charges are provided for them.(3) (Amended SG No. 37/2003; effective 1.11.2003) The exceptions from Paragraphs 1 and 2 may be specified in the Regulations.(4) The import customs statement must contain indications that the drawback system is being used as well as the number and the date of the authorization for its application.Article 129. Under the drawback system the provisions laid down in Article 119, Paragraph 1, Item 2 and Paragraphs 3 and 5, Article 122, Paragraph 3, Article 124, Article 125, Article 126, Item 3 and Article 132 shall not apply.Article 130. Temporary exportation of compensating products carried out as provided for in Article 127, Paragraph 1, shall not be considered to be exportation within the meaning in Article 131 except where such products are not re-imported in the Republic of Bulgaria within the terms prescribed.Article 131. (1) The holder of the authorization shall be entitled to request the import duty to be reimbursed or remitted when he provides proof to the customs authorities that the imported goods under the drawback SYSTEM or the compensating products obtained from them are:1. exported; or2. placed, with a view of being subsequently re-exported, under one of the following customs regimes: transit, customs warehousing, temporary importation, inward processing with suspensive arrangement or in a free zone or a free warehouse.(2) The provision in Paragraph 1 shall be applied provided all conditions for using the respective regime have been met.(3) For obtaining a customs assignment under Paragraph 1, Item 2 imported goods and compensating products shall be deemed to be foreign goods.(4) The reimbursement application shall be made within a period specified in the Regulations.(5) (Amended SG No. 153/1998, No. 63/2000) Compensating products or goods in an unchanged state placed under a customs regime or in a free zone or a free warehouse pursuant to the provisions of Paragraph 1 may be placed under importation regime only with the authorized by the customs authorities. In such cases, in compliance with the provisions laid down in Article 126, Item 2, the amount of customs duties reimbursed or remitted shall correspond to the amount of the customs debt.(6) For the purpose of determining the amount of import customs duties to be reimbursed or remitted, the provisions in Article 126, Item 1 shall apply, mutatis mutandis.Article 132. When the inward processing regime applies under the suspension payment system compensating products shall be exempted from export customs duties collectable for identical products obtained form local goods instead of imported ones.Section VProcessing Under Customs ControlArticle 133. The customs control processing regime shall allow foreign goods to be admitted to the customs territory of the Republic of Bulgaria for processing with the purpose of altering their appearance or state without being subject to import customs duties or trade policy measures. Products resulting from such processing (processed products) shall be cleared for importation in the country after paying the import customs duties due for them.Article 134. (Supplemented SG No. 37/2003; effective 1.11.2003) The cases and the specific terms under which the customs control processing regime may be used shall be determined in the Regulations.Article 135. (1) Authorization for the customs control processing regime shall be granted at the request of the person who carries out the processing or arranges for it to be carried out.(2) The authorization shall be granted only to local persons when:1. (supplemented SG No. 153/1998, SG No. 63/2000) the imported goods can be identified in the processed products;2. after processing the goods it is not economically viable to restore the appearance they had before being placed under the regime;3. the use of the regime will not lead to circumvention of the rules on origin and quantitative restrictions applicable to imported goods;4. (supplemented SG No. 37/2003; effective 1.11.2003) the application of the regime stimulates the development of the respective activity in the country without affecting adversely essential economic interests of local manufacturers of similar goods (economic terms). The cases in which economic terms shall be complied with shall be specified in the Regulations.Article 136. The provisions laid down in Article 122, Paragraphs 1 and 2 and Article 123 shall apply as well in cases of processing under customs control, mutatis mutandis.Article 137. When a customs debt occurs in respect of goods in an unaltered state or products in an intermediate stage of processing in relation to that provided for in the authorization, the amount of that debt shall be determined on the basis of the levying elements established for the imported goods at the time of acceptance of the report relating for the processing of the goods under customs control.Article 138. (1) (Amended SG No. 37/2000) When allowing customs control processing regime if the imported goods qualified for the conditions of preferential tariff treatment and such treatment was applicable to products identical to the processed products cleared for importation the preferential customs rates shall apply for calculating the import customs duties for the processed products..(2) The provisions of Paragraph 1 shall apply also in cases of tariff quotas or ceilings. In these cases the quantity of imported goods actually used in the manufacture of the processed products shall be deducted from the quantity of the imported goods.Section VITemporary ImportationArticle 139. The temporary importation regime shall allow the use of the customs territory of the Republic of Bulgaria with total or partial exemption from import customs duties and without applying trade policy measures for foreign goods intended for re-export without undergoing any changes except for the normal depreciation due to their use.Article 140. Authorization for temporary importation shall be granted at the request of the person who uses the goods or arranges for them to be used.Article 141. (1) The customs authorities shall not authorise temporary importation when it is impossible to identify the imported goods.(2) The customs authorities may authorize temporary importation regime without identification of the goods when their nature or the operations to be carried out will not bring about any abuse of the regime.Article 142. (1) The customs authorities shall determine the period within which imported goods must be re-exported or obtain a new customs assignment. This period must be sufficient for carrying out the authorized use.(2) (Supplemented SG No. 63/2000) The maximum period during which the goods may remain under the temporary importation regime shall be twenty four months in compliance with the provisions on the specific terms under Article 143. The customs authorities may specify a shorter period with the consent of the person concerned.(3) (Supplemented SG No. 63/2000) In case of exceptional circumstances the customs authorities may, at the request of the person concerned, extend the terms under Paragraphs 1 and 2 within reasonable limits for carrying out the authorized use.Article 143. The cases, terms and conditions under which the temporary importation procedure may be used with total exemption from import duties shall be determined in the Regulations.Article 144. (1) (Supplemented SG No. 37/2003; effective 1.11.2003) The use of temporary import regime with partial exemption form import customs duties shall be authorised for goods which are not indicated in the cases under Article 143 or are indicated but do not comply with all conditions provided for the authorisation of temporary importation with full exemption form import customs duties.(2) (Amended SG No. 37/2003; effective 1.11.2003) The terms for using temporary import regime with partial exemption from import customs duties as well as the goods for which this regime may be used shall be determined in the Regulations.Article 145. (1) (Amended SG No. 153/1998) The amount of import customs duties payable in respect of goods placed under temporary importation regime with partial exemption from import duties shall be set at 3 per cent, for every month or fraction of a month, of the amount of customs duties which would have been payable for the said goods had they been allowed under importation regime on the date on which they were placed under the temporary importation regime.(2) The amount of the partial import customs duties due shall not exceed the, amount of customs duties which would have been due if the goods concerned had been cleared under the importation regime on the date they were placed under the temporary importation regime, without adding the interest due.(3) The transfer of the rights and obligations deriving from the temporary importation regime pursuant to Article 96 shall not require the application of the same exemption arrangement to each of the periods of use.(4) Where the transfer of the rights and obligations has been effected under the regime with partial exemption for two holders of the regime during the same month the holder of the initial authorization shall be liable for the amount of import customs duties due for the whole month.Article 146. (1) (Amended SG No. 63/2000) When a customs debt occurs in respect of imported goods its amount shall be determined on the basis of the levy elements appropriate to those goods at the time of acceptance of the customs statement for their placing under the temporary importation regime. In cases referred to in Article 143, specified in the Regulations, the amount of debt shall be determined on the basis of the levy elements appropriate to the goods in question at the time the corresponding customs debt occurred.(2) When, for a reason other than placing of goods under temporary importation regime with partial exemption from import duties a customs debt occurs in respect of such goods, the amount of that debt shall be equal to the difference between the amount of customs duties calculated pursuant to Paragraph 1 and the customs duties calculated pursuant to Article 145.Section VIIOutward ProcessingArticle 147. (1) Without prejudice to the provisions of Articles 156 to 161 and to Article 127 applicable under the standard exchange system the outward processing regime shall allow local goods to be exported temporarily from the customs territory of the Republic of Bulgaria in order to undergo processing operations and the products resulting from those operations to be cleared for importation regime with full or partial exemption from import customs duties.(2) The temporary export of local goods shall include their levying with export duties, application of trade policy measures and other formalities provided for the exportation of local goods outside the territory of the Republic of Bulgaria.(3) For the purposes of the outward processing regime, the following definitions shall apply:1. temporarily exported goods shall mean goods placed under the outward processing regime;2. processing operations shall mean the operations referred to in Article 118, Paragraph 2, Item 3 (a), (b) and (c);3. compensating products shall mean all products resulting from processing operations;4. rate of yield shall mean the quantity or percentage of compensating products obtained from the processing of a given quantity of temporarily exported goods.Article 148. (1) Local goods shall not be placed under the outward processing regime, when:1. their exportation gives rise to reimbursement or remission of import customs duties;2. (amended SG No. 37/2003, effective 1.11.2003) prior to the exportation they have been under the importation regime with full exemption from import duties by virtue of their use for specific purposes as long as the conditions for granting such exemption continue to apply;3. their exportation allows the receipt of subsidy.(2) Derogations from the provisions in Paragraph 1, Item 2 may be specified in the Regulations.Article 149. (1) Authorization for outward processing shall be issued at the request of the person who arranges the performance of the processing operations.(2) When the processing operations consist of incorporating goods with Bulgarian origin in the meaning herein into goods obtained outside the Republic of Bulgaria and imported as compensating products, authorization for the use of the outward processing regime may be granted to another person. The authorization shall be granted if the sale of the exported goods is facilitated without adversely affecting the essential interests of local producers of products identical or similar to the imported compensating products.(3) The cases and the specific arrangements under which the provisions laid down in Paragraph 2 shall apply shall be determined in the Regulations.Article 150. Authorization shall be granted to local persons when:1. it will be possible to establish that the compensating products have resulted from processing of the goods exported temporarily. Derogations from this provision may be specified in the Regulations;2. the authorization to use the outward processing regime shall not seriously harm the essential economic interests of local producers.Article 151. (1) The customs authorities shall specify the period within which the compensating products must be re-imported into the customs territory of the Republic of Bulgaria. Such period may be extended on submission of a duly substantiated request by the holder of the authorization.(2) The customs authorities shall set the rate of yield of the operation and, where necessary, the method for determining that rate.Article 152. (1) Full or partial exemption from import customs duties under Article 153, Paragraph 1 shall be authorised provided the compensating products have been reported for import on behalf of or at the expense or:1. the holder of the authorization; or2. any other local person, who has obtained the agreement of the holder of the authorization and if the condition of the authorization is met.(2) The total or partial exemption from import customs duties provided for in Article 153, Paragraph 1 shall not be authorised when one or some of the conditions or obligations under the outward processing regime are not fulfilled with the exception of cases where such non-fulfilment has not adversely affected the functioning of the regime.Article 153. (1) The total or partial exemption from import duties under Article 147, Paragraph 1 shall be effected by deducting from the amount of the import customs duties applicable to the imported compensating products the amount of the import customs duties that would have been applicable on the same date to the temporarily exported goods had they been imported into the customs territory of the Republic of Bulgaria from the country where they underwent the processing operation or the last processing operation.(2) (Supplemented SG No. 37/2003; effective 1.11.2003) The amount deducted under Paragraph 1 shall be calculated on the basis of the quantity and type of the temporarily exported goods on the date of acceptance of the statement placing them under the outward processing regime and on the basis of the other levy elements applicable to them on the date of acceptance of the customs statement for the compensating products. Where Paragraph 1 is applied the value of the temporarily exported goods shall be the one that shall be taken into consideration for these goods when assessing the customs value of the compensating products pursuant to Article 38, Paragraph 1, Item 2 (a) or if the value cannot be assessed in this way - the difference between the customs value of the compensating products and the processing costs determined through any other appropriate method.(3) (Amended SG No. 37/2003; effective 1.11.2003) For the purposes of applying Paragraph 2:1. the Regulations shall specify the costs that shall not be taken into consideration when assessing the deduction sum;2. when the temporarily exported goods, before their placement under the outward processing regime, have been placed under import regime with reduced customs duties by reason of their use for specific purposes and until the conditions specified for applying the reduced customs duties remain in force, the deduction sum shall be the amount of the import customs duties actually collected before their release under the import regime;(4) (New SG No. 37/2003; effective 1.11.2003) In case the goods exported temporarily could have used reduced or zero-rate customs duties due to their designation for specific purposes had they been placed under import regime, this amount of the customs duties shall be taken into consideration provided these goods had been subject to the same operations provided for such specific use in a country where they underwent the operation or the last processing operation.(5) (New SG No. 37/2003; effective 1.11.2003) When the compensating products use the preferential tariff measure in the meaning of Article 26, Paragraph 1, Item 4 or 5 and if such measure is applicable for goods with the same tariff number as the one of the goods exported temporarily, the amount of the customs duties that shall be taken into account when calculating the deduction sum under Paragraph 1 shall be the one that would have been applicable had the goods exported temporarily complied with the terms under which this preferential tariff measure could be applied;(6) (Previous (4) SG No. 37/2003; effective 1.11.2003) If within the trade turnover between the Republic of Bulgaria and third countries provisions have been made for exemption from import duties in respect of certain compensating products, the provisions laid down in this Article shall not apply.Article 154. (1) When the purpose of a processing operation is the repair of the goods exported temporarily their subsequent importation shall take place with full exemption from import customs duties if it is proven that the repairs were carried out free of charge due either to a warranty obligation or to a manufacturing defect.(2) Paragraph 1 shall not apply when the defect was established and taken into account at the time of the original importation of these goods.Article 155. (1) (Previous Article 155, SG No. 37/2003; effective 1.11.2003) When the purpose of the processing operation is the repair of the goods exported temporarily for payment the partial exemption from import customs duties shall be the establishing of the amount of the customs duties due on the basis of the levy elements of the compensating products at the date of acceptance of the import customs statement for those products, and the customs value shall be equal to the repair costs, provided that those costs represent the only payment by the holder of the authorization and are not influenced by any links between him and the repairer.(2) (New SG No. 37/2003; effective 1.11.2003) As a departure from the provisions of Article 153 the Regulations may specify in which cases and under what specific conditions the goods may be placed under import regime following outward processing, taking the processing costs as a basis for determining the customs value for the purposes of applying the Customs Tariff of the Republic of Bulgaria.Article 156. (1) The compensating product may be replaced by imported goods (replacement product) when applying the standard exchange system and in compliance with the provisions of Articles 156 to 161.(2) The customs authorities shall authorise the standard exchange system to be used when the processing operation involves the repair of Bulgarian goods.(3) The provisions applicable to compensating products shall also apply to replacement products with the exception of the ones under Article 149, Paragraphs 2 and 3 and Article 149.(4) The customs authorities may permit, under conditions they lay down, advance import of replacement products before the exportation of the goods exported temporarily.(5) In case of advance import of a replacement product security shall be instituted for the import customs duties.Article 157. (1) Replacement products shall have the same tariff classification, the same trade quality and technical characteristics as the goods exported temporarily intended for the envisaged repairs.(2) When the goods exported temporarily have been used before being exported, the replacement products must also have been used. The customs authorities may allow the replacement product not to be used if it has been supplied free of charge due to a warranty obligation or to manufacturing defect.Article 158. Standard exchange shall be authorized only when it is possible to verify that the conditions laid down in Article 157 are met.Article 159. (1) In case of advance import the export of goods exported temporarily shall be carried out within two months from the date of acceptance of the import customs statement for the replacement products.(2) The customs authorities may extend the period under Paragraph 1 on submission of a duly substantiated request by the holder of the authorization.Article 160. In case of advance import and when the provisions of Article 153 are applied the amount to be deducted shall be determined on the basis of the levy elements of goods exported temporarily on the date of acceptance of the statement placing them under the outward processing regime.Article 161. Article 149, Paragraphs 2 and 3 and Article 150 shall not apply vis a vis standard exchange.Article 162. The procedures provided for the outward processing regime shall also apply to goods using trade tariff policy measures other than the tariff.Chapter SeventeenEXPORTATIONArticle 163. (1) The exportation regime shall represent export of local goods outside the customs territory of the Republic of Bulgaria and shall entail the application of formalities provided for the exportation of goods, including trade policy measures and, where applicable, export customs duties.(2) Local goods intended for exportation shall be placed under the exportation regime. This provision shall not apply to goods placed under the outward processing regime or the temporary exportation regime.(3) The export manifest shall be submitted at the customs office in the area where the goods are packed or loaded for export. Exceptions from this provision may be specified in the Regulations.(4) To local goods for which the act provides fiscal preferences for export the exportation regime may apply even in cases where the goods do not leave the customs territory of the Republic of Bulgaria under terms and procedures specified in the Regulations.Article 164. Exportation shall be authorised provided the goods leave the customs territory of the Republic of Bulgaria in the same state they were in when the export manifest was accepted.Chapter EighteenTEMPORARY EXPORTATIONArticle 165. (1) The temporary exportation regime shall allow the export of local goods outside the customs territory of the Republic of Bulgaria under the condition that they be re-imported without having undergone any change except the normal depreciation due to their use.(2) (Amended, SG No. 63/2000) The terms, procedures and time limits concerning the temporary exportation regime shall be established in the Regulations.TITLE THREEOTHER CUSTOMS ASSIGNMENTSChapter NineteenFREE ZONES AND FREE WAREHOUSESSection IGeneral ProvisionsArticle 166. Free zones and free warehouses shall be separate parts of the customs territory of the Republic of Bulgaria or premises situated in that territory in which:1. for the purpose of import customs duties and trade policy importation measures foreign goods are considered as being outside the customs territory of the Republic of Bulgaria provided they have not been placed under import regime or another customs regime and have not been used or consumed in contravention to the customs regulations;2. local goods may use the measures applicable for exportation of goods if this is provided for in another act or instrument of the Council of Ministers.Article 167. (1) (Amended SG No. 37/2003; effective 1.11.2003) Free zones shall be enclosed with the exception of the ones under Article 168a. Free zones and free warehoused shall have defined entry and exit checkpoints.(2) New construction in a free zone shall be coordinated with the customs authorities regarding the possibility of exercising customs supervision and control. Coordination shall take place within a period of thirty days. If the customs authorities do not notify the applicant within this period the coordination shall be deemed completed.Article 168. (1) (Supplemented SG No. 37/2003; effective 1.11.2003) The perimeter and the entry and exit points of free zones or free warehouses shall be subject to supervision by the customs authorities save for the free zones specified in Article 168a.(2) The customs authorities shall be entitled to exercise customs control on persons, vehicles and goods conveyed by them that enter or leave a free zone or a free warehouse.(3) Access to a free zone or a free warehouse may be denied to persons who do not follow the rules provided herein.(4) Goods entering, leaving or remaining in a free zone or a free warehouse may be subject to control by the customs authorities. To enable such control all necessary documents accompanying the goods entering or leaving a free zone or a warehouse shall be presented to the customs authorities or a person designated by them who shall keep them at their disposal. The customs authorities may require presentation of other documents. When control is exercised the goods shall be made available to the customs authorities.Article 168a. (New SG No. 37/2003; effective 1.11.2003) (1) The Council of Ministers may establish free zones in which customs inspections and formalities shall be carried out pursuant to the customs warehousing regime applying the provisions for this regime related to customs duties. Articles 170, 176 and 179 shall not apply to these free zones.(2) The provisions under Article 44 (2), Article 2, Item 8 of Article 199 (1), Item 6 of Article 199 (3), Item 5 of Article 202 (1) shall not be applied for the free zones in compliance with para 1.Section IIPlacing Goods in Free Zones or Free WarehousesArticle 169. (1) Both local and foreign goods may be placed in a free zone or a free warehouse.(2) The customs authorities shall be entitled to require that goods which present a danger or are likely to damage other goods or which require special preservation conditions be placed in premises or locations specially equipped for such goods.Article 170. (1) Without prejudice to Article 168, Paragraph 4 the entering of goods in a free zone or a free warehouse shall not be reason for their presentation to the customs authorities, neither for filing a customs statement.(2) For carrying out the customs formalities provided, goods shall be presented before the customs authorities which:1. have been placed under a customs regime which is concluded when they enter a free zone or a free warehouse. Presentation of the goods shall not be necessary if it is not required under the provisions of the respective customs regime;2. are subject to authorisation for reimbursing or remitting import customs duties provided such authorisation allows to place these goods in free zone or free warehouse;3. qualify for the measures under Article 166, Item 2.(3) The customs authorities shall be notified of the goods subject to export customs duties or to other export regulation provisions.(4) At the request of the persons concerned the customs authorities shall certify the foreign or local status of goods placed in a free zone or a free warehouse.Section IIIOperation of Free Zones and Free WarehousesArticle 171. (1) There shall be no limit to the length of time goods may remain in free zones or free warehouses.(2) Time limits may be specified in the Regulations for some goods remaining in free zones or free warehouses.Article 172. (1) Any industrial and commercial activity as well provision of services shall be authorized in a free zone or a free warehouse in compliance with the provisions herein. The carrying out of such activities shall be notified in advance to the customs authorities.(2) The customs authorities shall be entitled to prohibit or restrict the activities referred to in Paragraph 1, depending on:1. the nature of the goods concerned;2. the requirements of customs supervision.(3) The customs authorities shall be entitled to prohibit persons who do not observe the provisions herein from carrying on an activity in a free zone or a free warehouse.Article 173. (1) Foreign goods located in a free zone or a free warehouse may:1. be placed under import regime pursuant to the requirements laid down for that regime and the provisions of Article 178;2. be subject to the usual operations specified in Article 114, Paragraph 1, without authorization;3. be placed under the inward processing regime pursuant to the requirements for that regime;4. be placed under the customs control processing regime pursuant to the requirements for that regime;5. be placed under the temporary import regime pursuant to the requirements for that regime;6. be abandoned in accordance with the provisions of Article 180;7. be destroyed provided the person concerned supplies the customs authorities with the required information.(2) When goods are placed under one of the regimes referred to in Paragraph 1, Items 3, 4 and 5 the control methods shall be complied with the conditions for operation of the free zones or the free warehouses and customs supervision within them.Article 174. (1) Local goods under Article 166, Item 2 may be subject to operations intended for their preservation. Such operations may be undertaken without the authorization of the customs authorities.(2) Local goods referred to in Article 166, Item 2 may be subject to operations other than the ones intended for their preservation under the control of the customs authorities provided they leave the customs territory of the Republic of Bulgaria after finishing these operations.(3) Local goods which have not made use of the measures referred to in Article 166, Item 2 may be subject to operations other than the ones intended for their preservation under the control of the customs authorities.Article 175. (1) Goods located in free zones and in free warehouses with the exception of foreign goods where Article 173 is applied and of local goods which have not made use of the measures provided for in Article 166, Item 2 shall not be used or consumed.(2) With the exception of the provisions applicable to product supplies of ships, aircraft and trains performing international transport, and to the extent allowed by the respective regime, Paragraph 1 shall not apply when goods are used or consumed which under import regime or temporary import regime are not charged with import customs duties and are not subject to trade policy measures.Article 176. (1) Any person engaging in storage, treatment or processing, or sale or purchase of goods in a free zone or a free warehouse shall keep stock records in a form approved by the customs authorities as soon as they are brought in the free zone or the free warehouse. The stock records must allow the customs authorities to identify the goods and to track their movements.(2) When goods are reloaded within a free zone or a free warehouse, the documents relating to the operation shall be kept at the disposal of the customs authorities. The short-term storage of goods in connection with such reloading shall be considered as part of the reloading.Section IVRemoval of Goods from Free Zones or Free WarehousesArticle 177. (1) In compliance with the special customs regulations goods leaving a free zone or free warehouse may be:1. exported or re-exported from the customs territory of the Republic of Bulgaria;2. brought into another part of the customs territory of the Republic of Bulgaria(2) With the exception of Articles 55 to 60 relating to local goods the provisions of Part Three shall apply also to goods brought into other parts of the customs territory of the country from free zones and free warehouses. These provisions shall not apply to goods which leave the free zone by sea or air without being placed under a transit or another customs regime.Article 178. (1) When a customs debt occurs in respect of foreign goods whose customs value is formed on the basis of a price actually paid or payable and which includes the cost of warehousing or preserving goods while they remain in the free zone or the free warehouse such costs shall not be included in the customs value provided they are shown separately from the price actually paid or payable for the goods.(2) When foreign goods have undergone usual operations in a free zone or free warehouse under the procedure of Article 114, Paragraph 1 the data on the type, quantity and customs value of the goods that are used for determining the amount of the import customs duties shall be the data that would have been applied at the moment of the occurrence of the customs debt had it not undergone the operations in question. This provision shall be applied at the request of the person reporting and provided the operations have been coordinated under the procedure in Article 114, Paragraph 2.(3) Derogations from the cases under Paragraph 1 may be determined in the Regulations.Article 179. (1) When goods are introduced or reintroduced from a free zone or a free warehouse in another part of the customs territory of the Republic of Bulgaria or when they are assigned a customs regime the certification pursuant to Article 170, Paragraph 4 may be used to prove the local or foreign status of these goods.(2) When no defined status has been determined for the goods they shall be considered as:1. local goods - for the purposes of charging export customs duties and for applying the export trade policy.2. foreign goods in all other cases.Chapter TwentyRE-EXPORTATION, DESTRUCTION, AND ABANDONMENT OF GOODS IN FAVOUR OFTHE STATE(Title supplemented - SG No. 37/2003)Article 180. (1) Foreign goods may be:1. re-exported from the customs territory of the Republic of Bulgaria;2. destroyed or abandoned in favour of the with the authorisation of the customs authorities.(2) (Amended SG No. 37/2003) The formalities for goods leaving and the trade policy measures shall apply in case of re-exportation.(3) (Amended SG No. 37/2003) The Council of Minister may specify cases where foreign goods may be placed under suspensive arrangements with a view of not applying trade policy measures in case of exportation.(4) (Amended SG No. 37/2003) The customs authorities shall be notified in advance of the re-export or the destruction. The customs authorities shall prohibit the re-export when the formalities under Paragraph 2 so require.(5) (New SG No. 37/2003) When goods are re-exported which during their stay in the customs territory of the Republic of Bulgaria have been under the customs economic regime a customs manifest shall be presented pursuant to the provisions of Articles 66 to 84 and Article 163, Paragraphs 3 and 4.(6) (Previous (4), supplemented SG No. 37/2003) The destruction and the abandonment of goods in favour of the state shall be carried out in compliance with the provisions of the Regulations. The destruction and the abandonment of goods in favour of the state shall not result in any costs for the state.(7) (Previous (5), SG No. 37/2003) Any waste or scrap resulting from the destruction of the goods shall obtain their own customs assignment as prescribed for foreign goods. It shall remain under customs supervision until the time laid down in Article 44, Paragraph 2.Article 180a. (New SG No. 37/2003) Goods that leave the customs territory of the country shall be under customs supervision. They may be subject to inspections by the customs authorities pursuant to applicable provisions. The goods must leave the customs territory of the country along the routes and in the ways specified by the competent authorities.PART FIVECUSTOMS REBATESChapter Twenty-OneEXEMPTION FROM CUSTOMS DUTYArticle 181. (1) The cases of granting exemption from customs duty both in exportation and importation of goods shall be specified in the Regulations.(2) Exemption from fees provided in other statutory instruments shall not include exemption of fees under Article 12 herein except when this is regulated expressly.(3) No exemption from customs duties shall be allowed for goods sold within the customs control zones in the border checkpoints, except for:1. the usual supplies of fuel and products for ships and aircraft;2. retail sale of goods in ports and airports after the customs control;3. retail sale of goods aboard aircraft and ships performing international transport;4. retail in specialized shops servicing the diplomatic corps.Chapter Twenty-TwoSEA-FISHING PRODUCTS AND OTHER PRODUCTS EXTRACTED FROM THE SEAArticle 182. Without prejudice to the requirements of Article 30, Paragraph 2, Item 6 the following shall be exempt from import customs duties when they are assigned import regime:1. sea-fishing products and other products extracted outside the territorial sea of the Republic of Bulgaria by vessels registered in the Republic of Bulgaria and flying its flag;2. goods obtained from products under Item 1 on board factory ships registered in the Republic of Bulgaria and flying its flag.Chapter Twenty-ThreeRETURNED GOODSArticle 183. (1) (Amended SG No. 63/2000) Local goods which, having been exported from the customs territory of Bulgaria, are returned to that territory within three years shall, at the request of the person concerned, be granted exemption from import customs duties.(2) (Amended SG No. 63/2000) The three years period may be extended by the Director of the Customs Agency or by a person authorized by him in order to take account of special circumstances.(3) (Amended SG No. 63/2000) When prior to their exportation from the customs territory of Bulgaria the returned goods had been subject to import regime at reduced or zero-rate customs duty because of their use for a specific purpose, the exemption from duty under Paragraph 1 shall be granted only if they are to be used for the same purpose. If these goods no longer have the same purpose the amount of import duties payable shall be reduced by the amount of customs duty paid on the original import. When the deduction sum is larger than the sum due for the returned goods no refund shall be allowed.(4) Exemption from importation customs duties under Paragraph 1 shall not be allowed for goods exported from the customs territory of the Republic of Bulgaria within the outward processing regime save for the cases when the goods are in the state in which they were exported.Article 184. Exemption from import customs duties under Article 183 shall be allowed for goods that are re-imported in the same state in which they were exported. Cases and circumstances in which exceptions from this provision shall be allowed may be specified in the Regulations.Article 185. (1) (Amended SG No. 63/2000) The provisions of Articles 183 and 184 shall apply, mutatis mutandis, to compensating products originally exported or re-exported subsequent to an inward processing regime.(2) The amount of import customs duty owed shall be determined pursuant to the rules applicable under the inward processing regime, the date of re-exportation of the compensating product being regarded as the date of their importation.PART SIXCUSTOMS DEBTChapter Twenty-FourSECURITY TO COVER CUSTOMS DEBTArticle 186. (1) When applying customs rules the customs authorities shall require security for customs debt to be provided; such security shall be provided by the person who is liable or who may become liable for that debt.(2) The customs authorities shall require only one security to be provided in respect of one customs debt.(3) The customs authorities may allow that the security be provided by a person other than the person that is required.(4) (Amended SG No. 63/2000) When the person who has incurred or who may incur a customs debt is a public or a local authority, the Director of the Customs Agency may exempt the said person in whole or in part of the obligation to provide security.(5) The customs authorities may waive the requirement for provision of security for insignificant sums the amount of which shall be specified in the Regulations.Article 187. (1) When customs provisions do not envisage an obligatory provision of security such security shall be required at the discretion of the customs authorities insofar as the payment of a customs debt, which has occurred or may occur is not certain within the prescribed period.(2) When the security under Paragraph 1 is not required the customs authorities may require from the person under Article 186, Paragraph 1 to undertake in writing a liability for the existing debt.(3) The security under Paragraph (1) shall be required:1. at the time of applying the provisions envisaging the possibility of requiring such security; or2. at any subsequent time when the customs authorities find that the payment of the customs debt that has occurred or may occur is not certain within the prescribed period.Article 188. At the request of the person under Article 186, Paragraph 1 or 3, the customs authorities shall be entitled to allow comprehensive security to be provided to cover two or more operations in respect of which a customs debt has occurred or may occur.Article 189. (1) (Supplemented, SG No. 37/2003) When customs provisions makes it compulsory for security to be provided the customs authorities, taking into consideration the specific provisions for the transit regime, shall determine the amount of such security at level equal to:1. the specific amount of customs debt or debts in question when that amount can be established with certainty at the time when the security is required; or to2. in the remaining cases - the maximum amount as estimated by the customs authorities of the customs debt or debts which have occurred or may occur for the rest of the cases.(2) When comprehensive security is provided for customs debts which vary in amount over time the amount of such security shall be set at a level enabling the customs debts in question to be covered at all times.(3) When customs provisions envisage that the provision of security is optional and the customs authorities require security to be provided the amount of the security shall be determined by those authorities so as not to exceed the level provided for in Paragraphs 1 and 2.(4) Under conditions and circumstances specified in the Regulations the customs authorities shall be entitled to agree with the debtor security in amounts other than the ones indicated herein.Article 190. Security may be provided by either a cash deposit or bank guarantee and in cases laid down in the Regulations by other means ensuring the payment of the customs debt.Article 191. A cash deposit shall be made in the currency and forms as provided in the legislation in force.Article 192. The customs authorities shall not be liable to pay interest upon accepted security.Article 193. (1) The bank guarantee shall be given in writing and the guarantor shall undertake to pay jointly and severally with the debtor the secured amount of a customs debt when the payment becomes executable.(2) The customs authorities shall be entitled to refuse to approve the bank guarantee proposed when it does not ensure payment of the customs debt within the prescribed period.Article 194. (1) The person that is required to provide security shall be free to choose between the types of securities laid down in Article 190.(2) The customs authorities shall be entitled to refuse to approve the type of security proposed as well as the method of its institution under a procedure specified in the Regulations when it is incompatible with the proper functioning of the customs regime concerned. The customs authorities shall be entitled to specify a period of time within which the selected method of security shall not be amended.Article 195. The customs authorities may refuse the security proposed by the debtor when it does not ensure payment of the customs debt.Article 196. When the customs authorities establish that the security provided does not guarantee or does no longer ensure the undoubted or total payment of the customs debt within the prescribed period they shall require the person referred to in Article 186, Paragraph 1 to provide additional security or to replace the original security with a new one.Article 197. (1) (Amended SG No. 63/2000) The security shall not be released until such time as the customs debt in respect of which it was provided is discharged or can no longer arise. The security shall be released immediately after the customs debt has been discharged or can no longer arise.(2) When the customs debt has been discharged in part or may not arise in respect of part of the amount that has been secured the respective part of the security shall be released at the request of the person concerned.Article 198. Derogations from the provisions in this chapter shall be admissible in order to take account of international agreements to which the Republic of Bulgaria is a party.Chapter Twenty-FiveOCCURRENCE OF A CUSTOMS DEBTArticle 199. (1) An import customs debt shall occur for goods subject to customs duties through:1. processing under the import regime;2. placing under the temporary import regime with partial exemption from import customs duties;3. unlawful introduction into the customs territory of the Republic of Bulgaria in contravention to the provisions under Articles 45 to 48;4. unlawful introduction into another part of the country's customs territory of goods located in free zones or free warehouses in contravention to the provisions set forth in of Article 177, Paragraph 1, Item 2;5. evasion from customs supervision;6. non-compliance with one of the requirements arising in case of temporary storage or of using of the customs regime;7. (amended SG No. 63/2000) non-compliance with one of the conditions governing the placing of the goods under the respective customs regime or the granting of a reduced or zero rate import duties or exemption from customs duties by virtue of the use of the goods for specific purposes;8. consumption or use in a free zone or in free warehouse under conditions other than those laid down by the legislation in force. When goods disappear and when no credible evidence is presented to the customs authorities it shall be deemed that the goods have been consumed or used in the free zone or the free warehouse;9. issue of documents necessary to grant preferential treatment in third countries to goods with Bulgarian origin when agreements concluded between the Republic of Bulgaria and these countries provide for the payment of customs duties due for the foreign goods input.(2) The provisions of Paragraph 1, Items 6 and 7 shall apply in cases other than those defined in Paragraph 5, where omissions found have brought about real consequences for the proper functioning of the temporary storage customs regime or any other customs regime.(3) An import customs debt shall occur:1. at the moment of acceptance of the customs statement under Paragraph 1, Items 1 and 2;2. at the moment of the unlawful introduction under Paragraph 1, Items 3 and 4;3. at the moment of the evasion from customs supervision under Paragraph 1, Item 5;4. at the moment when the obligation whose non-fulfilment gives rise to the customs debt ceases to be complied with under Paragraph 1, Item 6;5. at the moment of placing the goods under the respective customs regime under Paragraph 1, Item 7 of;6. at the moment when the goods are first used or consumed under conditions other than those laid down by the legislation in force, for the cases under Paragraph 1, Item 8;7. at the moment of acceptance of the export manifest for goods supplied with documents for use of preferential customs tariff treatment in the cases under Paragraph 1, Item 9;(4) Special cases of customs debt occurred which are not regulated in Paragraph 1 and the cases where no customs debt occurs shall be provided for in the Regulations.Article 200. (1) An exportation customs debt shall occur through:1. exportation from the customs territory of the Republic of Bulgaria, under cover of a customs manifest of goods subject to export duties;2. export from the customs territory of the Republic of Bulgaria of goods subject to export duties without an export manifest;3. failure to comply with the conditions for exportation outside the customs territory of the Republic of Bulgaria of goods with total or partial exemption from export duties.(2) An exportation customs debt shall occur:1. at the moment of acceptance of the export manifest under Paragraph 1, Item 1;2. at the time when the goods actually leave the territory of the country for the cases under Paragraph 1, Item 2;3. at the time when the goods reach a destination other than that for which their export was allowed with total or partial exemption from customs duties, or, should the customs authorities be unable to determine that time, the moment of expiry of the time limit set for the presentation of evidence that the conditions provided for the cases under Paragraph 1, Item 3 have been met.Article 201. (1) The customs debt referred to in Article 199, Paragraph 1 and Article 200, Paragraph 1 shall occur even if it relates to goods subject to prohibition or restriction measures on importation or exportation.(2) (Amended SG No. 30/1999) No customs debt shall occur on the unlawful introduction into the customs territory of the Republic of Bulgaria of counterfeit currency, narcotic drugs or psychotropic substances for which liability shall be provided under the Penal Code.(3) (New, SG No. 37/2003) When the customs legislation provides for favourable tariff treatment of goods due to their nature or special purpose or full or partial exemption from import or export customs duties pursuant to Articles 28, 88, 247, 282 and 183 to 185 such favourable tariff treatment or full or partial exemption from import or export customs duties shall apply to the cases of occurring import customs duty under Articles 199, 200 and 201 provided the actions of the interested person are not related to carelessness or gross negligence and the person proves that the remaining conditions for favourable tariff treatment or full or partial exemption have been met.Article 202. (1) The debtor for payment of the customs debt shall be:1. (supplemented SG No. 37/2003) the reporting person - for cases under Article 199, Paragraph 1, Items 1, 2 and 9 and Items 1 and Article 200, Paragraph 1, Items 1 and 3 of (1), and in the event of indirect representation also the person on whose behalf the customs statement has been drawn up. When the customs statement for placing under a regime has been drawn up on the basis of information that leads to partial or full failure to collect the customs duties payable the debtor for paying the customs debt shall be also the person that has provided the information required for drawing up the customs statement and who knew or should have known in view of the circumstances that the information was misleading.2. for cases under Article 199, Paragraph 1, Items 3 and 4:(a) the person or persons that introduced or participated in the unlawful introduction of the goods;(b) the person or persons that acquired or accepted the goods of which they knew or should have known under the circumstances that they were introduced unlawfully;3. for cases under Article 199, Paragraph 1, Item 5:(a) the person or persons who evaded customs supervision of the goods or participated in such evasion;(b) the person or persons who acquired or accepted goods for which they knew or should have known under the circumstances that goods had evaded customs supervision.(c) (new SG No. 63/2000, amended, SG No. 45/2005) the person responsible to fulfil the obligations ensuing from the temporary storage of the goods of from the use of the customs regime under which they had been placed;4. for cases under Article 199, Paragraph 1, Items 6 and 7 - the person or persons that failed to comply with the obligations arising from the temporary storage of the goods or from non compliance with one of the conditions of the customs regime;5. (amended, SG No. 45/2005) for cases under Article 199, Paragraph 1, Item 8 - the person who used or consumed the goods as well as any other person who has partaken therein, who knew or should have known under the circumstances that the goods were being used or consumed under conditions other than the ones laid down in the legislation in force; when the customs authorities cannot establish beyond any doubt the person who has used or consumed the goods, the person which is known to the customs authorities as the last holder of the goods shall be considered the debtor;6. for cases under Article 200, Paragraph 1, Item 2 - the person or persons that exported without an export manifest goods subject to customs duties and the person or persons who participated in such export and who knew or should have been known under the circumstances that an export manifest should have been submitted for the goods.(2) When there is more than one debtor for the same customs debt they shall be jointly and severally liable for paying such debt.Article 203. (1) Unless otherwise provided herein, the amount of import or export duties payable for certain goods shall be determined on the basis of the levy elements for those goods at the time when the customs debt in respect of them occurred.(2) Derogations from the provisions of Paragraph 1 for specific cases may be specified in the Regulations.(3) (New SG No. 63/2000) In cases specified in the Regulations when an import customs debt related to suspensive arrangement regime has occurred the debtor shall pay interest amounting to the official interest rate on the amount of the import customs duties due to the postponement of the date of occurrence or registering of the debt.Article 204. (1) A customs debt shall occur at the location where the events from which it arises occur.(2) When it is impossible to determine the location referred to in Paragraph 1 the customs debt shall be deemed to have occurred at the location where the customs authorities determine that customs duties are payable for the goods.(3) (Amended and supplemented SG No. 37/2003) When the customs regime for certain goods is not concluded and the location of the customs debt cannot be determined under the procedure of Paragraphs 1 and 2 the customs debt shall be deemed to have occurred at the location where the goods were placed under that regime.(4) (New SG No. 37/2003) When the information available allows the customs authorities to establish that the customs debt had already occurred when the goods had been in a different location at an earlier date it shall be deemed that the customs debt had occurred at the location that can be determined as the location of the goods at the earliest moment when it was possible to establish that the customs debt had occurred.(5) (Previous (4), SG No. 37/2003) Derogations from the provision of Paragraph 1 for individual specific cases may be specified in the Regulations.Chapter Twenty-SixPAYMENT OF THE CUSTOMS DEBTSection IEntry in the Records and Notification of the Amount of Duty to theDebtorArticle 205. (1) The customs authorities shall calculate the amount of customs duty resulting from a customs debt as soon as they have the necessary particulars and shall enter it in the accounting records or in any other equivalent medium which shall be entry in the records.(2) The cases where Paragraph 1 shall not apply as well as the procedures and time limits for entry in the records shall be defined in the Regulations.(3) (New SG No. 63/2000) In cases when a customs debt has occurred, with the exception of the cases under Article 199, Paragraph 1, Item 1 and Article 20, Paragraph 1, Item 1, and no data is available about the type of goods it shall be deemed that a debt has occurred:1. in the cases when there is data about a certain group of goods - for the commodity subject to the highest customs rate among all goods covered by this group;2. in the cases when there is no data about the type of goods for the commodity subject to the highest customs rate taking into account all state customs duties collectable by the customs authorities.Article 206. (1) (Supplemented, SG No. 45/2005) The debtor shall be notified in writing about the amount of the customs duty as soon as it has been entered in the records. The notification of the debtor shall be done under the procedure of Article 211.(2) When the amount of customs duty entered in the customs statement is for information purposes only and has still not been accepted by the customs authorities they shall carry out the notification only if the amount of customs duty does not correspond to the amount determined by them. When the amount of the customs duties indicated for information purposes corresponds to the amount determined by the customs authorities and in compliance with the respective provisions specified in the Regulations the authorisation for clearing the goods shall be deemed to be the notification of the debtor.(3) (New, SG No. 37/2003) The notification of the debtor shall not take place after the expiry of a period of three years from the date of which the custom debt occurred. This term shall stop running from the moment of submitting the appeal under Article 220 for the duration of the appeal proceedingsSection IaImposition of Security Measures by the Customs Authorities(New, SG No. 37/2003)Article 206a. (1) When the payment of customs duties and other state receivables collectable by the customs authorities has not been secured under the procedure of Chapter 24 the customs authorities shall be entitled to impose the following security measures:1. disitraint on movables and receivables of the debtor including in bank accounts;2. disitraint on goods in circulation;3. interdiction on real estate.(2) Security measures shall be imposed when it will be impossible or difficult without them to collect the customs duties and the state receivables collectable by the customs authorities.(3) Security measures shall be imposed in accordance with the amount of the customs duties and the other state receivables collectable by the customs authorities.(4) (Amended, SG No. 105/2005) The measures under Paragraph 1 shall not be imposed on property on which compulsory execution may not be performed without the agreement of the debtor neither on labour remunerations up to the amounts specified in the Tax and Social Insurance Procedure Code. Article 206b. (1) (Previous text of Article 206b, SG No. 45/2005) Security measures shall be imposed with an ordinance of the head of the customs office in the area where the amount of the customs debt subject to security or other state receivable has been established.(2) (New, SG No. 45/2005) The ordinance under Paragraph 1 may be appealed against under the procedure for appealing ordinances for enforced collection of public state receivables.Article 206c. (Amended, SG No. 105/2005) The provisions of Chapter 24 of the Tax and Social Insurance Procedure Code shall apply to issues not regulated herein.Section IIPayment Terms and MethodsArticle 207. Customs duties of which the notification under Article 206 has been done must be paid by the debtor within time limits specified in the Regulations.Article 208. (1) Payment shall be made in a cash desk at the customs office or through non-cash payment.(2) At the request of the debtor the payment may be made through deduction by the customs authorities of unduly collected from him sums for customs duties.Article 209. (1) The customs authorities may, at the debtor's request, grant deferment of payment of the customs duties under conditions and time limits specified in the Regulations.(2) The deferment of payment shall be authorised after the provision of security for the customs duties by the debtor.(3) For additional services performed in relation to authorising deferment of payment the customs authorities shall collect additional fees for expenses made.Article 210. Customs duties owed may be paid by a person other than the debtor.Article 211. (1) When the amount of customs duty has not been paid within the prescribed term the customs authorities:1. (amended, SG No. 63/2000) shall avail themselves of all options for ensuring payment open to them under the provisions of this Act and of other statutory instruments including issuance of administrative acts on enforced collection;2. (amended, SG No. 63/2000) collect legal interest on the amount of duty.(2) (Amended, SG No. 63/2000) Under the procedure of Paragraph 1 together with the legal interest rate the payment of other state receivables collectable by the customs authorities shall be secured when these are not paid within the specified time limits.Section III(New, SG No. 63/2000)Warrants for Enforced Collection of Public State ReceivablesIssued by the Customs AuthoritiesArticle 211a. The warrants for enforcing the collection of public state receivables shall be individual administrative acts issued by the head of the customs office on the territory of which the debt has occurred with which customs duties and other public receivables that have not been paid on time are established.Article 211b. (Amended SG No. 63/2000, SG No. 110/2001, SG No. 105/2005) The warrant shall be issued in four original copies: for the debtor, for the customs office, for the competent territorial directorate of the National Revenue Agency and for the State Revenue Agency.Article 211c. The warrant shall be issued in writing and it shall contain:1. the name of the body issuing it;2. name and number;3. factual and legal grounds for its issuing;4. data about the debtor;5. the amounts of the customs duties due and of the other public receivables;6. the date on which the public receivables have occurred;7. (repealed SG No. 37/2003);8. possible measures for its securing or preliminary execution;9. the institution before which an appeal can be submitted, and within what time;10. the date of issue and the signature of the respective head of customs office.(2) (Amended, SG No. 45/2005) The warrant shall be sent by the head of the customs office with advice of delivery to the State Revenue Agency for enforced execution save for the cases under Article 211f, Paragraph 2.(3) (New, SG No. 45/2005) The receipt of the warrant that is subject to execution shall be confirmed in writing by the public executive officer before the customs office, which shall monitor the arrival at the account of the customs duties sums and other state receivables.Article 211d. (Amended, SG No. 45/2005) (1) The delivery of the warrant to natural persons shall be certified by the signature of the person or his/her agent. When the delivering officer does not find the person he/she shall deliver the warrant to an adult member of the family if he/she agrees to deliver it. The person through which the delivery takes place shall sign a receipt and his/her full name, personal registration number and the capacity in which he/she is receiving the warrant shall be noted as well as the obligation to hand it over.(2) The delivery of the warrant to legal persons shall be certified by the signature of the official who has received the warrant and his/her full name, personal registration number and the position of the recipient shall be noted.(3) The delivery of the warrant at the place of work shall be done through an official of the administration. The delivery shall be in order if the full name, the personal registration number and the position of the recipient are specified.(4) The delivery officer shall certify with his/her signature the date and the way of delivery. Refusal to accept the warrant shall be certified by the signature of the delivery officer and at least one witness and the delivery officer shall make a note in the receipt of his/her full name, personal registration number and address. In this case the delivery of the warrant shall be deemed to be in order.(5) When no witness can be ensured the warrant shall be sent with advice of delivery. A warrant sent by mail with advice of delivery shall be deemed to have been legally delivered on the date the return receipt was signed or on the date of the rejection of the warrant delivery, and this rejection shall be certified by the postal officer. In case the person fails to appear and certifies receipt within the time limit specified in the postal notice the warrant and the post office documents shall be attached to the file and the warrant delivery shall be deemed in order.(6) Natural persons against whom proceeding have been instituted of which they have been notified and who reside abroad for more than 30 consecutive days shall be obliged to name a person on the territory of the country who shall represent them before the customs authorities and to whom notices and other acts of the customs administration shall be delivered.(7) The delivery of the warrant to persons who have been convicted to imprisonment and to persons who are in custody shall be done by the administration of the respective institutions.(8) The delivery of the warrant to regular servicemen in the armed forces shall be done through the commander of the respective unit.(9) Delivery of the warrant through enclosing in the file shall be done after the expiry of 14 days after placing a notice for the person to appear when:1. the person's address is unknown;2. the person, his/her agent or proxy cannot be found at the registered address or at the permanent address after a thorough and documented search by the customs authorities.(10) The notice under Paragraph 9 shall be placed at a place designed for this purpose in the respective customs office where the warrant is issued. The notice shall be published on the Web on the respective site of the customs administration.(11) The circumstances under Paragraph 9, Item 1 shall be certified with the file and under Paragraph 9, Item 2 - with a post office document or with the signature of the delivery officer and at least one witness and the delivery officer shall record his/her full name, personal registration number and address and shall make a note thereof in the receipt.(12) In case the person fails to appear before the expiry of the deadline under Paragraph 9 the warrant shall be attached to the file and the delivery shall be deemed in order.Article 211e. (Amended, SG No. 45/2005) When, after the warrant has been issued, the debtor pays the customs duties and the other state receivables or part thereof the head of the customs office shall notify thereof the public executive officer.Article 211f. The warrant may be appealed through the head of the customs authority who had issued it before the Director of the respective Regional Customs Directorate within fourteen days after it had been delivered to the debtor.Article 211g (1) The appeal of the warrant shall not stop its execution.(2) The execution of the warrant shall be suspended at the request of the debtor provided the latter presents security equal to the amount of the principal and the interest. The security may be a cash deposit or a bank guarantee.(3) The request for suspension of the execution shall be made simultaneously with the filing of the appeal supported by evidence of the security submitted.(4) The official interest rate on the principal shall be owed for the duration of the suspension.(5) (New, SG No. 45/2005) Paragraph 1 shall not apply in cases when liabilities are established by a warrant for enforced collection of public state receivables ensuing from the implementation of an international convention which the Republic of Bulgaria has joined and the debtors are the warranting organizations determined with an act of the Council of Ministers.Article 211h. The head of the customs authority through which the appeal has been filed shall be obliged to forward it not later than seven days after its receipt together with his opinion and all relevant documents to the Director of the respective Regional Customs Directorate on the territory of which the customs office in question is located. When a request for suspension of the warrant has been filed it shall also be attached together with the relevant proof. If an appeal submitted on time has been incorrectly addressed it shall be forwarded to the respective competent authority through official channels if the prescribed time limit is considered to have been observed.Article 211i. (1) The Director of the Regional Customs Directorate shall examine the appeal in substance and shall evaluate all circumstances related to the warrant.(2) The Director shall announce a substantiated decision within thirty days from receiving the appeal with which he shall confirm or revoke the warrant entirely or partially and in his substantiation he shall present the positions of the parties concerned and the grounds for his decision. He shall also express his position on the request to suspend the execution of the warrant in the cases when such a request had been filed.(3) In case the warrant issued proves to be contrary to the law another one shall be issued in its place, the Director of the Regional Customs Directorate shall revoke the appealed warrant and shall return the file with mandatory instructions to the respective head of customs office.(4) The decision shall be issued in four original copies: for the debtor, for the customs office, for the Regional Customs Directorate and for the State Revenue Agency and shall be sent to them not later than seven days after the expiry of the term under Paragraph 2.(5) (Amended, SG No. 45/2005, SG No. 30/2006, effective 1.03.2007) The warrant confirmed with a decision of the Director of the Regional Customs Directorate may be appealed before the relevant administrative court within fourteen days after receipt of the decision under Paragraph 4. The appeal shall be submitted through the respective head of the customs office.(6) The warrant may not be appealed in court in its part which had not been appealed by administrative procedure or in its part in which the appeal had been entirely or partially sustained.Article 211j. (1) (Amended, SG No. 105/2005, SG No. 59/2007) The provisions of Chapter 17 and 19 of the Tax and Social Insurance Procedure Code shall apply to legal appeal proceedings and to cassation proceedings and revoking of effective decisions may be requested by the persons concerned under the terms and procedures stipulated in article 303 of the Code of Civil Procedure. (2) (Amended, SG No. 105/2005) When the appeals are considered in court subpoenas shall be sent to the body which has issued the appealed act, to the appellant and to the National Revenue Agency in the cases when the latter is an interested party.Article 211k. The warrant shall enter into force when:1. it has not been appealed within the stipulated period before the respective Director of Regional Customs Directorate;2. it has been appealed within the stipulated period before the Director of the Regional Customs Directorate who has not sustained the appeal and the warrant has not been appealed in court within the stipulated period;3. it has been confirmed by the court.Article 211l. (Repealed, SG No. 45/2005) Chapter Twenty-SevenEXTINCTION OF CUSTOMS DEBTArticle 212. (1) A customs debt shall become extinct:1. by payment of the amount of the customs duty;2. by remission of the amount of the customs duty;3. when in respect of goods reported for a customs regime entailing the obligation to pay duties:(a) the customs statement has been invalidated;(b) (amended SG No. 153/1998) the goods, before their release, are either seized and simultaneously or subsequently confiscated; destroyed on the instructions of the customs authorities; destroyed or abandoned in accordance with Article 180; or destroyed or irrevocably lost as a result of their nature or of force majeure or unforeseeable circumstances;4. when goods in respect of which a customs debt occurred in accordance with Article 199, Paragraph 1, Items 3 and 4 are seized upon their unlawful introduction and are simultaneously or subsequently confiscated.(2) (Amended SG No. 63/2000) The right to collect customs duties shall be deemed extinct with the expiry of five years as of January 1st of the year subsequent to the year in which the customs debts and the other public state receivables occurred established by a warrant for enforced collection.(3) The provision of Paragraph 1 shall not apply in cases of judicial proceeding in court for the debtor's bankruptcy.Article 212a. (New, SG No. 45/2005) A customs debt that has arisen on the grounds of Article 199, Paragraph 1, Item 9 shall become extinct when the formalities performed for allowing preferential tariff treatment are revoked.Article 213. The ways of discharging customs debt occurring in specific cases shall be determined in the Regulations.Chapter Twenty-EightREIMBURSEMENT AND REMISSION OF CUSTOMS DUTYArticle 214. (1) Reimbursement of customs duties shall be the total or partial refund of import or export duties, which have been paid.(2) Reimbursement shall be made when it is established that at the time of payment the customs duties were not owed or the grounds for their payment were no longer valid.Article 215. (1) Remission of customs duties shall mean:(a) a decision to waive entirely or partially the collection of import or export customs duties; or(b) a decision to cancel entirely or partially the recording of the amount of export or import duty which has not been paid.(2) Remission of customs duties shall be made when it is established that they were placed in the records without being owed or that the grounds for their entry into the records was no longer valid.Article 216. (1) No reimbursement or remission shall be authorised when the actions which led to the payment or the entry in the records of customs duties that were not legally owed were the result of unconscientious behaviour of the person concerned.(2) Reimbursement or remission of import or export duties shall be authorised repaid or remitted upon an application in writing to the appropriate customs authority within a period of three years from the date on which the amount of those duties was communicated to the debtor.(3) (New, SG No. 45/2005) The term under Paragraph 2 may be extended if the interested person provides evidence that he/she was prevented from submitting such an application due to unforeseen circumstances or force majeure.Article 216a. (New, SG No. 45/2005) Reimbursement of import or export customs duties shall be done in case the customs declaration is cancelled and the custom duties have been paid. Reimbursement shall be allowed after a written application submitted within the time limit for submitting applications for cancelling customs declarations.Article 217. The Regulations may define specific cases and conditions other than those referred to in the previous articles allowing reimbursement or remission of import or export duties.Article 218. The Regulations may define the minimum amount of export or import duties below which reimbursement or remission of such duties shall not be allowed.Article 219. When, due to errors, the customs debt has been remitted or the amount of the respective customs duties has been reimbursed the initial debt shall become executable anew.Article 219a. (New SG No. 37/2003) For reimbursed customs duties no shall be due. In the cases when the customs duties have been determined by an act of the customs authorities that is in contravention to the law the paid sums that were nit due shall be refunded with the legal interest.PART SEVENAPPEAL OF DECISIONSArticle 220. Any person shall have the right to appeal against decisions of the customs authorities concerning him under the procedure of the Administrative Procedure Code.Article 221. When the decision appealed against is related to levying import or export duties suspension of the execution shall be subject to security on their amount.Article 222. The provisions in Part Seven shall not apply to cases related to repealing or amending acts issued by the customs authorities on the basis of the administrative and penal provisions herein.PART EIGHTADMINISTRATIVE PENAL PROVISIONSChapter Twenty-NineGENERAL PROVISIONSArticle 223. The customs authorities shall examine, establish and sanction each violation or attempt at violation of the provisions of the customs legislation insofar as the action is not a criminal offence.Article 224. The actions representing customs violations, the sanctions imposed for them and the liability related to them shall be specified herein.Article 225. (1) The establishment of violations, the issue of penal ordinances and the appeals thereof shall follow the procedure established by the Administrative Violations and Sanctions Act. (2) The execution of penal ordinances that have come into force and rulings of the court shall take place under the procedure of the Administrative Violations and Sanctions unless otherwise provided herein.Article 226. (1) (Amended SG No. 63/2000, SG No. 37/2003) Persons having perpetrated a customs violation within the customs territory of the Republic of Bulgaria as well as persons who instigate, assist, conceal or allow such a violation shall be liable under the existing administrative and penal provisions.(2) (Amended, SG No. 63/2000) The persons under Paragraph 1 shall be jointly liable for customs duties and other public state receivables incurred as a result of the violation with the exception of the sanction of fine.(3) (Repealed, SG No. 37/2003)(4) (Repealed, SG No. 37/2003)Article 226a. (New SG No. 37/2003) (1) The customs authorities shall decree seizure in favour of the state of the goods that are the object of the customs violation as well as the vehicles and the carriers used for the transportation or the carrying of the goods in the cases when such a measure is provided for in this or another act except for the cases under Article 229b, Paragraph 1, Item 3.(2) Before the conclusion of the administrative proceedings the customs authorities shall be entitled to dispose with the perishable goods under the procedure of Article 239 as well as with the goods the preservation of which results in significant costs for the customs administration.(3) When seizure in favour of the state is not possible or in the cases under Paragraph 2 the persons under Article 226, Paragraph 2 shall pay jointly a sum equal to the customs value of the object of the violation as well as the vehicles and other carriers used for transporting or carrying the goods.Chapter ThirtyADMINISTRATIVE SANCTIONSArticle 227. (1) In cases of customs violations the following sanctions shall apply:1. fine;2. temporary prohibition to engage in exportation and importation operations for legal persons or sole traders;3. (amended, SG No. 45/2005) pecuniary penalty for legal persons or sole traders.(2) The prohibition to engage in exportation and importation operations shall be a temporary prohibition for the violator to engage in such activity for a period from six months to two years. The sanction shall be imposed when the customs contraband is aggravated or in cases of repeated violations under this Act.Article 228. The customs authorities may, when minor violations of the customs legislation are established, impose fines on the spot under a procedure and in the amount provided for in Article 39 of the Administrative Violations and Sanctions Act. Article 229. (1) The customs authorities shall be entitled to seize and retain under their control the goods that are the object of customs violations, including vehicles and other means used for their concealment, importation to or exportation from the country as well as material evidence necessary or related to the investigation proceedings as well as goods and cash for securing possible receivables under the penal ordinance.(2) (Amended SG No. 63/2000) Goods seized and retained under the control of the customs authorities shall be kept by the customs office until the conclusion of the administrative penal and the criminal proceedings(3) (New SG No. 63/2000) The customs authorities shall retain and keep under customs supervision the goods which are object or means, or evidence of committed criminal offence until the completion of the customs formalities in respect of them in conformity with effective legislation.(4) (Amended SG No. 30/1999, previous (3), SG No. 63/2000) The provisions of the Narcotic Substances and Precursors Control Act shall apply to confiscated narcotic drugs.(5) (Previous (4), SG No. 63/2000) The customs authorities shall immediately deliver to the authorities of the Ministry of the Interior any confiscated firearms, ammunition and explosives.(6) (Previous (5), SG No. 63/2000) When the goods that are the object of customs violations are not seized in favour of the state, including when awarding their equivalent value, the customs duties and the other public state receivables for them shall be owed without exception.(7) (New SG No. 37/2003) The customs authorities shall be entitled to impose the measures under Chapter 26, Section Ia on securing receivables under an act drawn up on establishing a customs violation.Article 229a. (New SG No. 37/2003, amended, SG No. 105/2006) Until the issuing of the penal ordinance but not later than 30 days after drawing up the act on establishing a customs violation agreement may be reached between the administrative sanctioning authority and the violator on terminating the administrative penal proceedings for violations under Article 233, Paragraph 1 and 2 and 3, Article 234 and Article 234a except for the cases when the act is a criminal offence.Article 229b. (New SG No. 37/2003; effective 1.07.2003) (1) The agreement shall be drawn up in writing and shall reflect the agreement of the administrative sanctioning authority and the violator on the following issues:1. has an act been perpetrated, has it been perpetrated by the violator, has it been perpetrated by premeditation, does the act constitute a customs violation;2. what will the type and size of the sanction be;3. (amended, SG No. 45/2005) will the goods that are the object of the violation be confiscated in favour of the state as well as the vehicles and carriers used for their transport or carriage or shall they be paid for in an amount at least 25 percent of their equivalent value.(2) The agreement shall not specify:1. a sanction other than the one provided for in the act for the specific customs violation;2. an amount of the fine or pecuniary sanction lower than the minimum provided for the specific customs violation;3. (amended, SG No. 45/2005) a sum amounting to less than 25 percent of the cash equivalent of the object of the violation as well as of the cash equivalent of the vehicle or carrier representing their customs value.(3) The agreement shall be signed by the administrative sanctioning authority and by the violator or his agent authorized expressly for reaching agreement.(4) Within fourteen days after the signing of the agreement on terminating the administrative penal proceedings the Director of the Customs Agency or a person authorised by him shall issue a decision approving or refusing to approve the agreement. Decisions with which agreements on terminating the administrative penal proceedings are approved shall be sent to the respective public prosecutor within seven days after their issuing.(5) The agreement on terminating the administrative penal proceedings shall be approved on condition that the requirements of the law have been complied with and the specified in it public state receivables have been paid or have been secured in the deposit account of the respective customs authority.(6) The decision under Paragraph 4 shall not be subject to appeal save for a decision approving an agreement on terminating the administrative penal proceedings against which the public prosecutor may file an objection in court in relation to its conformity with the law under the procedure of the Administrative Procedure Code. In this case the Prosecutor's objection shall not stop the execution of the decision.(7) The terms for issuing a penal ordinance shall stop running as of the moment of instituting judicial proceedings on a prosecutor's objection until their conclusion.(8) In the cases when the agreement on terminating the administrative penal proceedings is not approved or the decision with which it is approved is rescinded by the court the administrative sanctioning authority shall issue a penal ordinance without exception.Article 229c. (New SG No. 37/2003; effective 1.07.2003, amended, SG No. 105/2005) The agreement on terminating the administrative penal proceedings shall enter into force on the date of its approval. The agreement shall have the consequences of a penal ordinance that has entered into force and shall be subject to compulsory execution under the Tax and Social Insurance Procedure Code. Chapter Thirty-OneCUSTOMS REGIME VIOLATIONS PROCEEDINGSArticle 230. The customs authorities shall issue an act in all cases of customs regime violations.Article 231. (Amended SG No. 63/2000) Penal ordinances shall be issued by the Director of the Customs Agency or by officials appointed by him.Article 232. (1) (New SG No. 63/2000, SG No. 37/2003) When the perpetrator is unknown the act shall be signed by the person who has drafted it and by one witness and shall not be served. In that case a penal ordinance shall be issued which shall enter into force at the moment of its issuing.(2) (Previous Article 232, amended SG No. 63/2000) When the perpetrator is a known person not found at the address shown at the time of serving the administrative violation act or has left the country or has indicated only an address abroad the penalty decree shall not be served. The decree shall be deemed to have become effective two months after the date of issuing it.Chapter Thirty-TwoCUSTOMS VIOLATIONS AND DEFINING ADMINISTRATIVE SANCTIONSArticle 233. (1) (Amended, SG No. 45/2005) Any person who carries or transports goods through the state border or any person who attempts to do so without the knowledge and authorisation of the customs authorities, insofar as the said act is not a criminal offence, shall be sanctioned for customs contraband with a fine amounting between 100 and 200 per cent on the goods' customs value.(2) (New, SG No. 105/2006) For customs smuggling shall be sanctioned any one, who carries or transports goods through the external border of the European Union without the knowledge and the permission of the customs authorities and the goods has been discovered as a result of a check on the territory of Republic of Bulgaria.(3)(Amended, SG No. 45/2005, renumbered from Paragraph 2, SG No. 105/2006) When the object of customs contraband are goods for which excise duty is due or which are prohibited for exportation and importation the fine shall be between 150 and 250 per cent of the customs value of the goods.(4) (Renumbered from Paragraph 3, SG No. 105/2006) The goods that are the object of customs contraband shall be confiscated in favour of the state regardless of who their owner is and if they are missing or have been alienated their equivalent value shall be awarded constituting their customs value.(5) (Renumbered from Paragraph 4, SG No. 105/2006) The goods referred to in Paragraph 3 shall be confiscated in all cases even where the stipulator is unknown.(6) (Renumbered from Paragraph 5, SG No. 105/2006) Vehicles and movable used for transportation of goods that are the object to customs contraband shall be confiscated, regardless of who the owner is, except if their value apparently does not correspond to the value of the object of customs contraband.Article 234. (Amended, SG No. 63/2000, No. 37/2003, No. 45/2005) (1) Any person who evades or attempts to evade:1. complete or partial payment or securing of customs duties or of other public state receivables collectable by the customs authorities, or2. prohibitions or restrictions on the importation and exportation of goods or the enforcement of trade policy measures shall be sanctioned for customs fraud.(2) For customs fraud the sanction shall be fine - for natural persons or pecuniary sanction for legal persons and sole traders from 100 to 200 percent of:1. the amount of the evaded state public receivables - for a violation under Paragraph 1. Item 1;2. the customs value of the goods that are the object of the violation under Paragraph 1, Item 2;(3) When the object of the customs fraud are goods for which excise duties are owed the sanction shall be fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 150 to 250 percent of:1. the amount of the evaded public state receivables - for a violation under Paragraph 1, Item 1;2. the customs value of the goods that are the object of the violation under Paragraph 1, Item 2.(4) (Amended, SG No. 105/2006) The provisions of Article 233, Paragraphs 4 and 5 respectively shall apply in the cases under Paragraphs 1 and 3.Article 234a. (New SG No. 63/2000, amended, SG No. 45/2005) (1) Any person who deflects temporarily stored goods or goods subject to customs regime or customs assignment by failing to meet the conditions stipulated in the statutory instruments or determined by the customs authorities shall be sanctioned with a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 100 to 200 per cent of the customs value of the goods that are the object of the violation.(2) When the object of the violation under Paragraph 1 are goods for which excise duty is owed the sanction shall be fine - for natural persons or a pecuniary sanction - for legal persons and sole traders from 150 to 250 per cent of the customs value of the goods that are the object of the violation.(3) (Amended, SG No. 105/2006) The provisions of Article 233, Paragraphs 4, 5 and 6 accordingly, shall apply in the cases under Paragraphs 1 and 2.Article 235. (1) (Supplemented, SG No. 63/2000, SG No. 45/2005) Any person who sells, buys or attempts to sell or buy, who gives or accepts as gift, for safekeeping, use, lease or pledge goods which he knows or should reasonably have known to have been imported in violation of the customs legislation or in violation or restrictions and conditions under the norms and regulations concerning goods imported duty free, or goods imported with reduced or zero-rate customs duties on account of their special purpose shall be sanctioned with a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders - up to BGN 1,000.(2) When the disposal under Paragraph 1 is done with goods that are objects of customs violations referred to in Articles 233 and 234 the goods in question shall be confiscated.(3) The sanctions imposed shall not exempt such persons from payment of the customs duties due or other state receivables collectable by the customs authorities save for the cases referred to in Paragraph 2.Article 236. The sanction referred to in Paragraph 1 shall apply to persons who do not comply with their obligations pursuant to Article 235, Paragraph 1 herein.Article 237. If goods which by virtue of their nature or their quantity do not have commercial character and are required to be reported are not reported by travellers crossing the state border and are discovered at the usual places during a customs inspection the goods shall be confiscated in favour of the state regardless of whose property they are without the imposition of a fine.Article 238. (1) (Supplemented, SG No. 45/2005) Any violation of statutory instruments applicable to goods under customs supervision established by the customs authorities shall be punishable by the fine or the pecuniary sanction pursuant to Article 235, Paragraph 1 unless otherwise provided.(2) The same sanction shall apply to any person who is resisting the customs authorities performing their duties or who is liable under the provisions herein to present to the customs authorities goods, documents or information, but refuses this.Article 238a. (New SG No. 63/2000, supplemented SG No. 45/2005 ) Any person, who fails to meet the deadlines stipulated in the statutory instruments or determined by the customs authorities shall be sanctioned by a fine - for natural persons or a pecuniary sanction - for legal persons and sole traders - up to BGN 2,000.Article 238b. (New, SG No. 45/2005) A person who fails to comply with an obligation under Article 10, Paragraph 5 shall be sanctioned by a fine of up to BGN 1000.PART NINEDISPOSAL OF GOODS SEIZED OR ABANDONED IN FAVOUR OF THE STATE ANDDISTRIBUTION OF THE PROCEEDSArticle 239. The customs authorities shall dispose of goods seized or abandoned in favour of the state under terms and procedures laid down in the Regulations.Article 240. (1) From the sums received from the sale of goods abandoned or seized in favour of the state the expenses made by the customs authorities for their tracking, transportation and storage shall be deducted, as well as the expenses incurred for their valuation and sale.(2) (Amended SG No. 83/1999) After deducting the expenses made the sums under Paragraph 1 and the sums equal to the value of the goods confiscated, missing or confiscated at a previous stage shall be deposited as revenues pursuant to Article 14.SUPPLEMENTARY PROVISION 1. Within the meaning herein:1. "Release of goods" shall be the clearance by the customs authorities of goods for the purposes stipulated by the customs regime under which they are placed.2. "Import customs duties" shall be customs duties and charges having an equivalent effect payable on the importation of goods.3. " Report" shall be the act whereby a person indicates in the prescribed form and manner a wish to place goods under a given customs regime.4. "Export customs duties" shall be customs duties and charges having an equivalent effect to customs duties payable on the exportation of goods.5. (Amended SG No. 153/1998) "Local person " shall be any natural person with a permanent residence in the Republic of Bulgaria; as well as any legal person that has its registered office in the Republic of Bulgaria according to the Bulgarian legislation.6. "Local goods" shall be:(a) goods wholly obtained or produced in the customs territory of the Republic of Bulgaria under the conditions referred to in Article 30 and not incorporating goods imported from other countries. The Regulations may specify cases when goods produced from goods under the deferred payment regime shall not be considered local goods;(b) goods imported under the established procedure to the territory of the Republic of Bulgaria and released for importation;(c) goods produced within the customs territory of the Republic of Bulgaria either only from goods referred to in letter "b" or from goods referred to in letter "a" and "b".7. "Customs debt" shall be the liability of a person to pay the import customs duties - import customs debt, or export customs duties - export customs debt which apply to specific goods under the legislation in force.8. "Customs assignment of goods" shall be:(a) placing goods under a customs regime;(b) entry of goods into a free zone or free warehouse;(c) re-exportation of goods from the customs territory of the Republic of Bulgaria;(d) destruction of goods;(e) abandonment of goods in favour of the state.9. "Customs authorities" shall be the officials in the Customs offices exercising customs supervision and control.10. "Customs regime" shall be:(a) importation;(b) transit;(c) customs warehousing;(d) inward processing;(e) processing under customs control;(f) temporary import;(g) outward processing;(h) exportation;(i) temporary exportation.11. "Customs status" shall be the status of goods for the purposes of customs control as local or foreign goods.12. "Presentation of goods to the customs authorities" shall be the notification of the customs authorities, in the manner laid down, of the arrival of goods at the customs office or at any other place designated or approved by them.13. "Decision" shall be any administrative act pertaining to the application of customs regulations issued by the customs authorities on a particular case which is related to legal consequences for one or more specific or identifiable persons. This definition shall include also the binding information under Article 23.14. "Goods" shall be all types of objects carried through the state border, including through pipelines and electric power lines, as well as vehicles, travellers luggage and other parcels;15. "Holder of authorization" shall mean the person to whom an authorization has been issued.16. (Amended SG No. 63/2000) "Holder of regime" shall be the person on whose behalf the reporting was made, or the person to whom the rights and obligations of the aforementioned person in respect of a customs regime have been transferred.17. "Foreign goods" shall be goods other than local goods. Local goods shall lose their customs status when they leave the customs territory of the Republic of Bulgaria.18. "Tariff quota" shall be the quantity of goods defined in a value or physical units, for which for a defined period reduced rate of customs duty shall apply, whereas as the quantity is exhausted the rate under the customs tariff shall be restored.19. "Tariff ceiling" shall be the quantity of goods defined in a value or physical units, for which a reduced rate of customs duty shall apply, whereas as this quantity is exceeded the rate of duty under the customs tariff may be restored as provided in the act on its introduction.20. "Charges for additional services provided" shall be fees pursuant to the principles in Article VIII of the General Agreement on Tariffs and Trade and related to activities such as: issue of licenses, statistical services, foreign exchange control, issue of documents and certifying, analysis and inspection, as well as customs activity outside the working place and working hours.21. (New SG No. 30/1999) "Controlled delivery" shall mean the methods by which exportation from, transit through or importation to the territory of a country or several countries is allowed of illegally sent or suspected of being illegally sent narcotic substances and precursors and their analogues or substances that substitute them with the knowledge and under the control of the competent authorities of these countries with the purpose of discovering the persons engaging in illegal trafficking.22. (Previous Item 21 - SG No. 30/1999) "Customs territory of the Republic of Bulgaria" shall be the territory of the Republic of Bulgaria.23. (New, SG No. 153/1998, previous Item 22 - SG No. 30/1999, amended, SG No. 63/2000) "Reporting person" shall be the person performing the act of reporting on his own behalf, or the person on whose behalf the reporting is performed.24. (New SG No. 63/2000) "Official secret" shall be:(a) the specific individualized data entered in the customs statements and in the enclosed documents with the exception of the data included in the public registers;(b) the data from trade contracts, including data on the amount and mode of payment;(c) other specific individualized data obtained or collected in the course of performing customs supervision and control or of other actions provided for herein.25. (New SG No. 63/2000) "Customs authorities" shall be:(a) the Central Customs Directorate;(b) the regional customs directorates;(c) the territorial customs directorates;(d) the customs offices;(e) the customs posts.26. (New SG No. 37/2003) "Agreement on the Rules of Origin", "General Agreement on Tariffs and Trade of 1994" and "Agreement on the Application of Article VII of the General Agreement on Tariffs and Trade" shall be multilateral agreements on the trade with goods from Annex 1A to the Marrakech Agreement establishing the World Trade Organisation (Annex to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation (SG No. 67/2002).27. (New SG No. 37/2003) "List of the Obligations and Concessions Annexed to the General Agreement on Tariffs and Trade of 1994" shall be the list relating to the Republic of Bulgaria to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation (Addition to the Protocol on the accession of the Republic of Bulgaria to the Marrakech Agreement establishing the World Trade Organisation, (SG No. 67/2002).28. (New SG No. 37/2003) "Combined Nomenclature of the Republic of Bulgaria" shall be the nomenclature of goods used for the purposes of levying customs duties and the application of non-tariff measures of trade, agricultural, customs and other policies related to importation and exportation as well as for statistic accounting of the importation and exportation of goods.29. (New SG No. 37/2003) "Combined Nomenclature applied in the member countries of the European Union" shall be the nomenclature of goods introduced with a Regulation of the Council of the European Communities used for the common customs tariff of the European Communities, of foreign trade statistics and the other community policies related to importation and exportation of goods.30. (New SG No. 37/2003) "Harmonised Commodity Description and Coding System" shall be a nomenclature of goods based on the Convention on the Harmonised Commodity Description and Coding System of 1983 signed in Brussels within the framework of the World Trade Organisation.31. (New SG No. 37/2003) "Customs intelligence" shall be the collection, processing, verification and analysis of information by the customs authorities for combating customs and foreign exchange violations and offences.32. (New, SG No. 45/2005) "Trade policy measures" shall be non-tariff measures introduced as part of the trade policy of the Republic of Bulgaria with statutory instruments regulating the import and export of goods such as monitoring or protection measures, qualitative restrictions or limits as well as import and export prohibitions.TRANSITIONAL AND FINAL PROVISIONS 2. The Excise Tax Act (promulgated in the State Gazette No. 19/1994; Amended and supplemented in Nos. 58 and 70/1995, Nos. 21, 56 and 107/1996 and No. 51/1997) shall be Amended and supplemented as follows:1. Article 5 shall be amended as follows:(a) in Paragraph 4, the words "temporary importation regime" shall be substituted by "customs regime with suspensive arrangements, except for transit";(b) paragraph shall be repealed.2. In 2 of the Supplementary Provisions, Items 7 and 8 shall be added:"7. "Enterposed warehouse" shall be a customs warehouse opened and managed under the procedure of Articles 104 to 117 of the Customs Act; 8. "Duty-free zones" shall mean free zones and free warehouses opened and managed under the procedure of Articles 166 to 179 of the Customs Act. " 3. The Value Added Tax Act (promulgated in the State Gazette No. 90/1993; amended and supplemented in No. 57/1995, Nos. 16, 56 and 104/1996 and Nos. 51, 86 and 111/1997) shall be amended and supplemented as follows:1. Article 23 shall be amended as follows:"Article 23. (1) No tax shall be due for import of goods when:"1. the goods enter free zones, entreposed warehouses or duty-free trade outlets;2. valuable metals are imported intended for the Bulgarian National Bank;3. an act of parliament or an international agreement ratified and promulgated as provided in the legislation in force, provide for exemption of the import of goods from taxes, fees or other receivables (payments, taxation) with an effect equivalent to indirect tax;4. grants for humanitarian purposes are imported and placed at the disposal of the State or the municipalities by foreign countries, municipalities, legal or natural persons and organizations;5. grants are imported provided to academic or medical establishments, scientific, cultural, educational and social organizations; ministries, institutions and other state authorities; the Bulgarian Red Cross, the Agency for Foreign Aid;6. information carriers are imported related to the participation of the Republic of Bulgaria in the international exchange of publications, when they are exempt from duties and charges;7. armaments, equipment and machinery are imported for the purposes of the Ministry of Defence, the Ministry of the Interior and other authorities of the national security system, the importation of which has been authorised under the established procedures;8. no duties and charges shall be levied on goods imported by travellers within the allowed duty free import, as well as on international parcels and other postal deliveries to natural persons, with the exception of sole traders, save for motor vehicles;9. nuclear fuel is imported;10. auxiliary technical equipment and devices for disabled persons, including spare parts for them, including cars imported by disabled persons of first category or by persons of six or more years of age and suffering from a condition or disability listed in list approved by the Minister of Health, the Minister of Labour and Social Policy and the Minister of Finance. The exemption from VAT of the import of cars shall follow the provisions of legislation in force for exemption of customs duty and amounting to the Bulgarian currency equivalent of up to USD 900 inclusive. Pursuant to this provision should a car may be imported for a period of three years when it is a second hand car and of five years when it is a new car;11. life-saving and life-supporting medicines, consumables and medical equipment are imported under centralized deliveries for the Ministry of Health or deliveries for state or municipal hospitals according to a list approved by the Minister of Health and the Minister of Finance.(2) No tax shall be collected when the goods are placed under the customs regime with suspensive arrangements, including temporary importation and re-exportation. The tax assessed in these cases shall be secured for payment of customs duties pursuant to the amount and under procedures specified in the Customs Act and the Regulations for its application."2. The following amendments and supplements shall be made to the Supplementary Provisions:a) Paragraph 5c shall be amended as follows: 5c. "Duty-free zones" shall be the free zones and the free warehouses opened and managed under the provisions of Articles 166 to 179 of the Customs Act. "b) Paragraph 5d shall be created: 5d. "Enterposed warehouse" shall be a customs warehouse opened and managed under the provisions of Articles 104 to 117 of the Customs Act. 4. Item 4 shall be added to Article 52 Paragraph 5 of the Banking Act (State Gazette No. 52/1997), the following new):"4. the heads in the Customs Agency and in the Regional Customs Directorates, when:(a) an act by the customs authorities establishes that the person inspected has thwarted the performance of an inspection by the customs authorities or does not keep the required accounting record or they are incomplete of unreliable;(b) an act by the customs authorities establishes customs violations;(c) the imposition of distraints on bank accounts is required in order to secure receivables established and collectable by the customs authorities, as well as to secure fines, legal interest due or other similar receivables;(d) an act by a state authority has established the occurrence of an accidental event, which has brought about the destruction of the accounting documentation of the subject inspected by the customs authorities. " 5. Article 17 of the State Savings Bank Act (promulgated in the State Gazette No. 95/1967; amended in Nos. 21/1975, No. 83/1978, No. 41/1985 and No. 59/1996), shall be amended as follows:1. A new Paragraph 3 shall be inserted:"(3) By request of the heads of the Customs Agency and in the regional customs directorates, the court may rule disclosure of the information referred to in Paragraph 2, when:(a) an act by the customs authorities establishes that the person inspected has thwarted the performance of an inspection by the customs authorities or does not keep the required accounting record or they are incomplete of unreliable;(b) an act by the customs authorities establishes customs violation;(c) the imposition of distraints on bank accounts is required in order to secure receivables established and collectable by the customs authorities, as well as to secure fines, legal interest due or other similar receivables;(d) an act by a state authority has established the occurrence of an accidental event, which has brought about the destruction of the accounting documentation of the subject inspected by the customs authorities. "2. Paragraph 3 shall be renumbered to become Paragraph 4. 6. In Article 83, Paragraph 1 of the Administrative Violations and Sanctions Act (promulgated in the State Gazette No. 92/1969; amended and supplemented in No. 54/1978, Nos. 28 and 101 of 1983, No. 89/1986, No. 24/1987, No. 94/1990, No. 105/1991, No. 59/1992, No. 102/1995, and Nos. 12 and 110/1996), after the words "legal persons" the words "and sole traders" shall be inserted. 7. Item 3 of Article 34 of the Administrative Procedure Act (promulgated in the State Gazette No. 90/1979; amended and supplemented in No. 9/1983, No. 26/1988, No. 94/1990, Nos. 25 and 61/1991, No. 19/1992, Nos. 65 and 70/1995, No. 122/1997), shall be repealed. 8. In Decree No. 2242 on Free Zones (promulgated in the State Gazette No. 55/1987; amended and supplemented in No. 4/1989, No. 84/1993 and No. 26/1996), everywhere the words "free duty-free zones" shall be replaced passim by "free zones." 9. (1) As of 1 January 1998 and until the entry into force of this Act, the Customs General Directorate shall create an off budget account "Financial provision for the combat against fraud and drug-trafficking, training of and incentives to customs officers and development of the border checkpoints infrastructure."(2) The revenues to the off-budget account shall be collected from:1. fees for additional services collectable by the customs authorities within amounts specified by the Council of Ministers. Such fees shall not be considered customs duties;2. proceeds under contracts concluded with legal and natural persons for activities approved by the Minister of Finance within the territory of the border checkpoints and other similar places where additional customs control is required;3. proceeds intended for the Customs Agency from fines and goods seized in favour of the state after deduction of expenses made, as well as sums being the equivalent value of goods seized in favour of the state when they are missing or have been alienated;4. twenty per cent of the fines collected for foreign exchange violations;5. proceeds received from utilization of buildings and equipment, and from provision of information;6. interests.(3) The funds in the off-budget account shall be spent for:1. financial provision for the combat against customs contraband and drugs trafficking;2. coverage of expenses related to the provision of additional services and the facilities;3. development and maintenance of the infrastructure of the Customs Agency on the territory of the border checkpoints and for other needs as defined by the Minister of Finance;4. training and qualification of customs officers;5. incentives to customs officers and encouragement for the detection of customs and foreign exchange violations;(4) The excess balance of income over expenditures at the date of entry into force of this Act shall be a transiting balance and shall come into use for the account under Article 14.(5) The off-budget account shall be approved by the Minister of Finance upon a proposal by the Director of the Customs Agency. An ordinance of the Minister of Finance shall establish the procedure for collecting and spending of the funds. 10. The balances at 31 December 1997 on the Income-Expense Account covering the Activity of Customs General Directorate, established by Council of Ministers Decree No. 44/1991 on Reduction of Budget Expenditures (promulgated in the State Gazette No. 23/1991; corrected in No. 26/1991; amended and supplemented in Nos. 45 and 70/1991, Nos. 40, 43, 47 and 51/1992, Nos. 5, 96 and 104/1993, Nos. 2, 6, 24 and 33/1995, No. 108/1996 and No. 61/1997), following the implementation of the provisions under 13 of the Transitional and Final Provisions of the 1997 Republic of Bulgaria State Budget of the Act, shall be debited to the budget of the Customs General Directorate. 11. The balances at 31 December 1997 on the Income-Expense Account pursuant to Articles 102 and 103 by the Regulations for Application of the Customs Act, approved by Council of Ministers Decree No. 5/1975 (promulgated in the State Gazette No. 12/1975; amended and supplemented in No. 49/1978, No. 81/1988, No. 34/1990, Nos. 26 and 30/1991, Nos. 15, 20, 81 and 104/1992, Nos. 37, 68 and 70/1993, Nos. 6, 9, 16, 30 and 62/1997), shall be debited to the off-budget account under 9. 12. The Customs Act (promulgated in Transactions of the Presidium of the National Assembly No. 21/1960; amended and supplemented in the State Gazette No. 66/1966, No. 26/1969, No. 85/1972, No. 84/1988, No. 30/1990) shall be amended as follows:1. In Article 17, Paragraph 2, the number "2" shall be replaced by "5,000".2. In Article 56, Paragraph 1 the words "from five to fifty" and in Paragraph 2, the words "up to BGN 100" shall be replaced by "up to BGN 1 000 000".3. In Article 58, Paragraph 3, the number "5" shall be replaced by "1000".4. In Article 66, Paragraph 2, the number "30" shall be replaced by "2000". 13. of 3, Item 1 and 9, 10, 11 of the Transitional and Final Provisions of this Act shall enter into force on 1 January 1998, while 12 shall enter into force three days after promulgation of the Act in the State Gazette. 14. (Amended, SG No. 89/1998) This Act shall enter into force on 1 January 1999 and shall repeal:1. The Customs Act (promulgated in Transactions of the Presidium of the National Assembly No. 21/1960; amended and supplemented in the State Gazette No. 66/1966, No. 26/1969, No. 85/1972, No. 84/1988 and No. 30/1990);2. Decree No. 692/1951 on determining and paying rewards to discoverers of customs contraband (promulgated in Transactions of the Presidium of the National Assembly No. 2/1951). 15. (1) (SG No. 89/1998) Within ten months after promulgation of this Act the Council of Ministers shall adopt Regulations for Application of this Act.(2) (Supplemented, SG No. 105/2006) The Minister of Finance shall issue ordinances and instructions concerning the implementation of this Act and the Regulations for Application thereof, as well as the customs legislation of the European Union. 16. The implementation of this Act shall be assigned to the Minister of Finance and the Director of the Customs Agency. 17 (New, SG No. 105/2006) This Act shall be implemented as long as it does not contradict the customs legislation of the European Union.TRANSITIONAL AND FINAL PROVISIONSto the Lev Re-Denomination Act(SG, No. 20/1999, supplemented SG No. 65/1999,effective since 5.07.1999) 4. (1) (Supplemented, SG No. 65/1999) With the entry into force of this act all numbers in old levs specified in laws that have become effective before 5 July 1999 shall be replaced by numbers reduced 1000 fold in new levs. The replacement of all numbers by numbers reduced 1000 fold in new levs shall apply also to all acts adopted before 5 July 1999 that have become or shall become effective after 5 July 1999.(2) The authorities that have adopted or issued secondary statutory acts which have become effective before 5 July 1999 and which contain figures in levs shall make amendments therein ensuing from this act in such a manner as to apply as of the date this act becomes effective.TRANSITIONAL AND FINAL PROVISIONSto the Act Amending and Supplementing the Customs ActSG No. 63/2000, amended SG No. 110/2001; effective 1.01.2002 54. In Article 13, 14, Article 183, Paragraph 2, Article 186, Paragraph 4, Article 231 and 16 of the Transitional and Final Provisions of the Act the words "the General Customs Directorate" shall be substituted by "Customs Agency" and in Article 21, Paragraph 4 the words ""the General Customs Directorate" shall be substituted by "Central Customs Administration". Everywhere in the Act the words "the head of the General Customs Directorate" shall be substituted by "the Director of the Customs Agency" and the words "the heads of the regional customs directorates" shall be substituted by "the directors of the regional customs directorates". 55. The Customs Agency shall be the legal successor of the National Customs Agency, of the regional customs directorates, customs, customs offices and customs posts. 56. (Effective 1.01.2000, repealed SG No. 110/2001).TRANSITIONAL AND FINAL PROVISIONSto the Act Amending and Supplementing the Customs Act(SG No. 37/2003) 73. On the occurrence of a customs debt for goods placed under the temporary importation regime under the terms of the repealed Article 17 of the Investment Promotion Act the amount of the debt shall be determined on the basis of the levying elements compatible with these goods at the time of the occurrence of the customs debt. In these cases the provision of Article 203, Paragraph 3 of the Customs Act shall not apply. 74. Within one month after the promulgation of this Act the customs officers shall submit the sworn statement under Article 10, Paragraph 4. 75. The provisions of 30 - 51 shall enter into force on 1 November 2003, and the provision of 67 shall enter into force on 1 June 2003. 76. Within one month after the promulgation of this Act the Council of Minister shall adopt amendments to the Regulation on applying this Act.Lev Re-denomination Act Promulgated, State Gazette No. 20/5.03.1999,amended, SG No. 65/20.07.1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TRANSITIONAL AND FINAL PROVISIONSto the Excise Duties and Tax Warehouses ACT(SG No. 91/2005, effective 1.01.2005) 9. Until entry into force of the statement of issuance of a license for management of a tax warehouse or refusal for its issuance existing producers of excisable goods at 1 January 2006 who file an application for license by 1 March 2006 shall continue their activity as licensed warehouse keepers under the procedure of this Act.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84. The Customs Act, (Promulgated SG No. 15/1998, amended, SG No. 89/1998, amended and supplemented, SG No. 153/1998, SG No. 30/1999, amended, SG No. 83/1999, amended and supplemented, SG No. 63/2000, 110/2001, supplemented, SG No. 76/2002, amended and supplemented, SG No. 37/2003, amended, SG No. 95/2003, supplemented, SG No. 38/2004, amended and supplemented SG No. 45/2005, amended SG 86/2005, supplemented, SG No. 91/2005, amended and supplemented, SG No. 105/2005) shall be amended as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. Everywhere in the act the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code". For more information visit www.solicitorbulgaria.com id: 335 Mon, 04 Aug 2008 06:38:36 -0700 http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CUSTOMS_ACT.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-customs-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL DISPOSITIONSChapter OneGENERAL PROVISIONSScope of TaxationArticle 1. This Act regulates taxation of:1. the profit accruing to resident legal persons;2. the profit accruing to resident legal persons which are not merchants, including the organizations of the religious denominations, from any transactions covered under Article 1 of the Commerce Act , as well as from letting movable and immovable property;3. the profit accruing to non-resident legal persons from a permanent establishment in the Republic of Bulgaria;4. the income, as specified in this Act, accruing to resident and non-resident legal persons from a source inside the Republic of Bulgaria;5. the expenses as specified in Part Four herein;6. the activities of organizers of games of chance;7. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;8. the vessels operation activity of persons which… For more information visit http://www.solicitorbulgaria.com id: 334 PART ONEGENERAL DISPOSITIONSChapter OneGENERAL PROVISIONSScope of TaxationArticle 1. This Act regulates taxation of:1. the profit accruing to resident legal persons;2. the profit accruing to resident legal persons which are not merchants, including the organizations of the religious denominations, from any transactions covered under Article 1 of the Commerce Act , as well as from letting movable and immovable property;3. the profit accruing to non-resident legal persons from a permanent establishment in the Republic of Bulgaria;4. the income, as specified in this Act, accruing to resident and non-resident legal persons from a source inside the Republic of Bulgaria;5. the expenses as specified in Part Four herein;6. the activities of organizers of games of chance;7. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;8. the vessels operation activity of persons which carry out maritime merchant shipping.Taxable PersonsArticle 2. (1) Taxable persons shall be:1. the resident legal persons;2. the non-resident legal persons which carry out economic activity in the Republic of Bulgaria through a permanent establishment or which receive income from a source inside the Republic of Bulgaria;3. the sole traders: in respect of the taxes withheld at source and in the cases specified in the Income Taxes on Natural Persons Act;4. the natural persons who are merchants within the meaning given by Article 1 (3) of the Commerce Act: in the cases specified in the Income Taxes on Natural Persons Act;5. the employers and the commissioning entities under contracts for management and control: in respect of the tax on the expenses on fringe benefits, provided for in Part Four herein.(2) For the purposes of this Act, the unincorporated associations and the contribution payment centres established in pursuance of Article 8 of the Social Insurance Code shall be treated as equivalent to legal persons.(3) For the purposes of taxation of income from a source inside the Republic of Bulgaria, any non-resident organizationally and economically distinct formation (trust, fund and other such), which independently carries out economic activity or performs and manages investments, shall likewise be a taxable person where the owner of the income cannot be identified.Resident Legal PersonsArticle 3. (1) "Resident legal persons" shall be:1. any legal persons incorporated under Bulgarian law;2. any companies incorporated under Council Regulation (EC) No 2157/2001, and any cooperative society incorporated under Council Regulation No 1435/2003, where the registered office thereof is situated in the country and they are entered into a Bulgarian register.(2) Any resident legal persons shall be liable to taxes under this Act in respect of the profits and income accruing thereto from all sources inside and outside the Republic of Bulgaria.Non-resident Legal Persons"Article 4. (1) "Non-resident legal persons" shall be any persons which are not resident persons.(2) Any non-resident legal persons shall be liable to taxes under this Act in respect of the profits realized through a permanent establishment in the Republic of Bulgaria and of the income as specified in this Act accruing from a source inside the Republic of BulgariaTypes of TaxesArticle 5. (1) Profits shall attract a corporation tax.(2) The income accruing to any resident and non-resident legal persons, as specified in this Act, shall attract a tax withheld at source.(3) The expenses, as specified in this Act, shall attract a tax on expenses.(4) A tax alternative to corporation tax shall be levied on:1. the activity of organizing games of chance;2. the income accruing to public-financed enterprises from any transactions covered under Article 1 of the Commerce Act, as well as from letting movable and immovable property;3. the vessels operation activity.Determination of Amount of TaxArticle 6. The amount of tax shall be determined by multiplying the taxable amount by the rate of tax.Tax ReturnsArticle 7. The standard forms of returns and of other documents under this Act shall be endorsed by an order of the Minister of Finance and shall be promulgated in the State Gazette.Remittance of TaxesArticle 8. (1) The taxes due under this Act shall be remitted by the taxable persons in revenue to the executive budget.(2) The taxes due shall be credited to an account of the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable persons or over the place where the taxable persons are registrable.(3) The taxes due shall be deemed to be remitted on the date on which the amounts are received in the executive budget on the account of the competent National Revenue Agency territorial directorate.Default InterestArticle 9. Interest according to the Interest on Taxes, Fees and Other State Receivables Act shall be due on any taxes which are not remitted when due, including any tax prepayments.Documentary SupportArticle 10. (1) An accounting expense shall be recognized for tax purposes where it is supported by an accounting source document within the meaning given by the Accountancy Act.(2) An accounting expense shall be recognized for tax purposes even where part of the information required under the Accountancy Act is missing in the accounting source document, provided that documents certifying any such missing information are available.(3) Outside the cases referred to in Paragraph (2), an accounting expense shall be recognized even where the accounting source document has been issued by a person which is not an enterprise within the meaning given by Article 1 (2) of the Accountancy Act and part of the information required under the Accountancy Act is missing in the document, provided that the said document gives a true view of the business transaction documented.(4) The taxable persons shall be obligated to register and account for any sale of goods and services as effected by means of issuing a fiscal cash receipt printed by a fiscal device according to a procedure established by an ordinance of the Minister of Finance, except where payment is effected by bank transfer or through an offset. The lack of a fiscal cash receipt printed by a fiscal device, where the issuance of such a receipt is obligatory, shall be grounds to deny recognition of an accounting expense for tax purposes.(5) In respect of international air transport, an accounting expense shall be supported by documents where documented by means of an accounting source document and the boarding pass for the flight executed. Where the accounting source document (protocol) is issued by the person who effects the sale on behalf and for the account of the carrier, the said person shall be deemed to be an issuer of the said document.(6) (New, SG No. 110/2007) Documentary support of the expenses referred to in Items 1 and 3 of Article 204 herein, which attract a tax on expenses, shall be available even when the said expenses are documented only by a fiscal cash receipt printed by a fiscal device. The expenses referred to in Item 3 of Article 204 herein, which attract a tax on expenses, shall be recognized for tax purposes even where a transportation control and movement document has not been issued.Expenses Defined as Compulsory by Statutory InstrumentArticle 11. Any expenses defined as compulsory by a statutory instrument shall be recognized for tax purposes and shall not attract a tax on expenses, unless otherwise provided for in this Act.Chapter TwoSOURCES OF PROFIT AND INCOMEProfit and Income from Sources Inside Republic of BulgariaArticle 12. (1) Any profit and income accruing to non-resident legal persons, derived from economic activity carried out through a permanent establishment in the country or from disposition of property of any such permanent establishment, shall have their source inside the country.(2) Any income from financial assets issued by resident legal persons, the Bulgarian State and the municipalities, shall have its source inside the country.(3) Any income from transactions in financial assets referred to in Paragraph (2) shall have its source inside the country.(4) Any income from dividends and shares in a liquidation surplus, accruing from participating interests in resident legal persons, shall have its source inside the country.(5) The following income, charged by resident legal persons, resident sole traders or non-resident legal persons and sole traders through a permanent established or a fixed base in the country or paid by resident natural persons or by non-resident natural persons who have a fixed base in the country in favour of non-resident legal persons, shall have its source inside the country:1. any interest payments, including interest within payments under a financial lease contract;2. any income from rent or other provision for use of movable or immovable property;3. any copyright and licence royalties;4. any technical assistance fees;5. any payments received under franchising agreements and factoring contracts;6. any compensations for management or control of a Bulgarian legal person.(6) (Amended, SG No. 110/2007) Any income covered under Paragraph (5), which is charged in favour of non-resident legal persons from a permanent establishment of a resident person or from a fixed base of resident natural persons situated outside the territory of the country, shall not have its source inside the country.(7) Any income from agriculture, forestry, hunting ground management and fisheries within the territory of the country shall have its source inside the country.(8) Any income from immovable property or from transactions in immovable property, including an undivided interest or a limited right in rem to any immovable property situated in the country, shall have its source inside the country.(9) Upon determination of the source of income under this Article, the place of payment of the income shall be ignored.Chapter ThreeINTERNATIONAL TAXATIONInternational TreatiesArticle 13. Where an international treaty, which has been ratified by the Republic of Bulgaria, has been promulgated and has entered into force, contains any provisions different from the provisions of this Act, the provisions of the relevant international credit shall prevail.Foreign Tax CreditArticle 14. (1) Where the provisions of an international treaty referred to in Article 13 herein are not applied, the taxable persons shall be allowed foreign tax credit under the terms and according to the procedure established by this Act.(2) Upon assessment of the corporation tax or of the alternative taxes under this Act, the taxable persons shall be allowed foreign tax credit in respect of each tax similar to corporation tax or imposed in lieu of such tax and paid abroad.(3) The taxable persons shall be allowed foreign tax credit in respect of the tax imposed abroad on the gross amount of the income from dividends, interest payments, copyright and licence royalties, technical assistance fees and rents.(4) The tax credit referred to in Paragraphs (2) and (3) shall be determined for each State and for each type of income separately and shall be limited to the amount of the Bulgarian tax on the said profits or income.Chapter FourPREVENTION OF TAX EVASIONTransactions between Related PartiesArticle 15. Where related parties enter into commercial and financial relationships under terms which affect the amount of the tax financial result and which differ from the terms between unrelated parties, the tax financial result shall be determined and taxed under the terms which would have arisen in respect of unrelated parties.Tax EvasionArticle 16. (1) Where one or more transactions, inter alia between unrelated parties, has been concluded under terms whereof the fulfilment leads to tax evasion, the tax financial result shall be determined ignoring the said transactions, certain terms thereof or the legal form thereof and taking into consideration the tax financial result that would be obtained upon the effecting of a customary transaction of the relevant type at market prices and intended to achieve the same economic result but which does not lead to tax evasion.(2) The following shall furthermore be treated as tax evasion:1. any substantial excess of the quantities of raw and prime materials used as production inputs and other production costs over the customary quantities and costs for the activity carried out by the person, where any such excess is not due to reasons beyond the control of the person;2. any contracts of loan for use or other gratuitous provision for use of tangible and intangible benefits;3. any borrowing or lending at interest diverging from the market rate of interest as applicable at the time of conclusion of the transaction, including in the cases of interest-free loans or other temporary gratuitous financial assistance, as well as the write-off of debts or repayment of non-business debts for own account;4. payment of any remunerations or compensations for any services which have not been actually performed.(3) Where a transaction is concealed by another, colourable transaction, the tax liability shall be assessed under the terms of the concealed transaction.Transfers Related to Permanent EstablishmentArticle 17. This Chapter shall furthermore apply, mutatis mutandis, to any transfers between a permanent establishment and other divisions of the enterprise of a non-resident person situated outside the country, conforming to the specifics of the permanent establishment.PART TWOCORPORATION TAXChapter FiveGENERAL DISPOSITIONSTax Financial ResultArticle 18. (1) (Amended, SG No. 110/2007) "Tax financial result" shall be the accounting financial result adjusted according to the procedure established by this Act.(2) The positive tax financial result shall be a tax profit.(3) The negative tax financial result shall be a tax loss.Taxable AmountArticle 19. The taxable amount for assessment of the corporation tax shall be the tax profit.Rate of TaxArticle 20. The rate of corporation tax shall be 10 per cent.Tax PeriodArticle 21. (1) The tax period for assessment of the corporation tax shall be the calendar year, save as otherwise provided for in this Act.(2) In respect of any newly incorporated taxable persons, the tax period shall cover the period from the date of incorporation thereof until the end of the year, save as otherwise provided for in this Act.Chapter SixGENERAL DISPOSITIONS REGARDING DETERMINATION OF TAX FINANCIAL RESULTDetermination of Tax Financial ResultArticle 22. (Amended, SG No. 110/2007) The tax financial result shall be determined by means of adjusting the accounting financial result, according to a procedure and in a manner specified in this Act, for:1. the permanent tax differences;2. the temporary tax differences;3. the amounts provided for in this Part.Permanent Tax Differences and Adjustment of AccountingFinancial Result for Such DifferencesArticle 23. (1) "Permanent tax differences" shall be accounting income or expenses which are not recognized for tax purposes.(2) For the purposes of determination of the tax financial result, where this Act indicates that:1. a cost (loss) is not recognized for tax purposes, the accounting financial result shall be credited with any such cost (loss) in the year of accounting for the said cost (loss), and the accounting financial results shall not be adjusted during the succeeding years;2. an income (profit) is not recognized for tax purposes, the accounting financial result shall be debited with any such income (profit) in the year of accounting for the said income (profit), and the accounting financial results shall not be adjusted during the succeeding years.Temporary Tax Differences and Adjustment of AccountingFinancial Result for Such DifferencesArticle 24. (1) Temporary tax differences shall arise where any income or expenses are recognized for tax purposes in a year other than the year of accounting for the said income or expense.(2) A "temporary tax difference" shall be:1. any expense unrecognized for tax purposes in the year of accounting for any such expense, which will be recognized during succeeding years, when the conditions for recognition according to this Part occur;2. any income unrecognized for tax purposes in the year of accounting for any such income, which will be recognized during succeeding years, when the conditions for recognition according to this Part occur.(3) Temporary tax differences shall furthermore originate in the cases of transformation of corporations and cooperatives according to the procedure established by Chapter Nineteen herein.(4) For the purposes of determination of the tax financial result, where this Act indicates that:1. any cost (loss), which is not recognized for tax purposes in the year of accounting and will be recognized during succeeding years when the condition for recognition according to this Part occurs:(a) the accounting financial result in the year of accounting for the cost (loss) shall be credited with any such cost (loss): origination of a temporary tax difference;(b) the accounting financial result in the year when the condition for recognition according to this Part occurs shall be debited with any such cost (loss): reversal of a temporary tax difference;2. any income (profit), which is not recognized for tax purposes in the year of accounting and will be recognized during succeeding years when the condition for recognition according to this Part occurs:(a) the accounting financial result in the year of accounting for the income (profit) shall be debited with any such income (profit): origination of a temporary tax difference;(b) the accounting financial result in the year of when the condition for recognition according to this Part arises shall be credited with any such income (profit): reversal of a temporary tax difference.Tax-Recognized Income and CostArticle 25. For the purposes of determination of the tax financial result, where this Act indicates that any income (cost) or profit (loss) is recognized for tax purposes in the year of accounting for such income, the accounting financial result for the current year or any succeeding years shall not be adjusted for the said income (cost) or profit (loss).Chapter SevenPERMANENT TAX DIFFERENCESExpenses Unrecognized for Tax PurposesArticle 26. The following accounting expenses shall not be recognized for tax purposes:1. any non-business expenses;2. any expenses which are not supported by documents within the meaning given by this Act;3. any expenses on tax charged or credit for input tax used according to the Value Added Tax Act , where the expense incurred on the business transaction wherewith the value added tax is associated is not recognized for tax purposes;4. (amended, SG No. 110/2007) any expense accounted for by a supplier under the Value Added Tax Act on value added tax charged by the said supplier or by the revenue authority in connection with a supply effected, with the exception of the tax charged in connection with supplies effected free of charge and supplies in connection with deregistration under the Value Added Tax Act; this item shall not apply to expenses accounted for as a result of an adjustment in the credit for input tax under the Value Added Tax;5. (amended, SG No. 110/2007) any subsequent expenses accounted for in connection with a claim which has originated from a tax charged or credit for input tax used under Items 3, 4, 8 and 10;6. any expenses on fines charged, forfeitures and other sanctions imposed for violation of statutory instruments, any default interest charged for late payment of public state or municipal debts;7. any donation expenses other than such covered under Article 31 herein;8. any expenses on a tax which is subject to withholding at source and is for the account of the payer of the income;9. any wage expenses at commercial corporations wherein the State or a municipality holds an interest exceeding 50 per cent in excess of the resources fixed by statutory instruments.10. (new, SG No. 110/2007) any expense accounted for upon enforcement of a liability for the value added tax due and unremitted in the cases referred to in Article 177 of the Value Added Tax Act; 11. (new, SG No. 110/2007) any expenses which constitute hidden profit distribution.Income Unrecognized for Tax PurposesArticle 27. (1) The following accounting income shall not be recognized for tax purposes:1. any income resulting from distribution of dividends by resident legal persons;2. any income originating in connection with any expenses unrecognized for tax purposes, as referred to in Article 26 herein, up to the amount of the unrecognized expenses;3. any income from interest payments on unduly remitted or collected public obligations, as well as on value added tax not refunded within the statutory time limits, charged by the central-government or municipal authorities.(2) Item 1 of Paragraph (1) shall not apply:1. to any income charged as a result of distribution of dividends by licensed special purpose investment companies under the Special Purpose Investment Companies Act ;2. upon hidden profit distribution.Unrecognized Expenses on Shrinkage and WastageArticle 28. (1) Any accounting expenses on shrinkage of fixed and current assets shall not be recognized for tax purposes, with the exception of such due to a force majeure.(2) Any accounting expenses on shrinkage and waste of stocks of materials shall not be recognized for tax purposes.(3) Paragraph (2) shall not apply where the expenses are due to:1. a force majeure;2. spoilage or alteration of physical and chemical properties, as established by a statutory instrument or by company standards, where a statutory instrument does not exist, and in the customary amounts for the relevant activity;3. expiry of the service life according to a statutory instrument or company standards, where a statutory instrument does not exist, and in the customary amounts for the relevant activity.4. (new, SG No. 110/2007) shrinkage of merchandise arising from business operation at establishments where customers have direct physical access to the merchandise on offer, to an amount of up to 0.25 per cent of the amount of the net turnover of the distributive trade establishment concerned.(4) Any tax expense referred to in Article 79 (3) of the Value Added Tax Act on any assets, which is not recognized according to the procedure established by Paragraphs (1) to (3), shall not be recognized for tax purposes.(5) Any subsequent accounting expenses, which have been accounted for in connection with a claim originating from shrinkage and wastage of any assets unrecognized according to the procedure established by Paragraphs (1) to (4), shall not be recognized for tax purposes.Unrecognized Expenses Originating in Connectionwith Shrinkage and WastageArticle 29. Any accounting expenses which have originated in connection with any shrinkage and wastage of assets or any claim related therewith shall not be recognized for tax purposes up to the amount of the unrecognized expenses referred to in Article 28 herein.Recognition of Part of Undistributable Expenses ofNot-for-Profit Legal EntitiesArticle 30. (1) Any accounted for undistributable expenses, corresponding to the activity subject to levy of corporation tax, incurred by any not-for-profit legal entities, shall not be recognized for tax purposes.(2) The part of the undistributable expenses, determined by multiplying the total amount of undistributable expenses by the ratio between the income from the activity subject to levy of corporation tax and all income accruing to the not-for-profit legal entity, shall be recognized for tax purposes.Donation ExpensesArticle 31. (1) The accounting expenses on donations to a total amount of up to 10 per cent of the positive accounting financial result (accounting profit) shall be recognized for tax purposes where the expenses on donations are incurred in favour of:1. any health-care and medical-treatment facilities;2. any specialized institutions for provision of social services according to the Social Assistance Act , as well as of the Social Assistance Agency and of the Social Assistance Fund under the Minister of Labour and Social Policy;3. any specialized child institutions according to the Child Protection Act, as well as of any care homes for children deprived of parental care according to the Public Education Act;4. any creches, kindergartens, schools, higher schools or academies;5. any public-financed enterprises within the meaning given by the Accountancy Act;6. any religious denominations registered in the country;7. any specialized enterprises or cooperatives of persons with disabilities, entered in the register referred to in Article 29 of the Integration of Persons with Disabilities Act, as well as in favour of the Agency for Persons with Disabilities;8. any persons with disabilities, as well as for technical aids therefore;9. any victims of crises within the meaning given by the Crisis Management Act, or of the families thereof;10. the Bulgarian Red Cross;11. any socially disadvantaged persons;12. any children with disabilities or parentless children;13. any cultural institutes, or for the purposes of cultural, educational or research exchange under an international treaty whereto the Republic of Bulgaria is a party;14. any not-for-profit legal entities, registered in the Central Register of Not-for-Profit Legal Entities for pursuit of public benefit activities, with the exception of organizations supporting culture within the meaning given by the Financial Support for Culture Act ;15. any schoolchildren and students at Bulgarian schools in respect of the scholarships instituted and provided thereto for instruction;16. the Bulgaria Energy Efficiency Fund;17. any therapeutic communities for narcotics-dependent persons, as well as of narcotics-dependent persons for the therapy thereof.(2) Accounting expenses on donations shall be recognized for tax purposes to an amount of up to 50 per cent of the accounting profit where the expenses on donations are incurred in favour of the Fund for Medical Treatment of Children Centre.(3) The assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Act shall be recognized for tax purposes to an amount of up to 15 per cent of the accounting profit.(4) Any expenses on donations of computers and computer peripheral equipment, which are manufactured within one year prior to the date of the donation, and made in favour of Bulgarian schools, including higher schools, shall be recognized for tax purposes.(5) The aggregate amount of the expenses on donations recognized for tax purposes under Paragraphs (1) to (4) may not exceed 65 per cent of the accounting profit.(6) The entire expense on a donation shall not be recognized for tax purposes where the donation benefits, whether directly or indirectly, the managers who make it or those who dispose of the said donation, or where there is evidence that the gift has not been received.Taxable Person's Formation ExpensesArticle 32. (1) The accounting expenses on the incorporation of a legal person shall be recognized for tax purposes at the taxable persons which are incorporators. The unrecognized expenses shall be recognized for tax purposes upon determination of the tax financial result of the newly formed legal person in the year of commencement of the legal existence thereof.(2) The expenses referred to in Paragraph (1) shall be recognized for tax purposes in respect of the incorporators upon occurrence of circumstances determining that the legal existence of a new legal person will not commence. The said expenses shall be recognized in the year of occurrence of the said circumstances, if the requirements of this Act are complied with.Natural Persons' Travel and Per Diem ExpensesArticle 33. (Amended, SG No. 110/2007, effective 1.01.2007) (1) The following accounting travel and per diem expenses of natural persons shall be recognized for tax purposes, where the travel and stay were performed in connection with the activity of the taxable person:1. the travel and per diem expenses of any natural persons who are in employment relationships with the taxable person or are hired thereby under non-employment relationships, including such expenses of managing directors, members of management or supervisory bodies or the taxable person;2. the travel and per diem expenses incurred by a sole trader of:(a) the natural person who owns the enterprise of the natural person, and(b) the persons who are in employment relationships with the sole trader or are hired thereby under non-employment relationships.(2) The accounting travel and per diem expenses of any shareholders or partners shall not be recognized for tax purposes where the said shareholders or partners perform the travel and stay in their capacity of shareholders or partners.Chapter EightTEMPORARY TAX DIFFERENCESNon-recognition of Income and Expenses from Subsequent Valuations(Revaluations and Impairments)Article 34. (1) Any income and expenses from subsequent valuations of assets and liabilities shall not be recognized for tax purposes in the year of accounting for the said income and expenses.(2) Paragraph (1) shall not apply in respect of any accounting income and expenses from subsequent valuations of monetary positions in foreign currency at the central exchange rate of the Bulgarian National Bank.Recognition of Expenses and Income from Subsequent Valuations(Revaluations and Impairments)Article 35. (1) Any income and expenses from subsequent valuations unrecognized for tax purposes according to the procedure established by Article 34 herein shall be recognized for tax purposes in the year of write-off of the relevant asset or liability.(2) Where the value of the stocks of materials of a specific type, written off during the current year, exceeds the value of the stocks of materials of the said type as at the 31st day of December of the preceding year, the unrecognized income referred to in Article 34 herein in respect of the said type of stocks of materials during preceding years shall be recognized for tax purposes during the current year.(3) Paragraphs (1) and (2) shall not apply in the cases of shrinkage and wastage of assets, which are not recognized for tax purposes according to the procedure established by Article 28 herein.Income and Expenses from Initial Recognition and SubsequentValuation of Biological Assets and Agricultural (Farming) ProduceArticle 36. (1) Any excess of the income (profits) from an initial recognition and subsequent valuation of biological assets and agricultural (farming) process over the expenses accounted for in connection with the said assets shall not be recognized for tax purposes in the year of accounting for the said income and expenses. Any excess of the income referred to in sentence one shall be recognized for tax purposes in the year of write-off of the relevant asset.(2) Any excess of the expenses reported in connection with biological assets and agricultural (farming) process, over the incomes (profits) from an initial recognition and subsequent valuation of said assets shall not be recognized for tax purposes in the year of accounting for the said income and expenses. Any excess of the expenses referred to in sentence one shall be recognized for tax purposes in the year of write-off of the relevant asset.(3) The provisions of Articles 34 and 35 herein shall not apply to any biological assets and agricultural produce.Recognition of Income and Expenses from SubsequentValuations of ClaimsArticle 37. Any income and expenses from subsequent valuations of claims unrecognized according to the procedure established by Article 34 herein shall be recognized for tax purposes in the year in which one of the following circumstances occurs:1. lapse of the prescription of the claim, but not more than five years after the time the said claim became exigible;2. onerous transfer of the claim;3. the bankruptcy proceedings against the debtor have been closed by a confirmed plan for rehabilitation which provides for incomplete satisfaction of the taxable person; the unrecognized income and expenses shall be recognized for tax purposes solely in respect of the diminution in the claim;4. an effective judgment of court has decreed that the claim or a part thereof is undue; the unrecognized income and expenses shall be recognized for tax purposes solely in respect of the undue part of the claim;5. prior to the lapse of the prescription, the claims have been extinguished by virtue of a law;6. upon expungement of the debtor, where the claim or part thereof has been left unsatisfied: recognition shall be limited to the unsatisfied part.Provisions for DebtsArticle 38. (1) Any expenses on provisions for debts shall be recognized for tax purposes in the year of accounting for any such expenses.(2) Any expenses on provisions unrecognized under Paragraph (1) shall be recognized for tax purposes in the year of repayment of the debt for which the provision has been recognized up to the amount of the debt repaid.(3) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting incomes or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with a recognized provision.Provisions Not Included in Tax Depreciable Valueof Tax Depreciable AssetArticle 39. (1) Upon determination of the tax financial result, the accounting financial result shall be debited with the repaid debts related to any provisions which are not included in the tax depreciable value of a tax depreciable asset according to Article 53 (1) herein. The debiting referred to in sentence one shall be performed in the year of repayment of the debt.(2) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with a recognized provision.Specific Procedure for Recognition of Expenses on Provisionsfor Debts upon Cessation of ActivityArticle 40. (1) Any taxable person, which has applied Article 38 (1) or Article 53 (1) herein and has entirely ceased the core activity thereof in the year of repayment of the debts in respect of which a provision unrecognized for tax purposes has been charged, shall not apply the provisions of Article 38 (2) or Article 39 (1) herein and shall be entitled to an offset or refund of the over remitted corporation tax as arrived at according to the procedure established by Paragraph (2).(2) The over remitted corporation tax shall be arrived at as a product of the repaid part of the debts, in respect of which a provision unrecognized for tax purposes has been charged, and the rate of corporation tax for the year of repayment of the debts. The repaid part of the debts for the purposes of sentence one may not exceed the sum total of the tax financial results for the ten years last preceding the year of cessation of activity.Unused LeavesArticle 41. (1) Any expenses on accumulating unused (compensable) leaves at the 31st day of December of the current year, as well as any expenses connected with any such leaves, for compulsory social and health insurance, shall not be recognized for tax purposes in the year of accounting for any such expenses.(2) Any unrecognized expenses on accumulating unused (compensable) leaves referred to in Paragraph (1) shall be recognized for tax purposes in the year during which compensations for the said leaves was actually paid to the staff, up to the amount of the compensations paid.(3) Any unrecognized expenses on compulsory social and health insurance referred to in Paragraph (1) shall be recognized for tax purposes in the year during which the relevant social and health insurance contributions were remitted, up to the amount of the insurance contributions remitted.(4) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with any debts referred to in Paragraph (1).(5) (New, SG No. 110/2007) Paragraph (1) shall not apply to any leaves and social and health insurance contributions connected therewith, the accounting for which does not lead to a diminution in the financial result for the year of accounting for the said expenses.(6) (New, SG No. 110/2007) Any expenses resulting from compensable leaves and social and health insurance contributions connected therewith, leading to a diminution in the financial result, shall not be recognized for tax purposes in a year other than the year of accounting for the said expenses, where the compensations were not paid and the contributions were not remitted at the 31st day of December of the year in which the accounting financial result was debited. In such cases, Paragraphs (2) and (3) shall apply, mutatis mutandis.(7) (New, SG No. 110/2007) Paragraphs (1) to (6) shall not apply to any compensable leaves and social and health insurance contributions connected therewith which, according to accounting legislation, are capitalized as part of the value of a tax depreciable asset.Expenses Constituting Income Accruing to Resident Natural PersonsArticle 42. (1) Any expenses incurred by taxable persons, constituting income accruing to resident natural persons under the Income Taxes of Natural Persons Act, which are not paid as at the 31st day of December of the current year, shall not be recognized for tax purposes in the year of accounting for any such expenses.(2) Paragraph (1) shall not apply to any expenses constituting:1. a basic or supplementary labour remuneration, fixed by a statutory instrument;2. income accruing to sole traders.(3) The expenses unrecognized under Paragraph (1) shall be recognized for tax purposes in the year during which the income is paid, up to the amount of the income paid.(4) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with the debts for any unpaid income referred to in Paragraph (1).(5) (New, SG No. 110/2007) The expenses on compulsory social and health insurance contributions connected with the unrecognized expenses referred to in Paragraph (1) shall not be recognized for tax purposes in the year of accounting for the said expenses where the compulsory social and health insurance contributions were not remitted at the 31st day of December of the current year.(6) (New, SG No. 110/2007) The unrecognized expenses referred to in Paragraph (5) shall be recognized for tax purposes in the year during which the relevant compulsory social and health insurance contributions were remitted, up to the amount of the contributions remitted. Upon determination of the tax financial result, the accounting financial result shall be debited with the accounting income or, respectively, with the amount wherewith the accounting expenses have been debited, accounted for in connection with the debts referred to in Paragraph (5).(7) (New, SG No. 110/2007) Paragraphs (1) and (5) shall not apply to any income and compulsory social and health insurance contributions connected therewith, the accounting for which does not lead to a diminution in the accounting financial result for the year of accounting for the said expenses.(8) (New, SG No. 110/2007) Any expenses resulting from income and compulsory social and health insurance contributions referred to in Paragraphs (1) and (5), leading to a diminution in the financial result, shall not be recognized for tax purposes in a year other than the year of accounting for the said expenses, where the income was not paid and the contributions were not remitted at the 31st day of December of the year in which the accounting financial result was debited. In such cases, Paragraphs (3) and (6) shall apply, mutatis mutandis.(9) (New, SG No. 110/2007) Paragraphs (1) to (8) shall not apply to any income and social and health insurance contributions connected therewith which, according to accounting legislation, are capitalized as part of the value of a tax depreciable asset.Regulation of Thin CapitalizationArticle 43. (1) Any expenses on interest payments shall not be recognized for tax purposes in the year of accounting for any such expenses to an amount arrived at for the current year according to the following formula:UEIP = EIP - IIR - 0.75 x AFRBI, where:UEIP shall be the unrecognized expenses on interest payments;EIP shall be the expenses on interest payments arrived at according to the procedure established by Paragraph (3);IIR shall be the total amount of income from interest receivable;FRBI shall be the accounting financial result before all expenses on interest payments and income from interest receivable.(2) Any expenses on interest payments, unrecognized under Paragraph (1), shall be recognized for tax purposes during the next succeeding five years until depletion of the said expenses, to an amount arrived at for the current year according to the following formula:REIP = 0.75 x FRBI + IIR - EIP, where:REIP shall be the recognized expenses on interest payments;FRBI shall be the accounting financial result before all expenses on interest payments and income from interest receivable;IIR shall be the total amount of income from interest receivable;EIP shall be the expenses on interest payments arrived at according to the procedure established by Paragraph (3) for the current year.(3) The expenses on interest payments shall include all financial (interest) income, accounted for under financing by means of debt capital. The expenses on interest payments shall not include:1. any interest payments on financial leases and bank loans, except where the parties to the transaction are related parties or the lease or the loan, as the case may be, is guaranteed or secured by or is extended on the order of a related party;2. any penalty charges for late payments and damages;3. any interest unrecognized for tax purposes on other grounds in this Act.4. (new, SG No. 110/2007) any interest and other expenses on loans which, according to accounting legislation, are capitalized as part of the value of an asset.(4) Where the accounting financial result before all expenses on interest payments and income from interest receivable is a negative quantity, the said result shall be ignored upon determination of the amount of expenses on interest payments unrecognized and recognized under Paragraphs (1) and (2).(5) The provisions of this Article shall apply in respect of any newly incurred expenses on interest payments, observing the sequence of the incurrence of the said expenses.(6) Paragraph (1) shall not apply where: DC1 shall be the debt capital as at the 1st day of January of the current year;DC2 shall be the debt capital as at the 31st day of December of the current year;OE1 shall be the owners' equity as at the 1st day of January of the current year;OE2 shall be the owners' equity as at the 31st day of December of the current year.(7) The expenses on interest payments incurred by credit institutions shall not be regulated according to the procedure established by Paragraphs (1) to (6).Chapter NineAMOUNTS INVOLVED UPON DETERMINATION OF TAX FINANCIAL RESULTSecurities Traded on Regulated MarketsArticle 44. Where the disposition of any shares and any negotiable rights attaching to shares in public companies, shares in and units of collective investment schemes, is effected on a regulated Bulgarian securities market, upon determination of the tax financial result the accounting financial result:1. shall be debited with the profit determined as a positive difference between the selling price and the documented cost of acquisition of the said securities, and2. shall be credited with the loss determined as a negative difference between the selling price and the documented cost of acquisition of the said securities.Subsequent Valuations Reserve in Respect of Assets which Are Not TaxDepreciable AssetsArticle 45. (Supplemented, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the value of the revaluation reserve (subsequent valuations reserve) written off upon the write-off of any assets which are not tax depreciable assets, where an accounting income or expense has not been accounted for upon the write-off of the said reserve. The said crediting shall be effected in the year of write-off of the asset. Where any land is transformed into investment property, the said crediting shall be effected in the year of write-off of the investment property.Tax Treatment of DebtsArticle 46. (1) (Amended, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the amount of the debts of the taxable person, and the said crediting shall be effected in the year in which one of the following circumstances occurs:1. the debts are extinguished by prescription, but not more than five years after the time when the debt became exigible;2. the bankruptcy proceedings against the taxable person have been closed by a confirmed plan for rehabilitation which provides for incomplete satisfaction of the creditors; the crediting shall be effected by the amount of the diminution in the debt;3. an effective judgement of court has decreed that the debt or part thereof is undue;4. the creditor has relinquished the claim thereof by a judicial procedure or has redeemed the said claim; the crediting shall be effected by the amount redeemed;5. before the lapse of the prescription period, the debts have been extinguished by virtue of a law;6. the taxable person has submitted a motion for expungement.(2) (Amended, SG No. 110/2007) Paragraph (1) shall not apply, where the debt was extinguished or accounting income were accounted for as a result of a write-off of the debt in the year of occurrence of a circumstance under Paragraph (1).(3) (New, SG No. 110/2007) Where Paragraph (1) was applied during a preceding year, upon determination of the tax financial result for the current year, the accounting financial result shall be debited with:1. the amount of the debt extinguished during the year;2. the accounting income accounted for during the current year as a result of a write-off of the debt.(4) (New, SG No. 110/2007) The debiting under Paragraph (3) shall be up to the amount of the crediting under Paragraph (1) during the preceding years in respect of the respective debt.Tax Treatment of Credit for Input Tax Deducted in Respectof Assets Available or upon Registration or Re-registrationunder Value Added Tax Act Article 47. (1) (Supplemented, SG No. 110/2007) Upon determination of the tax financial result, the accounting financial result shall be credited with the amount of the credit for input tax deducted by the taxable person in respect of the assets available as at the date of registration or re-registration under the Value Added Tax Act, where accounting income is not accounted for in connection with the credit for input tax deducted.(2) (Repealed, SG No. 110/2007). (3) (Amended, SG No. 110/2007) Paragraph (1) shall not apply where:1. the value added tax is not included in the historical cost of the asset, or2. the asset is not a tax depreciable asset and the said asset was written off in the year of registration or re-registration under the Value Added Tax Act. (4) (New, SG No. 110/2007) In case of a write-off of an asset which is not a tax depreciable asset and where to Paragraph (1) was not applied in a preceding year, upon determination of the tax financial result for the current year, the accounting financial result shall be debited with the amount of the credit for input tax deducted for the respective asset wherewith the accounting financial result has been credited according to the procedure established by Paragraph (1).Chapter TenTAX DEPRECIABLE ASSETSTax Depreciable AssetsArticle 48. Tax depreciable assets shall comprehend:1. the tax tangible fixed assets;2. the tax intangible fixed assets;3. the investment properties, with the exception of land;4. the subsequent expenses referred to in Article 64 herein.GoodwillArticle 49. (1) Goodwill generated as a result of a business combination shall not be a tax depreciable asset.(2) Any loss from impairment and upon write-off of goodwill shall not be recognized for tax purposes.Tax Tangible Fixed AssetsArticle 50. "Tax tangible fixed assets" shall be the amounts which satisfy the requirements for depreciable tangible fixed assets according to the National Financial Reporting Standards for Small and Medium-Sized Enterprises whose value equals or exceeds the lesser of:1. the value materiality threshold for the tangible fixed asset, as adopted in the accounting policies of the taxable person;2. (amended, SG No. 110/2007) seven hundred leva.Tax Intangible Fixed AssetsArticle 51. (1) "Tax intangible fixed assets" shall be:1. any acquired non-financial resources which:(a) have no physical substance;(b) are used during a period longer than twelve months;(c) have a limited useful life;(d) are of a value which equals or exceeds the lesser of:(aa) the value materiality thresholds for the tangible fixed asset, as adopted in the accounting policies of the taxable person;(bb) (amended, SG No. 110/2007) seven hundred leva;2. (repealed, SG No. 110/2007); 3. any amounts charged as a result of business transactions leading to an increase in the economic benefits flowing from a tax tangible fixed asset which is hired or provided for use; the said amounts shall not form a tax tangible fixed asset.(2) Any accounting expenses, accounted for in connection with the acquisition of a tax tangible fixed asset before the origination of the said asset, shall not be recognized for tax purposes in the year of accounting for the said expenses and shall be involved upon determination of the tax depreciable value of the said asset. Where any circumstances determining that the taxable person will not acquire the tax intangible fixed asset occur in a succeeding year, the unrecognized expenses referred to in sentence one shall be recognized for tax purposes in the year of occurrence of any such circumstances, if the requirements of this Act are complied with.Tax Depreciation ScheduleArticle 52. (1) Any taxable persons which form a tax financial result shall prepare and keep a tax depreciation schedule, posting therein all tax depreciable assets.(2) The tax depreciation schedule shall be a tax ledger wherein the information, specified according to the requirements of this Act, regarding the process of acquisition, subsequent keeping, depreciation and write-off of the tax depreciable assets, shall be posted.(3) The tax depreciation schedule shall contain, as a minimum, the following information on each tax depreciable asset:1. designation;2. month of commissioning;3. tax depreciable value;4. tax depreciation charged;5. tax value;6. annual rate of tax depreciation;7. annual tax depreciation;8. month of occurrence of any changes in the values of the asset and the circumstances necessitating the said changes;9. month of discontinuance and resumption of the charging of tax depreciations and the circumstances which necessitate the said discontinuance and resumption;10. month of write-off of the asset covered under Article 60 (3) herein for accounting purposes and the circumstances which necessitate the said write-off.11. month of write-off of the asset in the tax depreciation schedule.Values of Tax Depreciable AssetsArticle 53. (1) The "tax depreciable value" shall be the historical cost of the asset debited with the charged provisions and donations associated with the asset which are included in the said cost. In the cases referred to in Article 64 (1) and Article 67 herein, the tax depreciable value shall be the sum total of:1. the subsequent expenses: in the cases referred to in Article 64 (1) herein;2. the expenses unrecognized for tax purposes: in the cases referred to in Article 67 herein.(2) The "annual tax depreciation" shall be the depreciation charged in the tax depreciation schedule for the relevant year according to the requirements of this Chapter.(3) The "tax depreciation charged" shall be the sum total of the annual tax depreciations for the relevant asset. The tax depreciation charged may not exceed the tax depreciable value of the asset.(4) The "tax value" shall be the tax depreciable value of the asset debited with the tax depreciation charged for the said asset.Tax and Accounting DepreciationsArticle 54. (1) The tax depreciations, determined according to the procedure established by this Chapter, shall be recognized upon determination of the tax financial result.(2) (Supplemented, SG No. 110/2007) The accounting expenses on depreciation shall not be recognized for tax purposes. Upon determination of the tax financial result, the accounting financial result shall be credited with the accounting depreciations, regardless of whether the accounting for the said depreciations leads to a diminution in the accounting financial result for the year of accounting for the said depreciations.Tax Depreciable Asset CategoriesArticle 55. (1) Upon determination of the annual tax depreciations, tax depreciable assets shall be allocated to the following categories:1. Category I: solid buildings, including investment properties, plant, transmission facilities, electric power carriers, communication lines;2. Category II: machinery, process equipment, apparatus;3. Category III: means of transport excluding automobiles; surfacing of roads and of runways;4. (Supplemented, SG No. 110/2007) Category IV: computers, computer peripheral equipment, software, and right to use software, mobile telephones;5. Category V: automobiles;6. Category VI: tax tangible and intangible fixed assets whereof the period of use is restricted according to contractual relationships or a legal obligation;7. Category VII: all other depreciable assets.(2) The annual rate of tax depreciation shall be determined on a single occasion for the year and may not exceed the following amounts:Asset category Annual rate of tax depreciation (%)I 4II 30III 10IV 50V 25VI 100/years of legal restriction The annual rate may not exceed 33 1/3VII 15 (3) In respect of Category II assets, the annual rate of tax depreciation may not exceed 50 per cent, where the following conditions are simultaneously fulfilled:1. the assets form part of an initial investment;2. the assets are new as fabricated and have not been exploited prior to the acquisition thereof.(4) (Repealed, SG No. 110/2007). (5) (New, SG No. 110/2007) The acquisition of an asset through conclusion of a lease contract, classified as financial lease according to accounting legislation, shall be no grounds for allocation of the said asset to Category VI.Standard Procedure for Posting of Assets in Tax Depreciation ScheduleArticle 56. Tax depreciable assets shall be posted in the tax depreciation schedule at the tax depreciable value thereof.Specific Procedure for Posting of Assets in Tax Depreciation ScheduleArticle 57. (1) Any person, in respect of which the tax treatment changes as a result of which an obligation to form a tax financial result arises for the said person, shall prepare a tax depreciation schedule wherein the tax depreciable assets available at that time shall be posted at tax depreciable value and tax depreciation charged determined according to the procedure established by Paragraphs (2) and (3).(2) The tax depreciable value of any asset referred to in Paragraph (1) shall be determined by means of:1. crediting the historical cost of the said asset with the subsequent expenses incurred theretofore which, according to accounting legislation, lead to future economic benefits derived from the said asset;2. debiting the historical cost of the said asset with the charged provisions and donations associated with the said asset which are included in the said cost.(3) The tax depreciation charged for any asset referred to in Paragraph (1) shall be the accounting depreciation which would be charged theretofore on the historical cost of the said asset, adjusted according to the procedure established by Paragraph (2).(4) Any assets for which the tax depreciation charged equals or exceeds the tax depreciable value thereof shall not be posted upon preparation of the tax depreciation schedule.(5) Paragraphs (1) to (4) shall furthermore apply in the cases of re-posting of an asset in the tax depreciation schedule.Charging of Tax DepreciationsArticle 58. (1) (Supplemented, SG No. 110/2007) Tax depreciation shall commence to be charged as from the beginning of the month in which the tax depreciable asset is commissioned or as from the beginning of the next succeeding month. The date of commissioning must be supported by documents.(2) Where a procedure for commissioning is provided for in a statutory instrument, the asset may not be commissioned for tax purposes earlier than what is established in the statutory instrument.(3) The annual tax depreciation shall be arrived at according to the following formula: where:ATD shall be the annual tax depreciation;TDV shall be the tax depreciable value;ARTD shall be the annual rate of tax depreciation, determined by the taxable person according to Article 55 (2) and (3) herein;M shall be the number of months of the year during which tax depreciation is charged.Discontinuance of Charging of Tax DepreciationsArticle 59. (Amended, SG No. 110/2007, effective 1.01.2007) (1) Charging of tax depreciations shall be discontinued when the relevant asset is temporarily withdrawn from use (no economic benefit is derived there from) for a period not exceeding twelve months. Charging shall be discontinued as from the beginning of the month next succeeding the month during which the period referred to in sentence one elapsed and shall be resumed as from the beginning of the month of re-commissioning of the said asset. The tax depreciable asset shall not be written off in the tax depreciation schedule.(2) Upon determination of the tax financial result for the year during which the twelve-month period referred to in Paragraph (1) elapsed, the annual tax depreciation of the taxable person shall be debited with the amount of the tax depreciation charged for the asset during the twelve months during which the asset was withdrawn from use. The values of the tax depreciable asset at the date of discontinuance of the charging of tax depreciation shall be adjusted for the amount of the debiting under sentence one as follows:1. the tax depreciation charged for the asset shall be debited;2. the tax value of the asset shall be credited.(3) Any taxable person where against liquidation or bankruptcy proceedings are pending shall discontinue the charging of tax depreciations for those assets for which the charging of accounting depreciations is discontinued according to the requirements of accounting legislation. At the date of discontinuance of the charging of tax depreciations, Article 60 (5) herein shall apply, mutatis mutandis.(4) The charging of tax depreciations in respect of any assets covered under Article 60 (3) herein shall not be discontinued.Write-off of Assets in Tax Depreciation ScheduleArticle 60. (1) An asset shall be written off in the tax depreciation schedule where the said asset is completely depreciated for tax purposes.(2) Where an asset is written off for accounting purposes before being fully depreciated for tax purposes, the said asset shall be written off in the tax depreciation schedule at the beginning of the month during which the said asset is written off for accounting purposes.(3) Paragraph (2) shall not apply upon the write-off of any assets:1. (amended, SG No. 110/2007) which are completely depreciated for accounting purposes;2. as a result of an increase in the value materiality threshold.(4) Any assets referred to in Paragraph (3) shall be written off in the tax depreciation schedule according to the procedure established by Paragraph (1).(5) (Supplemented, SG No. 110/2007) Where any depreciable asset according to the National Financial Reporting Standards for Small and Medium-Sized Enterprises is transformed into a non-depreciable asset, with the exception of transformation into an investment property, the said asset shall be written off in the tax depreciation schedule as from the beginning of the current month. Sentence one shall not apply to any assets which are completely depreciated for accounting purposes and which are temporarily withdrawn from use (no economic benefit is derived there from).(6) Where a tax depreciable asset ceases to be used for an activity in respect of which a tax financial result is formed, the said asset shall be written off in the tax depreciation schedule as from the beginning of the current month.Retention of Values of Tax Depreciable AssetArticle 61. The values of the tax depreciable asset shall not change upon:1. any subsequent accounting valuation (revaluation and impairment);2. any change in accounting policy, including any change in the applicable accounting standards;3. any accounting errors applying to prior periods, with the exception of technical errors;4. registration or re-registration under the Value Added Tax Act .Change in Tax Depreciable Asset ValuesArticle 62. (1) A change in the values of the tax depreciable asset shall be effected upon occurrence of any circumstances necessitating such a change according to accounting legislation, with the exception of the cases covered under Article 61 herein.(2) The change in the values of the asset shall be shown in the tax depreciation schedule as at the 1st day of January of the year in which the circumstances necessitating the change have been ascertained. The tax depreciation schedule shall not be changed and the tax depreciation charged shall not be adjusted in respect of prior years.(3) The values of the tax depreciable asset after the change must equal the value which would be determined if the circumstances necessitating the change were known during the prior years.(4) Upon determination of the tax financial result, the annual tax depreciation of the asset for the current year shall be adjusted for the difference between the tax depreciation charged for the asset during the prior years and the annual tax depreciation which would be charged for the said years if the circumstances necessitating the change were known during the prior years.(5) Where the circumstances ascertained do not necessitate a change in the values of the asset for prior years, the change in the values shall be shown in the tax depreciation schedule as at the time of ascertainment of the circumstance during the current year.Subsequent Expenses Associated with Asset Availablein Tax Depreciation ScheduleArticle 63. The tax depreciable value of any asset which is available in the tax depreciation schedule shall be credited with any subsequent expenses which, according to accounting legislation, lead to future economic benefits associated with the tax depreciable asset. The tax depreciable asset shall be credited as from the beginning of the month during which the said subsequent expenses were incurred.Subsequent Expenses Associated with Asset Written Offin Tax Depreciation ScheduleArticle 64. (1) Where an asset has been written off in the tax depreciation schedule but has not been written off for accounting purposes, a separate tax depreciable asset shall be posted with the subsequent expenses which, according to accounting legislation, lead to future economic benefits associated with the said asset.(2) The tax depreciable asset referred to in Paragraph (1) shall be posted in the tax depreciation schedule as from the beginning of the month during which the subsequent expenses were completed.(3) For the purposes of Article 55 herein, the tax depreciable asset shall be allocated to the category to which the asset in connection with which the subsequent expenses have been incurred was allocated.(4) Where the asset in connection with which the subsequent expenses have been incurred is written off in the tax depreciation schedule before the tax depreciable asset referred to in Paragraph (1) is fully depreciated, the said asset shall be written off in the tax depreciation schedule under the terms and according to the procedure established by Article 60 herein.Income and Expenses from Subsequent Valuations of TaxDepreciable AssetsArticle 65. The accounting income and expenses from subsequent valuations of tax depreciable assets shall not be recognized for tax purposes.Adjustment of Accounting Financial Result upon Write-Offof Tax Depreciable AssetArticle 66. (1) Where an asset is written off in the tax depreciation schedule, upon determination of the tax financial result the accounting financial result shall be credited with the accounting carrying value of the asset.(2) Where an asset is written off in the tax depreciation schedule, upon determination of the tax financial result the accounting financial result shall be debited with the tax value of the asset.(3) Paragraphs (1) and (2) shall not apply:1. in the cases of unrecognized expenses on shrinkage of assets and associated claims, where the tax value exceeds the accounting carrying value of the said asset;2. upon write-off of an asset for the account of owners' equity, where the tax value exceeds the accounting carrying value of the said asset;3. upon write-off of an asset according to the procedure established by Article 60 (6) herein, where the tax value exceeds the accounting carrying value of the said asset;4. upon transformation of corporations and restructuring of cooperatives under Sections II and III of Chapter Nineteen herein.Accounting Expenses Forming Tax Depreciable AssetArticle 67. Any accounting expenses forming a tax depreciable asset, including any subsequent expenses, shall not be recognized for tax purposes.Income and Expenses Accounted for in Connection withDonation Associated with Tax Depreciable AssetArticle 68. Any accounting income and expenses, accounted for in connection with a donation wherewith the historical cost has been debited upon determination of the tax depreciable value of the asset, shall not be recognized for tax purposes.Specific Tax Treatment of Asset Formed as Resultof Development ActivityArticle 69. (1) Upon determination of the tax financial result, the taxable person shall have the right to debit the accounting financial result thereof with the historical cost of an intangible fixed asset on a single occasion in the year of formation of the said result, where the following conditions are simultaneously fulfilled:1. the asset has been formed as a result of development activity;2. the development activity has been carried out in connection with the activity carried out by the taxable person as a regular business;3. the development activity has been commissioned under market conditions to a scientific research institute or a higher school.(2) Where the taxable person has exercised the right thereof under Paragraph (1), the intangible fixed asset accounted for under Paragraph (1) shall not be a tax depreciable asset.Chapter ElevenCARRY-FORWARD OF TAX LOSSGeneral DispositionsArticle 70. (1) Taxable persons shall have the right to carry forward the tax loss formed according to the procedure established by this Part. Where a taxable person has elected to carry forward the tax loss, the said loss shall mandatorily be carried forward successively until the depletion thereof during the next succeeding five years.(2) The taxable person shall exercise the right thereof to election by means of deduction of the tax loss during the first year after incurrence of a tax loss, during which the said person has formed a positive tax financial result before deduction of the tax loss. Where the taxable person has not formed a positive tax financial result before deduction of the tax loss until the date of tax control, the person shall be presumed to have exercised the right thereof to election in respect of carry-forward of a tax loss.Procedure for DeductionArticle 71. (1) A tax loss shall be deducted upon determination of the tax financial result within the amount of the positive tax financial result before deduction of the tax loss. Where the tax loss is less than the positive tax financial result before deduction of the tax loss, the full amount of the said loss shall be deducted upon determination of the tax financial result.(2) The tax loss shall furthermore be deducted upon determination of the quarterly prepayments of corporation tax.Newly Incurred Tax LossesArticle 72. The provisions of this Chapter shall apply in respect of any newly incurred tax losses, observing the sequence of incurrence of the said losses. In respect of each of the newly incurred tax losses, the five-year-period shall begin to run from the year next succeeding the year of incurrence of the said losses.Loss from Source Outside Bulgaria upon Application of Exemption withProgression MethodArticle 73. (1) Any tax loss, formed during the current year in a State wherewith the Republic of Bulgaria has concluded a convention for the avoidance of double taxation and the method of avoidance of double taxation with respect to profits is exemption with progression, shall not be deducted from the tax profits from a source inside the country or other States during the current of succeeding years.(2) The tax loss referred to in Paragraph (1) shall be deducted in compliance with the requirements of this Chapter successively solely from the tax profits from the source outside Bulgaria from which the said loss has been incurred during the next succeeding five years.(3) Upon cessation of the activity of a permanent establishment in a Member State of the European Community or of the European Economic Area, any tax losses from a permanent establishment which have not been carried forward and have not been recovered shall be carried forward according to the standard procedure established by this Act until lapse of the five-year period since the incurrence of the said losses.Loss from Source Outside Bulgaria upon Application of Credit MethodArticle 74. (1) Where a taxable person has formed a tax loss and the said loss or a part thereof has its source outside Bulgaria in respect of which source the credit method for avoidance of double taxation is applied, the loss which is not deducted during the current year shall be deducted during the next succeeding five years in compliance with the requirements of this Chapter successively solely from the tax profits from the source outside Bulgaria from which the said loss has been incurred.(2) Where the tax loss for the year has not been formed from a single source (foreign State or the country), the said loss shall be allocated for the purposes of Paragraph (1) among the States from which the said loss has originated according to the following formula: where:A shall be the part of the tax loss incurred by the taxable person for the year, allocated to the relevant source (foreign State or the country);B shall be the tax loss formed by the taxable person for the year;C shall be the tax loss formed from the relevant source (foreign State or the country);D shall be the sum total of the tax losses formed from all sources (foreign States and the country).(3) Paragraph (1) shall not apply to any losses from a source within a Member State of the European Community or of the European Economic Area.Chapter TwelveACCOUNTING ERRORSCorrection of Accounting ErrorsArticle 75. (1) Upon detection, during the current year, of any accounting error related to prior years, the tax financial results for the relevant prior years shall be corrected according to the requirements of the laws effective during the relevant prior years in a way as if the said error was nor made.(2) Upon determination of the tax liability on the tax financial result for a prior year as corrected under Paragraph (1), the rate of tax for the relevant prior year shall be applied.(3) (Amended, SG No. 110/2007) Upon assessment of the annual corporation tax due for the current year, the annual corporation tax for the current year shall be adjusted for the difference between the tax liability before and after the correction as a result of the error.(4) Where, as a result of an error detected, it is established that the taxable person has continued to form a tax depreciable asset for the relevant prior year, an annual tax depreciation equal to the accounting depreciation shall be recognized upon determination of the tax financial results for the prior years, which may not exceed the annual tax depreciation which would be charged if the maximum permissible annual rates of tax depreciation under Article 55 herein were used. The tax depreciable asset shall be posted in the tax depreciation schedule as at the 1st day of January of the year of detection of the error at the tax depreciable value of the said asset and the tax depreciation charged under sentence one.(5) The temporary tax difference which would originate during a prior year if the error was not made shall be considered as having originated during the relevant prior year and shall be recognized for tax purposes according to the standard procedure established by this Act.(6) Paragraphs (1) to (3) shall not apply to any errors made more than five years before the current year which, if not made, would have led to a diminution in the tax financial result for the relevant prior year.(7) All accounting income and expenses, accounted for during the current year in connection with a detected accounting error from prior years, shall not be recognized for tax purposes.Specific Cases of Correction of Accounting ErrorsArticle 76. Where, after correction of the tax financial result under Article 75 (1) herein, a tax loss for the relevant prior period is incurred or changes, the provisions of Chapter Eleven herein shall apply. The tax financial results for the years from the making of the error until the detection thereof shall be corrected according to the procedure established by Article 75 herein in such a way as if the error was not made. The year during which the error was made shall be considered a year of incurrence of the tax loss.Expenses Accounted for in Breach of Accounting LegislationArticle 77. (1) Any expenses accounted for in breach of accounting legislation shall not be recognized for tax purposes in the year of accounting for such expenses.(2) The expenses unrecognized for tax purposes, referred to in Paragraph (1), shall be recognized for tax purposes where this is permissible under this Act and in compliance with the requirements of this Chapter.Income and Expenses Unaccounted for According to Procedure Establishedby Statutory InstrumentArticle 78. Upon determination of the tax financial result, the accounting financial result shall be corrected by the amount of income and expenses which should have been accounted for during the current year according to the requirements of a statutory instrument but which were not accounted for by the taxable person. Where any accounting income and expenses are subsequently accounted for in connection with a business transaction under sentence one, the said income and expenses shall not be recognized for tax purposes.Accounting Errors Related to Tax Depreciable AssetsArticle 79. This Section, with the exception of Article 75 (4) and (7) herein, shall not apply in respect of any accounting errors related to tax depreciable assets.Default InterestArticle 80. Default interest according to the standard procedure shall furthermore be due upon application of Article 75 herein. The interest shall be due as from the date on which the corporation tax for the relevant prior year should have been remitted.Corrections of Errors Detected upon Tax ControlArticle 81. The provisions of this Chapter, with the exception of Article 75 (3) herein, shall furthermore apply in the cases of errors detected upon tax control.Chapter ThirteenCHANGE IN ACCOUNTING POLICIESAdjustment upon Change in Accounting PoliciesArticle 82. (1) Where the accounting policies change, upon determination of the tax financial result, the accounting financial result for the current year shall be adjusted in the manner and by the amount whereby the tax financial results for the prior years would have been adjusted if the changed accounting policies were applied during the said years.(2) The temporary tax differences, which have originated according to the accounting policies applied before the change, shall be considered as not having originated.(3) In case the changed accounting policies have been applied during the prior years and temporary tax differences would have originated as a result of this, the said differences shall be considered as having originated and shall be recognized according to the standard procedure established by this Act.(4) Any accounting income and expenses, accrued and incurred as a result of changed accounting policies, shall not be recognized for tax purposes.(5) (Amended, SG No. 110/2007, effective 1.01.2007) Paragraphs (1) to (3) shall not apply upon any change in accounting policies related to tax depreciable assets.(6) No default interest shall be due upon any change in accounting policies where the effect of the said change leads to an increase in the tax financial result.Chapter FourteenTAX PREPAYMENTSGeneral DispositionsArticle 83. (1) (Redesignated from Article 83, SG No. 110/2007) Any taxable person shall make monthly or quarterly prepayments of corporation tax.(2) (New, SG No. 110/2007) Prepayments shall not be made by:1. any taxable persons whose net turnover for the last preceding year does not exceed BGN 200,000;2. any newly incorporated taxable persons, for the year of the incorporation thereof, with the exception of any such persons newly incorporated as a result of a transformation under the Commerce Act. Monthly Tax PrepaymentsArticle 84. Monthly tax prepayments shall be made by any taxable person which has formed a tax profit for the last preceding year.Quarterly Tax PrepaymentsArticle 85. Quarterly tax prepayments shall be made by any taxable person which is under no obligation to make monthly tax prepayments.Determination of Monthly Tax PrepaymentsArticle 86. (1) (Redesignated from Article 86, SG No. 110/2007) The monthly tax prepayments shall be determined according to the following formula: where:PRMONTHLY shall be the monthly tax prepayment;PD shall be the tax profit declared for the year before the last preceding year (upon determination of monthly tax prepayments for the period from the 1st day of January until the 31st day of March) or the tax profit declared for the last preceding year (upon determination of monthly tax prepayments for the period commencing on the 1st day of April and ending on the 31st day of December);k shall be the coefficient reflecting changes in the economic conditions for the current year, as endorsed by the State Budget of the Republic of Bulgaria Act for the relevant year;RT shall be the rate of corporation tax.(2) (New, SG No. 110/2007) Where the tax profit for the last preceding year exceeds the tax profit for the year before the last preceding year, the monthly tax prepayment for April shall be determined by crediting the monthly tax prepayment, calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, with the amount determined according to the following formula:A = 3 x (PR2 - PR1),where:A shall be the amount credited;PR1 shall be the monthly tax prepayment for the period commencing on the 1st day of January and ending on the 31st day of March, calculated according to the procedure established by Paragraph (1);PR2 shall be the monthly tax prepayment for the period commencing on the 1st day of April and ending on the 31st day of December, calculated according to the procedure established by Paragraph (1).The same procedure shall furthermore apply to the determination of the monthly tax prepayment for April in the cases where the taxable person:1. was incorporated during the last preceding year, or2. formed a tax loss for the year before the last preceding year, or3. did not form a tax financial result for the year before the last preceding year.(3) (New, SG No. 110/2007) Where the tax profit for the year before the last preceding year exceeds the tax profit for the last preceding year, the monthly tax prepayment for April shall be determined by debiting the monthly tax prepayment, calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, with the amount determined according to the following formula:B = 3 x (PR2 - PR1)where:B shall be the amount debited;PR1 shall be the monthly tax prepayment for the period commencing on the 1st day of January and ending on the 31st day of March, calculated according to the procedure established by Paragraph (1);PR2 shall be the monthly tax prepayment for the period commencing on the 1st day of April and ending on the 31st day of December, calculated according to the procedure established by Paragraph (1).Where the amount debited exceeds the monthly tax prepayment calculated according to the procedure established by Paragraph (1) for the period commencing on the 1st day of April and ending on the 31st day of December, the monthly tax prepayment for April shall be zero, and the excess shall be deducted from the following monthly tax prepayments for the current year upon determination of the amount of the said tax prepayments.Determination of Quarterly Tax PrepaymentsArticle 87. The quarterly tax prepayments shall be determined according to the following formula: where:PRQUARTERLY shall be the monthly tax prepayment;TP shall be the tax profit for the period from the beginning of the year until the end of the quarter for which the quarterly tax prepayment is determined;RT shall be the rate of corporation tax;PRREMITTED shall be the tax prepayments remitted from the beginning of the year until the end of the quarter for which the quarterly tax prepayment is determined.Declaration on Reduction of Tax PrepaymentsArticle 88. (1) The taxable persons may submit a declaration in a standard form on reduction of tax prepayments when the said persons assume that the said prepayments will exceed the annual corporation tax due.(2) The reduction of tax prepayments shall be enjoyable after submission of the declaration.Interest upon Excessive Reduction of Tax PrepaymentsArticle 89. (1) Where the taxable person has reduced the tax prepayments thereof according to the procedure established by Article 88 herein and the annual corporation tax due exceeds the tax prepayments due for the relevant year by more than 10 per cent, interest shall be due.(2) The amount whereon interest is due under Paragraph (1) shall be arrived at as a difference between the annual corporation tax due and the tax prepayments due for the year. Where the sum total of the tax prepayments for the year, as determined according to the procedure established by Article 86 or 87 herein, is less than the annual corporation tax due, the said prepayments shall be taken into consideration instead of the annual corporation tax upon determination of the difference referred to in sentence one.(3) For the purpose of calculation of the interest referred to in Paragraph (1), the amount referred to in Paragraph (2) shall be allocated to the relevant months/quarters during which a reduced tax prepayment has been declared according to Article 88 herein. The part of the amount referred to in Paragraph (2), as allocated to the relevant month/quarterly, shall be arrived at according to the following formula: where:A shall be the part of the amount whereon interest is due, allocated to the relevant month/quarter during which a reduced tax prepayment has been declared according to Article 88 herein;B shall be the tax prepayment as determined according to the procedure established by Article 86 or 87 herein for the relevant month/quarter;C shall be the tax prepayment due for the relevant month/quarter;D shall be the aggregate amount whereon a default interest is due, as determined according to the procedure established by Paragraph (2);E shall be the sum total of the tax prepayments for the year, as determined according to the procedure established by Article 86 or 87 herein;F shall be the sum total of the tax prepayments due for the year.(4) "Tax prepayment due," within the meaning given by this Article, shall be:1. a tax prepayment as determined according to the procedure established by Article 86 or 87 herein: applicable to the tax prepayments before submission of the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein;2. the reduced tax prepayment as determined by the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein: applicable to the tax prepayments after submission of the declaration on reduction of tax prepayments according to the procedure established by Article 88 herein.(5) The interest referred to in Paragraph (1) in respect of the relevant tax prepayment shall be determined according to the Interest on Taxes, Fees and Other State Receivables Act and shall be charged as from the date on which the tax prepayment became exigible and until the date of remittance of the annual corporation tax, but not later than the 31st day of March of the next succeeding year.Remittance of Tax PrepaymentsArticle 90. (1) Monthly tax prepayments shall be remitted on or before the 15th day of the month to which the said prepayments apply.(2) Quarterly tax prepayments shall be remitted on or before the 15th day of the month next succeeding the quarter to which the said prepayments apply. No quarterly tax prepayment shall be made for the fourth quarter.Retention of Tax PrepaymentsArticle 91. Any taxable person which is allowed to retain corporation tax for the current year shall furthermore be allowed to retain the relevant portion of the tax prepayments due in proportion to the amount of the retention.Chapter FifteenCORPORATION TAX DECLARING AND REMITTANCEDeclaring of Corporation TaxArticle 92. (1) Any taxable persons which are liable to corporation tax shall submit an annual tax return in a standard form regarding the tax financial result and the annual corporation tax due.(2) The annual tax return shall be submitted on or before the 31st day of March of the next succeeding year at the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.(3) The annual financial statement, including the notes thereon, shall be submitted together with the annual tax return. Any enterprises whereof the annual financial statements are subject to mandatory financial audit according to the Accountancy Act , shall furthermore submit a copy of the report under the Independent Financial Audit Act . If the independent financial audit has not been completed by the 31st day of March of the next succeeding year, the auditor's report shall be submitted additionally but not later than the 30th day of June of the next succeeding year, together with a copy of the annual financial statement as certified by a registered auditor.(4) Where any divergence exists between the annual financial statement as submitted and the annual tax return and the annual financial statement as certified by the registered auditor which leads to a change in the tax financial result as already declared, the taxable person shall submit an adjusting return according to the procedure established by Paragraph (2) on or before the 30th day of June of the next succeeding year, declaring inter alia the reasons for the divergences.(5) A rate rebate of 1 per cent of the annual corporation tax due but not more than BGN 1,000 shall be enjoyable by any taxable person which submits an annual tax return and the annual financial statement thereof on or before the 31st day of March of the next succeeding year by electronic means and which remits the corporation tax on or before the same date.Tax RemittanceArticle 93. Any taxable person shall remit the corporation tax for the relevant year on or before the 31st day of March of the next succeeding year after deduction of the tax prepayments remitted for the relevant year.Overremitted TaxArticle 94. (1) Any overremitted corporation tax may be deducted from succeeding tax prepayments and annual payments of the same tax as from the 1st day of January of the year next succeeding the year for which the corporation tax was overremitted.(2) Where after submission of the annual tax return it is established that the taxable person has groundlessly deducted corporation tax, interest shall be due on any unremitted tax prepayments.Chapter SixteenFINANCIAL INSTITUTIONSIncome and Expenses Determined by Regulatory AuthorityArticle 95. Where there exists any divergence between the amount of income or expenses as accounted for according to the accounting policies of a financial institution and the amount as determined by a regulatory authority according to a statutory instrument, the amount as determined according to the special statutory instrument shall be recognized upon determination of the tax financial result.Income and Expenses from Subsequent Valuations (Revaluations andImpairments) of Financial AssetsArticle 96. Any income and expenses from subsequent valuations of financial assets and liabilities, accounted for by financial institutions, shall be recognized for tax purposes in the year of accounting for the said income and expenses. Financial institutions shall not apply Articles 34, 35 and 37 herein in respect of the financial assets and liabilities.Subsequent Valuations of Financial Assets and Liabilities RecognizedDirectly in Owners' EquityArticle 97. (1) Upon determination of the tax financial result of financial institutions, the accounting financial result thereof shall be credited with any profits from subsequent valuations of financial assets and liabilities, recognized during the current year directly in the owners' equity thereof.(2) Upon determination of the tax financial result of financial institutions, the accounting financial result thereof shall be debited with any losses from subsequent valuations of financial assets and liabilities, recognized during the current year directly in the owners' equity thereof.(3) (Amended, SG No. 110/2007) Any profits and losses recognized during the current year in the profit-and-loss account (income statement), which were involved upon determination of the tax financial result according to the procedure established by Paragraphs (1) and (2), shall not be recognized for tax purposes.Chapter SeventeenSPECIFIC RULES FOR DETERMINATION OF TAX FINANCIALRESULT OF COOPERATIVESProducer and Consumer DividendsArticle 98. (1) "Producer dividends" shall be the amounts which are distributed for output produced by cooperative members and sold to the cooperative. Any such dividends shall be determined on the basis of the profit corresponding to the output sold, whether before of after the processing of the said output.(2) "Consumer dividends" shall be the amounts which are distributed for consumer goods purchased by cooperative members from the cooperative. Any such dividends shall be determined on the basis of the profit arising from the difference between the selling price, whereat the cooperative has sold the goods, less the distribution costs thereof, and the price paid by the cooperative for acquisition of the said goods.Tax Treatment of Producer and Consumer DividendsArticle 99. (1) Upon determination of the tax financial result, the accounting financial result shall be debited with the producer and consumer dividends paid to cooperative members until the 25th day of March of the next succeeding year, which are covered by the balance-sheet profit. The debiting referred to in sentence one shall be effected up to the amount of the positive accounting financial result.(2) Any producer and consumer dividends paid to cooperative members shall be accounted for as accounts receivable and shall be excluded upon determination of the accounting financial result.(3) Where the cooperative has reported, for the relevant year, a balance-sheet loss or a balance-sheet profit insufficient to cover the producer and consumer dividends paid during the year, the amount of the producer and consumer dividends paid during the year and uncovered shall be accounted for as an accounting expense which is not recognized for tax purposes. For more information visit www.solicitorbulgaria.com id: 334 Mon, 04 Aug 2008 06:30:50 -0700 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CORPORATE_INCOME_TAX_ACT.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-corporate-income-tax-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 337 Section IXGrave Plots LeaseArticle 120. (1) (Supplemented, SG No. 119/2002) A lump-sum fee for the lease of grave plots for a period exceeding eight years shall be charged as follows:1. (amended, SG No. 119/2002) for a period of up to 15 years;2. (amended, SG No. 119/2002) in perpetuity;3. (amended, SG No. 119/2002) for use of family grave plots:(a) (repealed, SG No. 119/2002);(b) (repealed, SG No. 119/2002);4. for undersize grave plots adjoined in accordance with the cemetery regulation plan: the proportionate part of the lease as set for the grave plot.(2) A rate rebate of 50 per cent of the fees covered under Items 1 and 2 of Paragraph (1) shall apply to urn sites.Article 121. The fees shall be collected by the competent offices of the municipality operating the landscaped cemetery.Section XFees for Physical Protection and Field Keeping of AgriculturalPropertiesArticle 122. (Repealed, SG No. 109/2001).Chapter FourADMINISTRATIVE PENALTY PROVISIONSArticle 123. (1) (Amended, SG No. 102/2000) Any person, who or which fails to submit a tax return under Article 14 herein in due time, or who fails to state or misstates any particulars or circumstances leading to underassessment of the tax or to exemption from tax, shall be liable to a fine of BGN 10 or exceeding this amount but not exceeding BGN 400 (if a natural person) or, if a legal person, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 1,000, unless subject to a severer sanction.(2) (Amended, SG No. 102/2000) Any manager and accountant of an enterprise shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 200 for any failure to submit a tax return referred to in Article 17 herein in due time, as well as for stating untrue particulars which have led to underassessment of the tax.(3) (New, SG No. 109/2001, amended, SG No. 119/2002) Any person, who or which shall declare any particulars and circumstances leading to reduction of or exemption from fee, will be liable to a fine of BGN 50 or exceeding this amount but not exceeding BGN 200 (if a natural person) or, if a legal person, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 500.Article 124. (1) (Amended, SG No. 153/1998) Any heir or legatee or a legal representative thereof, who fails to submit a declaration under Article 32 herein in due time, or who fails to declare or shall misdeclare any property acquired by succession, shall be liable to a fine of BGN 10 or exceeding this amount but not exceeding BGN 500.(2) (Repealed, SG No. 153/1998).(3) For any violation under Article 41 herein, the offenders shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 20.Article 125. Any party to an acquisition of property by gift or for a consideration, who conceals part of the price, shall be liable to a fine equivalent to double the amount of the tax due on the concealed part.Article 126. (Repealed, SG No. 119/2002).Article 126a. (New, SG No. 110/2007) (1) Any person, who fails to submit a tax return under Article 61m or who submits any such return past the due date, shall be liable to a fine not exceeding BGN 500, unless subject to a severer sanction.(2) Any person, who fails to state or who misstates any particulars or circumstances under Article 61m a return leading to underassessment of a licence tax or to exemption from a licence tax, shall be liable to a fine not exceeding BGN 1,000, unless subject to a severer sanction.Article 127. (1) (Redesignated from Article 127, SG No. 109/2001, amended, SG No. 119/2002) For any failure to comply with the provisions of this Act other than in the cases covered under Articles 123, 124 and 125 herein, the offenders shall be liable to a fine of BGN 20 or exceeding this amount but not exceeding BGN 200 (if natural persons) or, if legal persons and sole traders, to a pecuniary penalty of BGN 100 or exceeding this amount but not exceeding BGN 500.(2) (New, SG No. 109/2001) Default on payment of any taxes and fees under this Act shall not be treated as an administrative infraction.Article 128. (Amended, SG No. 103/1999) (1) (Amended, SG No. 109/2001, SG No. 119/2002, SG No. 112/2003, SG No. 100/2005) The written statements ascertaining any violations shall be drawn up by the municipal administration officers, and the penalty decrees shall be issued by the municipality mayor or by officials thereby authorized. authorized.(2) (New, SG No. 119/2002, supplemented, SG No. 112/2003, repealed, SG No. 100/2005). (3) (Amended, SG No. 109/2001, renumbered from Paragraph (2), SG No. 119/2002) The ascertainment of violations, the issuance, appeal against and execution of the penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act. (4) (New, SG No. 112/2003, amended, SG No. 100/2005) The proceeds from fines and pecuniary penalties under penalty decrees issued by a municipality mayors shall be credited in revenue to the municipal budget.SUPPLEMENTARY PROVISION 1. Within the meaning given by this Act:1. (Amended, SG No. 109/2001) "Enterprises" shall be the persons within the meaning given by the Accountancy Act. 2. "Main residence" shall be the corporeal immovable serving to satisfy the housing needs of the individual and the members of the family thereof during the predominant part of the year.3. "Family" shall be the spouses, as well as the children thereof who have not attained the age of 18 years and who are not married.4. "Agricultural producers" shall be natural or legal persons, who or which produce agricultural produce for sale on the market.5. "Fair market value" shall be the price, net of taxes and fees, which would have been paid under the same terms for a similar corporeal immovable or another thing between persons who or which are not connected. The amount of rebate or reduction shall be excluded from the market value.6. (Amended, SG No. 153/1998, SG No. 105/2005) "Connected persons" shall be the persons within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social Insurance Procedure Code. 7. (Amended, SG No. 153/1998, supplemented, SG No. 109/2001) "Household waste" shall be waste resulting from the life activities of people at home, yards, and at office, social and public buildings. Waste from distributive- trade establishments and accessory handicraft activities, enterprises, recreational and entertainment establishments shall be subsumed under household waste where not having the nature of hazardous waste and where, concurrently, the amount or composition thereof will not impede their treatment with household waste.8. "Bulky household waste" shall be the household waste which, on account of the size or weight thereof, cannot be deposited in the receptacles provided for deposition of household waste, or presents difficulty upon loading.9. "Household waste receptacles" shall be garbage containers, dust bins and litter bins provided in public places wherein household waste is deposited, as well as polyethylene bags for separated collection.10. "Scheduled bus lines" shall be the transport services performed along a fixed route and according to a fixed schedule.11. "Personal income" shall be all income of individuals with the exception of:(a) (amended, SG No. 119/2002, SG No. 112/2003) the assisted living supplement, paid to persons who have lost more than 90 per cent of the working capacity thereof and who are entitled to assisted living;(b) the sums which the residents of public care homes receive as remuneration in occupational therapy;(c) the target assistance granted by an act of the Council of Ministers;(d) the humanitarian donations made to residents of public care home and beneficiaries of other forms of social services;(e) (new, SG No. 119/2002) the lump-sum supplements paid to pensions by decision of the Council of Ministers.12. (New, SG No. 109/2001, amended, SG No. 106/2004) "Adjoining ground", within the meaning given by Article 10 (3) herein, shall be the developed yard (the permissible building development as determined) excluding the developed surface area. In cases where no such ground has been determined according to the procedure required by the law, the developed surface area and the adjoining ground shall be presumed to equal 10 per cent of the surface space of the immovable.13. (New, SG No. 109/2001, repealed, SG No. 45/2002).14. (New, SG No. 109/2001, repealed, SG No. 106/2004). 15. (New, SG No. 119/2002) "Full amount of expenses" shall comprehend all expenses incurred by the municipality on provision of the services, including the relevant costs of: wages, salaries and social and health insurance contributions of the staff; cost of supplies, overhead costs, consulting; costs of management and control; costs of collection of the fee and other costs relevant to the formation of the amount of the fee, determined specifically by the Municipal Council.16. (New, SG No. 119/2002) "Base" for assessment of the household waste fee shall be an objective parameter in value expression, on the basis of which the proportional fee is determined in per cent or per mille terms, or a physical parameter, on the basis of which the fee is determined per unit (e. g. BGN/person, BGN/cubic metre consumed water etc.).17. (New, SG No. 119/2002) "Book value" shall be the value of the asset upon accounting recognition or the devalued/revalued value of the asset, where a valuation has been made after the initial accounting recognition.18. (New, SG No. 112/2003) "Destroyed transport vehicles" shall be the transport vehicles accepted for dismantling and storage at the places designated for this, and the transport vehicles which are not subject to reconditioning.19. (New, SG No. 112/2003, amended, SG No. 103/2005) "Insured value" of a motor vehicle shall be the market price at which another property of the same type and quality can be purchased in lieu of the insured property at the time of issuance of the certificate of the insured value of the thing.20. (New, SG No. 112/2003) "Value assessed according to accounting data" under Item 6 of Article 33 (1) herein shall be the balance-sheet value of the assets net of the balance-sheet value of the liabilities of the enterprise.21. (New, SG No. 106/2004) "Lots" shall be the lots as defined within the meaning given by Item 2 of 5 of the Supplementary Provisions of the Spatial Development Act. 22. (New, SG No. 106/2004) "Motor vehicles imported as new", within the meaning given by Article 44 (3) of this Act, shall be the motor vehicles in respect of which the following conditions are simultaneously fulfilled:(a) not more than six months have lapsed since the date of the initial registration thereof (including the initial registration abroad);(b) the said vehicles have covered not more than 6,000 kilometres.23. (New, SG No. 110/2007) "Turnover", for the purposes of levy of a licence tax, shall be the sum total of all sales (of output, goods, services and other sales) from economic activity effected during the year, less the value added tax and/or the excise duties, in the cases where the persons are registered under the Value Added Tax Act and/or are obligated to charge excise duty under the Excise Duties and Tax Warehouses Act. 24. (New, SG No. 110/2007) "Establishment", for the purposes of levy of a licence tax, shall be any place, premise and/or facility, including such in the open air, where an activity covered under Annex 4 hereto is carried out, including:(a) collective tourist accommodation establishments and supplementary tourist accommodations;(b) mass-catering and entertainment establishments;(c) retail shops, open-air stalls, tables at markets, on pavements and in street roadways;(d) studios, workshops and other premises, regardless of whether serving for other purposes as well or being part of an immovable property.25. (New, SG No. 110/2007) "Workplace" shall be an adapted part of an establishment equipped for the performance of a specified type of activity or service by a single person.26. (New, SG No. 110/2007) "Amusement arcade machines" shall be gambling slot-machines without prizes, intended for amusement and recreation, which allow a specified time for use or play on the machine for the price of a game.27. (New, SG No. 110/2007) "Collective tourist accommodation establishments" and "supplementary tourist accommodations" shall be the respective tourism establishments referred to in Items 1 and 2 of Article 3 (3) of the Tourism Act. 28. (New, SG No. 110/2007) "Net selling space" shall be the space in the relevant distributive trade establishment, including the stands, which is accessible to customers.29. (New, SG No. 110/2007) "Mass-catering and entertainment establishments" shall be the respective tourism establishments referred to in Item 3 of Article 3 (3) of the Tourism Act. 30. (New, SG No. 110/2007) "Refreshment bars, kiosks and caravans" shall be drinking establishments serving a limited range of mostly pre-packaged goods, cold and hot snacks, bakery products and sugar confectionery, beer, hot and soft drinks, and a limited range of alcoholic drinks.31. (New, SG No. 110/2007) "Piece of equipment", in connection with the application of Item 35 of Annex 4 hereto, shall be each particular device (machine) which is used directly in the activity (a washing machine, an ironing press, a drying machine and other such).TRANSITIONAL AND FINAL PROVISIONS 2. (1) (Amended, SG No. 103/1999) Any taxable person referred to in Article 11 herein shall submit a tax return on each corporeal immovable to the municipality exercising competence over the situs of the said property care of the municipality exercising competence over the place of residence of the said person not later than the 31st day of May 1998.(2) (Amended, SG No. 103/1999) Any individuals, who have no place of residence within the territory of the Republic of Bulgaria, shall submit a tax return to the Sofia Regional Tax Directorate.(3) Any individuals, who submit a tax return on or before the 31st of March 1998, shall enjoy an additional rate rebate of 5 per cent of the amount of the immovable property tax due for 1998. 3. (1) (Amended, SG No. 83, SG No. 105/1998) Individuals shall pay the immovable property tax and the household waste fee for 1998 as follows: 50 per cent not later than the 30th day of September, 25 per cent not later than the 31st day of October, and 25 per cent not later than the 30th day of November.(2) (Amended, SG No. 83, amended and supplemented, SG No. 105/1998) Any individuals who have paid the entire amount of the immovable property tax and household waste fee due for 1998 not later than the 30th day of September shall enjoy a rate rebate of 5 per cent. The same rate rebate shall apply to any individuals who have received a notice after the said date if they pay the entire amount of the immovable property tax and household waste fee within 30 days after receipt of the said notice. No penalty interest shall be chargeable within the same time period.(3) The additional tax for 1998 shall be paid not later than the 30th day of November. 4. This Act shall furthermore apply, if extending a more favourable treatment, in respect of any succession which has opened prior to the entry thereof into force, should a declaration have been submitted within the time limit established under Article 32 herein but no inheritance tax has been charged on the succession. 5. In the Succession Act (promulgated in the State Gazette No. 22/1949; corrected in No. 41/1949; amended in No. 275/1950, No. 41/1985, No. 60/1992; (modified by) Constitutional Court Judgment No. 4/1996, (promulgated in) No. 21/1996; amended in No. 104/1996), there shall be inserted the following new Article 10a:"Article 10a. Where there are several decedents and the sequence of the occurrence of death of each one of them is unascertainable, the older of any two such decedents shall be presumed to have predeceased the younger." 6. In the Housing Associations Act (promulgated in the State Gazette No. 55/1978; amended in No. 102/1981, No. 45/1984, No. 75/1988, No. 46/1989, No. 21/1990, No. 60/1992 and No. 104/1996), 4 of the Supplementary Provisions is hereby repealed. 7. The Monuments of Culture and Museums Act (promulgated in the State Gazette No. 29/1969; amended and supplemented in No. 29/1973, No. 36/1979, No. 87/1980, No. 102/1981, No. 45/1984, No. 45/1989, Nos. 10 and 14/1990, No. 112/1995; (modified by) Constitutional Court Judgment No. 5/1996, (promulgated in) No. 31/1996; amended in No. 44/1996) shall be amended as follows:1. In Article 25, the last sentence shall be deleted.2. In Paragraph (1) of Article 29, the words "and local" in sentence one shall be deleted. 8. In the State Property Act (promulgated in the State Gazette No. 44/1996; amended in No. 104/1996, Nos. 55 ? 9. In the Notaries and Notarial Practice Act (promulgated in the State Gazette No. 104/1996), Paragraph (3) of Article 96 is hereby repealed. 10. In Article 15 of the Tax Procedures Act (promulgated in the State Gazette No. 61/1993; amended in No. 20/1996 and No. 51/1997), a Paragraph (5) shall be inserted to read as follows:"(5) In assessment of the tax liabilities, the tax base shall be rounded down to BGL 100 if the last two figures are smaller than '50' and rounded up if the last two figures are greater than '50'. The amount of tax shall be rounded up to BGL 10 if the last figure is smaller than '5' and rounded up if the last figure is greater than '5'." 11. Upon issuance of a registration card of any motor vehicle, the Ministry of the Interior shall record the engine power in kilowatts (horse powers) in the said card. 12. This Act shall enter into force on the 1st day of January 1998 and shall supersede the Local Taxes and Fees Act (promulgated in Transactions of the Presidium of the National Assembly No. 104/1951, corrected in No. 10/1952, amended and supplemented in Nos. 12 and 104/1954, No. 91/1957, No. 13/1958, Nos. 57 and 89/1959, Nos. 21 and 91/1960, State Gazette No. 85/1963, Nos. 1 and 52/1965, No. 63/1973, No. 87/1974, No. 21/1975, No. 102/1977, No. 88/1978, No. 36/1979, No. 99/1981, No. 55/1984, No. 73/1987, Nos. 33 and 97/1988, Nos. 21 and 30/1990, No. 82/1991, No. 59/1993, Nos. 40 and 87/1995; (modified by) Constitutional Court Judgment No. 3/1996, (promulgated in) No. 14/1996; amended in Nos. 20 and 37/1996; (modified by) Constitutional Court Judgment No. 9/1996, (promulgated in) No. 58/1996; amended in Nos. 89 and 93/1996, and No. 55/1997).Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 105/1998 (effective 8.09.1998)FINAL PROVISION 2. This Act shall enter into force on the date of promulgation thereof in the State Gazette and shall apply to all payments of the immovable property tax and the household waste fee effective after the 1st day of September 1998.Tax Procedure Code Promulgated, SG No. 103/1999 (effective 1.01.2000)TRANSITIONAL AND FINAL PROVISIONS 20. (1) Any judicial proceeding in the matter of a tax case, which has been instituted before the court and which is pending, shall be tried according to the procedure effective prior to the entry of this Code into force.(2) Any pending cases under Article 83 (2) of the State Receivables Collection Act, which is hereby repealed, shall be tried according to the procedure established by Chapter 12a of the Code of Civil Procedure. (3) Until adoption of rules of organization of the tax administration, the number and territorial competence of the tax directorates shall be determined by an order of the Minister of Finance which shall be promulgated in the State Gazette. 21. The provisions of the Code of Civil Procedure shall apply, mutatis mutandis, to any cases unregulated by this Code.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 109/2001 (effective 1.01.2002), amended, SGNo. 45/2002 (effective 1.01.2002) 51. The particulars of the certificate of registration of any road transport vehicle shall be used for assessment of the road tax due by the owner of any transport vehicle referred to in Article 61c herein, which is registered for operation at the date of entry of this Act into force.52. (Amended, SG No. 45/2002) The transport vehicle tax and the road tax for 2002 shall be paid in two equal instalments within the following periods: the first instalment, from the 1st day of June to the 31st day of August, and the second instalment, not later than the 31st day of October. Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first instalment, shall enjoy a rate rebate of 10 per cent. 54. Upon acquisition or descent of a road transport vehicle prior to the 1st day of May 2002, the tax base shall be the insured value.Act to Amend and Supplement the Tax Procedure CodePromulgated, SG No. 45/2002 (effective 30.04.2002). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93. (1) Any fines imposed under Article 186 of the Road Traffic Act shall be collected according to the procedure established by the Tax Procedure Act.(2) Any delinquent fines under tickets issued prior to the entry of this Act into force according to the procedure established by Article 186 of the Road Traffic Act shall be paid within six months after the entry of this Act into force at the tax subdivision exercising competence over the place of residence, without dispatch of a notice of voluntary compliance. After the lapse of the six-month time limit, the ticket issued shall be considered an effective penalty decree and the fine imposed shall be collected according to the procedure established by the Tax Procedure Code.Tourism Act Promulgated, SG No. 56/2002 (effective 1.10.2002)TRANSITIONAL AND FINAL PROVISIONS 11. 6, in respect of the provisions amending and supplementing the Local Taxes and Fees Act, shall enter into force on the 1st day of January 2003.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 119/2002 (effective 1.01.2003)TRANSITIONAL AND FINAL PROVISIONS 47. The household waste fee shall be collected by the tax administration authorities for a period of two years after the entry of this Act into force. 48. (1) Not later than the 30th day of November 2003, the (competent) Municipal Council shall provide the competent tax administration authorities with information regarding the persons liable to pay a household waste fee and the sums due therefrom. The said information shall be provided in the form of an electronic document and in compliance with the requirements of the Electronic Document and Electronic Signature Act or in a standardized format on an electronic and paper-based data medium, endorsed by the Minister of Finance.(2) In the event of failure to provide the information within the time limit established by Paragraph (1), the tax administration shall collect the fee from the taxable persons referred to in Article 11 (of the Local Taxes and Fees Act) in the amounts as determined by the (competent) Municipal Council and applying a base as effective at the 31st day of December in the last preceding year.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51. Within three months after the entry of this Act into force but not later than the adoption of the municipal budget, the (competent) Municipal Council shall adopt the ordinance referred to in Article 9 (of the Local Taxes and Fees Act). Until adoption of the said ordinance, the determination and administration of the fees shall follow the hitherto effective procedure. 52. This Act shall enter into force on the 1st day of January 2003, with the exception of 11, 12, Item 1 of 13, 14, 15, 16, 17 and 18, which shall enter into force on the 1st day of January 2004, and of Item 2 of 13, which shall enter into force on the 1st day of January 2005.Act to Amend and Supplement the Code of Civil ProcedurePromulgated, SG No. 84/2003FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. This Act shall enter into force as from the day of promulgation in the State Gazette of the European Convention on Recognition and Enforcement of Decisions concerning Custody of Children and on Restoration of Custody of Children of 1980 and of the Hague Convention on the Civil Aspects of International Child Abduction, respectively, with the exception of 2, 3, 4, 5, 8 (in the part regarding Article 423a (1), 12, 15, 16 and 17, whereas 10 shall enter into force on the day of entry into force of the Act to Amend and Supplement the Code of Civil Procedure (State Gazette No. 105/2002).Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 112/2003 (effective 1.01.2004),supplemented, SG No. 6/2004 (effective 1.04.2004)TRANSITIONAL AND FINAL PROVISIONS 20. The persons with disabilities, whereof the durably reduced working capacity has been established after attainment of the age required for acquisition of entitlement to contributory service and retirement-age pension or who have attained this age within the period fixed by the decision of the Territorial Medical Expert Board for Working Ability Certification (National Medical Expert Board for Working Ability Certification), shall enjoy the rights thereof under this Act for life regardless of the period fixed in the expert decision. 21. (1) The tax administration authorities shall calculate, update and notify the persons referred to in Article 64 (of the Local Taxes and Fees Act) of the household waste fees owed thereby for 2004 and of the time limits for payment, together with the notices of the immovable property tax, in the cases where the methods for assessment of the said fees have not been changed.(2) The notices referred to in Paragraph (1) shall have the status of a statement ascertaining the receivable under Article 9b (2) (of the Local Taxes and Fees Act) and shall be appealable according to the procedure established by the Administrative Procedure Code. (3) In 2004, the receivables under any effective statements referred to in Paragraph (2) shall be collected by the tax administration according to the procedure established by the Tax Procedure Code. 22. The household waste fee for 2004 shall be paid under the terms and within the time limits established by Article 28 (1) and (2) (of the Local Taxes and Fees Act). 22a. (New, SG No. 6/2004) Any sums overremitted by taxable persons for transport vehicles under the hitherto effective version of Items 2, 3 and 4 of Article 61a (of the Local Taxes and Fees Act) for the period after the 1st day of April 2004 shall be subject to offset or refund by the tax administration according to the procedure established by Article 112 of the Tax Procedure Code.Act to Amend and Supplement the Cadastre and Property Register ActPromulgated, SG No. 36/2004TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. Within three months time after the promulgation of this Act in the State Gazette, the entries under the name system shall be performed by the registry offices with the Recording Agency.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 106/3.12.2004 (effective 1.01.2005)TRANSITIONAL AND FINAL PROVISIONS 21. Within three months after the entry of this Act into force, the owners of cargo trucks of legally permissible maximum weight exceeding 20 tonnes shall submit a declaration under Article 54 (1) (of the Local Taxes and Fees Act), stating therein the legally permissible maximum weight, the number of axles and the type of suspension of the transport vehicle. 22. Any enterprises, which are obligated or which have elected to apply the International Financial Reporting Standards as from the 1st day of January 2005, shall submit declarations for the said year under Article 17 (1) (of the Local Taxes and Fees Act) on a change in particulars not later than the 30th day of June 2005. 22. This Act shall enter into force on the 1st day of January 2005, with the exception of 2 and 3 (amending Article 2 and Article 4 (1)), which shall enter into force on the 1st day of January 2006.Lev Re-denomination Act Promulgated, State Gazette No. 20/1999,amended, SG No. 65/1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. This Act shall enter into force on the 5th day of July 1999.Veterinary Practices Act Promulgated, SG No. 87/2005 (effective 1.05.2006)TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Within three months after the entry of this Act into force, the Council of Ministers shall lay before the National Assembly a Protection of Animals Bill. 24. Within six months after the entry of this Act into force, the Council of Ministers shall lay before the National Assembly a Bill on a National Professional Organization of Veterinary Practitioners and the Procedure for Practising Veterinary Medicine. 25. Any statutory instruments of secondary legislation issued until the entry of this Act into force shall be applied, insofar as the said instruments do not conflict with the said Act, and until the express repeal of the said instruments. 26. (1) Within one year after the entry of this Act into force, the Minister of Agriculture and Forestry shall issue the ordinances on the application thereof.(2) Within six months after the promulgation of this Act in the State Gazette, the Council of Ministers shall adopt the ordinance referred to in Article 109 herein and shall approve the rate schedule referred to in Article 14 (2) herein.Act to Amend and Supplement the Local Taxes and Fees ActPromulgated, SG No. 100/2005, effective 1.01.2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .SUPPLEMENTARY PROVISION 17. Throughout the Act, the words "tax authority", "the tax authority" and "the tax authorities" shall be replaced, respectively, by "municipal administration officer", "the municipal administration officer" and "municipal administration officers", and the words "territorial tax directorate" and "the territorial tax directorate" shall be replaced, respectively, by "municipality" and "the municipality".TRANSITIONAL AND FINAL PROVISIONS 18. Not later than the 15th day of February 2006, the owners of trailer tractors and truck tractors shall submit the declaration referred to in Article 54 (1) of the Local Taxes and Fees Act, stating therein the indicators which are relevant to the assessment of the tax: permissible maximum weight of the combination of transport vehicles, number of axles and type of suspension of the tractor. 19. For 2006, the Municipal Council shall determine the household waste fee not later than the 31st day of January 2006. Where no new amount has been determined, the fee shall be collected on the basis of the amount effected at the 31st day of December 2005 20. (1) For 2006, the first instalment referred to in Article 28 (1) and Article 60 (1) of the Local Taxes and Fees Act shall be payable from the 1st day of March to the 30th day of April.(2) Any taxpayer, who or which prepays the amount due for the whole year by the time limit referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 21. For 2006, the authorities of the National Revenue Agency shall calculate the liabilities, shall print and send notices to the persons regarding the immovable property tax and household waste fee due therefrom. The costs of this process shall be for the account of the budget of the Agency. 22. Any tax and enforcement proceedings pending upon the entry of this Act into force shall be completed according to the hitherto effective procedure.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77. Everywhere in the Local Taxes and Fees Act (Promulgated, State Gazette No. 117/1997, amended and supplemented, SG No. 71/1998, amended, SG No. 83/1998, amended and supplemented, SG No. 105/1998, SG No. 153/1998, amended, SG No. 103/1999, amended and supplemented, SG No. 34/2000, SG No. 102/2000, SG No. 109/2001, amended, SG No. 28/2002, amended and supplemented, SG No. 45/2002, No. 56/2002, SG No. 119/2002, amended, SG No. 84/2003, amended and supplemented, SG No. 112/2003, SG No. 6/2004, supplemented, SG No. 18/2004, amended, SG No. 36/2004, supplemented, SG No. 70/2004, amended and supplemented, SG No. 106/2004, SG No. 87/2005, amended, SG No. 94/2005, amended and supplemented, SG No. 100/2005, SG No. 103/2005, SG No. 105/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".Act to Amend and Supplement the Local Taxes and Fees Act(Promulgated, SG No. 105/2006, effective 1.01.2007)TRANSITIONAL AND FINAL PROVISIONS........................................................................ 13. For 2007, the competent Municipal Council shall determine a household waste fee not later than the 31st day of January 2007. Where the Municipal Council has failed to pass a resolution whereby the amount of the household waste fee is determined, a fee to the amount of the absolute value applicable to the last preceding year shall be collected from each liable person. 14. (1) For 2007, the first instalment referred to in Article 28 (1) and in Article 60 (1) of the Local Taxes and Fees Act shall be payable from the 1st day of March to the 30th day of April.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 15. (1) The authorities of the National Revenue Agency shall calculate the liabilities, shall print and shall send notices to the persons regarding the immovable property tax and household waste fee due for 2007. The costs of this process shall be for the account of the budget of the Agency.Act to Amend and Supplement the Local Taxes and Fees Act(Promulgated, SG No. 110/2007, effective 1.01.2008)TRANSITIONAL AND FINAL PROVISIONS 18. The Municipal Council shall determine the amount of the local taxes not later than the 29th day of February 2008. In case the amount of local taxes has not been determined within this time limit, the minimum amounts of the taxes provided for in the law shall apply for 2008, and in respect of the licence tax, the amounts which were effective for 2007 shall apply for 2008. 19. Until determination of the amount of local taxes for 2008 by the Municipal Council, the tax on acquisition of property under Article 44 (1) and (2) of the Local Taxes and Fees Act and the inheritance tax shall be assessed on the basis of the minimum amounts of the respective taxes as provided for in the law. 20. (1) For 2008, the first and the second instalment under Article 28 (1) of the Local Taxes and Fees Act and, respectively, the first instalment of the tax under Article 60 (1) of the Local Taxes and Fees Act, shall be payable from the 31st day of March to the 30th day of June.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limits referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 21. The Minister of Finance shall endorse a standard form of the return referred to in Article 61m (1) of the Local Taxes and Fees Act not later than the 29th day of February 2008. 22. For 2008, the persons subject to levy of a licence tax shall submit a return under Article 61m (1) of the Local Taxes and Fees Act not later than the 30th day of April 2008. 23. (1) For 2008, the first and second payments under Article 61o (1) of the Local Taxes and Fees Act shall be remitted on or before the 30th day of April 2008.(2) Any taxpayer, who prepays the amount of tax due for the whole year by the time limits referred to in Paragraph (1), shall enjoy a rate rebate of 5 per cent. 24. This Act shall enter into force on the 1st day of January 2008. Annex 1 (Amended, SG No. 153/1998, effective 1.01.1999; repealed, SG No. 109/2001, effective 1.01.2002) Annex 2 (Amended, SG No. 153/1998, effective 1.01.1999; amended and supplemented, SG No. 109/2001, effective 1.01.2002, amended, SG No. 112/2003, effective 1.01.2004, supplemented SG No. 106/2004, effective 1.01.2005, amended and supplemented No. 100/2005, effective 1.01.2006, amended, SG No. 105/2006, effective 1.01.2007) Immovable Property Tax Assessment Rates I. General Provisions Article 1. The assessed value of immovable property shall be determinedin Bulgarian lev terms and shall represent a sum total of the assessedvalues of the separate items. Article 2. The corporeal immovable or parts thereof shall be valuedignoring the influence of any restrictive covenant or encumbrance thereon. Article 3. (1) (Amended, SG No. 100/2005) The assessed value shall bedetermined by the officers of the municipal administration exercisingcompetence over the situs of the property within two weeks after submissionof a declaration completed in a standard form. (2) (New, SG No. 100/2005) A tax assessment certificate shall be issuedfor the purposes of levy of inheritance tax and tax on acquisition ofproperty, for determination of the stamp duties and notarial fees in theproceedings under the Code of Civil Procedure and in other cases providedfor by the law. (3) (Renumbered from Paragraph (2) and supplemented, SG No. 100/2005) Where no declaration for the purposes of immovable property taxation of theproperty has been submitted or where intervening alterations have occurred inthe particulars as declared, an application shall be submitted, enclosingtherewith a declaration completed in a standard form. Where an issuance of atax assessment certificate for construction in progress is applied for, amemorandum of ascertainment, issued by the municipal (or borough)administration, certifying the stage of completion of the construction work,shall be attached to the application. (4) (Amended, SG No. 112/2003, supplemented, SG No. 106/2004, renumberedfrom Paragraph (3), SG No. 100/2005, amended, SG No. 105/2006) Any taxassessment certificates, issued until the 30th day of June in the relevantcurrent year in pursuance of Article 264 (1) of the Tax And Social-InsuranceProcedure Code, shall be valid until the said date, and any tax assessmentcertificates issued after the said date and until the end of the current yearshall be valid until the end of the said current year. Where the taxliabilities in respect of the immovable have been paid for the full year andthis circumstance has been entered in the certificate, the said certificateshall be valid until the end of the relevant current year regardless of thedate of issue of the said certificate. Any tax assessment certificates onundeveloped agricultural land tracts shall be valid until the end of therelevant current year. II. Tax Valuation of Buildings Article 4. The assessed value of any building or part of buildingsshall be arrived at proceeding from the base tax value per square metre,adjustment coefficients and space using the following formula: AV = BV x Cl x Ci x Cc x Ch x Cw x S where: AV is the assessed value in leva; BV is the base tax value per 1 square metre in leva; Cl is a coefficient of location; Ci is a coefficient of infrastructure; Cc is a coefficient of individual characteristics; Ch is a coefficient of height; Cw is a coefficient of wear and tear S is the space of the building or of part thereof in square metres.Article 5. (1) The base tax value (BV) shall be determined per squaremetre depending on the structure and type of the item.(2) The structures of buildings are indicated in Table 1.Table 1Structure Type CodesCode Structure1 2BN brick nagged timber-framed structureSS semi-solid structureS1 solid structure without reinforced-concrete members or of prefabricated asbestos-cement or other panels (bungalows), solid with partial use of reinforced-concrete membersS2 solid, large-panelS3 solid with bearing brick walls and entirely cast-in-situ or prefabricated reinforced-concrete floor structures, solid or prefabricated skeleton and framed structure, lift-slab structure, large-panel and sliding forms, skeleton-beamless structures, special structure (steel etc.)(3) The base tax value shall be determined in Bulgarian lev terms persquare metre according to Table 2.Table 2Structure Residential buildings Non-residential buildings flats houses 1 2 3 4BN 4.40 3.70 4.80SS 7.50 6.40 8.20S1 11.00 9.40 12.10S2 14.00 12.00 15.40S3 17.00 14.50 18.70(4) Applicable to the following items within condominium projectbuildings, the base tax value shall be determined as a percentage of thebase tax value of flats, as follows:1. maisonettes and studios: 100 per cent;2. garages: 80 per cent.(5) Applicable to the following items located on housing constructiongrounds, the base tax value shall be determined as a percentage of the basetax value of houses, as follows:1. garages: 85 per cent;2. stables, barns, sheds with surrounding walls and other such: 60 percent;3. sheds without surrounding walls: 40 per cent.(6) Applicable to the following non-residential items, the base taxvalue shall be determined as a percentage of the base tax value of non-residential buildings, as follows:1. garages and warehouses: 80 per cent;2. sheds with surrounding walls: 60 per cent;3. sheds without surrounding walls: 40 per cent.(7) Any self-contained items within the common parts of the buildingshall be valued separately.(8) The value of the indivisible interests in the common parts of thebuilding shall be included into the base tax value.Article 6. (1) The coefficient of location (Cl) shall be determinedaccording to Table 3 or 4 and the situs of the building:1. the coefficient of location shall be determined according to Table 3in respect of all buildings with the exception of manufacturing and farmbuildings; where the zones within the nucleated settlement and/or the gradesof the country-house zones have not been established, the coefficients undercolumns 7 and 10 shall apply;Table 3(Amended, SG No. 100/2005,amended, SG No. 105/2006) Grade Zone Withindevelop-mentlimits Outsidedevelop-ment limits Country-house zone I II III IV V Grade 1 Grade 2Sofia 62,4 49,9 42,1 28,1 18,7 17,2 15,6 43,7 25,0Varna 59,3 46,8 37,4 28,1 18,7 17,2 15,6 40,6 21,8Bourgas 45,2 39,0 34,3 23,4 15,6 14,0 12,5 34,3 15,6StaraZagora 42,1 35,9 29,6 22,6 15,6 14,0 12,5 29,6 15,6Plovdiv 39,0 32,8 25,0 21,8 15,6 14,0 12,5 25,0 15,6I, Group 1 32,8 25,0 20,3 15,6 14,0 12,5 10,9 18,7 14,0I, Group 2 21,0 15,0 10,6 7,6 - 6,0 4,6 9,0 7,6II 14,4 8,6 7,2 5,8 - 4,3 3,6 5,8 4,3III 7,9 5,8 4,3 - - 3,6 2,9 4,3 3,6IV, V 4,3 2,9 - - - 2,9 2,2 3,6 2,9VI, VII, VIII 2,2 - - - - 1,6 1,4 1,9 1,7 2. applicable to distributive trade establishments, the coefficient oflocation under Table 3 shall be increased by 40 per cent. "Distributive-trade establishment" means a store, a drugstore, a kiosk, a booth, awholesale warehouse, an automotive fuel filling station, a discotheque, arestaurant, a cafeteria, a patisserie, a public house, a beer hall, atavern, a cafe, a hotel, a motel, and a gambling establishment;3. the coefficient of location shall be determined according to Table 4in respect of manufacturing and farm buildings and of appertaining officebuildings located within the same property (parcel of land) :Table 4(Amended, SG No. 100/2005,amended, SG No. 105/2006) Grade Location favourable Unfavourable manufacturing farm manufacturing FarmSofia 15,6 10,9 11,5 7,2Varna 14,8 10,5 10,9 6,9Bourgas 14,0 9,8 10,4 6,5StaraZagora 13,7 9,6 10,1 6,3Plovdiv 13,3 9,4 9,8 6,0I, Group 1 10,9 7,6 8,1 5,0I, Group 2 9,4 6,6 7,0 4,3II 7,8 5,5 5,8 3,6III 4,7 3,3 3,5 2,2IV, V 3,1 2,2 2,3 1,4VI, VII, VIII 1,6 1,1 1,2 0,7 (a) "manufacturing (industrial manufacturing) works" means works usedfor manufacturing purposes, including generation and distribution of steam,compressed air and gases, generation, transmission and distribution ofelectricity, pumping stations and water-treatment plants, hangars, garages,depots, warehouses and sheds for storage of industrial output; (b) "farm works" means buildings for livestock breeding and poultrybreeding, buildings for crop husbandry, artificial insemination stations,incubator houses, feed preparation rooms, veterinary filters, warehouses andsheds for storage of farm produce, silos and incinerators; (c) "buildings of favourable location" are such that satisfy thefollowing conditions more than 50 per cent: the building is located withinthe settlement limits; in proximity (within 1 km) to the national roadnetwork, railway stations and maritime or river ports; self-containedproduction (industrial, commercial and agricultural) zones. (2) (Amended, SG No. 109/2001, supplemented, SG No. 100/2005) Thecoefficient of location referred to in Paragraph (1) shall be increased by50 per cent applicable to national resorts and the country-house zonestherewith, as well as applicable to country-house zones within 10 km from thecoast line, with the exception of Varna, Bourgas, the Borovets resortcomplex, the Dyuni resort complex, the Elenite resort complex, the SunnyBeach resort complex and the nucleated settlements listed underParagraph (5). (3) (Amended, SG No. 109/2001, supplemented, SG No. 100/2005) Thecoefficient of location referred to in Paragraph (1) shall be increased by20 per cent applicable to resorts of local importance and to thecountry-house zones therewith with the exception of the nucleated settlementlisted under Paragraph (5). (4) (Amended, SG No. 100/2005) The grade of the nucleated settlementshall be determined by the Uniform Classifier of Political and TerritorialUnits (EKATTE), endorsed by Council of Ministers Decision No. 565 of 1999(State Gazette No. 73 of 1999), with the exception of Varna, Bourgas, StaraZagora, Plovdiv and the nucleated settlements listed under Paragraph (5). (5) (New, SG No. 100/2005) The following nucleated settlements shall begrouped in Grade I (One): 1. Group 1: Blagoevgrad, Veliko Turnovo, Kurdjali, Pernik, Pleven,Rousse, Sliven, Haskovo, Shoumen, Bansko, Nessebur, Sozopol; 2. Group 2: Vidin, Vratsa, Gabrovo, Dobrich, Lovech, Montana, Pazardjik,Silistra, Smolyan, Razgrad, Turgovishte, Yambol, Aytos, Karnobat, NovaZagora, Sevlievo, Harmanli, Troyan, Panagyurishte, Peshtera, Asenovgrad,Radomir, Samokov, Kazanluk, Radnevo, Chirpan, Popovo, Kozloduy, Kranevo,Balchik, Byala (Varna Region), Velingrad, Kyustendil, Sandandski, Kiten,Obzor, Pomorie, Primorsko, Sveti Vlas, Hissarya, Tsarevo. (6) (Renumbered from Paragraph (5), SG No. 100/2005) "Country-housezone" means a country-house zone with approved development and regulationplans. (7) (Renumbered from Paragraph (6), SG No. 100/2005) The boundaries ofthe zones within nucleated settlements and the grades of the country-housezones shall be determined by resolution of the Municipal Council. Untilpassage of such resolution, the zones and grades shall apply as establishedby an order of the Municipality Mayor.Article 7. The coefficient of infrastructure (Ci) shall be arrived atby adding to 1 the value of the components under Table 5:Ci = 1 + A + B + C + D + E + FTable 5Component Value of components available not available not available in building, available in neighbourhood1 2 3 4A. Running water supply 0.0 -0.05 -0.03B. Sewer system 0.0 -0.05 -0.03C. Electric power supply 0.0 -0.07 -0.05D. Telephone communications 0.0 -0.02 -0.02E. Central heating and hot-water supply +0.06 0.00 0.00F. Street network 0.0 -0.08 -0.081. "street network" means streets with permanent pavement;2. where the building is not connected to the electric power supply,water-conduit and sewer networks but the relevant infrastructure has beenbuilt in the neighbourhood, these components shall be presumed to have thevalue under column 4. "Neighbourhood" means part of a nucleated settlementdelimited by record street lines (or streets, where there is no approvedregulation plan), even where the facilities are located within the limitsof the streets. The coefficient under column 4 shall furthermore apply inthe valuation of a part of a building, i. e. if the item has no builtinfrastructure but such infrastructure is available within the building.Article 8. (1) The coefficient of individual characteristics (Cc) shallbe arrived at by adding to 1 the following adjustments:Cc = 1 + cc1 + cc2 + cc3where:1. cc1 is an adjustment for height location of items in residential andpredominantly residential buildings:Table 6Item located on Adjustment (cc1) in buildings of six and more stories without elevator in any other buildings non-residential flats non-residential flats1. First floor +0.10 -0.05 +0.10 -0.052. Second to fifth floor -0.03 +0.03 0.00 +0.033. Sixth and upper floor -0.10 -0.03 -0.08 0.00(a) where the items covered under Item 1 are located on the uppermostfloor of a building of two and more stories, the adjustment cc1 shall bereduced by 0.05;(b) applicable to studios, garages, basements and attics, theadjustment cc1 shall be nil;2. cc2: adjustment for physical condition of the item:Table 7Physical condition Value of cc2No interior overhaul for more than 20 years -0.05Bad physical condition from -0.10 to -0.60(a) "bad physical condition" means damage caused by natural disasters,accidents and other such, as a result whereof the physical condition of theitem has deteriorated materially; the value of the adjustment shall beascertained after inspection and drafting of a memorandum describing thedamage;(b) in the rest of the cases, cc2 shall be equal to nil;3. cc3: adjustment for improvements of items:cc3 = A + B + C + D + E + FTable 8Type of improvement Value of cc3 available not availableA. Heating system 0.00 0.04B. Air conditioning system 0.00 0.06C. De luxe or aluminium joinery units 0.00 0.04D. Sound proofing or heat insulation 0.00 0.03E. Roofing 0.00 0.03F. Ornaments and facings 0.00 0.02(a) "heating system" means private heating, under floor and radiantwall heating;(b) "air conditioning system" refers to a system which is durablyaffixed to the building;(c) "roofing" means de luxe improvements: a special roof structure,sheeting and insulations;(d) "ornaments and facings" refers to de luxe interior and exteriorornaments, mosaics, facings, panels etc. Article 9. (1) The coefficient of height (Ch) shall be arrived at inrespect of any distributive-trade establishment, manufacturing or farm work,where the floor height exceeds 4 metres, using the following formula: 0.05 Ch = (H - 3) where H is the actual floor height in metres, accurate to 0.5 metre. (2) The coefficient shall be calculated to three-place accuracy. (3) Applicable to any other item, the coefficient shall have a valueof 1.Article 10. (1) (Amended, SG No. 153/1998) The coefficient of wear andtear (Cw) shall be arrived at using the following formula:Cw = (100 - (NY - 5) x PC)/100where:NY is the number of years which have lapsed between the completion ofthe building and the moment of valuation (integral number);PC is the annual rate of wear and tear of buildings by type ofstructure in percentage terms:Table 9Structure code Annual rate of wear and tear (%)BN 1.0SS 0.8S1 0.7S2 0.6S3 0.5(2) Until the fifth year after completion of the building, thecoefficient shall have the value of 1.(3) The coefficient of wear and tear may not be less than 0. 65applicable to any building or part thereof of brick nogged timber framed orsemi-solid structure, less than 0.75 applicable to S1 and S2, and less than0.85 applicable to S3. Article 11. (1) The space (S) (gross area, gross floor area) of anybuilding or part thereof shall represent the entire space enclosed between:the outer surface of the exterior walls and/or imaginary vertical planesequidistant from the surfaces of the interior walls (applicable to rooms);the outer surface of the exterior wall and/or of the parapet wall(applicable to open space with side closure); the horizontal projection ofthe contour of the roofing structural member (applicable to roofed openspace without side closure); the outer surface of the exterior walls andparapet walls (applicable to a floor of a building, a condominium projectbuilding, or a section of a building). (2) The space of any basement or attic shall be determined as follows: 1. thirty per cent of the gross area thereof, where adjoiningresidential items; 2. sixty per cent of the gross area thereof, where adjoiningnon-residential items. (3) The space as arrived at under Paragraph (2) shall be added to thespace of items which the basements or attics adjoin. (4) Where any basement or attic must be valued as self contained items,the space arrived at according to Paragraph (2) shall qualify as the space. III. Tax Valuation of Construction in Progress Article 12. (1) Any construction in progress shall be valued accordingto completed construction and erection work as percentage of the assessedvalue of the building as designed, as follows: 1. (amended, SG No. 100/2005) up to grade level: 37 per cent; 2. (amended, SG No. 100/2005) up to rough construction work: 63 percent; 3. (repealed, SG No. 100/2005). (2) The assessed value of any self-contained item within an unfinishedbuilding shall be part of the assessed value of the said unfinished buildingcorresponding to the proportion between the gross floor area of the item(including indivisible interests in the common parts of the building) andthe gross floor area of the building as designed. IV. Tax Valuation of Land within Development Limits, Developed Yards and Land outside Development Limits (Excluding Agricultural Land) Article 13. (1) The assessed value of any land tract within developmentlimits, country-house zones, developed yards (developed sites outsidedevelopment limits) and of any land outside development limits (excludingagricultural land) shall be arrived at proceeding from the base tax valueper square metre, adjustment coefficients, surface area, and the tax valueof improvements using the following formula: AV = BV x Cl x Ci x Cz x Cd x SL + VI where: AV is the assessed value in leva; BV is the base tax value per 1 square metre in leva; Cl is a coefficient of location according to Table 3; Ci is a coefficient of infrastructure; Cz is a coefficient of spatial development zone; Cd is a coefficient of building development; SL is the surface area of the land, inclusive of the floor area, insquare metres; VI is the tax value of improvements. (2) The assessed value of aquatic areas, mines, quarries, forest-stockland tracts and other such items shall be determined depending on thelocation and status thereof. Article 14. (1) The base tax value of land shall be BGN 0.80 persquare metre. (2) The base tax value per 1 square metre of any undeveloped sitewithin the development limits of nucleated settlements, as designated by adetailed urban-development plan, shall be 125 per cent of the base tax valuereferred to in Paragraph (1). (3) (Amended, SG No. 100/2005) The base tax value of any land within thedevelopment limits of nucleated settlements of Grade IV, V, VI, VII and VIIIshall be increased as follows: 1. by 10 per cent, where located within 20 km from a nucleatedsettlement of Grade Zero or One; 2. by 5 per cent, where located within 15 km from a nucleated settlementof Grade Two. (4) (Amended, SG No. 109/2001, amended, SG No. 100/2005) The base taxvalue of any land located in a country-house zone within 10 km from the coastline, a national resort or a country-house zone therewith shall be increasedby 50 per cent, with the exception of Varna, Bourgas, the Borovets resortcomplex, the Dyuni resort complex, the Elenite resort complex, the SunnyBeach resort complex, and the nucleated settlements listed underArticle 6 (5) herein. (5) (Amended, SG No. 109/2001, amended, SG No. 100/2005) The base taxvalue of any land in a resort of local importance and in a country-house zonetherewith shall be increased by 20 per cent with the exception of thenucleated settlements listed under Article 6 (5) herein.Article 15. The coefficient of infrastructure (Ci) shall be arrived atby adding to 1 the value of the components under Table 10:Ci = 1 + A + B + C + DTable 10Component Value of components available not available not available in property, available in areaA. Running water supply 0.0 -0.05 -0.03B. Sewer system 0.0 -0.05 -0.03C. Electric power supply 0.0 -0.07 -0.05D. Street network 0.0 -0.08 -0.081. "street network" means streets with permanent pavement;2. where the property is not connected to the electric power supply,water-conduit and sewer networks but the relevant infrastructure has beenbuilt in the area, these components shall be presumed to have the valueunder column 4. "Area" means part of a nucleated settlement (settlement isthe entire territory delimited by the land-use area boundary) bounded bystreets (roads), even where the facilities are located within the limits ofthe streets. Article 16. (1) The coefficient of spatial-development zone (Cz) shallbe determined depending on the assigned use of the ground according to thedetailed urban-development plan, as follows: 1. central zone, Cz = 1.10; 2. manufacturing, predominantly manufacturing and specificallymanufacturing zones, Cz = 0.90, and land occupied by farmsteads, Cz = 0.80; 3. any other zone (residential, public service, parks, green spaces,sports facilities and other such), Cz = 1.00. (2) The coefficient under Paragraph (1) shall have the value of 1applicable to any land outside the development limits of the nucleatedsettlement and applicable to any land within an unzoned nucleatedsettlement. Article 17. The coefficient of building development (Cd) shall bedetermined in the following manner: 1. applicable to a degree of building development not exceeding 40 percent, as well as to undeveloped land, the said coefficient shall have thevalue of 1. The degree of building development shall be arrived at bydividing the floor area by the area of the property (parcel of land); 2. applicable to a degree of building development exceeding 40 percent, the following formula shall be used: (DB-35) Cd = 2 - 1. 01 where DB is the degree of building development; 3. applicable to a degree of building development equal to 100 percent, Cd = 0.10; 4. the coefficient shall be calculated to two-place accuracy. Article 18. (1) The tax value of improvements (VI) shall represent asum total of the assessed values of the individual improvements. (2) The assessed value of each improvement shall be arrived at bymultiplying the quantity thereof by the following values: 1. applicable to de luxe surfacing (excluding ordinary mosaic, concreteand clay and other flagging): BGN 35.00 per square metre; 2. applicable to solid fences (brickwork, concrete, metal, mixed) andretaining walls: BGN 8.00 per square metre (length by height); 3. applicable to permanently paved sports grounds: BGN 15.00 persquare metre; 4. applicable to swimming pools durably affixed to the ground:BGN 23.00 per cubic metre; 5. applicable to parking lots for public use, per square metre: (a) grassland and permanently paved: BGN 8.00; (b) any other: BGN 15.00. V. Tax Valuation of Agricultural LandArticle 19. (1) The assessed value of agricultural land shall bearrived at proceeding from the base tax value per square metre, varying bythe manner of permanent land use and the grade, the coefficient of locationand the space, using the following formula:AV + BV x Cl x SLwhere:AV is the assessed value in leva;BV is the base tax value per 1 square metre in leva;Cl is the coefficient of location;SL is the space of the land in square metres.(2) The assessed value of forests occupying agricultural land shall bedetermined according to the procedure established for agricultural landoccupied by permanent crops.(3) Where forest-stock land has to be valued, the said land shall bevalued as forests occupying agricultural land.(4) (New, SG No. 109/2001) The assessed value of the types of forest-stock land shall be arrived at by means of equalization of the site type ofthe forest-stock land to the grade of agricultural land according to thefollowing table:Grade of agricultural land Forest site type Prevailing characteristics Forest zone, richness and moisture1 2 3 4III 3, 5, 7, 90, 92, 93, 106 Flood plain and riparian, rich I-1, CD-23IV 4, 8, 9, 6, 52, 53, 69 Flood plain and riparian, leaner V 10, 14, 16, 37, 40, 41, 42, 44, 46, 54, 62, 73, 74, 76, 77, 78, 79, 81, 82, 84, 105, 111, 112, 114, 116, 118, 136 Rich mountain CD-23 (21*II, 6*I)VI 1, 2, 11, 12, 13, 17, 18, 20, 22, 24, 25, 27, 29, 30, 31, 34, 35, 38, 43, 45, 47, 51, 55, 56, 58, 59, 60, 63, 64, 65, 67, 68, 70, 71, 72, 80, 83, 85, 86, 87, 94, 95, 97, 98, 99, 100, 101, 102, 104, 107, 109, 110, 113, 115, 117, 119, 121, 124, 125, 127, 133, 135, 140, 141, 142, 144, 145 Rich valley, leaner mountain 10*I I-21 CD-23 (21* I, 4*II) 17*II B-12 3*III B-2 2*III C-23VII 21, 23, 26, 28, 32, 33, 36, 61, 66, 75, 108, 120, 122, 128, 131, 138, 139, 143, 146, 147 Leaner valley 5*AB-1, 2, BC-12, (8*I, 7*II)VIII 15, 19, 48, 50, 57, 89, 96, 137 Dry non-lean, certain high-mountain 2*Ib-12, 2*IC-1 3*III-2 BC-3IX 49, 88, 126, 129, 148, 149, 150 Dry and lean, certain high-mountain 4* A-1, 1*I, II B-12, 2*III BC-23X 130, 103, 123, 132, 134 Very dry and lean A-01 (2* AB-1, 3* A-01)where:the Roman numerals indicate forest zone;* - forest site;A - very lean land; B - lean; C - medium rich; D - rich;The numerals: 0 - very dry; 1 - dry; 2 - fresh, and 3 - wet.Article 20. The base tax value (BV) shall be determined in Bulgarianlev terms per square metre of agricultural land depending on landclassification and the manner of permanent use:1. where not under irrigation according to the following table:Table 11Manner of permanent use Base tax value by grade (BGN per square metre) I II III IV V VI VII VIII IX IX1 2 3 4 5 6 7 8 9 10 11Permanent crops 0.225 0.204 0.180 0.156 0.120 0.098 0.060 0.042 0.026 0.009Fields 0.125 0.112 0.098 0.086 0.065 0.054 0.033 0.023 0.015 0.006Lawns 0.081 0.074 0.065 0.056 0.044 0.036 0.021 0.015 0.009 0.003Pastures 0.048 0.044 0.039 0.033 0.026 0.021 0.012 0.009 0.005 0.0022. where under irrigation: the base tax value under Item 1, multipliedby 1.20.Article 21. The base tax value of agricultural land shall be adjustedby a coefficient of location (Cl), which shall be arrived at by adding to 1the following adjustments (Cl = 1 + c1 + c2 + c3):1. an adjustment for location in respect of the development limits ofthe nucleated settlement, in the land-use area whereof the property islocated (c1):Table 12Distance from development limits of settlement (km) c1abutting +0.25under 1 +0.15from 1 to 3 0.00from 3 to 6 -0.10from 6 to 8 -0.15over 8 -0.202. adjustment for location in respect of the permanently paved roadnetwork (c2):Table 13Distance from road network (km) c2abutting on road network +0.10under 1 0.00over 1 -0.103. (amended, SG No. 100/2005) adjustment for the grade of the nucleatedsettlement, in the land-use area whereof the property is located (c3):Table 14(Amended, SG No. 100/2005) Grade of settlement in land-use area whereof property is located c3Zero +0.30I +0.20II +0.15III +0.10IV and V 0.00VI, VII and VII -0.10 Article 22. (Amended, SG No. 153/1998) The assessed value of anybuilding right (AVBR) shall be determined in Bulgarian lev terms, using thefollowing formula: AVBR = GFA x 0.25 x BV x Cl x Ci x Cp where: GFA is the gross floor area of the building in square metres; BV is the base tax value depending on the structure and assigned use ofthe building. Should the structure be unknown, S2 shall be presumed. Theprevailing assigned use (over 50 per cent) shall apply; Cl is a coefficient of location depending on assigned use; Ci is a coefficient of infrastructure, determined according to SectionIV; upon creation of a building right affecting agricultural land, Ci shallbe determined in an identical manner; Cp is a coefficient accounting for the period wherefor the right hasbeen created, displayed to the third decimal place. Cp = (1 - 1.05-n) where "n" is the number of years wherefore the righthas been created. Where n is greater than 100 years, Cp shall be presumed tohave the value of 1. VII. Tax Valuation of Right of Use Article 23. (1) The assessed value of any real right of use (AVRU)shall be determined in Bulgarian lev terms using the following formula: AVRU = AV x Cp where: AV is the assessed value in lev terms of the property or the partthereof affected by the right as created; Cp is a coefficient accounting for the period wherefore the right hasbeen created, displayed to the third decimal place. -n Cp = (1 - 1.05 ) where "n" is the number of years wherefore the righthas been created. The coefficient may not be greater than 0.900. (2) Where the right of use is created for an indeterminate duration,the number of years wherefor the said right has been created shall bearrived at by subtracting the age of the user from 70 or, where there aremultiple users, the age of the youngest user. Where the user is older than70, the number of years shall be presumed to be 5. (3) (New, SG No. 100/2005) Where a right of use of an enterprise iscreated for an indeterminate duration, the coefficient accounting for theperiod shall be 0.900. (4) (Renumbered from Paragraph (3), SG No. 100/2005) Where a currentvaluation of the right of use is required, the number of years "n" shall bedetermined as the residual period reckoned at the date wherefore the valuationis required. Article 24. The assessed value of a right of ownership, where a realright of use has been created, shall be reduced by the assessed value of theright of use for the residual period, reckoned at the date wherefore thevaluation is required. Annex 3 to Article 55 (1) (New, SG No. 109/2001, effective 1.01.2002, repealed, SG No. 45/2002, effective 1.01.2002) Annex 4 to Section IV of Chapter Two (New, SG No. 110/2007, effective 1.01.2008)Types of Licence Activities and Annual Amount of Tax1. Collective tourist accommodation establishments or supplementary tourist accommodations of not more than 20 rooms: the tax shall be assessed per room according to the location of the establishment: one- and two-star from BGN 25 to BGN 2502. Mass-catering and entertainment establishments: the tax shall be assessed per customer place, including such in the open air, or per establishment, according to the location of the establishment:(a) restaurants: one- and two-star from BGN 1 to BGN 35 three-star from BGN 6 to BGN 60(b) fast-food outlets: one- and two-star from BGN 1 to BGN 20 three-star from BGN 3 to BGN 35(c) drinking establishments, except such listed under Littera (f): one- and two-star from BGN 1 to BGN 20 three-star from BGN 2 to BGN 35(d) cafes and patisseries: one- and two-star from BGN 1 to BGN 20 three-star from BGN 3 to BGN 50(e) bars: - lounge bars: two-star from BGN 3 to BGN 50 three-star from BGN 10 to BGN 84- night clubs: two-star from BGN 5 to BGN 63 three-star from BGN 20 to BGN 98(f) refreshment bars, caravans and kiosks (per establishment): from BGN 75 to BGN 5003. Retail trade on a net selling space of the establishment not exceeding 100 square meters: the tax shall be assessed per square meter of net selling space according to the location of the establishment: from BGN 2 to BGN 204. Paid parking facilities: the tax shall be assessed per parking space according to the location of the establishment: BGN per parking space from BGN 5 to BGN 2005. Carpenter services: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 7806. Tailor, currier, furrier and knitting services: the tax shall be assessed according to the location of the establishment: from BGN 40 to BGN 8407. Trade in, manufacture of, and services involving articles of precious metals: the tax shall be assessed according to the location of the establishment: from BGN 500 to BGN 2,5008. Cobbler, hatter and milliner services: the tax shall be assessed according to the location of the establishment: from BGN 40 to BGN 1209. Metalworker services: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 91010. Hairdresser and barber services, pet beauty parlour services: the tax shall be assessed per workplace according to the location of the establishment: from BGN 60 to BGN 84011. Typing and/or photocopying services: the tax shall be assessed per device according to the location of the establishment: from BGN 180 to BGN 59412. Cosmetic and tattooing services: the tax shall be assessed per workplace according to the location of the establishment: from BGN 130 to BGN 90013. Manicure and chiropody: the tax shall be assessed per workplace according to the location of the establishment: from BGN 60 to BGN 42014. Watchmaker services: the tax shall be assessed according to the location of the establishment: from BGN 60 to BGN 39015. Upholsterer services: the tax shall be assessed according to the location of the establishment: from BGN 180 to BGN 52016. Car washes; tyre repairs, regulating and balancing: the tax shall be assessed according to the location of the establishment: from BGN 190 to BGN 1,20017. Car repair, panel-beating, car painting and other services for the technical maintenance and repair of motor vehicles: the tax shall be assessed according to the location of the establishment: from BGN 280 to BGN 1,90018. Repair of wiring and plumbing systems: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 56019. Glazier services: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 70020. Maintenance and repair of household appliances, devices, audio-visual equipment, air conditioners, repair of musical instruments: the tax shall be assessed according to the location of the establishment: from BGN 47 to BGN 98021. Video cassette rental: the tax shall be assessed according to the location of the establishment: from BGN 300 to BGN 3,25022. Female and male escorts: the tax shall be assessed according to the location of the establishment: from BGN 3,000 to BGN 6,44023. Masseuses and masseurs: the tax shall be assessed according to the location of the establishment: from BGN 500 to BGN 1,68024. Clairvoyants, psychics and bio energy therapists: the tax shall be assessed according to the location of the establishment: from BGN 2,000 to BGN 5,60025. Photographic services: the tax shall be assessed according to the location of the establishment: From BGN 200 to BGN 1,04026. Intermediation services for the purchase, sale, exchange and lease of real property: the tax shall be assessed according to the location of the establishment: from BGN 100 to BGN 3,50027. Leased public lavatories: the tax shall be assessed according to the location of the establishment: from BGN 150 to BGN 42028. Locksmith services, repair of locks, repair of handbags, book-binding services, repair of sewing machines: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 19829. Repair of umbrellas, repair and recharging of lighters, repair of bicycles, chimney sweeping services: the tax shall be assessed according to the location of the establishment: from BGN 50 to BGN 9830. Pawn brokers: from BGN 3,000 to BGN 28,00031. Retail of newspapers, magazines, Bulgarian and translated literature: the tax shall be assessed according to the location of the establishment: from BGN 30 to BGN 26032. Repair of computers, computer and other electronic office automation (copiers, facsimile machines, printers, etc.): the tax shall be assessed according to the location of the establishment: from BGN 300 to BGN 1,30033. Amusement or sports games: the tax shall be assessed per number of devices according to the location of the establishment:(a) amusement arcade machines and other games operated by coins or tokens: from BGN 100 to BGN 198(b) pinball, table tennis, darts, paintball and speedball, mini-basketball, bridge, backgammon: from BGN 8 to BGN 26(c) bowling and skittles, per alley, and billiards, per table: from BGN 40 to BGN 14034. Fitness centres and gyms: the tax shall be assessed according to the location of the establishment: from BGN 1.50 to BGN 4 per sq m and from BGN 300 to BGN 840 per fitness apparatus35. Dry cleaning, laundry and pressing: the tax shall be assessed per piece of equipment according to the location of the establishment: from BGN 133 to BGN 44036. Grain milling services: (a) flour mills: from BGN 18 to BGN 36 per running centimetre of the length of the milling line; (b) stationary animal-feed mills: from BGN 600 to BGN 1,20037. Vacation services: (a) pleasure boats from BGN 750 to BGN 1,500 per piece; (b) rowing boats from BGN 450 to BGN 900 per piece; (c) yachts from BGN 900 to BGN 1,800 per piece; (d) jetski from BGN 900 to BGN 1,800 per piece; (e) jeep-drawn mini-trains from BGN 30 to BGN 60 per seat; (f) horse-drawn cabs from BGN 75 to BGN 150 per seat; (g) water ski, water gliders and surfboards, paddle boats, including inflatable ones, water amusement games from BGN 150 to BGN 300 per piece of equipment; (h) snow ski (including skiing gear), ice skates, snowboards, sledges from BGN 150 to BGN 300 per piece of equipment; (i) merry-go-rounds, Ferris wheels, bumper cars, bicycles and rickshaws from BGN 150 to BGN 300 per seat; (j) toddler battery-propelled cars and motorbikes from BGN 150 to BGN 300 per piece; (k) shooting galleries from BGN 300 to BGN 600 per shooting gallery38. Motor vehicle driving instruction: the tax shall be assessed per motor vehicle at the following amounts: (a) mopeds, motorcycles from BGN 200 to BGN 475 (b) other motor vehicles from BGN 400 to BGN 95039. Roadside assistance services for road transport vehicles: from BGN 2,000 to BGN 4,000 per motor vehicle.40. Services involving the use of agricultural and forestry machinery: the tax shall be assessed per piece of machinery as follows: (a) combine harvester: from BGN 330 to BGN 660; (b) tractors, tractor trailers, self-propelled chassis and other self-propelled or self-powered machines: from BGN 110 to BGN 220; (c) attachments, mounted and stationary machines: from BGN 11 to BGN 22. - For more information visit www.solicitorbulgaria.com id: 337 Mon, 04 Aug 2008 06:49:29 -0700 http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/LOCAL_TAXES_AND_FEES_ACT1.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Chapter One(Amended, SG No. 103/1999, amended and supplemented, SG No. 109/2001,No. 45/2002, No. 56/2002, amended, SG No. 119/2002)GENERAL PROVISIONSSection ILocal TaxesArticle 1. (1) (Redesignated from Article 1, SG No. 110/2007) The following local taxes shall accrue to the municipal budgets:1. immovable property tax;2. inheritance tax;3. gift tax;4. tax on onerous acquisition of property;5. transport vehicle tax;6. (repealed, SG No. 106/2004, new, SG No. 110/2007) licence tax;7. any other local taxes as determined by statute.(2) (New, SG No. 110/2007) The Municipal Council shall determine by ordinance the amount of the taxes covered under Paragraph (1) under the terms, according to the procedure and within the range established by this Act.(3) (New, SG No. 110/2007) Where the Municipal Council has failed to determine the amount of the local taxes for the current year until the end of the last preceding year, the local taxes shall be collected on the basis of the amount effective at… For more information visit http://www.solicitorbulgaria.com id: 338 Chapter One(Amended, SG No. 103/1999, amended and supplemented, SG No. 109/2001,No. 45/2002, No. 56/2002, amended, SG No. 119/2002)GENERAL PROVISIONSSection ILocal TaxesArticle 1. (1) (Redesignated from Article 1, SG No. 110/2007) The following local taxes shall accrue to the municipal budgets:1. immovable property tax;2. inheritance tax;3. gift tax;4. tax on onerous acquisition of property;5. transport vehicle tax;6. (repealed, SG No. 106/2004, new, SG No. 110/2007) licence tax;7. any other local taxes as determined by statute.(2) (New, SG No. 110/2007) The Municipal Council shall determine by ordinance the amount of the taxes covered under Paragraph (1) under the terms, according to the procedure and within the range established by this Act.(3) (New, SG No. 110/2007) Where the Municipal Council has failed to determine the amount of the local taxes for the current year until the end of the last preceding year, the local taxes shall be collected on the basis of the amount effective at the 31st day of December of the last preceding year.(4) (New, SG No. 110/2007) Changes in the amount and manner of determination of the local taxes, as adopted by the Municipal Council, shall be inadmissible in the course of the year.Article 2. (Amended, SG No. 106/2004, effective 1.01.2006) Local taxes shall be paid in cash at the cash departments of the municipal administration, or cashlessly, by means of crediting the relevant bank account.Article 3. Tax returns under this Act shall be submitted by the taxable persons or the legal representatives thereof in a standard form endorsed by the Minister of Finance, which shall be promulgated in the State Gazette.Article 4. (1) (Amended, SG No. 106/2004, effective 1.01.2006, SG No. 100/2005, SG No. 105/2005, supplemented, SG No. 105/2006) Local taxes shall be assessed, secured and collected by municipal administration officers according to the procedure established by the Tax and Social Insurance Procedure Code. The written statements related to local taxes shall be appealed according to the same procedure.(2) (Amended, SG No. 105/2005) Any delinquent taxes covered under this Act shall be collected with interest under the Interest on Taxes, Fees and Other State Receivables Act according to the procedure established by the Tax and Social Insurance Procedure Code. (3) (New, SG No. 100/2005, amended, SG No. 105/2005) In the proceedings referred to in Paragraph (1), the municipal administration officers shall have the rights and obligations of revenue authorities.(4) (New, SG No. 100/2005) The officers referred to in Paragraph (3) shall be designated by an order of the municipality mayor.(5) (New, SG No. 100/2005, amended, SG No. 105/2005) The municipality mayor shall exercise the powers of a deciding authority under Article 152 (2) of the Tax and Social Insurance Procedure Code , and the head of the local revenue unit in the relevant municipality shall exercise the powers of a territorial director of the National Revenue Agency.(6) (New, SG No. 100/2005, amended, SG No. 105/2005) The Executive Director of the National Revenue Agency shall issue methodological directions on the application of this Act.(7) (New, SG No. 105/2005) The Municipal Council shall be the authority competent to defer and reschedule local taxes in the cases referred to in Item 2 of Article 184 (1) of the Tax and Social Insurance Procedure Code.Article 5. (Amended, SG No. 100/2005, repealed, SG No. 110/2007). Section IILocal FeesArticle 6. (1) Municipalities shall collect the following local fees:(a) for disposal of household waste;(b) for use of retail markets, wholesale markets, fairs, sidewalks, squares and street roadways;(c) (Supplemented, SG No. 70/2004) for attendance at creches, provision of cooked take-away meals from baby-food kitchens, attendance at kindergartens, residence at public care homes, camps, dormitories, and use of other forms of municipal social services;(d) for quarrying;(e) for technical services;(f) for administrative services;(g) for lease of grave plots;(h) visitor fee;(i) (new, SG No. 87/2005) for dog ownership;(j) (redesignated from Letter (i), SG No. 87/2005) other local fees as determined by statute.(2) The (competent) Municipal Council shall set a price for any service provided or right granted by the municipality with the exception of such covered under Paragraph (1).Article 7. (1) Local fees shall be determined proceeding from the necessary logistical and administrative expenses incurred on provision of the service.(2) Fees shall be simple or proportional, and shall be payable by a cashless method, in cash, or in municipal revenue stamps within the time limits and according to the procedure established by this Act.Article 8. (1) The (competent) Municipal Council shall determine the amount of the fees in conformity with the following principles:1. recovery of the full amount of expenses incurred by the municipality on provision of the service;2. creation of conditions for expansion of the services provided and for improvement of the quality thereof;3. achievement of greater fairness in the determination and payment of local fees.(2) A separate fee shall be determined for each distinguishable activity into which a service can be disaggregated.(3) The amount of the fee may not recover the full amount of expenses incurred by the municipality for provision of a specific service should the (competent) Municipal Council resolve that this a protection of the public interest so dictates.(4) In the cases where the amount of the fees does not recover the full amount of expenses incurred for provision of the service, the difference between the said expenses and the amount of the fees shall be for the account of municipal revenues.(5) By the ordinance referred to in Article 9 herein, the (competent) Municipal Council shall establish the procedure according to which the persons who do not use a service during the relevant year or during a specific period of the said year shall be exempt from payment of the said fee.(6) (Amended, SG No. 110/2007) The (competent) Municipal Council may exempt certain categories of persons from full or partial payment of specific types of fees according to a procedure established by the ordinance referred to in Article 9 herein.Article 9. The (competent) Municipal Council shall adopt an ordinance on the determination and administration of local fees and prices for services.Article 9a. (1) Local fees shall be collected by the municipal administration.(2) (Amended, SG No. 106/2004, repealed, SG No. 100/2005).(3) Revenues from local fees shall accrue to the municipal budget.(4) (New, SG No. 105/2006) The competent Mayor shall authorize a rescheduling or deferral of liabilities for local fees to an amount not exceeding BGN 30,000 and subject to the condition that a rescheduling or deferral is requested within one year after the date of grant of the authorization.(5) (New, SG No. 105/2006) The competent Municipal Council shall authorize a rescheduling or deferral of liabilities for local fees exceeding BGN 30,000 or for a period longer than one year.Article 9b. (1) (Amended, SG No. 105/2006) Any delinquent fees shall be collected with interest under the Interest on Taxes, Fees and Other Such State Receivables Act according to the procedure established by the Tax and Social-Insurance Procedure Code .(2) Fees receivable shall be ascertained by a written statement drawn up by the (competent) Municipality Mayor according to the procedure established by the Administrative Procedure Code. (3) Any written statement ascertaining the receivable shall be appealable according to the procedure established by the Administrative Procedure Code. (4) (Amended, SG No. 84/2003, repealed, SG No. 105/2005).Article 9c. Where a municipal authority has been entrusted with the performance of an act or with the issuance of a document for which a stamp duty is charged, the fee charged shall accrue to revenue of the municipal budget.Chapter TwoLOCAL TAXESSection IImmovable Property TaxArticle 10. (1) (Amended, SG No. 106/2004) Immovable property tax shall be levied on the buildings and lots located within the territory of Bulgaria, which are situate within the development limits of the nucleated settlements and the dispersed settlements, as well as the lots outside such development limits, which, according to a detailed plan, have the intended purpose under Item 1 of Article 8 of the Spatial Development Act. (2) (New, SG No. 106/2004) No tax shall be levied on any lots occupied by streets, roads of the national and municipal road networks and the railway network, up to the delimiting building lines. No tax shall furthermore be levied on any lots occupied by water bodies constituting state and municipal property.(3) (Supplemented, SG No. 109/2001, renumbered from Paragraph 2, SG No. 106/2004)) No tax shall be levied on agricultural land tracts and forests, with the exception of developed land in respect of the actually developed surface area and the adjoining ground.(4) (New, SG No. 100/2005, amended, SG No. 105/2006) No tax shall be levied on any corporeal immovable whereof the assessed value does not exceed BGN 1,680.Article 11. (1) The taxable persons shall be the owners of taxable corporeal immovables.(2) (Supplemented, SG No. 153/1998, amended, SG No. 106/2004) The owner of a building constructed on a state-owned or municipal-owned lot shall furthermore be taxable in respect of the said lot.(3) (Supplemented, SG No. 109/2001, amended, SG No. 36/2006) Should a real right of use have been created, the user shall be the taxable person.(4) (New, SG No. 36/2006) In cases of concession, the tax liable person shall be the concessionaire.Article 12. (1) Where the right of ownership or the limited real right to a taxable corporeal immovable vests in several persons, liability for tax shall apply to the said persons in proportion to the parts thereto appertaining.(2) Any one of the co-owners of the property, and any one of the co- holders of the limited real right, as the case may be, may pay the tax on the entire property for the account of the rest.Article 13. Tax shall be payable irrespective of whether the corporeal immovables are used or not.Article 14. (Amended, SG No. 103/1999) (1) The owner of, or the holder of the limited real right to, any newly constructed or otherwise acquired property, as the case may be, shall notify the municipality exercising competence over the status of the property within two months after the said construction or acquisition by submission of a tax return for annual immovable property taxation.(2) Upon alteration in any circumstance relevant to the assessment of the tax, the taxable persons shall notify the municipality according to the procedure and within the time limit established under Paragraph (1).(3) (New, SG No. 102/2000) Upon acquisition of a property by succession, the tax return referred to in Paragraph (1) shall be submitted within the time limit referred to in Article 32 herein.(4) (New, SG No. 119/2002) The tax return submitted by one co owner or user, as the case may be, shall benefit the rest of the co-owners or users.Article 15. (1) In respect of any newly constructed building or part of a building, tax shall be due as from the commencement of the month next succeeding the month wherein the said building or part thereof was completed or when use thereof began.(2) Upon transfer of a property, the transferee shall be liable for tax as from the commencement of the month next succeeding the month wherein the alteration in ownership or use occurred, unless the tax has been paid by the transferor.Article 16. (1) (Amended, SG No. 103/1999, supplemented, SG No. 102/2000) Upon partial or complete destruction of a building, as well as upon change of the status of a corporeal immovable from non-taxable to taxable and vice versa, the taxable persons shall notify the municipality exercising competence over the status of the property according to the procedure and within the time limit established by Article 14 (1) herein.(2) In the instances under Paragraph (1), the liability for payment of the tax shall terminate or arise, as the case may be, as from the commencement of the month next succeeding the month wherein the change occurred.Article 17. (1) (Supplemented, SG No. 153/1998, amended, SG No. 103/1999, redesignated from Article 17 and amended, SG No. 102/2000, amended and supplemented, SG No. 109/2001, amended, SG No. 100/2005) Within two months after acquisition of any non-residential property or after creation of a right to use, as the case may be, any enterprise shall submit a declaration to the municipal administration exercising competence over the status of the said property, stating therein the type of property, the exact location thereof, the book value thereof and any other circumstances as shall be relevant to the assessment of the tax, as well as the amount of the tax due. Upon any change in the particulars as declared, a declaration shall be submitted within two months after the date of the said change.(2) (New, SG No. 102/2000) In respect of any residential property, the persons referred to in Paragraph (1) shall submit a tax return according to the procedure and within the time limits established by Article 14 herein.(3) (New, SG No. 102/2000, amended, SG No. 119/2002) In respect of any residential property referred to in Article 11 (2) herein, enterprises shall submit a declaration according to the procedure and within the time limits established by Article 14 (1) herein and, after communication of the assessed value by the municipal administration officer, shall state the said assessed value in the declaration referred to in Paragraph (1).(4) (New, SG No. 102/2000) The tax shall be paid within the time limits established by Article 28 herein at the municipality exercising competence over the situs of the property according to the particulars as declared.Article 18. (1) (Redesignated from Article 18, SG No. 153/1998, amended, SG No. 34/2000) The municipal administration officer shall verify the returns as submitted. The said authority may require additional information on the taxable property, to compare the particulars of the return with the books of account, plans, drawings and documents of title or use of the property and, when necessary, through surveying of the said property by the technical authorities.(2) (New, SG No. 153/1998, amended, SG No. 34/2000) When requested by the municipal administration officers to provide any data and evidentiary material of property status (copies of maps and plans, computer models, registers and other such), the competent public financed services shall be obliged to provide anysuch data and material gratuitously within seven days.(3) (New, SG No. 34/2000) Any data of the cadastre, coming under Paragraph (2), shall be provided under the terms and according to the procedure established by the Cadastre and Property Register Act. Article 19. (1) The tax shall be assessed on the basis of the assessed value of the corporeal immovables covered under Article 10 (1) herein at the 1st day of January in the year wherefor the tax is due.(2) (Repealed, SG No. 153/1998).(3) (New, SG No. 119/2002, supplemented, SG No. 112/2003, amended, SG. No. 100/2005) Upon any modification of the assessed value of a property during the year, the tax shall be assessed on the basis of the new assessed value as from the month next succeeding the month of the modification. In the case of change by the Municipal Councils of the boundaries of the zones within the nucleated settlements and the categories of the country-house zones or of the nucleated settlements, the tax shall be assessed on the basis of the new assessed value as from the 1st day of January in the next succeeding year.Article 20. (Amended, SG No. 109/2001) The assessed value of any corporeal immovables appertaining to individuals shall be determined by a municipal administration officer at rates according to Annex 2 hereto depending on the type of property, the location, space, structure and depreciation, and shall be communicated to the taxable persons.Article 21. (1) (Supplemented, SG No. 153/1998, amended, SG No. 102/2000, SG No. 109/2001) The assessed value of any corporeal immovable appertaining to enterprises shall be the book value of the said property, and the assessed value of any residential property shall be the assessed value arrived at according to Annex 2 hereto.(2) (New, SG No. 102/2000, amended, SG No. 109/2001) The assessed value of any corporeal immovable in respect whereof a right to use has been created in favour of an enterprise shall be the book value of the said immovable as shown in the balance sheet of the owner or the assessed value arrived at according to Annex 2 hereto and, in respect of residential property, the assessed value arrived at according to Annex 2 hereto.(3) (New, SG No. 109/2001) The assessed value of any property referred to in Article 11 (2) herein, whereon any buildings of enterprises have been constructed, shall be arrived at rates according to Annex 2 hereto.(4) (Renumbered from Paragraph (2), SG No. 102/2000, renumbered from Paragraph (3), SG No. 109 of 2001) Should accounting data be unavailable, the assessed value shall be determined by a municipal administration officer for the account of the taxable person. In such cases, the municipal administration officer may resort to the services of experts.Article 22. (Amended, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax within a range of 1.5 to 3 per mile of the assessed value of the corporeal immovable.Article 23. (Amended, SG No. 103/1999, SG No. 109/2001)The amount of tax referred to in Article 14 (1) and (3) herein and in Article 17 (2) herein shall be determined by the municipal administration officer exercising competence over the situs of the corporeal immovable and shall be communicated to the taxable person or to a legal representative thereof.Article 24. (1) The following shall be exempt from (immovable property) tax:1. (supplemented, SG No. 153/1998) the municipalities, in respect of any immovables constituting public municipal property;2. (supplemented, SG No. 153/1998) the State, in respect of any immovables constituting public state property, except where the immovable has been allocated for use to another person and said person is not exempt from tax;3. (repealed, SG No. 153/1998);4. the community centres (chitalishte);5. the buildings owned by foreign states which house diplomatic missions and consular posts, on a basis of reciprocity;6. (repealed, SG No. 153/1998);7. the buildings appertaining to the Bulgarian Red Cross;8. (amended, SG No. 153/1998, SG No. 119/2002) the buildings of the higher schools and the academies, used for teaching and scientific research;9. the houses of worship appertaining to lawfully registered religious denominations in Bulgaria;10. the parks, the sports grounds, the playgrounds and other such immovables for public use;11. (repealed, SG No. 153/1998);11a. (new, SG No. 109/2001) the buildings designated as cultural landmarks, where not used for a for-profit purpose;12. the museums, the galleries, and the libraries;13. (amended, SG No. 119/2002) the immovables which are directly used for the operation of public transport;14. the farm buildings appertaining to agricultural producers and used for agricultural activities;15. the temporary buildings servicing the construction of a new building or facility, until completion and commissioning of the said new building or facility;16. (supplemented, SG No. 153/1998, repealed, SG No. 110/2007); 17. (new, SG No. 153/1998) the corporeal immovables whereof the ownership has been restituted by law and which are unusable, for a period of five years. The tax on any such immovables, which are used by the State, the municipalities, the public organizations of by commercial corporations wherein they hold a participating interest, including privatized commercial corporations, shall be due from the users;18. (new, SG No. 18/2004, amended, SG No. 55/2007) the buildings which have been commissioned prior to 1 January 2005 and which have received a Category A certificate, issued according to the procedure established by the Energy Efficiency Act, as follows:(a) for a period of 7 years reckoned from the year following the year of issue of the certificate;(b) for a period of 10 years reckoned from the year following the year of issue of the certificate, if they apply also measures for utilization of renewable energy sources for production of energy for satisfying the needs of the building;19. (new, SG No. 18/2004, amended, SG No. 55/2007) the buildings which have been commissioned prior to 1 January 2005 and which have received a Category B certificate, issued according to the procedure established by the Energy Efficiency Act, as follows:(a) for a period of 3 years reckoned from the year following the year of issue of the certificate;(b) for a period of 5 years reckoned from the year following the year of issue of the certificate, if they apply also measures for utilization of renewable energy sources for production of energy for satisfying the needs of the building.(2) (Amended, SG No. 153/1998) Exemption under Items 1, 2, 4, 7, 8 and 9 of Paragraph (1) shall apply subject to the condition that the immovables are not used for a for-profit purpose unrelated to the core activity thereof.(3) (New, SG No. 153/1998, repealed, SG No. 109/2001).(4) (Renumbered from Paragraph (3) and amended, SG No. 153/1998, amended, SG No. 109 of 2001) Paragraphs (1) and (2) shall furthermore apply accordingly to any parts of properties.(5) (New, SG No. 112/2003) In respect of any immovables referred to in Item 17 of Paragraph (17) the right of ownership whereof was restored prior to the 1st day of January 1999, the five-year period shall begin to run from the said date, and in respect of any such immovables the right of ownership whereof was restored after the said date, the said period shall begin to run from the month next succeeding the month of restoration.Article 25. (1) A rate rebate of 50 per cent shall apply to the tax due on any immovable used as a main residence.(2) (Amended, SG No. 119/2002) In respect of any immovable used as a main residence by a person who has lost between 50 and 100 per cent of the working capacity thereof, a rate rebate of 75 per cent shall apply to the tax due.Article 26(Amended, SG No. 153/1998, SG No. 103/1999, repealed, SG No. 102/2000).Article 27. Any eligible person shall claim the rights thereof to exemption from tax or to enjoyment of a rate rebate by means of a tax relief submitted within the time limit under Article 14 (1) herein.Article 28. (1) (Supplemented, SG No. 153/1998, amended, SG No. 102/2000) Immovable property tax shall be payable in four equal instalments within the following periods: from the 1st day of February to the 31st day of March, not later than the 30th day of June, not later than the 30th day of September, and not later than the 30th day of November in the year wherefor the tax is due.(2) Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first instalment, shall enjoy a rate rebate of 5 per cent.(3) (New, SG No. 100/2005) Upon transfer of a corporeal immovable or upon creation of rights in rem to a corporeal immovable, the tax due until the said transfer or creation, including for the month of the transfer or creation, shall be paid by the transferor or creator prior to the said transfer or creation.(4) (Amended, SG No. 102/2000, supplemented, SG No. 109/2001, renumbered from Paragraph (3), SG No. 100/2005) Immovable property tax shall be credited to revenue of the budget of the municipality exercising jurisdiction over the immovable. The tax due from the concessionaire for an immovable located within the territory of more than one municipality shall be credited to revenue of the municipality whereof the territory shall contain the larger part of the said immovable.Section IIInheritance TaxArticle 29. (1) Inheritance tax shall be levied on the estate of any decedent Bulgarian citizen located within Bulgaria or abroad when devolved by legal or testamentary succession, as well as on the estate located within Bulgaria where so devolved by any decedent foreign citizen.(2) The estate of any decedent stateless person shall be taxed as an estate of a Bulgarian citizen, should the said person have been permanently resident within the territory of Bulgaria.Article 30. (1) A decedent's estate shall incorporate the movable and immovable things owned by the ancestor and the rights to any such things, as well as the ancestor's other property rights, receivables and liabilities at the time of the opening of the succession, save as otherwise provided by statute.(2) Inheritance tax shall furthermore be levied on any property devolving directly on a third party in the event of death of the ancestor pursuant to a contract concluded by the ancestor.(3) Paragraph (2) shall not apply if the contract was concluded to fulfil an obligation imposed by statute.Article 31. (1) (Redesignated from Article 31, SG No. 106/2004) Liability for inheritance tax shall apply to the legal or testamentary heirs as well as to the legatees.(2) (New, SG No. 106/2004) Inheritance tax shall not be paid by the surviving spouse and by the lineal heirs without restraint.Article 32. (1) (Amended, SG No. 103/1999) Within six months after the opening of a succession, any taxable person covered under Article 31 herein or the legal representative thereof shall be obligated to submit a declaration to the municipality exercising competence over the last fixed abode of the ancestor or, should the ancestor have been domiciled abroad, to the municipality exercising competence over the situs of the larger part of the estate of the ancestor within Bulgaria.(2) For any heir or legatee other than a spouse, descendant, parent, or sibling, the six-month time limit for submission of the declaration shall begin to run from the day of learning that the succession has opened.(3) In respect of the estates of persons declared absent by the court, the declaration shall be submitted by the heirs apparent to the person declared absent at the time when the said person was last heard from. In such a case, the six-month time limit for submission of the declaration shall begin to run from the entry into possession.(4) Where the heir is a person who has been conceived at the time of opening of the succession and was born living, the time limit under Paragraph (1) in respect of the legal representatives of any such person shall begin to run from the date of birth of the said person.(5) Any declaration submitted in due course by one heir shall benefit the other heirs as well.(6) In the declaration, the heirs shall itemize the decedent's estate as inherited by type, location and value.(7) Any decedent's estate of which the taxable persons learn the time limit under the foregoing paragraphs has expired, shall be declared within one month after the day of learning about the estate. In such cases, the tax due shall be recalculated.Article 33. (1) Any decedent's estate, with the exception of such exempt from tax, shall be identified and valued in lev terms at the date of the opening of the succession, as follows:1. the corporeal immovables: at the assessed value arrived at according to Annex 2 hereto;2. the foreign currency and precious metals: at the central exchange rate of the Bulgarian National Bank;3. the securities: at fair market value or, where the fair market value cannot be established without considerable cost or difficulty, at face value;4. (Amended, SG No. 109/2001, SG No. 45/2002) the transport vehicles: at the insured value;4a. (New, SG No. 109/2001, repealed, SG No. 45/2002);5. any other movable things and rights: at fair market value;6. the enterprises or participating interests in commercial corporations or cooperatives: at fair market value or, where determination of the said value requires considerable expense or causes difficulties, according to accounting data.(2) The liabilities of the ancestor shall likewise be valued according to the procedure established by Paragraph (1).(3) Any rights and liabilities of the ancestor, which have not been established in terms of either legal grounds or amount, shall be declared but shall be valued and taken into consideration upon determination of the taxable estate being established in terms of legal grounds and amount. In such case, the tax due shall be recalculated.(4) Upon request by a municipal administration officer or an interested party, the insurers shall issue a certificate of the insured value of the thing within seven days.Article 34. The assets of the taxable estate as determined according to the procedure established by Article 33 herein shall be debited with the following items:1. the liabilities of the ancestor at the time of opening of the succession, established in terms of legal grounds and amount, unless property exempt from inheritance tax is acquired against such liabilities; any payables to creditors, whereof the claims to the ancestors are extinguished by prescription and are unrealized within the six-month time limit under Article 32 herein, shall not be set off;2. the rights and receivables transferred by the heirs in favour of the State or the municipalities according to the procedure established by the law within the six month time limit under Article 32 herein;3. (Amended, SG No. 153/1998) the funeral expenses up to the amount of BGN 1,000;4. any reliefs provided for by the law.Article 35. (1) The taxable estate shall be divided into portions, and each heir shall be allocated a portion according to the procedure established by the Succession Act. (2) The value of the legacies, valued according to the procedure established by Article 33 herein, shall be added or subtracted from the portions, as the case may be.Article 36. (Amended, SG No. 106/2004, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax separately in respect of each heir or legatee, as follows:1. applicable to siblings and the children of siblings: from 0.7 to 1.4 per cent per portion in excess of BGN 250,000;2. applicable to any persons other than such referred to in Item 1: from 5 to 10 per cent per portion in excess of BGN 250,000.Article 37. (Amended, SG No. 103/1999, SG No. 105/2005) The tax shall be assessed and shall be communicated to each legal or testamentary heir according to the procedure established by the Tax and Social Insurance Procedure Code. Article 38. (1) The following shall be exempt from tax:1. the estate of those who fell for the Republic of Bulgaria or in the line of duty, or who died in industrial accidents or natural disasters;2. (supplemented, SG No. 109/2001, SG No. 119/2002) the estate settled on the State, the municipalities, the Bulgarian Red Cross, the lawfully registered religious denominations in Bulgaria, the community centres (chitalishte) and other legal persons which are not merchants, with the exception of the non-profit organizations designated for pursuit of private- benefit activities;3. any ordinary household furnishings;4. any small farm implements;5. libraries and musical instruments;6. any works of art whereof the author is the ancestor, any of the heirs or a lineal relative thereof up to any degree of consanguinity, or a collateral relative up to the fourth degree of consanguinity;7. the ancestor's pensions payable;8. the estates of Bulgarian citizens located abroad, in respect of which inheritance tax has been paid in the respective State.(2) Should any two persons, of whom one is heir to the other, have died simultaneously or in immediate succession, no tax shall be due on the portion acquired by the deceased heir.(3) Exemption under Items 3, 4 and 5 of Paragraph (1) shall apply only to lineal heirs, spouses, and siblings.Article 39. Should any immovable property have devolved to the ancestor by succession, the decedent's estate shall include 40 per cent of the assessed value of the said property if acquired within one year prior to the death of the ancestor; 50 per cent, if acquired within two years prior to the death thereof, and 60 per cent, if acquired within three years prior to the death thereof.Article 40. (1) (Amended, SG No. 103/1999) Inheritance tax shall fall due for payment within two months after service of the notice.(2) Should the decedent's estate comprise the enterprise of a sole trader, participating interest in a general partnership, interests and shares representing more than 50 per cent of the capital of commercial corporations, the tax due may be paid within one year after the opening of the succession together with the legal interest, which shall begin to accrue upon the lapse of the two-month time limit referred to in Paragraph (1).Article 41. (1) (Amended, SG No. 103/1999, supplemented, SG No. 102/2000) Sums held on accounts of decedents shall be paid to the heirs of holders upon presentation of a certificate issued by the municipality, certifying that the said sums have been declared in the inheritance tax return and the tax has been paid. Should the tax be not paid, the said tax shall be withheld and credited to the account of the competent municipality within one month after presentation of a document on the amount of the tax due, and the heirs shall be paid sums up to the amount of the balance on the account of ancestor.(2) Paragraph (1) shall furthermore apply to payment of indemnities on a contract for life insurance, concluded by the ancestor in favour of third- party beneficiaries.(3) (Amended, SG No. 103/1999) The transfer of any registered shares and other securities which appertained to decedent persons or to persons who have been declared absent shall be executed proceeding from a certificate issued by the municipality exercising competence over the place of opening of the succession, certifying that the said securities have been declared in the inheritance tax return and the inheritance tax due has been paid.Article 42. (Amended, SG No. 103/1999, repealed, SG No. 100/2005).Article 43. (Amended, SG No. 103/1999) Any banks, insurance companies and other commercial corporations, as well as any other entities which are deposit keepers or obligors for securities, money or other property incorporated into a succession of which they know that it has opened, shall be obligated to transmit an inventory of the property to the municipality exercising competence over the place of opening of the succession prior to the payment, delivery or transfer of any such property.Section IIIGift Tax and Tax on Onerous Acquisition of PropertyArticle 44. (1) Tax shall be levied on any properties acquired by donation, as well as on any onerously acquired corporeal immovables, limited real rights thereto, and motor vehicles.(2) Any properties acquired gratuitously in any manner other than by donation, as well as any liabilities extinguished by remission, shall likewise attract a tax to the same amount as gift tax.(3) (New, SG No. 112/2003, amended, SG No. 106/2004) Paragraph (1) shall not apply to any motor vehicles which have been imported into Bulgaria as new.(4) (Renumbered from Paragraph (3) and supplemented, SG No. 112/2003) Paragraph (2) shall not apply should the transfer be effected to fulfil an obligation imposed by a law or in pursuance of an act of the Council of Ministers on gratuitous allocation of properties to investors under priority investment projects.(5) (New, SG No. 106/2004) No tax shall be levied on any properties acquired by donation between lineal relatives and between spouses.Article 45. (1) The tax shall be paid by the transferee of the property covered under Article 44 herein, and in the case of exchange, by the person acquiring the more valuable property, unless otherwise agreed. Should it be agreed that the tax is due by both parties, they shall incur solidary liability. Should the parties have agreed that the tax is due by the transferor, the other party shall stand surety.(2) Where the transferee of the property is abroad, the transferor shall be liable for the tax.Article 46. (1) The base for assessment of the tax shall be the assessed value of the property in lev terms at the time of the transfer.(2) The property shall be valued as follows:1. (Amended, SG No. 153/1998) corporeal immovables and limited real rights thereto: at the price agreed or at a price as set by a state or municipal authority or, should the said price be lower than the assessed value, at the assessed value arrived at according to Annex 2 hereto;2. (amended, SG No. 109/2001, SG No. 110/2007) any other properties: according to the procedure established by Items 2, 3, 4 and 5 of Article 33 (1) herein.(3) (New, SG No. 102/2000) The assessed value under Annex 2 in respect of any properties referred to in Item 1 of Paragraph (2) shall be arrived at proceeding from the particulars and characteristics contained in the declaration referred to in Article 14 (1) herein.Article 47. (1) (Amended, SG No. 110/2007) Upon donation of property, as well as in the cases covered under Article 44 (2) herein, tax shall be charged on the assessed value of the transferred property in an amount determined by the Municipal Council by the ordinance referred to in Article 1 (2) herein as follows:1. (amended, SG No. 106/2004, redesignated from Littera (b) and amended, SG No. 110/2007) from 0.7 to 1.4 per cent: applicable to donations between siblings and the children of siblings;2. (amended, SG No. 106/2004, redesignated from Littera (c) and amended, SG No. 110/2007) from 5 to 10 per cent: applicable to donations between any persons other than the persons referred to in Littera (b) sic, must be Item 1 - Translator's Note.(2) (Amended, SG No. 110/2007) Where property is onerously acquired, the tax shall be determined by the Municipal Council at a rate of 2 to 4 per cent of the assessed value of the transferred property, and in the case of exchange, of the assessed value of the more valuable property.(3) Upon partition of property resulting in an increase of the portion held before the partition, tax shall be charged on the increment.Article 48. (1) The following shall be exempt from tax:1. any properties acquired by:(a) the State and the municipalities;(b) (supplemented, SG No. 153/1998) any Bulgarian public-financed health, educational, cultural and scientific research organizations, as well as any public care homes and care homes for orphaned and abandoned pre-school children;(c) the Bulgarian Red Cross;(d) (amended, SG No. 106/2004) the nationally representative organizations of people with disabilities and for people with disabilities;(e) any funds providing relief to victims of natural disasters and financing the conservation and restoration of historical and cultural landmarks;2. (amended, SG No. 106/2004) any donations for medical treatment of Bulgarian citizens, as well as of technical aids for people with disabilities;3. (amended, SG No. 119/2002) any humanitarian donations to persons who have lost between 50 and 100 per cent of the working capacity thereof and to socially disadvantaged individuals;4. (amended, SG No. 109/2001, supplemented, SG No. 105/2006) any donations for not-for-profit legal entities which receive subsidies from the central-government budget, and any not-for-profit legal entities, registered in the Central Register of Not-for-Profit Legal Entities designated for pursuit of public-benefit activities, in respect of any donations received and provided;5. any customary gifts;6. any property transferred gratuitously in fulfilment of an obligation arising under statute;7. any donations in favour of community centres (chitalishte);8. (amended, SG No. 28/2002) any properties acquired according to the procedure established by the Privatization and Post-privatization Control Act; 9. any non-cash assets contributed towards an allotment in the capital of a commercial corporation, a cooperative or a non-profit corporation;10. (new, SG No. 112/2003) the foreign States in respect of acquisition of corporeal immovables: on a basis of reciprocity.11. (new, SG No. 103/2005) any assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Act.(2) Should any property received under Paragraph (1) be transferred to third parties, the uncollected tax shall become due if it is proven that the transfer is not connected to attainment of the immediate objectives wherefore the respective organization, listed under Paragraph (1), has been established, or where the said objectives have been cited as ground for exemption from tax.Article 49. (Amended, SG No. 103/1999, supplemented, SG No. 102/2000, amended and supplemented, SG No. 109/2001, SG No. 119/2002, amended, SG No. 112/2003) (1) The tax shall be paid at the municipality exercising competence over the situs of the corporeal immovable, and in the remaining cases, (at the municipality exercising competence over) the permanent address or the registered office of the taxable person, as the case may be. Any person who does not have a permanent address shall pay the tax according to the current address thereof.(2) The tax shall be paid upon the transfer of the corporeal immovable, the limited real rights to a corporeal immovable and the motor vehicles.(3) Upon gratuitous acquisition of property in cases other than such under Paragraph (2), the acquirers of property shall submit a return for taxation of the said property and shall pay the tax within two months after receipt.Article 50. Judges, notaries, regional governors, municipality mayors and other public officials shall execute the transaction or the act whereby real rights are acquired, created, modified or terminated after ascertaining that the tax due under this Chapter has been paid.Article 51. (1) (Amended, SG No. 103/1999, SG No. 36/2004) The recording offices shall notify the competent municipality of any transferred, created, modified or terminated real rights to corporeal immovables within seven days, and the Ministry of the Interior and the other competent authorities shall notify (the competent municipality) of any motor vehicles which have been registered, deregistered and suspended from operation within seven days.(2) The time limit referred to in Paragraph (1) shall begin to run as from the day next succeeding the (day of) recording or registration, deregistration or suspension from operation of the transport vehicle, as the case may be.Section IVTransport Vehicle TaxArticle 52. Transport vehicle tax shall be levied on:1. (amended, SG No. 112/2003) any motor vehicles registered for operation on the road network in the Republic of Bulgaria;2. any ships recorded in the registers of the Bulgarian ports;3. (amended, SG No. 109/2001) any aircraft recorded in the state register of civil aircraft of the Republic of Bulgaria.Article 53. The tax shall be paid by the owners of the transport vehicles.Article 54. (Amended, SG No. 103/1999) (1) (Redesignated from Article 54 and amended, SG No. 109/2001, amended and supplemented, SG No. 112/2003, SG No. 106/2004) The owners of transport vehicles shall declare the transport vehicles owned thereby to the municipality exercising competence over the permanent address or the registered office thereof, as the case may be, within two months after acquisition of any such vehicles. In respect of any transport vehicles, which have not been registered for operation within Bulgaria, the two-month time limit shall begin to run as from the date of registration of any such vehicles for operation. Upon acquisition of a transport vehicle by succession, the declaration shall be submitted within the time limit established by Article 32 herein.(2) (New, SG No. 109/2001) Where the owners of transport vehicles have no permanent address or registered office, as the case may be, within the territory of Bulgaria, declarations shall be submitted to the municipality exercising competence over the (place of) registration of the transport vehicle.(3) (New, SG No. 119/2002, amended, SG No. 105/2006) The owners of transport vehicles shall claim the right thereof to exemption from tax or to enjoyment of a rate rebate by means of a tax return submitted within the time limit under Paragraph (1). No such return shall be submitted in the event of theft or destruction of a transport vehicle.(4) (New, SG No. 119/2002, amended, SG No. 105/2006) The municipal administration officer may require presentation of documents certifying facts and circumstances relevant to taxation. Upon theft or destruction of a transport vehicle, the taxable person shall present a document issued by a competent authority and certifying the relevant circumstance.(5) (New, SG No. 119/2002) The tax return submitted by one of the co-owners shall benefit the rest of the co-owners.(6) (New, SG No. 109/2001, renumbered from Paragraph (3), SG No. 119/2002) Where data on the year of manufacture of the road transport vehicle shall be unavailable, the year of the first registration thereof shall be treated as the year of manufacture.(7) (New, SG No. 106/2004, supplemented, SG No. 105/2006) Upon submission of a declaration under Paragraph (1), the owner shall present a documentary proof of the tax paid upon acquisition of the transport vehicle declared, and in the cases referred to in Article 168 of the Value Added Tax Act, a document certifying remittance of the value added tax.(8) (New, SG No. 100/2005, amended, SG No. 110/2007) Where the certificate of registration of the transport vehicles covered under Article 55 (7) herein does not state any data on the permissible maximum weight of the combination of transport vehicles, the permissible maximum weight of the combination of transport vehicles as designated by the manufacturer shall be stated in the declaration referred to in Paragraph (1).Article 55. (Amended and supplemented, SG No. 153/1998, amended, SG No. 109/2001, SG No. 45/2002, SG No. 112/2003, supplemented, SG No. 106/2004, amended, SG No. 100/2005, SG No. 105/2006, SG No. 110/2007) (1) In respect of passenger cars, by the ordinance referred to in Article 1 (2) the Municipal Council shall determine the amount of tax in conformity with the engine power, adjusted by a coefficient depending on the year of manufacture, as follows:1. up to 37 kW inclusive: from BGN 0.34 to BGN 1.02 per kW;2. from 37 kW to 55 kW inclusive: from BGN 0.40 to BGN 1.20 per kW;3. from 55 kW to 74 kW inclusive: from BGN 0.54 to BGN 1.62 per kW;4. from 74 kW to 110 kW inclusive: from BGN 1.10 to BGN 3.30 per kW;5. over 110 kW: from BGN 1.23 to BGN 3.69 per kW.Depending on the year of manufacture, the tax shall be multiplied by the following coefficients:Number of years since year of manufacture, incl. year of manufacture CoefficientMore than fourteen years 1Less than five and more than fourteen years inclusive 1.5Up to five years inclusive 2.8 (2) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of passenger car trailers as follows:1. cargo trailer: from BGN 5.00 to BGN 15.00;2. camping trailer: from BGN 10.00 to BGN 30.00.(3) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of mopeds at BGN 10.00 to BGN 30.00, and the amount in respect of motorcycles as follows:1. up to 125 cm inclusive: from BGN 12.00 to BGN 36.00;2. over 125 and up to 250 ccm inclusive: from BGN 25.00 to BGN 75.00;3. over 250 and up to 350 ccm inclusive: from BGN 35.00 to BGN 105.00;4. over 350 and up to 490 ccm inclusive: from BGN 50.00 to BGN 150.00;5. over 490 and up to 750 ccm inclusive: from BGN 75.00 to BGN 225.00;6. over 750 ccm: from BGN 100.00 to BGN 300.00.(4) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of tracers on the basis of the total weight as follows:1. up to 400 kg inclusive: from BGN 4.00 to BGN 12.00;2. over 400 kg: from BGN 6.00 to BGN 18.00.(5) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of the tax in respect of buses depending on the number of seats as follows:1. up to 22 seats, including the driver's seat: from BGN 50.00 to BGN 150.00;2. over 22 seats, including the driver's seat: from BGN 100.00 to BGN 300.00.(6) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of cargo trucks of up to 12 tonnes of legally permissible maximum weight at BGN 10.00 to BGN 30.00 per tonne of load-carrying capacity or fraction.(7) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the tax in respect of truck tractors and trailer tractors depending on the permissible maximum weight of the combination of transport vehicles, of the number of axles and the type of suspension of the tractor, indicated in the certificate of registration of the tractor as follows:Number of axles of the truck tractor/ trailer tractor Permissible maximum weight of the combination of transport vehicles, indicated in the certificate of registration of the tractor Tax (BGN) equal or greater than less than driving axle/axles with pneumatic or pneumatic-equivalent suspension other suspension systems of the driving axle or axles(A) two axles - 18 from 8 to 24 from 28 to 84 18 20 from 28 to 84 from 64 to 192 20 22 from 64 to 192 from 147 to 441 22 25 from 190 to 570 from 342 to 1,026 25 26 from 342 to 1,026 from 600 to 1,800 26 28 from 342 to 1,026 from 600 to 1,800 28 29 from 331 to 993 from 399 to 1,197 29 31 from 399 to 1,197 from 655 to 1,965 31 33 from 655 to 1,965 from 909 to 2,727 33 38 from 909 to 2,727 from 1,381 to 4,143 38 - from 1,007 to 3,021 from 1,369 to 4,107(B) three and more axles 36 38 from 640 to 1,920 from 888 to 2,664 38 40 from 888 to 2,664 from 1,228 to 3,684 40 - from 1,228 to 3,684 from 1,817 to 5,451 (8) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of special-purpose construction vehicles (concrete delivery trucks, concrete pumps etc.), crane trucks, special-purpose trailers for transportation of heavyweight or oversize loads and other special-purpose automobiles, excluding electric buses, at BGN 50.00 to BGN 150.00.(9) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of crane trucks of load-carrying capacity exceeding 40 tonnes, special-purpose trailers of load-carrying capacity exceeding 40 tonnes for transportation of heavyweight or oversize loads, at BGN 100.00 to BGN 300.00.(10) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of tractors as follows:1. from 11 kW to 18 kW inclusive: from BGN 5.00 to BGN 15.00;2. over 18 kW and up to 37 kW inclusive: BGN 7.00 to BGN 21.00;3. over 37 kW: from BGN 10.00 to BGN 30.00.(11) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of any other self-propelled vehicles at BGN 25.00 to BGN 75.00.(12) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the amount of tax in respect of motor sleds at BGN 50.00 to BGN 150.00.(13) By the ordinance referred to in Article 1 (2), the Municipal Council shall determine the tax in respect of cargo trucks of permissible maximum weight exceeding 12 tonnes depending on the permissible maximum weight, the number of axles and the type of suspension as follows:Number of motor vehicle axles Permissible maximum weight Tax (BGN) equal or greater than less than driving axle or axles with pneumatic or pneumatic-equivalent suspension other suspension systems of the driving axle or axles(A) two axles 12 13 from 30 to 90 from 61 to 183 13 14 from 61 to 183 from 168 to 504 14 15 from 168 to 504 from 237 to 711 15 - from 237 to 711 from 536 to 1,608(B) three axles 15 17 from 61 to 183 from 106 to 318 17 19 from 106 to 318 from 217 to 651 19 21 from 217 to 651 from 282 to 846 21 23 from 282 to 846 from 434 to 1,302 23 - from 434 to 1,302 from 675 to 2,025(C) four axles 23 25 from 282 to 846 from 286 to 858 25 27 from 286 to 858 from 446 to 1,338 27 29 from 446 to 1,338 from 708 to 2,124 29 - from 708 to 2,124 from 1,050 to 3,150 Article 56. (Amended and supplemented, SG No. 153/1998. SG No. 109/2001, amended, SG No. 100/2005, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of:1. ships recorded in the registers of small ships at Bulgarian ports and such recorded in the municipal registers for ships operated on the internal waters without contact with the Black Sea and the River Danube, excluding yachts and scooters: at BGN 1.00 to BGN 3.00 per gross ton or fraction;2. ships excluding yachts, scooters, tug boats and push boats, recorded in the register of large ships at Bulgarian ports: at BGN 1.00 to BGN 3.000 per gross ton or fraction up to 40 gross tons inclusive, and at BGN 0.10 to BGN 0.30 per gross ton or fraction in excess of 40 gross tons;3. jetski: at BGN 100.00 to BGN 300.00 per item;4. yachts and motor cruisers: at BGN 20.00 to BGN 60.00 per gross ton or fraction;5. scooters: at BGN 2.70 to BGN 8.10 per kilowatt;6. tug boats and push boats: at BGN 0.14 to BGN 0.42 per kilowatt;7. river-going non-self propelled navigation vessels: at BGN 0.50 to BGN 1.50 per ton deadweight.Article 57. (Amended, SG No. 109/2001, SG No. 110/2007) By the ordinance referred to in Article 1 (2) herein, the Municipal Council shall determine the amount of tax in respect of civil aircraft as follows:1. in respect of airplanes in service with a valid airworthiness certificate and in respect of helicopters: at BGN 20.00 to BGN 40.00 per ton of maximum take-off weight or fraction;2. in respect of para gliders: at BGN 12.00 to BGN 24.00;3. in respect of hang gliders: at BGN 12.00 to BGN 24.00;4. in respect of powered gliders: at BGN 20.00 to BGN 40.00;5. in respect of free balloons: at BGN 30.00 to BGN 60.00;6. in respect of gliders: at BGN 30.00 to BGN 60.00.Article 58. (1) The following transport vehicles shall be exempt from (transport vehicle) tax:1. (Amended, SG No. 153/1998) any transport vehicles owned by state and municipal bodies and by public-financed organizations which enjoy special traffic privileges, as well as ambulances and fire trucks appertaining to other persons;2. any vehicles owned by diplomatic missions and consulates, on a basis of reciprocity;3. any vehicles owned by the Bulgarian Red Cross, where used for the purposes of the said organization;4. (amended, SG No. 153/1998, SG No. 112/2003, SG No. 100/2005) any tricars or passenger cars owned by disabled persons who have lost between 50 and 100 per cent of the working capacity thereof, of an engine capacity not exceeding 1,800 cubic centimetres and engine power not exceeding 74 kW.(2) (Repealed, SG No. 109/2001).(3) Upon transfer of ownership of a transport vehicle, the new owner shall not pay the tax should the previous owner have paid the said tax for the time remaining until the end of the calendar year (wherein the transfer was effected).(4) (New, SG No. 45/2002, amended, SG No. 105/2006) No tax shall be collected in respect of any transport vehicle which shall not be operated, subject to the condition that the owner of the said vehicle has surrendered the registration certificate and has presented a certificate of dismantling prior to the end of the last preceding year.Article 59. (1) (Amended, SG No. 100/2005) A rate rebate of 50 per cent shall apply to the tax on passenger cars of engine power not exceeding 74 kW, equipped with operative catalytic converters.(2) (Amended, SG No. 109/2001, SG No. 45/2002, SG No. 100/2005, SG No. 105/2006, SG No. 110/2007) A rate rebate of 50 per cent shall apply to the tax under Article 55 (5), (6), (7) and (13) herein in respect of buses, cargo trucks, trailer tractors and truck tractors equipped with low-emission engines satisfying the Euro 2, Euro 3, Euro 4 and Euro 5 standards.(3) (Amended and supplemented, SG No. 109/2001, amended, SG No. 45/2002) A rate rebate of 10 per cent shall apply to the amount of tax arrived at according to the procedure established by Article 55 (5) herein in respect of buses operated in public carriage of passengers on Scheduled bus services in urban settlements and in sparsely populated mountain and border areas, which lines are subsidized by the municipalities, subject to the condition that the said buses are not used for other purposes.Article 60. (1) (Transport vehicle) tax shall be payable in two equal instalments, not later than: the 31st day of March and the 30th day of September in the year wherefor the tax is due. Any taxpayer, who or which prepays the amount of tax due for the whole year by the time limit for payment of the first installment, shall enjoy a rate rebate of 5 per cent.(2) (Amended, SG No. 112/2003, SG No. 106/2004) In respect of any transport vehicle acquired or registered for operation during a relevant current year, the tax shall be paid within two months after the day of acquisition or after the date of registration, as the case may be, in an amount equivalent to one-twelfth of the annual tax for each month remaining until the end of the year, including the month of acquisition or of the registration for operation, as the case may be.(3) (Repealed, SG No. 109/2001).(4) (Repealed, SG No. 109/2001).(5) (Amended, SG No. 102/2000, SG No. 112/2003) In respect of any destroyed or stolen transport vehicle, the tax paid shall be refunded in proportion to the number of clear months remaining until the end of the year, reckoned from the month of occurrence, upon presentation of a (supporting) document issued by the relevant competent authority.(6) (Amended, SG No. 105/2006) Payment of the tax shall be condition for compliance at the annual inspection of the transport vehicle.(7) (New, SG No. 45/2002, repealed, SG No. 105/2006).(8) (New, SG No. 45/2002, amended, SG No. 105/2006) In respect of any transport vehicle acquired in inoperable condition, the tax shall be paid according to the procedure and within the time limits established under Paragraph (2).(9) (New, SG No. 112/2003) In any cases other than such provided for, upon change of any circumstance relevant to assessment of the tax, the tax liability shall be modified as from the beginning of the month next succeeding the month of occurrence of the change.Article 61. (Amended, SG No. 109/2001, SG No. 112/2003) (Transport vehicle) tax shall be credited to revenue of the municipality where the owner of the transport vehicle, who has submitted the declaration, has his, her or its permanent address or registered office, as the case may be, and where no such declaration has been submitted and in the cases under Article 54 (2) herein, to revenue of the municipality where the transport vehicle has been registered.Section V(New, SG No. 109/2001, repealed, SG No. 106/2004) Road TaxArticle 61a. (Amended, SG No. 6/2004, repealed, SG No. 106/2004) Article 61b. (Repealed, SG No. 106/2004). Article 61c. (Repealed, SG No. 106/2004). Article 61d. (Amended, SG No. 6/2004, repealed, SG No. 106/2004) Article 61e. (Amended, SG No. 112/2003, repealed, SG No. 106/2004) Article 61f. (Supplemented, SG No. 112/2003, repealed, SG No. 106/2004) Article 61g. (Supplemented, SG No. 112, repealed, SG No. 106/2004). Section VI(New, SG No. 110/2007)Licence TaxArticle 61h. (New, SG No. 110/2007) (1) An annual licence tax shall be levied on any natural person, including a sole trader, who carries out any activity specified in Annex 4 hereto (licence activity), in respect of the income accruing from any such activity, provided that:1. the turnover of the person for the last preceding year does not exceed BGN 50,000, and2. the person is not registered under the Value Added Tax Act, with the exception of registration for intra-Community acquisition under Article 99 and Article 100 (2) of the said Act. (2) In respect of the licence activity carried out, the persons referred to in Paragraph (1) shall not be taxed according to the procedure established by the Income Taxes on Natural Persons Act. (3) The persons referred to in Paragraph (1) shall apply the provisions on taxes withheld at source and on taxation of expenses under Item 2 of Article 204 of the Corporate Income Tax Act. Article 61i. (New, SG No. 110/2007) (1) Where, within twelve successive months, any one natural person has ceased to carry out a licence activity and/or has formed a new enterprise which carries out a licence activity, and the aggregate turnover of the said two enterprises exceeds BGN 50,000 for twelve successive months, Article 61k herein shall not apply to any such newly formed enterprise. In such a case, the newly formed enterprise shall be subject to taxation according to the standard procedure established by the Income Taxes on Natural Persons Act for the current tax year.(2) Where, within the current tax year, the turnover of the person exceeds BGN 50,000 or the person registers under the Value Added Tax Act, the said person shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act. (3) In the cases under Paragraphs (1) and (2), the licence tax for the current year shall be payable until the end of the quarter preceding the quarter during which the circumstances referred to in Paragraphs (1) and (2) have occurred.(4) In the cases under Paragraphs (1) and (2), the tax payable or remitted, as the case may be, shall be deducted from the annual tax liability according to the procedure established by the Income Taxes on Natural Persons Act. (5) At the request of the person, the municipality shall issue a certificate of the amount of licence tax due, for which no fee shall be charged.(6) Where, within the current tax year the person deregisters under the Value Added Tax Act, the said person shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act for the entire tax year.Article 61j. (New, SG No. 110/2007) (1) The Municipal Council shall determine the amount of the licence tax within the ranges according to Annex 4 hereto depending on the location of the establishment within the territory of the relevant municipality.(2) The Municipal Council may determine a different amount of licence tax for one and the same activity in different nucleated settlements within the territory of the municipality, as well as in different zones within the territory of one and the same nucleated settlement. The nucleated settlements in the municipalities shall be zoned for the purposes of the licence tax by the ordinance referred to in Article 1 (2) herein.(3) The Municipal Council shall determine the amount of the tax reckoning with the following criteria: location of the nucleated settlement/zone, type of nucleated settlement, considering whether the said settlement is of local or national importance, number of residents and size of the nucleated settlement/zone, economic importance of the nucleated settlement/zone, seasonal or permanent nature of the activity, state of economic affairs of the nucleated settlement.(4) Where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the permanent address of the person shall be treated as a location of the establishment for the purposes of determination of the amount of the licence tax.Article 61k. (New, SG No. 110/2007) (1) A licence tax shall be due separately for each of the activities practised according to Annex 4 hereto.(2) The persons who carry out a licence activity at more than one establishment shall be liable to tax for each establishment separately.(3) Where the licence activity commences or ceases in the course of the year, with the exception of the activity specified in Items 1 and 2 of Annex 4 hereto, the tax shall be assessed in proportion to the number of quarters during which the said activity is carried out, including the quarter of commencement or cessation of the said activity.(4) Where within any single licence activity, with the exception of the activities specified in Items 1 and 2 of Annex 4 hereto, any circumstance related to the determination of the tax changes in the course of the year, the amount of the tax until the end of the year, including for the quarter of the change, shall be determined on the basis of the amount of the tax determined conforming to the changes in the circumstances.(5) Where within any single licence activity of those specified in Items 1 and 2 of Annex 4 hereto any circumstance changes in the course of the year and this leads to determination of the licence tax in a larger amount, the larger amount of the tax, as determined conforming to the changes in the circumstances, shall be due for the tax year.(6) Any income accruing from any activity which is not specified in Annex 4 hereto shall be taxed according to the standard procedure established by the Income Taxes on Natural Persons Act.Article 61l. (New, SG No. 110/2007) (1) The taxable persons who are subject to levy of a licence tax may enjoy tax relief in the following sequence:1. any natural persons, including any sole traders, who have lost 50 per cent and more than 50 per cent of the working capacity thereof, which loss has been determined by an effective decision of a competent authority, shall enjoy a rate rebate of 50 per cent of the licence tax as determined if they carry out the activity in person and do not hire workers for the said activity throughout the tax year;2. any natural persons, including any sole traders, who carry out more than one type of any licence activity of those specified in Items 1 to 36 of Annex 4 hereto through work done in person throughout the tax year, shall pay 50 per cent of the licence tax as determined for the relevant activity;3. any natural persons, including any sole traders, who are pensioners and carry out a licence activity specified in Items 5, 6, 8 to 15, 18 to 20, 25, 27 to 29 and 31 of Annex 4 hereto, shall pay 50 per cent of the licence tax as determined if they carry out the activity in person and do not hire workers for the said activity throughout the tax year;4. any persons who use the workplace for training of apprentices within the meaning given by the Skilled Crafts Act and who carry out a licence activity of the ones specified in Items 10, 12 and 13 of Annex 4 hereto, shall pay 50 per cent of the licence tax as determined for the relevant workplace; this rebate shall be enjoyable subject to the condition that a copy of the certificate on entry in the register of apprentices, issued by the competent regional chamber of skilled crafts, is attached to the return referred to in Article 61m herein.(2) Notwithstanding Article 61k (4) herein, the tax relief referred to in Item 1 of Paragraph (1) shall be enjoyed for the entire tax year during which the loss of working capacity occurs or the validity of the decision expires.Article 61m. (New, SG No. 110/2007) (1) Not later than the 31st day of January of the current year, the persons subject to levy of a licence tax shall submit a tax return completed in a standard form, declaring thereby, the circumstances pertaining to the assessment of the tax. In the cases of commencement of activity after the said date, the tax return shall be submitted immediately before commencement of activity.(2) Any person, who submits the tax return referred to in Paragraph (1) on or before the 31st day of January of the current year and pays the full amount of the licence tax, as determined according to the circumstances as declared, on or before the same date, shall enjoy a rate rebate of 5 per cent.(3) By a return referred to in Paragraph (1), the persons shall furthermore declare all changes in the circumstances pertaining to the assessment of the tax within seven days after occurrence of the relevant circumstance.(4) The persons shall furthermore submit a tax return under Paragraph (1) on the occurrence of any circumstances referred to in Article 61i (1) and (2) herein during the relevant period. The tax return shall be submitted not later than at the end of the month next succeeding the month during which the circumstances referred to in Article 61i (1) and (2) herein have occurred.Article 61n. (New, SG No. 110/2007) (1) The tax returns referred to in Article 61m herein shall be submitted in the municipality within the territory whereof the establishment whereat the licence activity is carried out is located, and where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the said returns shall be submitted in the municipality where the natural person, including the sole trader, has his or her permanent address.(2) Where the tax return of a non-resident natural person is submitted through an attorney-in-fact who has a permanent address in the country, the said submission shall be effected in the municipality where the said attorney-in-fact has his or her permanent address.(3) Outside the cases referred to in Paragraphs (1) and (2), the tax return shall be submitted in Sofia Municipality.Article 61o. (New, SG No. 110/2007) (1) The licence tax shall be remitted in four equal payments, as follows:1. for the first quarter: on or before the 31st day of January;2. for the second quarter: on or before the 30 the day of April;3. for the third quarter: on or before the 31st day of July;4. for the fourth quarter: on or before the 31st day of October.(2) Where an obligation to remit the licence tax arises during the tax year, the portion of the tax due for the current quarter shall be remitted within seven days after the date of submission of the return referred to in Article 61m herein, and where a return has not been submitted, the said portion shall be remitted within seven days after expiry of the time limit for submission of the said return.(3) The licence tax shall be credited to revenue of the municipality exercising jurisdiction over the establishment whereat the licence activity is carried out, and where the licence activity is not carried out at an establishment or is not carried out from a fixed location, the licence tax shall be credited to revenue of the municipality where the natural person, including the sole trader, has his or her permanent address. In the cases referred to in Article 61n (2) and (3) herein, the tax shall be credited to revenue of the municipality where the said attorney-in-fact has his or her permanent address or of Sofia Municipality, as the case may be.Chapter ThreeLOCAL FEESSection IHousehold Waste FeeArticle 62. (Supplemented, SG No. 153/1998) Household waste fee shall be charged for the services of collection, removal and safe disposal of household waste at sanitary landfills or similar waste disposal facilities, as well as for sanitation of the spatial development areas for public use in the nucleated settlements. The amount of the fee shall be determined according to the procedure established by Article 66 herein for each service separately: waste collection and waste removal; safe disposal of household waste at sanitary landfills or other facilities; sanitation of spatial- development areas for public use.Article 63. (1) (Supplemented, SG No. 153/1998) A tipping fee for use of household waste disposal sites and/or for sanitation of spatial- development areas for public use shall be charged in respect of any corporeal immovables located outside the areas where the municipality has organized a collection and removal of household waste.(2) (Amended, SG No. 153/1998) The boundaries of the areas and the type of the services provided under Article 62 herein in the relevant area, as well as the frequency of waste removal, shall be determined by an order of the (competent) municipality mayor and shall be made public on or before the 30th day of October in the year last preceding the year for which the fee is due.Article 64. (1) (Amended, SG No. 119/2002, effective 1.01.2004) The fee shall be paid by the owner of the immovable or, where a real right of use has been created, by the user, according to the expenses as approved by the Municipal Council for the relevant year for each of the activities covered under Article 62 herein.(2) (Amended, SG No. 109/2001, repealed, SG No. 119/2002, effective 1.01.2004).(3) (New, SG No. 109/2001, repealed, SG No. 119/2002, effective 1.01.2004).Article 65. (Amended, SG No. 153/1998, SG No. 103/1999, repealed, SG No. 119/2002, effective 1.01.2004).Article 66. (1) (Supplemented, SG No. 119/2002, effective 1.01.2004) The fee shall be determined by resolution of the Municipal Council as an annual amount in each nucleated settlement, based on an approved cost estimate for each activity, inclusive of the necessary expenses for:1. provision of receptacles for storage of household waste: containers, dust bins etc.2. collection of household waste and transportation of the said waste to sanitary landfills or other facilities and installations for the safe disposal thereof;3. (Amended, SG No. 109/2001) research, design, construction, maintenance, operation, closure and monitoring of sanitary landfills for household waste or other facilities and installations for safe disposal of household waste;4. cleaning of street roadways, squares, driveways, parks and other spatial-development areas of settlements assigned for public use.(2) (Repealed, SG No. 119/2002, effective 1.01.2005) The fee shall be collected by the tax administration.(3) (New, SG No. 153/1998) Should the Municipal Council fail to determine an amount of the household waste fee for a relevant current year before the end of the last preceding year, the said fee shall be charged on the basis of the amount effective at the 31st day of December in the last preceding year.(4) (New, SG No. 106/2004, repealed, SG No. 100/2005).(5) (New, SG No. 109/2001, renumbered from Paragraph (4), SG No. 106/2004) Any approved cost estimate for determination of the expenses of municipalities referred to in Paragraph (1) shall be subject to examination by the National Audit Office.Article 67. (1) (Redesignated from Article 67, SG No. 153/1998, amended, SG No. 109/2001, SG No. 119/2002, effective 1.01.2004) The amount of the (household waste) fee shall be determined in lev terms according to the quantity of household waste.(2) (Redesignated from sentence two of Item 2, SG No. 153/1998, amended, SG No. 119/2002, effective 1.01.2004) Where the quantity of household waste, referred to in Paragraph (1), is unascertainable, the amount of the fee shall be determined in lev terms per user or as a proportion of a base as shall be determined by the Municipal Council.(3) (New, SG No. 109/2001, amended, SG No. 119/2002, effective 1.01.2004) The amount of the fee determined depending on the quantity of household waste receptacles shall include the costs referred to in Items 1, 2 and 3 of Article 66 (1) herein.(4) (New, SG No. 109/2001, amended, SG No. 119/2002, effective 1.01.2004) The fee for sanitation of the spatial-development areas for public use in the nucleated settlements shall be determined in lev terms or as a proportion of a base as shall be determined by the Municipal Council.Article 68. (Amended, SG No. 119/2002, effective 1.01.2004) During the course of the year, it shall be inadmissible to revise the manner of determination and the amount of the household waste fee as adopted by the Municipal Council.Article 69. (Amended, SG No. 119/2002, effective 1.01.2004)(1) (Household waste) fee shall be payable according to a procedure established by the Municipal Council.(2) The municipality shall notify the persons covered under Article 64 herein of the fees due therefrom for the relevant period and of the time limits for payment.Article 70. (Repealed, SG No. 119/2002, effective 1.01.2004).Article 71. (Amended, SG No. 153/1998) No fee shall be charged for:1. (amended, SG No. 103/1999, SG No. 119/2002, effective 1.01.2004) household waste collection and household waste removal, where the service is not provided by the municipality;2. sanitation of the spatial-development areas for public use: where the service is not provided by the municipality;3. safe disposal of household waste and maintenance of sanitary landfills for household waste and other facilities for safe disposal of household waste: where no such are available.Section IIFees for Use of Retail and Wholesale Markets, Sidewalks, Squares,Street Roadways, Fairs and Grounds Assigned to Other UsesArticle 72. Fees shall be charged for use of sidewalks, squares, street roadways, retail market places (whether open-air or roofed), wholesale markets, fairs, as well as ground assigned to other uses which constitute municipal property.Article 73. (1) The fee shall be payable by natural and legal persons and shall vary by the zone wherein the grounds covered under Article 72 herein are located.(2) The zones referred to in Paragraph (1) shall be designated by the Municipal Council.Article 74. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 75. (Amended and supplemented, SG No. 153/1998, amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 76. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 77. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 78. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 79. (1) The fees shall be paid upon the issuance of a licence for the period specified in the said licence.(2) Where the space is used for a period exceeding one month, the fees shall be paid on a monthly basis.(3) (Repealed, SG No. 119/2002).Article 80. The municipal authority, which has issued a licence for use of space, may revoke the said licence where the space is not used for the assigned purpose, where the space is not used by the licensed user, or where public needs so require.Section IIIFees for Creches, Kindergartens, Public Care Homes, Camps andOther Municipal Social Services(Heading amended, SG No. 119/2002)Article 81. (Amended, SG No. 153/1998, SG No. 119/2002) Monthly fees shall be charged from the parents or tutors of the attendees for attendance of creches and kindergartens.Article 82. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 83. (Amended, SG No. 109/2001, repealed, SG No. 119/2002).Article 84. (1) (Amended, SG No. 153/1998, SG No. 119/2002) For attendance of schoolchildren's camps, a fee shall be charged per day in an amount as determined by the (competent) Municipal Council according to Articles 7, 8 and 9 herein.(2) (Repealed, SG No. 119/2002).(3) (Repealed, SG No. 119/2002).Article 85. (1) (Amended, SG No. 153/1998, SG No. 119/2002) Any schoolchildren who use dormitories shall pay a monthly fee in an amount as determined by the (competent) Municipal Council according to Articles 7, 8 and 9 herein.(2) (Repealed, SG No. 119/2002).Article 86. (1) (Amended, SG No. 119/2002) Any user of municipal social services shall pay a monthly fee to an amount equivalent to the relevant actual upkeep per person.(2) (Amended, SG No. 119/2002) The actual upkeep per person shall include the monthly costs of food, bedding and clothing, detergents and sanitary materials, food transportation costs, as well as the portion of the common costs of electric current and heat power, water supply, sewerage and household waste disposal, but excluding the donations, legacies and devices of any resident and non-resident natural and legal persons.Article 87. (1) The fee due shall be deducted from the personal income of the resident or beneficiary.(2) (Repealed, SG No. 119/2002).(3) (Repealed, SG No. 119/2002).(4) (Repealed, SG No. 119/2002).(5) (Repealed, SG No. 119/2002).Article 88. (Repealed, SG No. 119/2002).Article 89. (Repealed, SG No. 119/2002).Article 90. Any persons accommodated at private boarding homes or serviced by private schemes providing meals and domestic help at home, shall pay sums as contracted.Article 91. (Amended, SG No. 153/1998, SG No. 109/2001, SG No. 119/2002) For accommodation at an alcohol detoxification establishment or premises, a fee shall be charged per day.Article 92. (Supplemented, SG No. 153/1998) The fees under this Section shall be charged and collected by the office holders at the relevant establishments and shall be credited to revenue of the municipal budget not later than the 10th day of the month next succeeding the month wherefor such fees are due, and the fees under Article 86 herein, not later than the 25th day of the month next succeeding the month wherefor such fees are due.Section IV(Amended and supplemented, SG No. 71/1998, amended, SG No. 153/1998,supplemented, SG No. 102/2000, amended, SG No. 109/2001, SG No. 56/2002)Visitor FeeArticle 93. (1) (Amended, SG No. 94/2005) A fee shall be paid for use of a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet within the meaning given by the Tourism Act. (2) (Amended, SG No. 119/2002) The proceeds from the visitor fee shall be credited to the on-budget account of the municipalities.(3) (New, SG No. 112/2003, amended, SG No. 94/2005) The proceeds from the visitor fee from the collective tourist accommodation establishments, the supplementary tourist accommodations and the hikers chalets shall be expended according to a municipal programme for development of tourism, which shall be adopted annually, solely on:1. construction and maintenance of the infrastructure servicing tourism within the territory of the municipality, including local roads connecting resorts with airports, railway stations and bus stations, as well as with cultural landmarks and historical heritage sites;2. establishment of tourist information centres and arrangement of information services;3. conservation, maintenance and development of green spaces;4. sanitation and hygiene measures;5. promotion at home and abroad of tourism establishments located within the territory of the municipality.Article 93a. (1) The amount of the fee shall be determined by resolution of the Municipal Council not later than the 30th day of June in the last preceding year.(2) Should the Municipal Council fail to determine the fee within the time limit established by Paragraph (1), the amount of the fee effective during the last preceding year shall continue in effect for the next succeeding year.(3) (New, SG No. 112/2003) In the cases covered under Article 93 (1) herein, the Municipal Council shall determine the amount of the fee after advance consultation with the Municipal Tourist Board in the process of adoption of the annual programme for development of tourism.Article 94. (Amended, SG No. 94/2005) The fee shall be paid by each person using a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet simultaneously with the payment for the service.Article 95. (Repealed, SG No. 119/2002).Article 96. (Repealed, SG No. 119/2002).Article 97. (Amended, SG No. 119/2002, SG No. 94/2005) The fee shall be collected by the natural or legal persons who or which supply the service of overnight accommodation at a collective tourist accommodation establishment, a supplementary tourist accommodation or a hikers' chalet, and shall be credited to the on-budget account of the municipalities not later than the 15th day of the month next succeeding the month wherein the fee was collected.Section VQuarrying FeesArticle 98. Fees shall be charged for extraction of pit run, including such recovered from the bottom of water bodies.Article 99. (1) The fees shall be charged from the natural or legal persons who or which extract the pit run.(2) Any persons, who have been awarded a concession including extraction from the relevant deposit, shall not owe any fees under this Section.Article 100. The fees shall be determined separately in respect of each type of material according to the gross output determined:1. according to the production records mandatorily kept by each quarry;2. according to the quantities specified in the temporary or one-time permit for extraction of pit run.Article 101. (Amended, SG No. 119/2002) The amount of the fees shall be determined according to Articles 8, 8 and 9 herein:1. (amended, SG No. 109/2001, SG No. 119/2002) in respect of bank sand and pit sand, gravel and ballast;2. (amended, SG No. 109/2001, SG No. 119/2002) in respect of quartz sand used in glass-making and cutting sand;3. (amended, SG No. 109/2001, SG No. 119/2002) in respect of sandy loam material used for manufacture of bricks, roof tiles and ridge tiles, interior and exterior plastering;4. in respect of clay:(a) (amended, SG No. 109/2001, repealed, SG No. 119/2002);(b) (amended, SG No. 109/2001, repealed, SG No. 119/2002);5. (amended, SG No. 109/2001, SG No. 119/2002) in respect of foundry sand;6. (amended, SG No. 109/2001, SG No. 119/2002) in respect of rubble, crushed stone and mosaic of sedimentary, eruptive, erinaceous and other rocks;7. (amended, SG No. 109/2001, SG No. 119/2002) in respect of common stones of calcareous sandstone, limestone, travertine, dolomite, marble, aragonite, coquinoid limestone, conglomerate etc. used for interior and exterior facing;8. (amended, SG No. 109/2001, SG No. 119/2002) in respect of limestone, marl and calcite used for production of lime;9. (amended, SG No. 109/2001, SG No. 119/2002) in respect of limestone, marl, and sandy loam material used for production of cement;10. in respect of stone for manufacture of:(a) (amended, SG No. 109/2001, SG No. 119/2002) paving blocks;(b) (amended, SG No. 109/2001, SG No. 119/2002) rolls, millstones, grindstones and whetstones;(c) (amended, SG No. 109/2001, SG No. 119/2002) baseboards, eaves, steps and other such of sandstone, trochoid, marl and other of sedimentary rocks;(d) (amended, SG No. 109/2001, SG No. 119/2002) baseboards, eaves, steps and other such of granite, syenite, basalt, diorite, rhyolite, andensite and other of hard eruptive rocks;(e) (amended, SG No. 109/2001, SG No. 119/2002) sidewalk flagstones and roof slabs.Article 102. The fees shall be paid:1. every month: in the cases referred to in Item 1 of Article 100 herein;2. before extraction of the pit run in the cases referred to in Item 2 of Article 100 herein.Article 103. (Supplemented, SG No. 102/2000) The fees shall be credited to revenue of the budget of the municipality exercising jurisdiction over the place of extraction of the pit run not later than the 15th day of the month next succeeding the moth of extraction.Section VITechnical Service FeesArticle 104. Fees shall be charged for technical services provided by the municipalities and covering activities in connection with regional and urban planning, architecture, construction, urban development, cadastre in settlement and extra settlement spatial-development areas.Article 105. Technical service fees shall be charged from the natural and legal persons who and which benefit from the services, upon submission of the request.Article 106. The central-government and municipal bodies, the public-financed organizations and the Bulgarian Red Cross shall be exempt from technical service fees.Article 107. (Amended, SG No. 119/2002) The amount of technical service fees is hereby set as follows;1. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a design plat for a corporeal immovable;2. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a design plat for a corporeal immovable specifying the building development manner;3. (amended, SG No. 109/2001, SG No. 119/2002) for re certification of design plats after the lapse of six months since the issuance thereof;4. for marking of a building line and elevation:(a) (amended, SG No. 109/2001, repealed, SG No. 119/2002);(b) (amended, SG No. 109/2001, repealed, SG No. 119/2002);5. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of facts and circumstances regarding regional and urban planning;6. (amended, SG No. 109/2001, SG No. 119/2002) for certification of transcripts of documents and of copies of plans and the documentation appertaining thereto;7. (new, SG No. 119/2002) for issuance of a permit for placement of movable amenities for retail trade: stalls, kiosks, booths and other such;8. (new, SG No. 119/2002) for issuance of a building permit, an overhaul permit and a remodelling permit for existing buildings and premises therein.Article 108. No technical service fees shall be charged for:1. supplementation (correction) of an approved cadastral plan;2. a letter to the court, petitioning the issuing of a writ of execution on claims under an effective appraisal;3. certification of a construction work as unusable, a risk of spontaneous collapse, or harmful in terms of sanitation and hygiene, when the specialized commission ascertains the existence of such conditions;4. condemnation of corporeal immovables for construction purposes and indemnification of the title holders;5. modification and revocation of an effective order of condemnation and indemnification and reappraisal of a condemned immovable;6. determination of indemnities for corporeal immovables adjoinable to a parcel of land regulated under a yard regulation plan and for physical infrastructure work;7. provision of oral information on the cadastral, regulation and urban-planning status of corporeal immovables;8. provision of advance information on matters concerning technical services.Article 109. (1) The time limit for provision of technical services, which is not established by a statutory instrument, shall be set by resolution of the competent Municipal Council but may not be longer than one month.(2) Upon delay beyond the time limit referred to in Paragraph (1), the amount of the fee due for the respective service shall be reduced by 1 per cent daily, reckoned from the first day of delay, but by not more than 30 per cent in aggregate of the full amount of the said fee.Section VIIAdministrative Service FeesArticle 110. (1) The following fees shall be charged for provision of registrar services:1. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of heirship;2. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of identity of names;3. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of non-entry of a birth record or a death record;4. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a replacement of a birth certificate, a civil marriage certificate, as well as for re-issuance of an abstract of a death record;5. (amended, SG No. 109/2001, repealed, SG No. 119/2002);6. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of marital status;7. (amended, SG No. 109/2001, SG No. 119/2002) for issuance of a certificate of kinship;8. (amended, SG No. 109/2001, SG No. 119/2002) for address registration and/or issuance of certificates of permanent or current address;9. (amended, SG No. 109/2001, SG No. 119/2002) for authentication of an affidavit of invitation to a visit the Republic of Bulgaria of a foreigner;10. (amended, SG No. 109/2001, SG No. 119/2002) for authentication of an affidavit of invitation to a private visit to the Republic of Bulgaria to a non-resident person whereof one or both parents are of Bulgarian descent;11. (amended, SG No. 109/2001, SG No. 119/2002) for legalization of civil registration certificates intended for submission abroad;12. (amended, SG No. 109/2001, SG No. 119/2002) for any other types of certificates issued as requested;13. (amended, SG No. 109/2001, SG No. 119/2002) for transcripts of documents.(2) No fee shall be chargeable for any of the following services:1. entry of a birth record and issuance of an original birth certificate;2. entry of a civil marriage record and issuance of an original civil marriage certificate;3. entry of a death record and issuance of an abstract thereof;4. any entries, supplementary entries and corrections in the civil registration records;5. creation of tutorship and appointment of a curator;6. keeping of the population register;7. recording a change of name in the civil status register;8. issuance of a survivor benefit certificate.Article 111. (Amended, SG No. 109/2001, SG No. 119/2002) A fee shall be charged in respect of proceedings for accommodation of tenants, sale, exchange or creation of real rights in municipal corporeal immovables.Article 112. (Amended, SG No. 119/2002) A fee shall be charged for issuance of a certificate of ownership as required for sale of cattle.Article 113. (Amended, SG No. 109/2001, amended and supplemented, SG No. 119/2002, amended, SG No. 106/2004) (1) Fees shall be charged for issuance of permits and for practice of activities in amounts determined by the (competent) Municipal Council, in compliance with the following principles:1. the amount of the fees shall be determined on the basis of the expenses incurred by the municipality for the handling of the documents and for verification of compliance with the requirements set for practice of the activity;2. upon discontinuance of the operation of a distributive trade establishment, the municipality shall refund part of the annual fee in proportion to the period during which the activity is not performed;3. in the case of seasonal work, the annual fee shall be paid in an amount proportionate to the period of performance of the said work.(2) The following fees shall be collected under Paragraph (1):1. an initial fee: for issuance of a permit for trade under Article 30 (1) of the Tobacco and Tobacco Products Act; 2. an annual fee: for verification of compliance with the requirements for practice of the following activities:(a) trade in tobacco products under Article 30 (1) of the Tobacco and Tobacco Products Act; (b) storage, keeping, seasoning and wholesale trade in grape products, alcohol, distillates and spirit drinks;(c) retail trade in grape products, alcohol, distillates and spirit drinks;(d) trade in spirit drinks at mass-catering and amusement establishments;3. a daily fee: for a temporary stall for sale of grape products, alcohol, distillates and spirit drinks at fairs, local community festivals, corporate promotional campaigns and other such.(3) In respect of the year of issuance of the permit or of commencement of practice of the activity, the annual fee shall be paid in the amount of one-twelfth of the annual fee for each clear month remaining until the end of the year, including the month of issuance.(4) A person may not commence the relevant business prior to the issuance of a permit. A permit shall be issued upon presentation of a document certifying that there are no outstanding tax liabilities as well as other financial obligations to the municipality, whether declared or ascertained by a written statement of a competent authority at the date of issuance of the certificate.Article 114. (Supplemented, SG No. 109/2001, amended, SG No. 106/2004) The initial fee referred to in Item 1 of Article 113 (3) herein shall be paid by the persons upon submission of the request for issuance of a permit, and the annual fee referred to in Item 2 of (Article 113) (3) shall be paid on or before the 31st day of January.Article 115. (Repealed, SG No. 119/2002, new, SG No. 105/2006) A fee shall be paid for the issuance of certificates, where this is provided for in a law, and for certification of documents.Section VIIIDog Ownership(Amended, SG No. 109/2001, repealed, SG No. 119/2002,new, SG No. 87/2005) Article 116. (Repealed, SG No. 119/2002, new, SG No. 87/2005) (1) For ownership of a dog, the owner shall pay an annual fee in the municipality within the territory whereof the said owner has his, her or its permanent address or registered office, as the case may be.(2) The owners of dogs covered under Article 175 (2) of the Veterinary Practices Act shall be exempt from fee.Article 117. (Repealed, SG No. 119/2002, new, SG No. 87/2005) Within three months after acquisition of a dog, the owner thereof shall submit a declaration to the municipality exercising jurisdiction over the permanent address or the registered office of the said owner, as the case may be.Article 118. (Repealed, SG No. 119/2002, new, SG No. 87/2005) (1) The fee shall be paid annually, not later than the 31st day of March in the year wherefor the fee is due, or within one month after the date of acquisition of the dog, should the dog have been acquired after the 31st day of March. In respect of any dogs acquired during any current year, the fee shall be due in an amount equivalent to one-twelfth of the annual amount of the said fee for each month remaining until the end of the year, including the month of acquisition.(2) The proceeds from the fees collected under Paragraph (1) shall be used for measures related to a reduction of the number of stray dogs.Article 119. (Repealed, SG No. 119/2002). For more information visit www.solicitorbulgaria.com id: 338 Mon, 04 Aug 2008 06:57:18 -0700 http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/LOCAL_TAXES_AND_FEES_ACT.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-local-taxes-and-fees-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 339 Subject MatterArticle 1. These Regulations shall govern the application of the Value Added Tax Act.Chapter OneGENERAL PROVISIONSTaxable PersonArticle 2. A taxable person upon importation of goods shall be any natural or legal person.Provision of Goods or Rendering of ServicesArticle 3. (1) Provision of goods or rendering of services between branches or between structural units established within the territory of the country within the structure of one person established within the territory of the country shall constitute internal turnover and shall not be supply.(2) Paragraph 1 shall furthermore apply to supply of goods or services between branches or between structural units established within the territory of the country within the structure of one person established outside the territory of the country.(3) For supplies of goods or services between a person established within the territory of a Member State and its branches or structural units established within the territory of the country the general rules of the Act regulating the arrangement of supplies shall apply.(4) Paragraph 3 shall furthermore apply to supplies of goods or services between branches or structural units established within the territory of the country and branches or structural units within the structure of the same person, which are established within the territory of another Member State.(5) The supply of goods or services between branches or between structural units established within the territory of another Member State, within the structure of one person established within the territory of the country shall not be reported, documented and declared under the procedure of the Act. (6) (New, SG No. 16/2007) Paragraphs 3 and 4 shall not apply where the supply of services is carried out to cover expenses at cost. In these cases internal turnover exists, not supply.Chapter TwoPLACE OF SUPPLIES AND INTRA-COMMUNITY ACQUISITIONSection IPlace of SuppliesPlace of Supply of GoodsArticle 4. In the cases of supply of goods transported from third countries or territories to a place within the territory of the country, the place of transaction of supply shall be within the territory of the country if the supplier of the goods is an importer.Place of Supply of ServicesArticle 5. (1) (Redesignated from Article 5, SG No. 16/2007) For the purposes of determining the place of supply of a service within the meaning of the Act , the terms "permanent address" and "habitual residence" shall mean the place specified as such in a passport or identity card and should the latter be absent, in other identity documents.(2) (New, SG No. 16/2007) The place of supply of transport, forwarding, courier or postal services (other than the services under Article 49 of the Act) shall be determined in accordance with Item 2 of Article 21 (2) of the Act where the services are provided in regard to international transport between:1. third country/territory and third country/territory or2. third country/territory and another Member State or3. another Member State and third country/territory.Place of Supply of Services in Intra-Community Transport of GoodsArticle 6. (1) The place of supply of services in intra-Community transport of goods shall be the territory of the country wherein transportation of the goods begins.(2) (Amended, SG No. 101/2006) Where a recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in a Member State other than the Member State wherein the transport begins, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) (New, SG No. 101/2006) Where a forwarder acts in the conditions of a forwarding contract and provides a forwarding service in relation to the supply of services for transport of goods between Member States, the place of supply of the forwarding service shall be the territory of the Member State wherein the transport begins.(4) (New, SG No. 101/2006) Where the recipient of the supply under Paragraph 3 is a person registered for VAT purposes in a Member State other than the Member State wherein the transport begins, the place of supply of the forwarding service shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was provided.(5) (New, SG No. 101/2006, supplemented, No. 3/2007) A forwarding service under Paragraphs 3 and 4 shall be the service of organizing, carrying out and servicing of transport of goods between Member States, including the supply of transport service as main supply and provision of services ancillary to this supply such as transport handling of goods, processing of documents, storage and insurance. Where the main supply of transport service is related to transport of goods between two places within the territory of the country, the forwarder shall have documents certifying that the transport of the goods within the territory of the country is directly related to the transport of the goods between Member States.(6) (New, SG No. 101/2006) In the cases referred to in Paragraphs 3 - 5 the provision of Article 127 of the Act shall not apply.(7) (New, SG No. 101/2006) The place of supply of courier or postal services (other than the services under Article 49 ) in relation to transport between two Member States shall be the territory of the Member State wherein the transport begins.(8) (New, SG No. 101/2006) Where a recipient of the supply under Paragraph 7 is a person registered for VAT purposes in a Member State other than that wherein the transport begins, the place of supply shall be the territory of the Member State which has issued the VAT identification number of the recipient under which the courier or the postal service was provided.(9) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under the foregoing paragraphs shall be equalized to supplies of services for transport of goods under Article 22 of the Act .Place of Supply of Services Ancillary to the Supply of Services inIntra-Community Transport of GoodsArticle 7. (1) The place of supply of services involving transport handling of goods ancillary to the supplies referred to in Article 6 herein shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(2) (Amended, SG No. 101/2006) Where the recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in a Member State other than that wherein the actual handling of goods in transit was effected, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) The place of supply of a service effected by an agent, broker and another intermediary acting in the name and for the account of another person in connection with the supply of the service under Article 6 herein, shall be the territory of the Member State where transportation of the goods begins.(4) (Amended, SG No. 101/2006) Notwithstanding Paragraph 3, where the recipient of the supply under Paragraph 2 is a person registered for VAT purposes in a Member State other than that wherein the transport begins, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(5) The place of supply of services effected by an intermediary acting in the name and for the account of another person in connection with the provision of services for transport handling of goods under Paragraph 1 shall be the place where the transport handling of the goods is physically performed.(6) (Amended, SG No. 101/2006) Where the recipient of the supply referred to in Paragraph 5 is a person registered for VAT purposes in a Member State other than that wherein the actual handling of goods in transit was effected, the place of supply shall be the territory of the Member State which issued the recipient the VAT identification number under which the service was effected thereto.(7) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under the foregoing paragraphs shall be equalized to supplies of services under Article 23 of the Act .Place of Supply of Services Involving Valuation and Work on MovableThings with Recipient Established within the Territoryof Another Member StateArticle 8. (1) The place of supply of services involving valuation or work on movable things shall be the place where the service is effected physically.(2) Where the recipient of the supply referred to in Paragraph 1 is a person registered for VAT purposes in another Member State and the goods have left the territory of the Member State where the service was effected physically, the place of supply shall be the territory of the Member State which issued the VAT identification number to the recipient under which the service was effected thereto.(3) In the cases referred to in Paragraph 2 the supplier shall have documents certifying the circumstances under Paragraph 2.(4) The supplier shall have the following documents certifying the circumstances referred to in Item 2 of Article 24 (3) of the Act:1. invoice on the supply;2. documents proving dispatch or transportation of the goods from the territory of the country to a destination outside the territory of the country such as:(а) a transport document or a written confirmation by the recipient or a person authorized thereby certifying that the goods are received outside the territory of the country - in the cases where the transport is at the expense of the supplier or the recipient but is carried out by a third party, or(b) a transport document or a written confirmation by the recipient or a person authorized thereby certifying that the goods are received outside the territory of the country - where the transport is carried out by the supplier, or(c) a written confirmation by the recipient certifying that the goods have left the territory of the country - where the transport is carried out by the recipient.(5) If the supplier of the service does not obtain the documents under Paragraph 4 by the end of the calendar month following the calendar month in which the chargeable event for the supply occurred, it shall be considered that the place of supply is the territory of the country and the tax on it shall become chargeable on the last day of the tax period following the tax period in which the chargeable event for the supply occurred.(6) The tax under Paragraph 5 shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(7) The memorandum under Paragraph 6 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the chargeable event for the supply occurred.(8) Where the supplier obtains the documents under Paragraph 4 subsequently, it shall adjust the result of the application of Paragraphs 5 and 6 by cancelling the memorandum under Paragraph 6. No new memorandum shall be issued for the cancellation.(9) The cancellation under Paragraph 8 shall be effected within 5 days effective as from the date on which the person obtained the required documents.(10) (New, SG No. 101/2006) For the purposes of documentation, declaration and recording in the ledgers of account the supplies under Paragraph 1 shall be equalized to supplies of services under Article 24 of the Act.Section IIPlace of Intra-Community AcquisitionCertification of Existing Circumstancesof Intra-Community AcquisitionArticle 9. (1) To prove the circumstances under Article 62 (3) of the Act that the intra-Community acquisition of the goods is charged in the Member State where the goods have arrived or the transport thereof has ended, the acquirer Article 62 (2) shall have a document certifying that the intra-Community acquisition of the goods is charged in that Member State. The document shall be issued by the competent administration of the Member State where the goods have arrived or the transport thereof has ended.(2) To prove the circumstances under Article 62 (5) of the Act the intermediary in a triangular operation shall have the following documents:1. an invoice issued by the transferor in the triangular operation, stating the VAT identification number of the intermediary under Article 94 (2) of the Act;2. (supplemented, SG No. 101/2006) an invoice under Item 1 of Article 79 (2) issued by the intermediary in the triangular operation, specifying the VAT number of the acquirer in the triangular operation, issued by the Member State wherein the goods arrive;3. a VIES return for the relevant tax period in which the supply is declared in respect of which the invoice under Item 2 has been issued;4. a written confirmation by the acquirer in the triangular operation, certifying the receipt of the goods.(3) If the intermediary in the triangular operation fails to obtain the documents under Paragraph 2 until the end of the tax period following the tax period in which the tax on the intra-Community acquisition under Article 62 (2) would become chargeable, it shall be considered that the place of intra-Community acquisition is the territory of the country whereof the tax becomes chargeable from the intermediary.(4) In the cases referred to in Paragraph 3 the tax shall become chargeable on the last day of the tax period following the tax period during which the tax on the intra-Community acquisition under Article 62 (2) of the Act would become chargeable and shall be charged by the intermediary by issuing a memorandum under Article 117 (2) of the Act.(5) The memorandum under Paragraph 4 shall be issued within 5 days effective as from the date on which the tax under Paragraph 4 became chargeable.AdjustmentsArticle 10. (1) Where the tax on the intra-Community acquisition under Article 62 (2) of the Act is charged by a memorandum under Article 117 (2) of the Act and subsequently the person effecting the intra-Community acquisition obtains the document under Article 9 (1), the person shall adjust the result of the application of Article 62 (2) of the Act by cancelling the memorandum under Article 117 (2) whereby the tax is charged. No new memorandum shall be issued for the cancellation.(2) In the cases of Paragraph 1 the memorandum shall be cancelled not later than the last day of the tax period during which the person obtained the document under Article 9 (1).(3) Where the intermediary in a triangular operation obtains the documents under Article 9 (2) after the time limit under Article 9 (3), the said intermediary shall adjust the result of the application of Article 9 (4) and (5).(4) In the cases of Paragraph 3 the adjustment shall be carried out by the intermediary by cancellation of the memorandum under Article 9 (5). No new memorandum shall be issued for the cancellation.(5) The cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the intermediary obtained the documents under Article 9 (2).Chapter ThreeCHARGEABLE EVENT, TAXABLE AMOUNT AND TAX RATEChargeable EventArticle 11. (1) A chargeable event within the meaning given by the Act shall be any supply effected by taxable persons under the Act, including supplies whereof the place of transaction is outside the territory of the country.(2) A chargeable event shall furthermore be the intra-Community acquisition of goods.(3) A chargeable event shall furthermore be the importation of goods within the meaning given by Article 16 of the Act.Date of Occurrence of Chargeable Event upon Supply of ServicesArticle 12. (1) Except for the cases referred to in Article 25 (3) and (4) of the Act the service shall be considered supplied within the meaning of the Act on the date on which the conditions for recognition of the income therefrom occur in accordance with the Accountancy Act and the applicable accounting standards.(2) Except for the cases of Article 25 (3) and (4) of the Act where under a contract for supply of a service the latter is related to execution of separate stages which shall be accepted by the recipient of the supply, for every stage of completeness of the service a chargeable event shall occur and the tax on it shall become chargeable on the date of acceptance of the said stage and such date shall be ascertained by a delivery-acceptance protocol signed by the supplier and the recipient.(3) (New, SG No. 101/2006) In the event of supplies under Article 25 (4) of the Act - with periodic, staged or ongoing execution - every period or stage for which a payment is agreed shall be considered a separate supply the chargeable event whereof occurs on the date on which the payment became due.(4) (New, SG No. 101/2006) Where a payment on a supply is made before a chargeable event under Paragraph 3 occurred, the tax shall become chargeable upon receipt of the payment.(5) (New, SG No. 101/2006) Paragraphs 3 and 4 shall also apply in the cases of a lease contract wherein no obligation has been agreed but only a possibility (option) for transfer of the ownership right. It is considered that an option in a lease contract exists where an explicit expression of will by the lessee and an additional payment other than instalments due on the contract are required for the transfer of ownership.Chargeable Event upon Modification of Lease ContractArticle 13. (1) In the cases of modification of a lease contract which initially provides for an option for transfer of ownership over the goods and as a result of the modification of the contract transfer of ownership over the goods is provided for expressly, it shall be considered that the person effects supply under Item 3 of Article 6 (2) of the Act on the date of modification of the contract.(2) The taxable amount of the supply under Paragraph 1 shall be equal to the sum total of the instalments due after the date of the modification of the contract, net of tax due thereon.(3) The supply under Paragraph 1 shall be documented in accordance with the standard procedure established by the Act.(4) (New, SG No. 101/2006) The service of granting a loan on supply of goods under the conditions of a lease contract shall be considered a separate supply the chargeable event whereof occurs under the terms of Article 25 (4) of the Act.(5) (New, SG No. 101/2006) The supply under Paragraph 4 shall be documented in accordance with the standard procedure established in the Act.(6) (New, SG No. 101/2006) Upon replacement of a lessee with a new lessee under an existing lease contract which provides explicitly for a transfer of the right of ownership over the goods it shall be considered that at the date of replacement with the new lessee a termination of the lease contract with the replaced (initial) lessee exists, which shall be documented under the terms of Article 115 (6) of the Act.(7) (New, SG No. 101/2006) In the cases of Paragraph 6 it shall be considered that at the date of replacement with the new lessee the lessor effects a supply under Item 3 of Article 6 (2) of the Act to the new lessee. The taxable amount of said supply shall be equal to the sum of the instalments due after the date of the replacement with the new lessee, without the tax due thereon.(8) (New, SG No. 101/2006) The supply under Paragraph 7 shall be documented in accordance with the standard procedure established in the Act.Taxable Amount of Supply of Excisable GoodsArticle 14. The taxable amount under Article 26 and Article 52 of the Act shall not include the amount of the excise duty where the goods are placed under excise duty suspension arrangement in accordance with the terms and procedure of the Excise Duties and Tax Warehouses Act.Taxes and Fees under the Local Taxes and Fees Act Article 15. Taxes and charges under the Local Taxes and Fees Act shall be included in the taxable amount of the supplies for which they are due.Utilisation of Investment Grants (Subsidies)Article 16. (1) Investment grants (subsidies) shall be considered utilized where the conditions required for their recognition as income occur pursuant to the Accountancy Act and the applicable accounting standards.(2) Where the investment grant (subsidy) received is for both additional payment on effected supplies in respect of which a right to deduct credit for input tax applies as well as on exempt supplies or on supplies or activities in respect of which no right of credit for tax input applies and it is impossible to determine for which supplies or activities it refers to, it shall be considered that the investment grant (subsidy) is allocated proportionately in accordance with the supplies effected by the supplier under Article 73 (3) of the Act and Items 2 - 6 of Article 73 (4) of the Act in the last 12 months before the month in which the investment grant (subsidy) was utilized.Usual or Customary Packing MaterialsArticle 17. (1) Usual or customary packing materials or containers within the meaning of the Act shall be only those intended for multiple use without recycling, such as bottles, cases, cans, drums, pallets, casks, barrels, cisterns, containers and others, after their adjustments to the hygienic and sanitary requirements.(2) The taxable amount under Article 26 (2) of the Act shall not be credited with the value of the usual or customary packing materials or containers under Item 4 of Article 26 (3) of the Act in so far as this value is included in the incidental expenses for packing under Item 3 of Article 26 (3) of the Act.Trade Discounts or Rebates Granted to RecipientsArticle 18. (1) Item 1 of Article 26 (5) of the Act shall apply regardless of whether the trade discount or rebate is granted in the form of money, goods or services.(2) Supply of goods or services not linked to the subject of the supply in respect of which they are supplied shall not be considered trade discount or rebate granted.(3) Goods or services are considered linked to the subject of the supply within the meaning of Paragraph 2 if they are of the same kind or if they are intended for advertising, testing, accompany or facilitate the use of the goods or services supplied.(4) Where the trade discount or rebate is granted after the date of occurrence of the chargeable event for the supply, to adjust the taxable amount of the supply the supplier shall issue a credit advice to the invoice issued for the supply and where more than one invoice is issued, by a credit advice stating the numbers of all invoices issued for the supply.(5) In the cases of Item 2 of Article 26 (5) of the Act where usual or customary packing materials or containers are not returned within 12 months from dispatch thereof, the taxable amount of the supply shall be credited by issuing a debit advice to the invoice issued for the supply. The advice shall be issued within 5 days effective as from the day of expiration of the 12-month time limit.Taxable Amount for Intra-Community Acquisition of Excisable GoodsArticle 19. (1) Included in the taxable amount for intra-Community acquisition of excisable goods shall be the excise duty due or paid for the goods in the Member State from which the excisable goods were dispatched or transported.(2) Where the excise duty due or paid for the goods in the Member State from which they were dispatched or transported has been refunded, the taxable amount under Paragraph 1 shall be debited with the amount of the excise duty refunded.(3) Refunding of the excise duty under Paragraph 2 shall be ascertained by the person with a document issued by the competent administration of the Member State which has refunded the excise duty.(4) The taxable amount under Paragraph 2 shall be debited by issuing a memorandum under Article 117 (4) of the Act.(5) The memorandum under Article 117 (4) of the Act shall be issued within 5 days effective as from the last day of the tax period in which the person obtained the document under Paragraph 3.(6) Excluded from the taxable amount under Article 64 of the Act shall be the amount of the excise duty where the goods are placed under excise duty suspension arrangement in accordance with the terms and procedure of the Excise Duties and Tax Warehouses Act.Special Cases of Determination of Taxable AmountArticle 20. The open market value under Article 27 (3) of the Act shall be determined at the date of occurrence of the chargeable event for the supply.Chapter FourCERTIFICATION OF EXISTING CIRCUMSTANCES OF SUPPLIESSupply of Goods Dispatched or Transported Outside theTerritory of the CommunityArticle 21. (1) Where the goods are dispatched or transported to a third country, to prove the supply under Items 1 and 2 of Article 28 of the Act the supplier shall have the following documents:1. a written customs declaration naming the supplier as the exporter of the goods, certified by the exit customs office;2. an invoice on the supply;3. a document of transportation of the goods.(2) Where the goods are dispatched or transported to a third territory, to prove the supply under Items 1 and 2 of Article 28 of the Act the supplier shall have the following documents:1. an invoice on the supply;2. a document of transportation of the goods;3. a written confirmation by the recipient certifying that the goods have arrived in the third territory.International Transport of PassengersArticle 22. To prove international transport of passengers under Article 29 of the Act the supplier of the service shall have the following documents:1. a license for operation of international transport of passengers;2. a document certifying international transport of passengers specifying the number of the means of transport by which the transport is effected.International Transport of GoodsArticle 23. (1) To prove international transport of goods under Items 1 and 2 of Article 30 of the Act the supplier of the service shall have the following documents:1. a license for operation of international transport of cargo, if the transport is effected by road;2. international transport documents naming the supplier as the carrier - a bill of lading, an air waybill or another internationally recognised transport document or a copy thereof;3. an invoice on the supply.(2) To prove international transport of goods under Item 3 of Article 30 of the Act the supplier of the service shall have the following documents:1. transport documents naming the supplier as the carrier;2. a copy of a transit customs declaration of transport between two customs offices, specifying the identification number of the means of transport by which the transport is effected;3. an invoice on the supply.International Transport of Natural Gas and ElectricityArticle 24. (1) For the purposes of proving international transport of natural gas within the meaning of Article 30 of the Act the supplier of the service shall have the following:1. a contract for transport, transfer or transit of natural gas;2. a written confirmation by the supplier of natural gas for the transited quantities, accompanied by a delivery acceptance act issued by a gas measuring station;3. invoice on the supply.(2) For the purposes of proving international transport of electricity within the meaning of Article 30 of the Act the supplier of the service shall have the following documents:1. written confirmation by the owner of the electricity of the quantities involved in the traffic or documents issued by the administrator under international cross-border trade agreements;2. invoice on the supply.Supply of Goods for Supply of Vessels,Aircrafts or Rolling Railway StockArticle 25. (1) (Former text of Article 25, SG, No. 3/2007) For the purposes of proving the supply under Item 1 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents simultaneously:1. an order for supply, supply receipt, supply list, delivery certificate or another document for supply of goods for consumption on board showing: the number and date of the international route, the destination and the initials (name and/or number) of the vehicle;2. a written customs declaration naming the supplier as the exporter - where the destination is a third country;3. invoice on the supply.(2) (New, SG No. 3/2007) Item 1 of Article 31 of the Act shall furthermore apply to an international route within the Community.Supply of Goods Intended for Consumption on Board of VesselsArticle 26. For the purposes of proving supply for vessels under Item 2 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents simultaneously:1. an order for supply, supply receipt, supply list, delivery certificate or another document for supply of goods for consumption on board showing: the number and date of the international route, the destination and the initials (name and/or number) of the vehicle;2. documents certifying the right of carrying out commercial, industrial or fishing activities outside the sea territories of the Republic of Bulgaria;3. invoice on the supply.Supply of Services for Construction of Vessels or AircraftsArticle 27. (1) For the purposes of proving the supply of services for construction of a vessel or aircraft under Item 3 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract for construction of a vessel or aircraft;2. invoice on the supply.(2) For the purposes of proving the supply of services for maintenance, repair, modification, transformation, assembly, equipping, furnishing, transport and destruction of a vessel or aircraft under Item 3 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract with the vessel owner or the company operating the aircraft for provision of the relevant service, specifying the name and/or number of the vehicle;2. invoice on the supply.Chartering of Vessels, Aircrafts and Railway Rolling StockArticle 28. (1) (New, SG No. 16/2007) For the purpose of proving the supply under Item 4 of Article 31 of the Act with place of transaction within the territory of the country for renting of vessels corresponding to those referred to in Article 34 (3) of the Merchant Shipping Code the supplier shall have the following documents:1. a rent contract;2. a copy of the certificate of registration or the act of nationality of the vessel;3. an invoice on the supply.(2) (Supplemented, SG No. 3/2007, previous Article 28 and amended, SG No. 16/2007) Notwithstanding the cases referred to in Paragraph 1 for proving supply under Item 4 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a contract stating that the vessel, aircraft or railway rolling stock will be used by the charterer thereof for effecting of international transport, including international transport within the Community;2. a license or another document certifying the right of the charterer to effect international transport with the chartered vehicle where the charterer is a resident person;3. a copy of a document showing:(a) the initials of the vehicle;(b) the crew or the team;(c) the number of the flight, cruise or another route, the departure time and the arrival time.4. an invoice on the supply.Handling of Vessels, Aircraft and Railway RollingStock On International RouteArticle 29. (1) For the purposes of proving the supply of services for handling of a vessel under Item 5 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 3/2007) a document issued by the port enterprise of the vessel owner or its agent for said services certifying that the vessel is on international route, including an international route within the Community, and specifying the number and date of the route;2. an invoice on the supply.(2) For the purposes of proving the supply of services for handling of an aircraft under Item 5 of Article 34 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 3/2007) a document of the land servicing issued by the airport authorities or by the licensed operator for land servicing to the aircraft operator receiving the services, showing that the aircraft is on an international flight, including an international flight within the Community, and specifying the number and date of the flight;2. an invoice on the supply.(3) For the purposes of proving the supply of services for handling of railway rolling stock under Item 5 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a copy of the bill of lading CIM or copy of the bill of lading SMGS, receipt standard form 312c;2. an invoice on the supply.(4) Rescue operations under Item 5 of Article 31 shall be operations involving services linked to combating of natural calamities, elimination of the consequences thereof, as well as prevention of calamities through preventive measures, where such operations are performed outside the territory of the country.(5) "Calamity" shall mean an earthquake, flood, fire, landslide, volcano eruption, air or water disasters, wild animal incursion, calamity due to insects, epidemics or others, as well as accidents and disasters of massive nature that have grown into calamity (chemical, radiation or other pollution, accidents or disasters of public transport vehicles and others).(6) "Services linked to rescue operations" shall be:1. combat against calamities, including the transportation of rescue teams; the search, transportation or evacuation of people; the supply of food, medicines, human organs or others; the spraying of chemical and other substances; other rescue operations (monitoring, measuring, testing, mapping, weather impact, photographing and others);2. leasing of vehicles for the purposes of providing the services under Item 1.(7) For the purposes of proving the supply of services under Paragraph 6 the supplier shall have the following documents:1. where provided by air transport:(а) a document issued by the foreign competent authority to certify the preventive measures, the calamity or the elimination of the consequences thereof, as well as its nature;(b) a services contract;(c) an aviation operator license;(d) a statement on the services provided in hours or another measurement depending on the type of service;(e) an invoice on the supply;2. where provided by water transport:(a) documents proving the services provided in accordance with the Commercial Maritime Code;(b) an invoice on the supply.3. where provided by rolling railway transport:(a) documents certifying the services provided;(b) an invoice on the supply.Transport Handling of Goods or PassengersArticle 30. (1) For the purposes of proving the supply of services for handling of goods under Item 6 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. the documents proving the handling of the vehicle;2. an invoice on the delivery.(2) The documents issued under Item 1 of Paragraph 1 may be issued in the name of the vessel owner (aviation operator or railway carrier), owner of the cargo, the carrier or the forwarder.(3) For the purposes of proving the supply of services for handling of passengers under Item 6 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. the documents proving the handling of the vehicle;2. an invoice on the supply.Supply of Vessels and AircraftsArticle 31. For the purposes of proving the supply under Item 7 of Article 31 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written contract for transfer of ownership or other property rights over the vehicle pursuant to the Merchant Shipping Code , the Civil Aviation Act respectively;2. an invoice on the supply.Supply Linked to International Goods TrafficArticle 32. (1) For the purposes of proving the supply under Item 1 of Article 32 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. customs documents certifying that the goods are non-Community;2. customs documents showing that at the date on which the tax becomes chargeable the goods have the status of goods in temporary storage, or placed in a free zone or a free warehouse or under customs procedure of: customs warehousing, inward processing, temporary importation with full exemption from duty, external transit;3. an invoice on the supply.(2) For the purposes of proving the supply under Item 2 of Article 32 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written declaration by the person who is the principal of the direction/procedure under Paragraph 1, stating that as of the date on which the tax on the supply of the service becomes chargeable for the goods, the circumstances under Paragraph 1 exist.2. an invoice on the supply.Supply for Handling of GoodsArticle 33. For the purposes of proving the supply of services for handling of goods under Article 33 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. (amended, SG No. 101/2006) a written customs declaration for placing the goods under customs procedure of "inward processing" or "processing under customs control" naming the supplier as the principal - where the goods are non-Community, respectively a document certifying completion of customs formalities where the goods are Community and are imported into the territory of the country from a third territory;2. a contract under which the supplier undertakes the obligation to carry out treatment, processing or repair of the goods referred to in Item 1;3. documents proving the treatment, processing or repair of the goods referred to in Item 1;4. (amended, SG No. 101/2006) a written customs declaration of export or re-export of the treated, processed or repaired goods whereby the supplier completes the customs procedure under Item 1, respectively a customs document certifying that the treated, processed or repaired goods are sent from the territory of the country to a third territory;5. an invoice on the supply.Supply of Gold for Central BanksArticle 34. For the purposes of proving the supply under Article 34 of the Act with place of transaction within the territory of the country the supplier shall have the following documents:1. a written contract for transfer of ownership over the gold;2. a copy of a document certifying that the status of the recipient is a central bank of another Member State - where the recipient is a central bank of another Member State;3. a written confirmation by the recipient under Item 2 certifying the receipt of the goods thereby;4. an invoice on the supply.Supply of Goods at Duty-free Distributive Trade EstablishmentsArticle 35. (1) The sales of goods in duty-free distributive trade establishments under article 35 of the Act shall be liable to tax at the zero rate only where the sale of the goods is considered export pursuant to the Excise Duties and Tax Warehouses Act. (2) The sales referred to in Paragraph 1 shall be reported and documented in accordance with the Regulations for Application on the Excise Duties and Tax Warehouses.Supply of Services Provided by Agents, Brokersand Other Intermediaries Linked to International TransportArticle 36. (1) Agency services with place of transaction within the territory of the country provided in connection with international transport under Article 23 shall be the service provided by the shipping agent to the ship owner and/or the captain of the ship in connection with all formalities and activities linked to the arrival, stay and departure of the vessel.(2) For the purposes of proving the supply under Paragraph 1 with place of transaction within the territory of the country the supplier shall have the following documents:1. a disbursement account;2. a contract between the ship owner and the shipping agent;3. an invoice on the supply.(3) Brokerage services in connection with the supply under Article 23 shall be maritime brokerage services within the meaning of Articles 226 - 230 of the Merchant Shipping Code.(4) For the purposes of proving the supply under Paragraph 3 with place of transaction within the territory of the country the supplier shall have the following documents:1. a maritime brokerage contract;2. an invoice on the supply.(5) For the purposes of proving forwarding services with place of transaction within the territory of the country, provided in connection with international transport under Article 23 the supplier shall have the following documents:1. a copy of a transport document for international transport, in connection with which the forwarding services are provided, or, in the absence of a uniform international transport document, any of the alternative documents as follows:(а) a copy of a customs declaration in writing, indicating the place in the country where the goods are cleared as local goods upon importation;(b) a copy of the customs documents certifying the completion of customs clearance - in the cases of Article 16 (3) of the Act;(c) a copy of the document under Item 1 of Article 21 (1);(d) a copy of the document under Item 3 of Article 21 (2);(e) a copy of the transit customs declaration on transport between two customs institutions;2. (supplemented, SG No. 3/2007) an invoice on the forwarding services related to the organisation, performance or servicing of international transport and included activities for re-loading on the way, storage, insurance and customs clearance.(6) (Amended, SG No. 101/2006) For the purposes of proving the supply of courier services with place of transaction within the territory of the country in connection with international transport under Article 23 the supplier shall have the following documents:1. a bill of lading;2. an invoice of the transport service or a document, whereby the shipper undertakes the obligation to pay in the event of non-payment on the part of the customer;3. an invoice on the supply.(7) (Amended, SG No. 101/2006) For the purposes of proving the supply of postal services with place of transaction within the territory of the country in connection with international transport under Article 23 the supplier shall have the following documents:1. delivery receipts used in the exchange of international postal items in pursuance of the Regulations on the Enforcement of the Universal Postal Convention and the Regulations on the Enforcement of the Postal Parcels Agreement;2. an invoice on the supply.(8) (New, SG No. 3/2007) The services under Paragraphs 5, 6 and 7 shall be equalised to services for international transport of goods under Article 30 of the Act.(9) (New, SG No. 3/2007) In the cases of Paragraph 5 the provision of Article 127 of the Act shall not apply.Supply of Services for Sale of Airplane Tickets for InternationalTransport of PassengersArticle 37. For the purposes of proving the supply of services for sale of airplane tickets with place of transaction within the territory of the country, provided in connection with international transport of passengers, the supplier shall have the following documents:1. a contract for the provision of intermediary services in connection with the sale of airplane tickets for international transport;2. a report on the sales of airplane tickets, drawn up and presented by the airline company in accordance with the contract with this airline company, which contains the following compulsory requisites: name of the airline company, number of the ticket, destination of the flight, the unit price per ticket, the amount of the discount (commission fee);3. a report on the sales of airplane tickets containing compulsory requisites including the name of the airline, the number of the ticket, the flight destination, the unit price per ticket and the amount of the fee for the sale of an airplane ticket;4. an invoice on the supply.Supply of Other Services Provided by Agents, Brokers and OtherIntermediariesArticle 38. (1) For the purposes of proving the supply of services under Article 36 (1) of the Act with place of transaction within the territory of the country, other than those referred to in Articles 36 and 37, the supplier shall have documents certifying that the services are provided in connection with supplies in respect of which the circumstances of Chapter Three of the Act exist.(2) For the purposes of proving the supply under Article 36 (2) of the Act with place of transaction within the territory of the country, the supplier shall have documents certifying that the services are provided in connection with supply of goods or services with place of transaction outside the Community.Adjustments of SuppliesArticle 39. (1) In case the supplier fails to obtain the documents under Articles 21 - 38 by the end of the calendar month following the calendar month in which the tax became chargeable, including advance payment on a supply, it shall be considered that the supply is subject to a 20% rate of tax.(2) In the cases under Paragraph 1 the tax shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(3) The memorandum under Paragraph 2 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the tax for the supply became chargeable.(4) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2 by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) Cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the person obtained the required documents.(6) (New, SG No. 101/2006) In the cases of Paragraph 4 where the taxable amount of the supply is lower than the advance payment received, a tax shall be charged on the difference at a rate of 20 per cent by issuing a new memorandum under Article 117 (2) of the Act .(7) (New, SG No. 101/2006) The memorandum under Paragraph 6 shall be issued within the time limits referred to in Paragraph 5.Accommodation Provided by a Hotelier, Where Part of a Package TourArticle 40. For the purposes of proving the supplies under Article 66 (2) of the Act, the supplier shall have the following documents:1. a document certifying that the accommodation is part of a package tour;2. a copy of the register of accommodated tourists;3. a certificate of category of the tourist place;4. an invoice on the supply, except for the cases where issuance thereof is not compulsory under Article 113 (3) of the Act.Chapter FiveEXEMPT SUPPLIESSupply of Prostheses Linked to Health CareArticle 41. Prostheses within the meaning of Item 3 of Article 39 of the Act shall be the prostheses within the meaning of the Regulations for the Application of the Integration of Persons with Disabilities Act adopted by Council of Ministers' Decree No. 343 of 2004 (promulgated in the State Gazette No. 115/2004; amended, No. 31/2005, No. 63/2005 - Decision of Supreme Administrative Court No. 7081/2005 on administrative case No. 4402/2005, No. 78/2005, No. 54/2006, No. 58/2006 - Decision of Supreme Administrative Court No. 7623/2006 on administrative case No. 2426/2006).Financial Services and Insurance Services(Title supplemented, SG No. 101/2006) Article 42. (1) (Previous Article 42, SG No. 101/2006) Derivatives of securities within the meaning of Article 46 (5) of the Act shall be: investment portfolios, bond coupons, etc.(2) (New, SG No. 101/2006) An exempt supply within the meaning of Article 47 of the Act shall also be the execution of services under the conditions and in accordance with the procedure of the Insurance Code by reinsurers.(3) (New, SG No. 16/2007) The taxable amount of the financial services (transactions) for purchase and sale (exchange) of foreign currency provided as primary activity shall be the positive difference (positive margin) between income and expenses on forex operations reported under the Accountancy Act and the applicable accounting standards, realised in the tax period. Income and expenses from subsequent measurements (revaluations) of foreign currency shall not be taken into account in the calculation of the taxable amount.(4) (New, SG No. 16/2007) Where fees and commissions are agreed for the services under Paragraph 3, they shall be added to the taxable amount formed under Paragraph 3, including the cases where the value of such fees and commissions is zero.(5) (New, SG No. 16/2007) The taxable amount formed under the terms of Paragraph 3, Paragraph 4 respectively, may be recorded in the sales log on one line.Supply of Postage Stamps and Postal ServicesArticle 43. (1) An indication equivalent to postage stamps within the meaning of Item 1 of Article 49 of the Act shall be an imprint of a postage stamp on an envelope issued and circulated in accordance with the legally prescribed procedure. The imprint made by a charging machine under the control of a post office shall not be deemed to be an indication equivalent to postage stamps.(2) A universal postal service within the meaning of Item 2 of Article 49 of the Act shall be a universal postal service within the meaning of Chapter Four, Section I of the Postal Services Act.Supply of Buildings and Parts ThereofArticle 44. (1) Taxable supplies shall furthermore be the supplies of parts of a building which meet the definition of Item 5 of 1 of the supplementary provision of the Act.(2) Upon supply of a building comprised of parts in respect of which the circumstances under Item 5 of 1 of the supplementary provision of the Act exist as well as parts in respect of which such circumstances do not exist, exempt shall be only the supply of the parts of buildings in respect of which the circumstances do not exist.(3) In the cases of Paragraph 2 the supplier shall document the supplies as follows:1. by issuing separate invoices for the taxable supply and for the exempt supply, or2. by issuing a common invoice in which the data under Items 11 - 14 of Article 114 (1) of the Act are recorded on separate lines for the taxable supply and the exempt supply respectively.(4) (New, SG No. 101/2006) In the cases of Paragraph 2 the related terrain to the parts of a building for which the circumstances of Item 5 of 1 of the supplementary provision of the Act exist shall be determined on the basis of the proportion between the parts of the building for which the circumstances exist and the total space of the building.Chapter SixCERTIFICATION OF EXISTING CIRCUMSTANCES OF INTRA-COMMUNITY SUPPLIESDocuments Certifying Intra-Community Supply of GoodsArticle 45. For the purposes of proving an intra-Community supply of goods, the supplier shall have the following documents:1. (amended, SG No. 101/2006) a document on the supply:(a) an invoice on the supply stating, where the recipient is registered for VAT purposes in another Member State, the VAT identification number of the recipient issued by a Member State under which the service was effected thereto;(b) a memorandum under Article 117 (2) of the Act - in the cases of intra-Community supply under Article 7 (4) of the Act;(c) a document under Article 168 (8) of the Act - where the supplier is a natural person other than a sole trader and is not registered under the Act;2. documents proving dispatch or transport of the goods from the territory of the country to the territory of another Member State:(а) a transport document or written confirmation by the recipient or a person authorized thereby, certifying the receipt of the goods on the territory of another Member State - where the transport is at the expense of the supplier or the recipient but is effected by a third party, or(b) a transport document or written confirmation by the recipient or a person authorized thereby, certifying the receipt of the goods on the territory of another Member State - where the transport is effected by the supplier, or(c) a written confirmation by the recipient, certifying the receipt of the goods on the territory of another Member State - where the transport is effected by the recipient.Adjustments for Intra-Community SuppliesArticle 46. (1) If the supplier of the service does not obtain the documents under Article 45 by the end of the calendar month following the calendar month in which the tax for the supply became chargeable, it shall be considered that the supply is subject to a 20% rate of tax.(2) In the cases under Paragraph 1 the tax shall be charged by the supplier by issuing a memorandum under Article 117 (2) of the Act.(3) The memorandum under Paragraph 2 shall be issued within 5 days effective as from the last day of the calendar month following the calendar month in which the tax for the supply became chargeable.(4) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2 by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) Cancellation under Paragraph 4 shall be effected within 5 days effective as from the date on which the person obtained the required documents.Chapter SevenTAXATION OF IMPORTSTaxable Amount upon Importation of GoodsArticle 47. (1) The value for customs purposes shall not be credited with the expenses incidental to the importation under Item 2 of Article 55 (1) of the Act in so far as said expenses are included in the value for customs purposes.(2) (Supplemented, SG No. 101/2006) The amount of the excise duty shall not be included in taxable amount under Article 55 of the Act where the goods are placed under excise duty suspension arrangement under the terms and according to the procedure of the Excise Duties and Tax Warehouses Act. (3) (New, SG No. 101/2006) On importation of goods under Article 16 of the Act under "temporary importation with partial exemption from duty" or "processing under customs control" procedure included in the taxable amount under Article 55 of the Act shall be the full amount of the customs duties determined by the customs authorities.Taxing upon Importation by Customs Authorities and Payment of Tax(Title supplemented, SG No. 101/2006) Article 48. (1) A tax upon importation of goods shall be charged regardless of whether the importer is a person registered or not registered under the Act.(2) In the cases of exemption upon importation no tax shall be due, but it shall be recorded in the customs declaration.(3) (New, SG No. 101/2006) No tax shall be charged upon placement of goods under free circulation arrangement after "temporary importation with partial exemption from duty" or "processing under customs control" procedure.(4) (New, SG No. 101/2006) Upon importation of goods under Article 16 of the Act under "temporary importation with partial exemption from duty" or "processing under customs control" procedure the tax charged by the customs authorities shall be remitted to the republican budget upon placement of the goods under the respective procedure.Charging of Tax by the Importer for Goods Imported for InvestmentProjects ImplementationArticle 49. (1) To exercise the right of taxing under Article 164 (2) of the Act the importer shall submit to the relevant customs office clearing the importation the following documents:1. a written customs declaration of importation wherein the importer states that it will use the special arrangements for VAT charging - in the cases of importation under Article 16 (1) and (2) of the Act;2. customs documents for completion of customs clearance wherein the importer states that it will use the special arrangements for VAT charging - in the cases of importation under Article 16 (3) of the Act;3. an order of the minister of finance issued pursuant to Article 166 (5) of the Act;4. a written declaration whereby the importer certifies that at the time of the importation the importer is a registered person under the Act and has no chargeable or unpaid tax liabilities or social insurance liabilities to the National Revenue Agency.(2) Before effecting the importation customs authorities may require information about the specific supply under the permission granted.(3) In the cases of Paragraph 1 the tax shall be recorded in the customs declaration and shall not be accounted for and customs authorities may admit release of the goods without the tax being effectively paid or secured.(4) The tax under Paragraph 3 shall be charged by the importer by a memorandum under Article 117 (2) of the Act, which shall be issued within 5 days effective as from the date of occurrence of the chargeable event under Article 54 of the Act.Charging of Tax by Importer in Other CasesArticle 50. (1) Where the importer under Item 6 of Article 58 (1) of the Act fails to obtain the documents under Article 45 by the end of the calendar month following the calendar month in which the chargeable event under Article 54 of the Act occurred, the tax on the importation shall become chargeable on the importer.(2) In the cases of Paragraph 1 the tax shall be charged by the importer by a memorandum under Article 117 (2) of the Act, which shall be issued within 5 days effective as from the last day of the calendar month following the calendar day in which the chargeable event under Article 54 of the Act occurred.(3) Where the supplier obtains the required documents subsequently, the supplier shall adjust the result of the application of Paragraphs 1 and 2.(4) In the cases of Paragraph 3 the adjustment shall be effected by the supplier by cancelling the memorandum under Paragraph 2. No new memorandum shall be issued for the cancellation.(5) The memorandum under Paragraph 4 shall be cancelled within 5 days effective as from the date on which the importer obtained the required documents.Exemption from Tax upon ImportationArticle 51. (1) In cases of exemption from tax upon importation of textbooks and teaching aids the importer under Item 1, "a" of Article 41 of the Act shall submit to the competent customs office a copy of a document whereby the textbooks and teaching aids are approved by the minister of education and science or the minister of culture.(2) In cases of tax exemption upon importation under Item 6 of Article 58 (1) of the Act the importer shall submit to the competent customs office the following documents:1. a copy of the certificate of registration under Article 104 of the Act;2. a declaration in writing whereby the importer certifies that at the time of effecting the importation the importer is a registered person under the Act;3. transport documents stating that the goods are intended for another Member State.(3) (Amended, SG No. 16/2007) In cases of tax exemption upon importation under Item 10 of Article 58 (1) of the Act the importer shall submit to the competent customs office a license granted in accordance with the Energy Act . according to which the person is authorized to make importation of electricity and natural gas.(4) In cases of tax exemption upon importation under Item 17 of Article 58 (1) of the Act the importer shall submit to the competent customs office a memorandum or another document proving that the goods are returned on claim concerning quality or non-observance of standards.Provision of Security in respect of Tax upon ImportationArticle 52. The provisions of Article 59 of the Act shall furthermore apply to cases where the director of the National Customs Agency has exercised the right to determine another amount of the security for the customs duties or to approve exemption from security in accordance with the Customs Act and the regulations for its application.Chapter EightASSESSMENT OF TAX LIABILITY AND CHARGING OF TAXCalculation of the Tax for Every SupplyArticle 53. (1) The amount of the tax due for each supply shall be calculated in accordance with the following formula: T - the amount of the tax due for the specific supply;TA - the taxable amount for the specific supply;RT - the rate of tax as applicable.(2) Where in accordance with the Act the tax is assumed as included in the declared or agreed price, the amount of the tax shall be calculated in accordance with the following formula: T - the amount of the tax due for the specific supply;P - the agreed price with the tax included or the declared retail price for the specific supply;RT - the rate of tax as applicable.(3) In case of free of charge taxable supplies of goods or services under Article 6 (3) and Item 4 of Article 9 (2) and Article 9 (3) of the Act the charged tax shall be at the expense of the supplier.(4) (New, SG No. 16/2007) Free of charge supply of the services under Item 2 of Article 9 (3) of the Act shall be deemed to be tax exempt supply where the supplied services are subject to exemption upon their receipt.Charging of TaxArticle 54. A registered person in respect whereof the tax has become chargeable shall charge it by:1. issuing a tax document stating the tax on a separate line;2. including the amount of the tax in the calculation of the result for the corresponding tax period in the VAT return under Article 116 for such tax period;3. recording the document under Paragraph 1 in the sales log under Article 113 for the corresponding tax period.Charging of Tax for Supplies of Goods and Servicesfor Advertising PurposesArticle 55. (1) Any registered person shall charge tax upon free of charge provision of goods and free of charge rendering of services for advertising purposes.(2) Paragraph 1 shall not apply and no tax shall be charged in the cases of free of charge supply of goods or free of charge supply of services of negligible value, for advertising purposes for the purpose of independent economic activity of the person, where supply under Item 2 of Article 6 (4) or Item 4 of Article 9 (4) of the Act does not exist.Chapter NineSPECIAL CASES OF RIGHT TO DEDUCT CREDIT FOR INPUT TAXImportation of Goods under Inward Processing ArrangementArticle 56. (Amended, SG No. 101/2006) (1) The right to deduct credit for input tax for the tax paid in the cases of importation shall be exercised and the customs declaration, the document certifying completion of customs formalities respectively, shall be recorded in the purchases log for the respective period.(2) A right to deduct credit for input tax exists also for the tax paid in the cases of importation of goods:1. under inward processing and refunding system. system arrangement;2. under processing under customs control procedure;3. under temporary importation with partial exemption from duty procedure;4. under Article 16 (3) of the Act.Goods and Services of Negligible Value for Advertising PurposesArticle 57. (1) The person shall have the right to deduct credit for input tax for received goods and services of negligible value for advertising purposes where such goods or services were, are or will be used for advertising of the supplies effected by the person, which are taxable within the meaning of Article 69 of the Act.(2) The person shall have the right to deduct a partial credit for input tax in respect of the tax on received goods or services of negligible value for advertising purposes where such goods or services were, are or will be used for advertising of supplies effected by the person in respect of which the right to deduct credit for input tax exists and for exempt supplies or supplies or activities in respect of which the person has no such right.Right to Deduct Credit for Input Tax upon Cancellation, Loss,Destruction or Theft of Tax Documentand upon Absent Document in the Cases of Intra-Community Acquisition(Title supplemented, SG No. 16/2007) Article 58. (1) In the event of cancellation of erroneously drafted or corrected documents under Article 116 of the Act the registered person may exercise its right to deduct credit for input tax on the basis of the newly issued tax document under Article 116 (1) of the Act, provided that the registered person holds a memorandum under Article 116 (4) of the Act.(2) In the event of a loss, destruction or theft of the original of a document, the registered person may exercise its right to deduct credit for input tax, notifying thereof the National Revenue Agency territorial directorate whereat the said person is registered and providing the issuer with a copy of the document certified thereby with signature and seal, to be kept in its accounting office.(3) (New, SG No. 16/2007) In the cases of Intra-Community acquisition of goods in regard to the actual receipt of goods under Article 6 (2) the right to deduct credit for input tax may also be exercised where the supplier of the goods has not issued a document in accordance with the provisions of Article 114 of the Act. (4) (New, SG No. 16/2007) In the cases of Paragraph 3 the person performing the acquisition shall have other documents ascertaining the taxable amount of the actually received goods under Article 6 (2).(5) (New, SG No. 16/2007) In the event of intra-Community acquisition of goods under Article 13 (3) the right to deduct credit for input tax shall be exercised only on the basis of the memorandum under Article 117 (2) and provided that the person has met the requirements of Article 86 of the Act. Right of Credit for Input Tax upon Public Auction under Tax andSocial-Insurance Procedure Code or under Code of Civil Procedureor Sale under Registered Pledges Act and Credit Institutions ActArticle 59. (Supplemented, SG No. 101/2006) Any registered person may exercise the right to deduct credit for input tax on the basis of the document under Article 83 (1) in compliance with the general requirements for the exercise of said right.Right to Credit for Input Tax in cases of Legal Successionunder Article 10 of the Act Article 60. (1) In the cases of legal succession under Article 10 of the Act the legal successor shall have the right to deduct credit for input tax for goods and services received where the following conditions are met simultaneously:1. the transforming corporation, the transferor or the contributor of a non-cash asset has not exercised its right to deduct credit for input tax;2. the time limit under Article 72 (1) of the Act has not expired, within which the transforming corporation, the transferor or the contributor of a non-cash asset should have exercised its right to deduct credit for input tax;3. the received goods or services will be used for the purposes of the taxable supplies within the meaning of Article 69 of the Act effected by the legal successor;4. the supplier of the goods or services is a registered person under the Act at the date of issue of the tax document and the supply is taxable at that time.(2) In the cases of legal succession under Article 10 of the Act, the legal successor shall furthermore have the right to deduct credit for input tax for the received goods or services for which the transforming corporation, the transferor or the contributor of a non-cash asset has not had the right to deduct credit for input tax where the following conditions are met simultaneously:1. the received goods or services will be used for the purposes of the taxable supplies within the meaning of Article 69 of the Act effected by the legal successor and the supplier of the goods and services is a registered person under the Act at the date of issue of the tax document and the supply is taxable at such date;2. the goods or services are acquired by the transforming corporation, the transferor or the contributor of a non-cash asset within 5 years, and for immovable things, within 20 years before the date of entry in the commercial register of the respective circumstance under Article 10 of the Act.(3) In the cases of Paragraphs 1 and 2, where the goods and services will be used for both taxable supplies under Article 69 of the Act and for exempt supplies or supplies and activities not entitled to credit for input tax, a right to deduct partial credit for input tax shall exist for the charged tax, calculated under the terms of Article 73 of the Act.(4) The right to deduction under paragraphs 1 and 2 shall be exercised where the following conditions obtain:1. the legal successor has a copy of the tax document, drawn up in accordance with the provisions of Articles 114 and 115 of the Act , wherein the tax is stated on a separate line - in respect of supplies of goods or services whereon the recipient is the transforming corporation, the transferor or the contributor of a non-cash asset;2. (amended, SG No. 3/2007) the legal successor has a copy of a memorandum under Article 117 (2) of the Act, issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases where the tax is chargeable from the transforming corporation, the transferor or the contributor of a non-cash asset as a payer under Article 82 (2) and (3) of the Act;3. the legal successor has a copy of a customs declaration, customs documents respectively, certifying completion of customs clearance wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as an importer and the tax is paid under the terms of Article 90 (1) of the Act - in the cases where the transforming corporation, the transferor or the contributor of a non-cash asset is an importer;4. the legal successor has a copy of a customs declaration, customs documents respectively, certifying completion of customs clearance wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as an importer, and a memorandum under Article 117 (2) of the Act issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases where the tax is chargeable from the importer under the terms of Article 57 (1) and Article 58 (2) of the Act ;5. the legal successor has a copy of a document which meets the requirements of Article 114 of the Act , wherein the transforming corporation, the transferor or the contributor of a non-cash asset is specified as a recipient, and a copy of the memorandum under Article 117 (2) of the Act issued by the transforming corporation, the transferor or the contributor of a non-cash asset - in the cases of intra-Community acquisition under Article 84 of the Act by the transforming corporation, the transferor or the contributor of a non-cash asset;6. has a copy of a document under Article 83 (1) - in the cases where the transforming corporation, the transferor or the contributor of a non-cash asset has acquired a movable thing under Article 131 (1) of the Act.(7) (new, SG No. 3/2007) the legal successor has a copy of a document which meets the requirements of Article 114, wherein the transforming corporation, the transferor or the contributor is indicated as the recipient, and a copy of a memorandum under Article 117 (2) issued by the transforming corporation, the transferor or the contributor in the cases where the tax is chargeable from the transforming corporation, the transferor or the contributor as payer under Article 82 (4) and (5) of the Act .(5) The legal successor under Article 10 of the Act shall make an inventory in standard form - appendix No. 7 - of received goods and services under Paragraphs 1 and 2.(6) The inventory under Paragraph 5 shall be submitted to the National Revenue Agency territorial directorate at registration of the legal successor within 30 days effective as from the date of entry in the commercial register of the respective circumstance under Article 10 of the Act.(7) The right to deduct credit for input tax under Paragraphs 1 and 2 shall be exercised in the tax period in which it occurred or in one of the following three tax periods and the document under Paragraph 4 included in the inventory under Paragraph 5 shall be recorded in the purchases log and included in the calculation of the net tax for the relevant tax period.(8) The right to deduct credit for input tax under Paragraphs 1 and 2 shall not occur and may not be exercised if the inventory under Paragraph 5 is submitted after the time limit under Paragraph 6.Right to Deduct Credit for Input Tax for Assets Availableand Services Received before Registration Date or beforeRe-registration DateArticle 61. (1) The right to deduct credit for input tax under Article 74 of the Act shall occur only in respect of any assets available at the date of registration or services received before the date of registration recorded in the registration inventory in a standard form - appendix No. 2 - which shall be submitted not later than seven days from the registration date.(2) The right to deduct credit for input tax under Article 76 of the Act shall occur only in respect of any assets available at the date of re-registration recorded in the registration inventory in a standard form - appendix No. 3 - which is submitted not later than seven days from the re-registration date.(3) In the cases of Paragraphs 1 and 2 where the asset was used, is used or will be used for both taxable and exempt supplies or for supplies or activities in respect of which no right to deduct credit for input tax exists, a right to partial credit for input tax shall exist for the charged tax, calculated under the terms of Article 73 of the Act.(4) The right to deduct credit for input tax under Paragraphs 1 and 2 shall be exercised in the tax period in which it occurred or in one of the following three tax periods and the respective document under Article 71 of the Act shall be recorded in the purchases log for the relevant tax period.(5) The right to deduct credit for input tax under Paragraphs 1 and 2 shall not occur and may not be exercised if the inventory under Paragraphs 1 and 2 is submitted after the time limit under Paragraphs 1 and 2.Chapter TenRESTRICTIONS OF THE RIGHT TO DEDUCT CREDIT FOR INPUT TAXGoods and Services for Business or Entertainment PurposesArticle 62. (1) Business or entertainment purposes within the meaning of Item 3 of Article 70 (1) of the Act shall be: welcome, stay and seeing off of guests and delegations; accommodation; consumption of food and drinks; arrangement of business meetings; celebrations, entertainment; excursions.(2) Paragraph 1 shall not apply in respect of organization of symposia, congresses, conferences and other similar events directly related to the presentation or testing of the goods and services offered by the person within its independent economic activity.Goods and Services of Negligible Value for Advertising PurposesArticle 63. The registered person shall not have the right to deduct credit for input tax for received goods and services of negligible value where the advertised supplies are exempt supplies or supplies or activities in respect of which no right to deduct credit for input tax exists.Chapter ElevenADJUSTMENTS OF CREDIT FOR INPUT TAX USEDCalculation of the Factor under Article 73 (2) of the Act Article 64. (1) For the purposes of calculating the factor under Article 73 (2) of the Act the following supplies shall not be included in the turnover under Article 73 (3):1. Article 6 (4), Article 9 (4), Article 10 (1) and (3), Article 129 of the Act;2. a supply resulting from a request or an act of a central or local government authority or in pursuance of the law where no compensation is provided.(2) For the purposes of calculating the factor under Article 73 (2) of the Act the following supplies shall not be included in the turnover under Article 73 (4) of the Act:1. supplies under Paragraph 1;2. interest received on current and deposit accounts; this does not refer to:(а) credit and financial institutions within the meaning of the Credit Institutions Act;(b) insurance companies within the meaning of the Insurance Code;(c) collective investment schemes, investment companies and management companies under the Public Offering of Securities Act, social insurance companies, pension funds and management companies under the Social Insurance Code, health insurance companies under the Health Insurance Act.(3) (Amended, SG No. 16/2007) The person itself shall calculate the factors under Article 73 of the Act, shall round them up under the terms of Article 85 (3) and shall have the data necessary for calculation thereof.Annual Adjustment under Article 73 (8) of the Act Article 65. (1) The difference under Article 73 (8) of the Act shall be calculated in accordance with the following formula:AA = Tdpcit x Fcy - CIPUcy, where:AA shall be the amount of the annual adjustment under Article 73 (8) of the Act ;Tdpcit - tax with right to deduct partial credit for input tax for current year;Fcy - the factor under Article 73 (2) of the Act for the current year;CIPUcy - total amount of credit for input tax used in the current year.(2) (Supplemented, SG No. 101/2006, amended, SG No. 3/2007) The amount of the annual adjustment under Paragraph 1 shall be stated in cell 43 of Appendix No. 13 for the last tax period with "+" or "- sign. A memorandum under Article 117 (2) of the Act shall be drawn up for the adjustment, wherein the requisites under Items 3 to 7 of Article 117 (2) shall not be completed and the amount of the annual adjustment under Article 73 (8) shall be stated with a "+" or "-" sign. The memorandum shall be issued on the last day of the last tax period at the latest and shall be recorded in the purchases log for the last tax period.Adjustments of Credit for Input Tax Used(Title amended, SG, No. 101/2006) Article 66. (1) The adjustments under Article 73 (1) and (3) of the Act shall be made by issuing a memorandum which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. amount of credit for input tax used;6. number of years under Article 79 (6) of the Act;7. amount of tax due under Article 79 (6) of the Act.(2) The memorandum under Paragraph 1 shall be issued not later than the last day of the tax period in which the circumstances for the adjustment arose.(3) The adjustment under Article 79 (2) of the Act shall be made by issuing a memorandum which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. amount of credit for input tax used;6. number of years under Article 79 (7) of the Act;7. a factor under Article 79 (7) of the Act;8. amount of tax due under Article 79 (7) of the Act.(4) The memorandum under Paragraph 3 shall be issued not later than the last day of the last tax period of the year in which the circumstances for the adjustment arose.(5) The memorandums under Paragraphs 1 and 3 shall be recorded in the sales log and the VAT return for the tax period in which they were issued.(6) (New, SG No. 101/2006) A registered person which has fully or partially deducted credit for input tax on goods produced, purchased, acquired or imported thereby and subsequently effects an intra-Community free of charge supply therewith, shall owe a tax in the amount of the credit for input tax used.(7) (New, SG No. 101/2006) The adjustment under Paragraph 6 shall be made by issuing a memorandum which shall contain:1. number and date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. type and quantity of the goods;5. amount of due tax (credit for input tax used);(8) (New, SG No. 101/2006, amended, No. 3/2007) The memorandum under Paragraph 7 shall be issued not later than the last day of the tax period in which the tax on the free of charge intra-Community supply became chargeable and shall be recorded in the sales log for said tax period.Adjustments of Credit for Input Tax Used in Other CasesArticle 67. (1) In the cases of Article 79 (8) of the Act the registered person has the right to credit the amount of the partial credit for input tax used with an amount calculated under the following formula:1. for immovable things: whereICIT is the increase of the amount of partial credit for input tax used;Tdpcit - the tax with right to deduct partial credit for input tax;Fydpcit - the factor under Article 73 (2) of the Act, calculated on the basis of the turnovers for the year in which the right to deduction of partial credit of input tax was exercised;NoY - the number of years from occurrence of the circumstances under Article 79 (8) of the Act , excluding the year of occurrence of the circumstances, until expiration of the 20-year time limit, effective as from the year of exercise of the right to deduct partial credit for input tax inclusive;2. for all other goods or services: where:ICIT is the increase of the amount of partial credit for input tax used;Tdpcit - the tax with right to deduct partial credit for input tax;Fydpcit - the factor under Article 73 (2) of the Act, calculated on the basis of the turnovers for the year in which the right to deduction of partial credit of input tax was exercised;NoY - the number of years from occurrence of the circumstances under Article 79 (8) of the Act, excluding the year of occurrence of the circumstances, until expiration of the 5-year time limit, effective as from the year of exercise of the right to deduct partial credit for input tax inclusive.(2) The increase under Paragraph 1 shall be effected by issuing a memorandum, which shall contain:1. number, date;2. name and identification number of the person under Article 94 (2) of the Act;3. grounds for the adjustment;4. description of the goods or service;5. charged tax with right to deduct partial credit for input tax;6. number of years under Paragraph 1;7. factor under Paragraph 1;8. increase of the amount of the credit for input tax under Paragraph 1.(3) The memorandum under Paragraph 2 shall be issued not later than the last day of the tax period in which the circumstances under Article 79 (8) of the Act occurred.(4) The right to deduct credit for input tax under Paragraph 1 shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the last tax period of the year in which the time limit under Paragraph 1 expires and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act for the period commencing from the period of occurrence of the circumstances under Article 79 (8) of the Act till the last day of the last tax period.(5) Where the person deregisters before the lapse of the time limit under Paragraph 1, the right to deduct credit for input tax shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the last tax period under Article 87 (4) of the Act and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act for the period from occurrence of the circumstances under Article 79 (8) of the Act until the last day of the tax period.(6) Where before the lapse of the time limit under Paragraph 1 the person effects a taxable supply of goods or service under Article 69 of the Act , the right to deduct credit for input tax under Paragraph 1 shall be exercised by recording the memorandum under Paragraph 2 in the purchases log and in the VAT return for the tax period in which the tax on the supply is charged and provided that the goods or services are used only for effecting taxable supplies under Article 69 of the Act from the period of occurrence of the circumstances under Article 79 (8) of the Act until the date on which the chargeable event for the supply occurred.Chapter TwelveSET-OFF, DEDUCTION AND REFUND OF NET TAX FOR PERIOD:INPUT TAX CLAIMABLEProcedure for Set-Off, Deduction and Refund of Net Tax forPeriod: Input Tax ClaimableArticle 68. (1) Where a registered person declares an input tax claimable in a VAT return submitted thereby for a specific tax period and the said person has chargeable and unpaid tax liabilities and liabilities for social insurance contributions at the date of submission of the VAT return the revenue authority shall set off such liabilities against the stated input tax claimable.(2) Subject to deduction under Article 92 (1) of the Act shall be any input tax claimable or the balance thereof after set-off, if such set-off is effected before submission of the next VAT return with the exception of:1. the input tax claimable subject to set-off or refund under the terms of Article 92 (3) and (4) of the Act ;2. the input tax claimable subject to set-off or refund together with the balance of another input tax claimable under the terms of Item 5 of Article 92 (1) of the Act.(3) If after submission of the three VAT returns under Item 2 of Article 92 (1) of the Act there is undeducted balance of the input tax claimable, the person shall state in cell 80 of the last VAT return the undeducted balance of the input tax claimable which is subject to set-off or refund within 45 days. If in any of the three VAT returns submitted an input tax claimable is declared, in respect of which Article 92 (3) and (4) of the Act does not apply, such tax shall be added to the undeducted balance of the input tax claimable and shall be stated in cell 80 of the last VAT return.(4) Where an input tax claimable which is subject to set-off or refund after completed deduction procedure is stated in cell 80 of the VAT return, the person shall submit in respect of such tax a statement of effected deduction in a standard form - appendix No. 6 - together with the VAT return.(5) The revenue authority may furthermore require submission of a statement of effected deduction in respect of another input tax claimable.Balance for RemissionArticle 69. (1) Where during an ongoing deduction procedure under Item 2 of Article 92 (1) of the Act a person declares in the VAT return submitted thereby for a specific tax period an output tax payable and after the deduction a balance remains of the output tax payable, such balance shall be due within the time limit under Article 89 of the Act.(2) Where during an ongoing deduction procedure under Item 2 of Article 92 (1) of the Act a person declares in the VAT return submitted thereby for a specific tax period an output tax payable which may be deducted with more than one input tax claimable, the deduction shall be effected consecutively with each input tax claimable in the order of occurrence thereof.Input Tax Claimable within 30 DaysArticle 70. (1) Where a registered person declares in a VAT return submitted thereby for a specific tax period an input tax claimable and in respect of the said person the circumstances under Article 92 (3) and (4) of the Act exist and such person wishes to apply this provision, the said person shall state in cells 81 and 82 of the VAT return for the period the input tax claimable which is subject to refund or set-off within 30 days.(2) The circumstances under Article 92 (3) and (4) of the Act shall be ascertained by the person by declaring them in the VAT return for the respective tax period.(3) In the cases referred to in Paragraph 1 the provisions of Article 68 (2) and (3) shall not apply and the input tax claimable shall not participate in the deduction procedure.Completion of Procedure for Deduction of Input Tax Claimable uponDeregistrationArticle 71. Where at the deregistration date the person is undergoing a procedure for deduction under the terms of Article 92 (1) of the Act, it shall be considered that the three one-month periods have lapsed at such date and the person shall state in cell 80 of the VAT return for the last tax period the balance of the input tax claimable after the deduction thereof.Chapter ThirteenREGISTRATIONVAT Identification NumberArticle 72. (1) Persons not registered under the Tax and Social-Insurance Procedure Code may not be registered under the Value Added Tax Act.(2) In the cases of registration under Article 152 of the Act the National Revenue Agency shall issue to the person an official identification number under Article 84 (3) of the Tax and Social-Insurance Procedure Code on the basis of the application submitted by the person under Article 95 (1).(3) Registration under the Value Added Tax Act of non-residents through accredited representative shall be effected by the competent National Revenue Agency territorial directorate whereat the accredited representative is registered or is subject to registration.(4) Upon registration under the Value Added Tax Act a VAT identification number shall be issued, containing the sign BG followed by the identification number of the person.(5) Upon registration under Article 152 of the Act the VAT identification number shall contain the sign EU.Obligations of the Persons Regarding Grounds for RegistrationArticle 73. (1) All taxable persons after the end of the calendar month shall determine their taxable turnover under Article 96 (2) of the Act for the 12 months preceding the current one.(2) All taxable persons and non-taxable legal persons which effect intra-Community acquisition of goods shall:1. determine on a current basis the total amount of intra-Community acquisitions for the current year, with the exception of acquisition of new means of transport and excisable goods;2. determine for the previous calendar year the sum total of the taxable amounts of the taxable intra-Community acquisitions, with the exception of acquisition of new means of transport and excisable goods;(3) All registered persons effecting supplies of goods under the terms of distance selling shall:1. determine on a current basis the total amount of the supplies of goods under the terms of distance selling for every individual Member State separately;2. determine for every of the two calendar years preceding the current one the taxable amounts of the effected supplies under the terms of distance selling for every individual Member State separately.Documents Linked to RegistrationArticle 74. (1) The application for registration under Article 101 (1) of the Act shall be submitted in a standard form - appendix No. 1.(2) The following documents shall be enclosed to the application for registration:1. a statement of the taxable turnover by month for the last 12 months preceding the current one - for registration under Article 96 (1) of the Act ;2. a statement of the total amount of taxable intra-Community acquisitions for the current year with the exception of acquisition of new means of transport and excisable goods - for registration under Article 99 (1) of the Act.(3) In the cases of registration pursuant to Article 133 of the Act, enclosed to the application for registration shall also be:1. a certificate by the competent tax authorities of current tax registration abroad of a non-resident person and a translation thereof;2. the original of a notary certified contract in the country between the non-resident person and the accredited representative on the occasion of assignment of obligations under Article 135 (2) and (3) of the Act;3. a certificate of current court registration of the person - accredited representative - or a copy of the identity documents where the latter is a natural person;4. a document by the competent tax authorities certifying registration for VAT purposes in another Member State - for the registration under Article 98 and Article 100 (3) of the Act ;5. a document by the competent tax authorities certifying that the latter authorities are notified that the person wishes the place of transaction of the distance sales effected thereby to be within the territory of the country - for registration under Article 100 (3) of the Act.(4) In the cases of registration under Article 132 of the Act enclosed to the application for registration shall be a copy of the court judgement on recording of the circumstance under Article 10 (1) of the Act in the commercial register.Registration CertificateArticle 75. (1) The certificate under Article 104 (1) and (2) of the Act shall be drawn up in a standard form - appendix No. 4.(2) The certificate under Article 104 (3) of the Act shall be drawn up in a standard form - appendix No. 5.Obligations of Accredited RepresentativeArticle 76. (1) Any accredited representative shall notify without delay the territorial directorate National Revenue Agency whereat the non-resident person is registered if circumstances arise which lead to the accredited representative being incapable of fulfilling his obligations under Article 135 (2) and (3) of the Act .(2) The accredited representative shall incur solidary and unlimited liability for the obligations of the non-resident person which have arisen on the date on which the accredited representative has assumed the obligations under Article 135 of the Act and where the non-resident person has nominated another accredited representative, until the date on which the other accredited representative has accepted to fulfil the obligations under Article 135 of the Act.Chapter FourteenTERMINATION OF REGISTRATION (DEREGISTRATION)Documents Linked to DeregistrationArticle 77. (1) The application for termination of registration (deregistration) under Article 109 of the Act shall be submitted in a standard form - appendix No. 8.(2) Enclosed to the application under Paragraph 1 shall be:1. a statement of the taxable turnover by months for the last 12 months preceding the current one;2. a statement of the total amount of taxable intra-Community acquisitions for the previous and current years, with the exception of acquisition of new means of transport and excisable goods;3. a statement of the sum total of the taxable amounts of the supplies under the terms of distance selling with place of transaction within the territory of the country, with the exception of the supplies of excisable goods, for the current year and for every of the two calendar years preceding the current one;4. (repealed, SG No. 16/2007); 5. the registration certificate(s) under Article 104 (1) and (2) of the Act.(3) In the cases of termination of registration on the grounds of Items 3 and 4 of Article 107 of the Act a copy of a court judgement certifying occurrence of the circumstances for termination of registration shall be enclosed to the application for deregistration.(4) (Amended, SG No. 16/2007) Together with the VAT return for the last tax period the person shall submit an inventory-memorandum for charging the tax under Article 111 of the Act according to a standard form - Appendix No. 9.(5) (New, SG No. 16/2007) The inventory-memorandum under Paragraph 4 shall be included in the sales log for the last tax period and in the net result for the last tax period stated in the VAT return for this tax period.Chapter FifteenDOCUMENTING SUPPLIESRequirements to Invoices and AdvicesArticle 78. (1) The forms of invoices and advices thereto issued by persons registered under the Act on grounds other than registration under Article 99, Article 100 (2) and Article 152 of the Act shall include the following printed requisites:1. sequence number;2. inscription "original" on the first counterpart;3. name, identification number of the person that will issue them;4. the VAT identification number under Article 94 (2) of the Act.(2) The numbers of the documents under Paragraph 1 shall be ten-digit, growing without any duplication and omissions, regardless of the type of form or document. Numbers of forms may duplicate only where they are issued from a fiscal device. All counterparts of any single document shall bear the same number.(3) The numbering of documents shall not depend on and be interrupted by the end of the calendar year. Where all possible numbers are exhausted, the person/branch shall re-start the numbering from "0000000001" upon advising the National Revenue Agency territorial directorate in writing thereof.(4) Where the person/branch has subdivisions or units, they may specify a range of numbers to be used by each subdivision (unit) in issuing tax documents thereby. The range shall be exhausted gradually over the next periods. Upon filling the range, a new range shall be assigned.(5) Faulty or damaged forms and cancelled documents shall not be destroyed and the issuer shall keep all counterparts thereof.(6) In the cases of cancellation of documents under Article 116 of the Act the memorandum under Article 116 (4) of the Act shall be kept by the issuer and the recipient.(7) Registered persons shall keep, use and report forms under the terms and procedures envisaged for the storage and reporting of documents in the Accountancy Act.(8) (New, SG No. 101/2006) The signature of the person who has prepared the document may be substituted by an identification code under Article 8 of the Accountancy Act.(9) (New, SG No. 101/2006) The invoices of intra-Community supplies issued by persons registered for VAT purposes in another Member State shall also be considered to meet the requirements of Article 114 of the Act in the cases where:1. the sequential number of the document is not a ten-character number or contains symbols other than Arabic numerals, or2. does not contain the requisites under Item 6 of Article 114 (1) of the Act.Issue of Invoices and AdvicesArticle 79. (1) Except for the cases of Article 113 (3) of the Act an invoice or advice thereto shall be issued regardless of whether the recipient is a registered or non-registered person under the Act.(2) An invoice/advice shall furthermore be issued for effecting supply with place of transaction outside the territory of the country within the economic activity of the person and no tax shall be charged in the invoice. The following shall be recorded in the invoice/advice as grounds for non-charging of tax under the Act:1. "Article 28с(Е)(3) 77/388/ЕЕС" - for supplies of goods as intermediary in a triangular operation;2. "Article 113 (9)" - for supplies of persons not registered under the Act or persons registered under Article 99 and Article 100 (2) of the Act;3. (amended, SG No. 101/2006, No. 3/2007) the relevant provision of the Act or the Regulations - for supply of services under Articles 22 - 24 of the Act;4. the relevant provision of the Act according to which the supply of goods or services is with place of transaction outside the territory of the country - for supply of goods and services other than those referred to in Items 1 - 3.(3) In case of supply with place of transaction within the territory of another Member State under the terms of distance selling, no grounds for non-charging of tax shall be recorded in the invoice/advice but the following shall be specified mandatorily:1. the VAT identification number of the person issued by the other Member State;2. the rate of tax as applicable in the other Member State;3. the amount of tax due on the supply.(4) In case of effecting exempt supply in the invoice/advice as grounds for non-charging of tax shall be specified the relevant provision of the Act pursuant to which the supply is exempt.(5) (New, SG No. 101/2006) For supply of single service to tourists in the invoice/advice as grounds for non-charging a tax shall be stated "Article 86 (1) of the RAVATA".(6) (New, SG No. 101/2006) For supply on which the tax is chargeable from the recipient of the supply in the invoice/advice as grounds for non- charging of tax shall be stated the relevant provision of the Act or the Regulations according to which the tax shall be charged from the recipient.(7) (Previous Paragraph 5, SG No. 101/2006) The original of the invoice/advice shall be submitted to the recipient of the supply.MemorandumsArticle 80 (1) The forms of memorandums issued by the persons registered under the Act, except for memorandums under Article 116 (4) of the Act, shall contain permanently printed requisites under Items 1, 3 and 4 of Article 78 (1).(2) The numbers of the memorandums shall be ascending without duplication and omissions and shall not depend on the type of the form. All counterparts of one memorandum shall have the same number.(3) The numbering of the forms of the memorandums does not depend on and shall not be interrupted by the end of the calendar year.(4) Where the person/branch of the person has subdivisions or units, the latter may specify a range of numbers to be used by each subdivision (unit) in issuing memorandums. The range shall be exhausted gradually over the next periods. Upon filling the range, a new range shall be assigned.(5) Incorrectly drawn up or corrected memorandums shall be cancelled and new ones shall be issued.(6) Faulty or damaged forms and cancelled memorandums shall not be destroyed and the issuer shall keep all the counterparts.(7) The provision of Article 78 (7) shall apply to the memorandums.Issue of MemorandumsArticle 81. (1) (Supplemented, SG No. 101/2006) For each individual supply the registered persons shall mandatorily issue a memorandum under Article 117 (2) of the Act in the following cases:1. (amended, SG No. 101/2006, No. 3/2007) where the person is a recipient on a supply under Article 82 (2), (4) and (5) of the Act , as well as where the person is an acquirer under Article 82 (3) and Article 84 of the Act; 2. where the person is an importer under Article 57 (1) and Article 58 (2) of the Act in connection with Article 49 (4) and Article 50 (2) herein;3. (supplemented, SG No. 101/2006) where the person is a supplier of goods and services under Article 6 (3) (including free of charge intra- Community supplies), Article 7 (4) and Article 9 (3) of the Act;4. where the person is a supplier of goods and services under Article 142 (1) and Article 144 (4) of the Act in connection with Article 87 (1) and Article 90 (1) herein;5. (amended, SG No. 101/2006) under Article 8 (6), Article 9 (4), Article 39, Article 46 (2), Article 67 (2), Article 100 (1) hereof.6. (new, SG No. 16/2007) upon utilization of Investment grants (subsidies) under Article 16.(2) (Amended, SG No. 101/2006) The memorandums under Paragraph 1 shall be completed in accordance with the requirements of Article 117 (2) of the Act in so far as otherwise provided for in this Regulations.(3) (New, SG No. 101/2006) In the cases of Item 1 of Paragraph 1 where the supplier is registered for VAT purposes in another Member State the memorandum under Paragraph 1 shall contain the following in addition to the requisites under Article 117 (2) of the Act :1. VAT identification number of the supplier under which the supply was effected, issued by another Member State;2. number and date of the invoice - where such has been issued until the date of issue of the memorandum.(4) (New, SG No. 101/2006) A memorandum under Article 116 (4) of the Act is not mandatorily issued where the date of issue of the cancelled document coincides with the date of issue of the new document.Issue of Tax Documents in Special CasesArticle 82. (1) Where after entry in the commercial register of the circumstances under Article 10 grounds for changing the taxable amount of a supply or grounds for rescission of a supply arise, the change shall be documented as follows:1. by issuing an advice to the invoice wherein the legal successor shall be stated as recipient - in cases where the transforming corporation, the transferor or the contributor under Article 10 of the Act was the recipient of the supply;2. by issuing an advice to the invoice wherein the legal successor shall be stated as supplier - in cases where the transforming corporation, the transferor or the contributor under Article 10 of the Act was the supplier;3. by issuing a memorandum under Article 117 (4) of the Act where the legal successor shall be stated as issuer - in cases where the tax was charged by the transforming corporation, the transferor or the contributor under Article 10 of the Act by issuing of a memorandum.(2) It shall be stated in the documents issued under Paragraph 1 that the supplier/recipient is the legal successor under Article 10 of the Act.(3) The legal successor under Article 10 of the Act shall have a copy of the tax document for the supply in respect of which the document under Paragraph 1 was issued.(4) Where after entry in the commercial register of the circumstances under Article 10 grounds arise for cancellation of a tax document under Article 116 of the Act , the legal successor under Article 10 of the Act shall be stated as the supplier, recipient respectively, in the new tax document and the memorandum under Article 116 (4) of the Act .Documenting of Supplies of Goods and Services upon Public Auction underTax and Social-Insurance Procedure Code or under Code of Civil Procedureor Sale under Registered Pledges Act and underCredit Institutions ActArticle 83. (1) In cases of sale under Article 131 (1) of the public enforcement agent, the bailiff or the pledgee shall execute a document of the sale, which shall contain the following requisites at a minimum:1. company name/name, address and identification number of the enforcement agent, the bailiff or the pledgee;2. company name/name, address, identification number, and VAT identification number of the debtor;3. company name/name, address, identification number, and VAT identification (if any) of the recipient (buyer);4. quantity and type of the goods or service;5. taxable amount and rate of tax;6. selling price of the thing under Article 131 (2) of the Act;7. date of issue of the document;8. name, surname and signature of the person who has executed the document.(2) The document under Paragraph 1 shall be issued in 3 counterparts within 5 days effective as from receipt of the full price on the sale.(3) Within the time limit under Paragraph 2 the public enforcement agent, the bailiff or the pledgee shall submit a notification in standard form - appendix № 20 - to the National Revenue Agency territorial directorate whereat the debtor is registered.(4) Where the thing has been awarded to the execution creditor on a motion thereby in payment of the claim thereof according to the procedure established by the Tax and Social-Insurance Procedure Code and by the Code of Civil Procedure, the supply shall be documented by the supplier (debtor) according to the standard procedure established in the Act. The taxable amount of the supply shall be determined in accordance with Article 131 (4) of the Act.Documenting of Damages and Interest of Compensatory NatureArticle 84. No tax document shall be issued for documentation of damages and interest of compensatory nature and the latter shall be documented by issuing a document certifying payment thereof.Chapter SixteenSUPPLIES UNDER SPECIAL ARRANGEMENTS FOR TAXINGSection IServices to TouristsArticle 85. (1) The tax on the supply of single service to tourists in the cases referred to in Article 136 of the Act shall be determined in accordance with the following formula: TA is the total amount, which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;PTot - the total taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist;RT- the rate of tax at 20%.(2) Where the provision of Article 140 of the Act applies, the tax shall be determined according to the following formula: TA is the total amount, which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;PTot - the total taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist;RT- the rate of tax at 20%.F - a factor rounded up to the second digit after the decimal place and determined in accordance with the following formula: P is the total of the taxable amounts and the tax on the supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist and whose place of transaction is within the territory of third countries and territories.(3) (New, SG No. 101/2006) The rounding shall be made in accordance with the following rule:0,120 0,125 0,121 0,126 0,122 = 0,12 0,127 = 0,130,123 0,128 0,124 0,129 Documenting of Supply of Single Service to TouristsArticle 86. (1) Tour operators and travel agents shall document the supplies of single service to tourists provided thereby, including advance payments received on such supplies, by issuing invoices and advices to invoices wherein no tax shall be stated.(2) Invoices under Paragraph 1 shall be issued within 5 days from the date of payment (full or partial advance payment) or from the date of occurrence of the chargeable event for the supply, and advices to invoices under Paragraph 1, within 5 days from the alteration of the total amount which the tour operator or the travel agent has received or will receive from the customer or the third party for the supply.(3) (Amended, SG No. 101/2006) The invoices and advices to invoices under Paragraph 1 shall be recorded in the sales log for the tax period in which they are issued and the information in columns 9 - 25 of appendix № 10 shall not be completed.(4) (New, SG No. 101/2006) For supplies of services to tourists the tour operator or the travel agent shall prepare a report on sales effected in the tax period under Article 120 (1) of the Act , which shall not be included in the sales log.Charging of TaxArticle 87. (1) Upon occurrence of a chargeable event for the supply of single service to tourists the tour operator or the travel agent shall charge the tax for the supply of the single service to tourists effected by them by issuing a memorandum not later than 5 days from the occurrence of the chargeable event.(2) Besides the requisites under Article 117 (2) of the Act the memorandum under Paragraph 1 shall furthermore contain number and date of the tax documents issued in connection with the supply.(3) In case of alteration of the taxable amount of the supply in respect of which a memorandum under Paragraph 2 is issued, the correction shall be made within 5 days from the occurrence of the alteration, whereby a correction memorandum shall be issued, which shall satisfy the provisions of Article 117 (4) of the Act .(4) (Amended, SG No. 101/2006) The memorandums under Paragraphs 2 and 3 shall be recorded in the sales log for the relevant tax period and the information in columns 9 - 25 of appendix № 10 shall be completed in respect thereof.Section IISupply of Second-Hand Goods, Works of Art, Collectors'Items and AntiquesSupply of Second-Hand Goods, Works of Art, Collectors'Items and AntiquesArticle 88. (1) (Previous wording of Article 88, SG No. 101/2006) The tax on the supply of goods under special arrangements for taxing the margin under Chapter Seventeen of the Act shall be determined according to the following formula: T is the tax due for the supply;Ps - the total amount which the taxable dealer has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses for packing, transport, commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts granted;Pp - the amount which has been paid or will be paid for the goods received by the persons under Article 143 (1) and (3) of the Act , including the tax under the Act, and where the goods are imported, the taxable amount upon importation, including the tax under the Act;RT - the rate of the tax applicable to the supplies under Chapter Seventeen of the Act.(2) (New, SG No. 101/2006) The right of option under Article 143 (3) of the Act shall be exercised by means of submission of a notification according to a standard form set out in Appendix No. 23.Documenting of SuppliesArticle 89. (1) (Supplemented, SG No. 16/2007, effective 20.02.2007) Taxable dealers shall document the supplies effected thereby under special arrangements for taxing the margin by issuing invoices and advices to invoices wherein "Article 143 of the Act " shall be stated. The taxable amount and tax shall not be stated in the invoices and advices thereto.(2) (Amended, SG No. 101/2006) The invoices and advices to invoices under Paragraph 1 shall be recorded in the sales log for the relevant period and the information in columns 9 - 25 of appendix № 10 shall not be completed.Charging of TaxArticle 90. (1) At the end of every tax period the taxable dealers shall charge the tax for the supplies under Chapter Seventeen of the Act effected thereby by issuing a memorandum.(2) The memorandum under Paragraph 1 shall contain the following information:1. number and date;2. name, identification number and VAT identification number of the issuer;3. tax period;4. description of the goods - second-hand, works of art, collectors' item or antique;5. purchase price of the goods under Item 4;6. selling price of the goods under Item 4;7. difference between the total amount of the selling prices under Item 6 for the period and the total amount of the purchase prices under Item 5 for the period;8. tax charged for the period.(3) A separate memorandum shall be issued for sales upon public auction.(4) (Amended, SG No. 101/2006) The memorandums under Paragraphs 2 and 3 shall be recorded in the sales log for the relevant tax period and the information in columns 9 - 25 of appendix № 10 shall be completed in respect thereof.Credit for Input TaxArticle 91. Where the taxable dealer has not exercised the right under Article 143 (3) of the Act, the right to deduct credit for input tax for imported and acquired goods under Items 1 and 2 of Article 143 (3) shall occur and shall be exercised according to the standard procedure of the Act.Annual AdjustmentArticle 92. (1) Where the credit for input tax under Article 147 (1) of the Act used during the year exceeds the tax charged during the year on the supplies under Chapter Seventeen of the Act, a tax to the amount of the excess shall be chargeable from the registered dealer.(2) In the cases of Paragraph 1 the excess shall be declared in the VAT return for the last tax period as annual adjustment in cell 43 of appendix № 13 for the last tax period.Average Margin of DealerArticle 93. (1) (Amended, SG No. 101/2006) The average margin of a dealer shall be determined on the basis of effected supplies under Chapter Seventeen of the Act for the last 12 months preceding the date of deregistration of the dealer in accordance with the following formula: AM is the average margin of the dealer rounded up to the second digit after the decimal place;TPS - the total amount of PS under Article 88 for the period;TPP - the total amount of PP under Article 88 for the period;(2) The tax upon deregistration of a dealer shall be determined in accordance with the following formula: T is the tax due on the occasion of the dealer's deregistration on available second-hand goods, works of art, collector's items and antiques;PP - the amount which has been paid or will be paid for the available goods, including the tax under the Act, and where the goods are imported, the taxable amount upon importation, including the tax under the Act;AM - the average margin determined in accordance with Paragraph 1;RT - the rate of the tax applicable to the supplies under Chapter Seventeen(3) The dealer shall be liable for tax under the standard procedure of the Act upon deregistration for the available assets in respect of which no tax has been charged under Paragraph 2.Sales ReportArticle 94. (1) In the cases referred to in Article 151 (6) of the Act for supplies in respect of which special arrangement of taxing has been applied under Chapter Seventeen of the Act , the taxable dealer shall prepare a sales report for the tax period under Article 120 (1) of the Act .(2) The report under Paragraph 1 shall not be included in the sales log.(3) The supply of goods other than those referred to in Paragraph 1 shall be reported under the standard procedure of the Act.Section IIISupplies of Services Supplied Electronically by Persons Who Are NotEstablished within Community.Electronic Application for Registration and DeregistrationArticle 95. (1) In the cases of registration under Article 152 of the Act and of deregistration under Article 153 (1) of the Act the persons shall submit electronically to the National Revenue Agency territorial directorate - Sofia, an application for registration, deregistration respectively.(2) The requisites, the format and the manner of sending electronic applications under Paragraph 1 shall be announced on the website of the NRA.Electronic RegisterArticle 96. (1) Any person registered under Article 152 of the shall be obligated to prepare and keep an electronic register for the supplies effected thereby under Chapter Eighteen of the Act.(2) The parameters and requirements to the structure of data in the electronic register under Article 120 (3) of the Act shall be in accordance with appendix № 18.DeclarationArticle. 97. The VAT return for every tax period under Article 157 (2) of the Act shall be prepared and submitted by the registered person under Article 119.Section IVInvestment GoldRight of OptionArticle 98. (1) Where the supplier wishes to exercise the right under Article 160 (2) of the Act, the said supplier shall state this, including in the tax document issued for the supply the wording "Article 160 (2) of the Act applies to this supply and in accordance with Item 2 of Article 161 (1) of VAT Act the tax will be charged from the recipient in the amount of ..... (the amount of VAT shall be specified)".(2) In the cases of Paragraph 1 the tax shall be charged from the recipient of the supply who is a person registered under the Act.Supply of Gold Materials and Semi-manufactured ProductsArticle 99. (1) Notwithstanding Article 82 (1) of the Act, the tax on the supply of gold materials or semi-manufactured products of a purity of 325 thousandths or greater shall be charged from the recipient who is a person registered under the Act.(2) In the cases referred to in Paragraph 1 the supplier shall state in the tax document issued the wording "Pursuant to Item 1 of Article 161 (1) of VAT Act the recipient shall charge VAT in the amount of ..... (the amount of VAT shall be specified)".Charging of TaxArticle 100. (1) In the cases under Article 98 (2) and Article 99 (1) the tax shall be charged from the recipient by issuing a memorandum under Article 117 (2) of the Act.(2) The memorandum under Paragraph 1 shall be issued within 5 days effective as from the date on which the tax on the supply became chargeable.(3) In the cases of change of the taxable amount of the supply the change shall be documented by the recipient by issuing a memorandum under Article 117 (4) of the Act.(4) The memorandums under Paragraphs 1 and 2 shall be recorded in the sales log for the relevant tax period.(5) (New, SG No. 101/2006) The report on sales effected in the tax period under Article 120 (1) of the Act shall not be included in the sales log.Section VSpecial Arrangements for New Means of TransportReturn on Intra-Community Supply or Intra-Community Acquisition of NewMeans of Transport by Persons Who Are Not RegisteredArticle 101. (1) Any person not registered under the Act, who effects an intra-Community acquisition of a new means of transport referred to in Article 13 (2) of the Act or effects an incidental intra-Community supply of a new means of transport referred to in Article 7 (2) of the Act, shall be obligated to declare the intra-Community acquisition or the incidental supply as effected by submitting a return in a standard form - appendix № 19.(2) The return shall be submitted within 14 days after the lapse of the tax period during which the tax on the acquisition or the supply became chargeable. The return shall be submitted at the competent National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.(3) Enclosed to the return under Paragraph 1 shall be a copy of the document issued by the supplier, which shall contain the requisites under Items 3 - 15 of Article 114 (1) of the Act.Remittance of Tax upon Intra-Community Acquisition of New Means ofTransport by a Person Who Is Not RegisteredArticle 102. (1) The tax due on an intra-Community acquisition shall be remitted by the person under Article 101 within 14 days after the lapse of the tax period during which the tax on the acquisition became chargeable.(2) The tax shall be remitted to Executive Budget Revenue by crediting an account of the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.Refund of Tax upon Subsequent Intra-Community Supply of aNew Means of Transport by a Person Who Is Not RegisteredArticle 103. (1) The right to refund tax under Article 168 (5) of the Act shall be exercised whereby the person who effects an intra-Community supply of the new means of transport shall specify the amount of the input tax claimable in the return for the intra-Community supply under Article 101 (1).(2) In the cases under Paragraph 1, the following documents shall be enclosed to the return:1. a copy of a document certifying the acquisition of the new means of transport:(а) an invoice satisfying the requirements of Article 114, where the means of transport is purchased within the territory of the country, or(b) a customs declaration, a customs document respectively, certifying the completion of customs clearance, where the means of transport is imported,(c) a document issued by the supplier which shall contain the requisites under Items 3 - 15 of Article 114 (1) of the Act , where the means of transport is acquired through an intra-Community acquisition;2. a copy of a payment document certifying that the tax has been remitted to Executive Budget Revenue, where the means of transport is acquired through importation or intra-Community acquisition;3. documents certifying dispatch or transportation of the means of transport from the territory of the country to the territory of another Member State:(а) a transport document or a written confirmation by the recipient or a person authorized thereby, certifying that the means of transport has been received within the territory of another Member State, where the transport is at the expense of supplier or the recipient, but has been carried out by a third party, or(b) a transport document or a written confirmation by the recipient or a person authorized thereby, certifying that the means of transport has been received within the territory of another Member State, where the transport has been carried out by the supplier, or(c) a written confirmation by the recipient, certifying that the means of transport has been received within the territory of another Member State, where the transport has been carried out by the recipient;4. a declaration (free wording) signed by the recipient wherein the recipient certifies:(а) that the recipient acquires a new means of transport within the meaning of Item 17 of 1 of the supplementary provision of the Act;(b) that the recipient is aware that the intra-Community acquisition of the means of transport is subject to declaration and taxation in the Member State where the means of transport is dispatched/transported;5. a document issued by an after-sales service establishment, insurance company or a competent government authority (ministry, agency, etc.) certifying that the means of transport is new within the meaning of Item 17 of 1 of the supplementary provision of the Act .(3) The tax under Paragraph 1 shall be refunded within 2 months from submission of the return and the documents enclosed thereto.Intra-Community Acquisition and Intra-Community Supply ofNew Means of Transport by Persons Registered under the ActArticle 104. (1) (Previous wording of Article 104, SG No. 101/2006) Any person registered under the Act who effects an intra-Community supply of a new means of transport under Article 7 (2) of the Act (incl. incidental) or intra-Community acquisition of a new means of transport under Article 13 (2) of the Act shall apply the general provisions for taxation of intra-Community supplies and intra-Community acquisitions.(2) (New, SG No. 101/2006) The invoices issued by the persons under Paragraph 1 shall be recorded in the VIES return for the relevant tax period provided that the recipient is registered for VAT purposes in another Member State.(3) (New, SG No. 101/2006) In the cases of Paragraph 1 where the recipient on the supply is a person not registered for VAT purposes in another Member State, the invoices under Paragraph 1 shall not be recorded in the VIES return.Chapter SeventeenTAX EXEMPTION AND REFUND IN SPECIAL CASESSection IExemption upon ImportationImportation Exempted by Virtue of International TreatiesArticle 105. (1) Where an international treaty whereto the Republic of Bulgaria is a signatory, ratified and promulgated according to the relevant procedure, provides for exemption of the importation from taxes, levies or other charges (payments, duties) having an effect equivalent to an indirect tax, including where such treaties are financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government, exemption shall be granted by means of a written confirmation by the authority coordinating the performance of the contract to the regional customs directorate in whose structure the customs office carrying out the customs clearance of the specific supply is.(2) The written confirmation shall contain:1. the name, date of promulgation and date of entry into force of the international treaty, agreement, accord, convention, etc., in connection with which a contract is entered into with the importer, and the grounds for exemption;2. the name of the programme or project financed with funds in implementation of the international treaty under Item 1;3. the number, date and subject of the contract entered into for implementation of the international treaty and according to which the person under Item 4 is the importer, and the assignor is the coordinating authority under Paragraph 1;4. the company name, registered address, registered office, identification number (for non-resident person - identification number in the country in which it is a resident person) of the importer under the contract referred to in Item 3;5. type, quantity and value of the imported goods in connection with the performance of the contract referred to in Item 3;6. information about the persons authorized to sign contracts or effect payments with funds granted under the international treaty.(3) Copies of all documents necessary for the customs clearance of the goods shall be enclosed to the written confirmation under Paragraph 1.(4) The authority coordinating the performance of the international treaty shall notify in writing the Head Office of the National Customs Agency about the persons authorized to sign the written confirmations under Paragraph 1 and shall send a copy of the contract entered into in implementation of the international treaty.(5) The director of the regional customs directorate shall make inspection on compliance with the requirements for tax exemption on the basis of the relevant written confirmation.(6) Where in the course of an inspection it is established that the requirements for exemption exist, the director of the regional customs directorate shall notify the head of the customs office in charge of the customs clearance that the grounds for exemption from tax upon importation exist. The notification shall also be sent to the authority coordinating the performance of the international treaty.(7) Where the requirements for exemption are not satisfied, the director of the regional territorial directorate shall notify the authority coordinating the performance of the international treaty thereof.Exempted Importation of Goods by Armed Forces of Other StatesWhich Are Parties to North Atlantic TreatyArticle 106. (1) Exempted importation shall be the importation of goods imported by the armed forces of other states which are parties to the North Atlantic Treaty for use by such armed forces or by the civilian staff accompanying them, or for supplying their messes or canteens, where such forces take part in the common defence effort of the North Atlantic Treaty within the territory of the country.(2) Exemption under Paragraph 1 shall be granted by virtue of a Manifest NATO 302, certified in accordance with NATO procedures.Section IIExempted Supplies by Virtue of International TreatiesProcedure for Receiving Opinion on Application of Zero RateArticle 107. (1) In respect of supplies which are exempted from value added tax by virtue of international treaties, accords, agreements, conventions etc. whereto the Republic of Bulgaria is a signatory, ratified and promulgated according to the relevant procedure, a zero rate of tax shall apply, including in respect of the part of the supply financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) Any person registered under the Act who is the main contractor under the contract referred to in Item 3 of Paragraph 3 shall submit a written request for confirmation of the existence of grounds for application of the arrangement under Article 173 (1) of the Act to the National Revenue Agency territorial directorate - Sofia.(3) The request under Paragraph 2 shall contain:1. the name, date of promulgation and date of entry into force of the international treaty, agreement, accord, convention, etc., which provide for exemption of taxable supplies from value added tax or a tax, levy or charge with equivalent to an indirect tax effect;2. the name of the programme or project in connection with which the supplies are effected, in respect of which confirmation of existence of the grounds for application of the arrangement under Article 173 (1) of the Act is required.3. (supplemented, SG No. 16/2007) a certified by the main contractor copy of the contract entered into in implementation of a programme or project under Item 2 by virtue of which the taxable person is the main contractor and the coordinating authority is the assignor or recipient;4. the company name, registered address, registered office , identification number, VAT identification number of the person which is the main contractor under the contract referred to in Item 3;5. the name, registered address, registered office, identification number of the coordinating authority under Item 3 and where the latter is a non-resident person, the name, registered address, and registered office.(4) Within 14 days from receipt of the request the National Revenue Agency territorial directorate - Sofia shall send to the registered person confirmation of existing grounds to use the arrangement under Article 173 (1) of the Act.(5) Within the meaning of this Section, the coordinating authority is a Bulgarian or non-resident legal person or organisation, receiving supplies of goods and/or services under the contract under Item 3 of Paragraph 3 and implementing a programme or project financed within the framework of an international treaty, accord, agreement, convention or another instrument.(6) The status of the coordinating authority under paragraph 5 shall be certified at the National Revenue Agency Territorial Directorate - Sofia by issuing a document in writing signed by the persons designated by each government to implement the respective international treaty, accord, agreement, convention or another instrument.(7) Within the meaning of this Section, the main contractor is a person who is the supplier of goods and/or services under the contract under Item 3 of Paragraph 3, under which the coordinating authority is the assignor.(8) The zero rate under Article 173 (1) of the Act shall be allowed only in respect of supplies effected by the main supplier(s).Obligations of the Coordinating AuthorityArticle 108. (1) The persons appointed by the relevant State to implement the relevant international treaty, accord, agreement, convention or another instrument shall certify said circumstance by a document to the National Revenue Agency Territorial Directorate - Sofia.(2) By the 15th day of the month following every quarter of the calendar year the persons under Paragraph 1 or the coordinating authorities within the meaning of Article 107 (5) of the Act shall submit at the National Revenue Agency Territorial Directorate - Sofia information about:1. contracts under Item 3 of Article 107 (3) entered into in the respective period, together with the data under Article 107 (3) of the Act about the parties to every contract, as well as the name of the programme or project in implementation of which the contracts have been entered into;2. the persons authorized to sign contracts or effect payments under a programme or project;3. total amount of agreed and paid funds under contracts entered into under Item 3 of Article 107 (3) for purchase of goods and services in Bulgaria as well as under every separate contract;4. manner of financing the supplies.Section IIIExempted Supplies in Which Recipients are Armed Forcesof Other States or Institutions of the European UnionCertification of Supplies Liable to Tax at Zero RateArticle 109. (1) Liable to tax at zero rate shall be the goods and services in which recipients are:1. the armed forces of other states which are parties to the North Atlantic Treaty, or2. institutions of the European Union.(2) For application of the zero rate under Paragraph 1 the supplier shall hold a certificate of tax exemption in a standard form - appendix № 21 - certified by the National Revenue Agency Territorial Directorate - Sofia, and an invoice on the supply.Procedure for Certification of the CertificateArticle 110. (1) The persons under Article 109 (1) shall submit at the National Revenue Agency Territorial Directorate - Sofia the appendix under Article 109 (2) in two counterparts before effecting the purchases.(2) The territorial directorate under Paragraph 1 shall certify the counterparts and shall keep one of the counterparts and the other one shall be submitted to the person.(3) The territorial directorate under Paragraph 1 shall keep a register of the certified certificates under Paragraph 2.Requirements to Forms of CertificateArticle 111. The form of the certificate under Article 109 (2) shall satisfy the following requirements:1. to be white with size 210 mm x 297 mm with maximum deviation in length of - 5 mm or +8 mm;2. to be printed on paper satisfying the requirements set out in the Official Journal of the European Communities № C 164/3 of 1.07.1989.Chapter EighteenREPORTING AND DECLARATIONSection IReports and LedgersSales LogArticle 112. (1) In respect of supplies for which no invoice is issued on the grounds of Article 113 (3) of the Act the supplier who is a registered person under the Act shall prepare a sales report, which shall contain consolidated information on the supplies for the relevant tax period.(2) The report under Paragraph 1 shall be prepared on the last day of the tax period at the latest.(3) The sales report under Paragraph 1 shall describe:1. the total sum of the taxable amounts and the sum total of the tax on the taxable supplies - separately according to the rate of tax (20%, 7%, 0%, respectively);2. the sum total of the taxable amounts of exempt supplies;3. (supplemented, SG No. 101/2006) the sum total of the taxable amounts of supplies other than those under Item 2, on which no tax shall be charged (with right to credit for input tax, without right to credit for input tax respectively).(4) (Amended, SG No. 101/2006) The supplier shall record the sales report under Paragraph 3 in the sales log, by completing columns 01 - 05 and 9 - 25 of appendix № 10.(5) The report under Paragraph 1 shall not describe the supplies on which tax is charged by the supplier with a memorandum in accordance with the provisions of the Act and these Regulations."Sales Log", "Purchases Log", and "Intra-Community Suppliesof New Means of Transport Ledger" Ledgers of Account(Title amended, SG No. 101/2006) Article 113. (1) Registered persons shall mandatorily keep the ledgers under Article 124 (1) of the Act: a purchases log and a sales log containing information of all issued and received tax documents and reports, which shall be issued in accordance with the provisions of the Act or these Regulations.(2) Registered persons shall keep the ledger under Paragraph 1 "Sales Log" in a standard form - appendix No. 10 - regardless of the type and form of their accounting systems.(3) (Supplemented, SG No. 101/2006) Registered persons shall keep the ledger under Paragraph 1 "Purchases Log" in a standard form - appendix No. 11 - regardless of the type and form of their accounting systems. Registered persons on the grounds of Articles 99 and 100 (2) of the Act are not required to keep mandatorily a purchases log. In these cases the purchases log submitted by the person on a magnetic data storage medium shall contain one single entry with values "zero" for numerical fields and "interval" for symbol fields.(4) Registered persons shall furthermore submit the information under Paragraph 1 on a magnetic or optical data storage medium, electronically respectively, according to parameters and requirements to files set out in appendix No. 12.(5) Information from ledgers of account shall be used for completion of VAT returns and VIES returns under the Act.(6) Data in the ledgers of account on a paper-based medium shall coincide completely with data submitted on the magnetic or optical data storage medium.(7) The data to be completed and submitted in the sales log and purchases log shall provide all the information contained in appendix No. 10 and appendix No. 11 respectively.(8) The information with the data to be submitted on a magnetic or optical data storage medium together with the VAT return and VIES return for the respective period shall provide all the information contained in appendix No. 10 and appendix No. 11.(9) (Amended, SG No. 101/2006) Where the sum of the taxable amounts of taxable supplies for a tax period in the documents included by the registered person in the purchases log or in the sales log exceeds BGN 1,000, the registered person shall have the right not to submit the ledgers of account on a paper-based medium.(10) (Amended, SG No. 101/2006) The right under Paragraph 9 shall be exercised and the registered person together with the VAT return for the relevant tax period shall file a request in writing (free wording) to the director of the relevant National Revenue Agency territorial directorate.(11) (New, SG No. 101/2006) Upon submission of the ledgers of account under Paragraphs 2 and 3 the following columns are not required to be printed mandatorily:1. subject of the supply and name of counterparty, and2. the columns which contain only blank fields.(12) (New, SG No. 101/2006) The registered person who is an intermediary in a triangular operation shall record the invoice issued by the transferor in the triangular operation in the purchases log for the tax period during which the invoice for the supply has been recorded by the intermediary to the acquirer in the triangular operation. In these cases columns 9 - 14 shall not be completed and in column "type of document" code "09" shall be indicated, and in column "TA upon acquisition of goods by an intermediary in a triangular operation" shall be stated the taxable amount in BGN specified in the invoice issued by the transferor in the triangular operation. Said taxable amount shall not be taken into account in the calculation of the net result for the period.(13) (New, SG No. 101/2006) Registered persons who in the calendar quarter have effected intra-Community supplies of new means of transport the recipients whereof are persons not registered for VAT purposes in other Member States, shall record the supplies effected in the calendar quarter in an intra-Community supply of new means of transport ledger.(14) (New, SG No. 101/2006) The persons shall provide information from the ledger under Paragraph 13 on a magnetic or optical data storage medium by the 14th day of the month following the calendar quarter for which it refers.(15) (New, SG No. 101/2006) The parameters and requirements to the structure of data in the ledger under Paragraph 13 shall be in compliance with appendix No. 22.(16) (New, SG No. 101/2006) Supplies with place of transaction outside the territory of the country, which have not been equalized to taxable ones within the meaning of Article 69 (2) of the Act , as well as supplies and activities outside the independent economic activity of the person shall be recorded in the ledgers of account as exempt supplies.Requirements to Magnetic and Optical Data Storage MediumsArticle 114. (1) (Amended, SG No. 101/2006) Magnetic and optical data storage mediums, as well as electronically submitted data from ledgers of account shall contain a set of the following files: Deklar, PRODAGBI, POKUPKI.(2) Any of the files under Paragraph 1 shall have the format of a standard ASCII text file with "txt" extension.(3) The files under Paragraph 1 shall be furthermore prepared and submitted in the cases where they do not contain information.(4) The files under Paragraph 1 shall cover only one tax period concerning the tax period for which the VAT return is submitted.(5) The National Revenue Agency territorial directorates shall not accept magnetic or optical data storage mediums which do not satisfy the parameters set out in appendix No. 12.(6) The National Revenue Agency territorial directorate shall draw up and submit a protocol certifying acceptance or refusal to accept the magnetic or optical data storage medium.(7) If no acceptance protocol under Paragraph 6 is issued, it shall be considered that the registered person has not submitted the information from the ledgers of account on a magnetic or optical data storage medium.(8) (Amended, SG No. 101/2006) Upon established inconsistencies between data submitted in the VAT return and data in the ledgers of account under Article 124 of the Act submitted on a magnetic or optical data storage medium thereto, the person submitting the data shall be asked to remove the inconsistencies within 7 days. To certify the circumstances referred to in this Paragraph the National Revenue Agency territorial directorate shall prepare and send a message.(9) (Supplemented, SG No. 101/2006) In the cases of Paragraph 8 the VAT return shall be considered to be submitted upon removal of the inconsistency upon submission of a correct VAT return and this shall not result in modification of the legally prescribed time limit for its submission and payment of the debt.Section IIDeclaration of Tax and VAT ReturnsDeclaration of TaxArticle 115. (1) Any registered person shall submit, as stated in this Section, a VAT return under Article 125 (1) of the Act, a VIES return under Article 125 (2) of the Act and a return on the supply of services supplied electronically under Article 157 (2) of the Act .(2) Tax periods for reporting of tax and time limits for submission of returns under Paragraph 1 are stipulated by the Act.(3) Determination, declaration and reporting of tax shall be effected by issuing the relevant standard forms set out in these Regulations.(4) Declaration under the terms of Paragraph 1 shall be effected by submission of the relevant standard form on a paper-based medium, as well as on a magnetic or optical data storage medium where this is required by the Act.(5) Paragraph 4 shall not apply in the cases of submission of returns electronically under the terms and procedure of the Tax and Social-Insurance Procedure Code.(6) Returns under Paragraph 1 shall be submitted in person at the competent National Revenue Agency territorial directorate by the person representing the registered person or a person authorized thereby.(7) The person shall mandatorily complete all data required in the standard forms of the returns and the ledgers of account under this Chapter. In case a field describing value is blank (shall not be completed according to the provisions of the Act and these Regulations) a zero value shall be specified.(8) Returns under Paragraph 1 shall be completed in Bulgarian.(9) (Amended, SG No. 101/2006) Returns under Paragraph 1 shall be published in Bulgarian on the website of the NRA.(10) Correction of errors in the VAT return and VIES return shall be effected in accordance with the terms of Article 126 of the Act.VAT ReturnArticle 116. (1) Any registered person shall be obligated to submit a VAT return under Article 125 (1) of the Act in a standard form - appendix № 13 - for every tax period.(2) A VAT return under Paragraph 1 shall furthermore be submitted in the cases where no tax is payable or claimable, as well as in the cases where the registered person has not effected or received supplies or acquisitions or has not effected importation for said tax period.(3) The registered person shall submit the return under Paragraph 1 at the competent National Revenue Agency territorial directorate for every tax period for which it refers.(4) The registered person shall submit at the competent National Revenue Agency territorial directorate the ledgers of account under Article 124 (1) of the Act together with the VAT return under Paragraph 1.VIES ReturnArticle 117. (1) The VIES return shall be prepared in a standard form - appendix № 14.(2) The return shall contain the following data:1. data about the registered person - name/company name, VAT identification number, address for correspondence;2. data about the person submitting the return - name, PIN/Personal Number of Non-resident, address for correspondence;3. tax period for which the return is submitted in format: mm/yyyy;4. (amended, SG No. 101/2006) sum total of taxable amounts of:(a) all effected intra-Community supplies of goods the recipients whereon are persons registered for VAT purposes in another Member State;(b) supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, the recipients whereon are persons registered for VAT purposes in another Member State;(c) supplies as an intermediary in a triangular operation;5. (amended, SG No. 101/2006) taxable amount of intra-Community supplies of goods, whereby recipients are VAT registered persons in another member state.6. (amended, SG No. 101/2006) total number of declared lines;7. (amended, SG No. 101/2006) VAT identification number of the recipient/acquirer, including the sign of the Member State under ISO 3166;8. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected intra-Community supplies of goods to one registered person for VAT purposes in another Member State;9. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected supplies of services under Article 21 (3) and Articles 22 -24 of the Act to one registered person for VAT purposes in another Member State;10. (amended, SG No. 101/2006) the sum total of the taxable amounts of effected supplies as intermediary in triangular operations to one registered person for VAT purposes in another Member State;11. (new, SG No. 101/2006) the tax period in which the tax on the supplies under Items 8 - 10 became chargeable in case said period is different from the tax period under Item 3.(3) (Amended, SG No. 101/2006) Intra-Community supplies of goods on which the person is supplier, supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, as well as supplies as intermediary in a triangular operation shall be mandatorily recorded in the ledgers of account .(4) (Amended, SG No. 101/2006) The VIES return shall be prepared on the basis of the consolidated data from the ledgers of account under Article 124 (1) of the Act, excluding intra-Community supplies of goods and supplies of services under Article 21 (3) and Articles 22 - 24 of the Act, with place of transaction within the territory of another Member State the recipients whereon are persons not registered for VAT purposes.(5) (Amended, SG No. 101/2006) Where in the tax period the registered person has not effected intra-Community supplies, supplies of services under Article 21 (3) and Articles 22 - 24 of the Act with place of transaction within the territory of another Member State, supplies as intermediary in a triangular operation and has not shown missing data for a previous tax period in accordance with Item 1 of Article 126 (3) of the Act, no VIES return shall be submitted.(6) The registered persons shall also submit the data under Paragraph 2 on a magnetic or optical data storage medium.(7) Data from the VIES return on a paper-based medium shall coincide completely with the data submitted on a magnetic or optical data storage medium.(8) (New, SG No. 16/2007) Submission of VIES return is not mandatory for supply of services under Article 21 (3) where the supply of the services with place of transaction within the territory of the country might be exempt.Requirements to Magnetic and Optical MediumsArticle 118. (1) The parameters of the data of the information from the VIES return, the information submitted on a magnetic or optical data storage medium as well as the requirements to the structure of the files submitted electronically are specified in appendix № 15.(2) The territorial directorates of the National Revenue Agency shall not accept magnetic or optical data storage mediums which do not satisfy the parameters set out in appendix № 15.(3) The territorial directorate of the National Revenue Agency shall prepare a protocol ascertaining the acceptance or refusal to accept the magnetic or optical data storage medium.(4) If no protocol under Paragraph 3 ascertaining the acceptance has been issued, it shall be deemed that the registered person has not submitted the information from the VIES return on a magnetic or optical data storage medium.(5) (Supplemented, SG No. 101/2006) The VIES return shall contain only one entry (line) with the consolidated data for all effected supplies to a given recipient/acquirer from a Member State for the current period, possessing a valid VAT identification number issued by the Member State.(6) Additional entries for the same recipient/acquirer are allowed only upon declaration of missing data for previous periods in accordance with Item 1 of Article 126 (3) of the Act.(7) Upon established inconsistencies between data submitted in the VIES return and data in the ledgers of account under Article 124 of the Act submitted on a magnetic or optical data storage medium thereto, the person submitting the data shall be asked to remove the inconsistencies within 14 days. To certify the circumstances referred to in this Paragraph the National Revenue Agency territorial directorate shall prepare and send a message.(8) In the cases of Paragraph 7 the VIES return shall be deemed to be submitted after removal of the inconsistency on submission of a correct VIES return.Return on Taxation of Supply of Services Effected Electronically byPersons Who Are not Established in the CommunityArticle 119. (1) Any registered person under Chapter Eighteen of the Act who effects supply of services effected electronically shall submit a return under Article 157 (2) of the Act in a standard form - appendix № 16.(2) The return shall be submitted electronically at the National Revenue Agency territorial directorate - Sofia under the terms and according to the procedure of the Tax and Social-Insurance Procedure Code.(3) The file with the information for the VAT return under Paragraph 1 submitted electronically shall satisfy the requirements set out in appendix № 17.(4) Data for the return under Paragraph 1 shall be completed on the basis of the consolidated data from the electronic register under Article 120 (3) of the Act.Exchange of Information with Foreign AdministrationsArticle 120. (1) (Amended, SG No. 101/2006) The information specified in the ledgers of account, the intra-Community supply of new means of transport ledger and the VIES return shall be exchanged with the administration of other Member States under the procedure, manner and time limits set out in Council Regulation (EC) № 1798/2003.(2) Exchange of information related to the levy of value added tax with the tax administrations of other Member States shall be effected under the terms of the Tax and Social-Insurance Procedure Code.Chapter NineteenOTHER OBLIGATIONSAccounting and Reporting of TaxArticle 121. (1) Registered persons shall keep documentation and accounts in conformity with the requirements of the Accountancy Act, the Value Added Tax Act and these Regulations.(2) Documentation and accounts shall be kept for taxable supplies, exempt supplies, supplies with place of transaction outside the territory of the country, intra-Community acquisitions, received supplies on which the person is the payer of the tax under Chapter Eight of the Act, and for importation.(3) Branches of registered persons shall keep accounts and maintain documentation as separately registered persons, without having any settlements with the budget.(4) Branches shall submit to the registered person the required information for completion of the VAT return, VIES return for the period and the information for the magnetic and data storage mediums.(5) Settlement with the budget for the value added tax shall be carried out by the registered person.(6) Branches of non-resident persons shall settle payments with the budget independently.(7) Registered persons shall calculate the net result for the tax period on the basis of the documents recorded in the ledgers for this tax period.(8) Any registered person shall keep a register of the goods under Items 8 - 10 of Article 7 (5) and Items 8 - 10 of Article 13 (4) of the Act, which shall provide the following information:1. type of dispatched/received goods;2. purpose of dispatch/receipt of goods;3. quantity of dispatched/received goods;4. Member State to/from which the goods have been dispatched/received;5. date of dispatch/receipt of the goods.SUPPLEMENTARY PROVISION 1. (1) (Former text of 1, SG No. 3/2007) For the purposes of this Regulations:1. "Identification number" shall mean:(а) the uniform identification code under the commercial register - of the persons entered in the commercial register;(b) the uniform identification code under BULSTAT - of the persons entered in the BULSTAT register;(c) the personal identification number or the personal number of a non-resident - of natural persons who are not entered in the commercial register or the BULSTAT register;(d) (amended, SG No. 101/2006) the official number under Article 84 (3) of the Tax and Social-Insurance Procedure Code for persons other than those under letters "a" - "c" and who are taxable persons under the Tax and Social-Insurance Procedure Code .2. " Third country" shall be a country outside the customs territory of the Community.3. "Third territory" shall be a territory which is part of the customs territory of the Community but is not part of the "territory of the Community" within the meaning of Item 3 of 1 of the supplementary provision of the Act.4. (New, SG No. 101/2006) VAT identification number under Article 94 (2) of the Act of the persons registered under the Act shall be the identification number under Item 1, in front of which the sign "BG" is written.(2) (New, SG No. 3/2007) Natural persons shall identify themselves for the purposes of the Act with the VAT identification number received upon registration thereof for all supplies carried out thereby constituting independent economic activity.(3) (New, SG No. 3/2007) Where a natural person receives a VAT identification number upon his registration in a capacity other than a sole trader and subsequently records himself as a sole trader, the said person shall be obliged to re-register and the VAT identification number for him shall be the number under "a" Item 1 of Paragraph 1, "b" respectively, received in the capacity of a sole trader, in front of which the sign "BG" shall be placed.(4) (New, SG No. 3/2007) Where a natural person receives a VAT identification number upon his registration in his capacity as a sole trader and subsequently deletes himself from the commercial register and the grounds for registration under the Act exist for him, the said person shall be obliged to re-register and the VAT identification number for him shall be the personal identification number, the personal number of a foreigner respectively, in front of which the sign "BG" shall be placed.(5) (New, SG No. 3/2007) Re-registration under Paragraphs 3 and 4 shall be made within 14 days from recording the relevant circumstance in the commercial register by filing a written notification to the relevant National Revenue Agency territorial directorate. The date of re-registration shall be the date of recording the relevant circumstance in the commercial register.TRANSITIONAL AND FINAL PROVISIONS 2. These Regulations shall supersede the Regulations of Application of the Value Added Tax Act (Promulgated State Gazette No. 19/1999, amended and supplemented, SG No. 55/1999, SG No. 9/2000, corrected, SG 15/2000, amended, Judgment No. 404/2001 of the Supreme Administrative Court - SG No. 12/2001, amended and supplemented, SG No. 15/2001, amended, SG No. 58/2001, amended and supplemented, SG No. 43/2002, SG No. 63/2002, SG No. 29/2003, SG No. 26/2004, SG No. 32/2005, SG No. 9/2006). 3. (1) (Amended, SG No. 101/2006) Registration certificates under Article 75 (1) shall be issued to the persons under 4 (1) of the transitional and final provisions of the Value Added Tax Act.(2) The certificates under Paragraph 1 shall be issued ex officio by the competent National Revenue Agency territorial directorate and shall be submitted to the persons within one month from entry into force of these Regulations.(3) Until submission of the certificate under Paragraph 2 the VAT identification number under Article 94 (2) of the Act shall be the identification number under Item 1 of 1 of the supplementary provision of these Regulations in front of which the sign "BG" shall be placed.(4) (New, SG No. 3/2007) For natural persons other than sole traders which upon their registration with the BULSTAT register have received uniform identification code other than the personal identification number, the VAT identification number shall be the personal identification number in front of which the sign "BG" shall be placed. 4. (1) For tax periods until entry into force of these Regulations the standard forms of documents provided in the superseded Regulations of Application of the Value Added Tax Act shall apply.(2) Together with the VAT return for the last tax period prior to the entry into force of these Regulations the persons shall submit on paper-based and magnetic data storage mediums the ledgers of account for the said last period.(3) The paper-based and magnetic data storage mediums submitted under Paragraph 2 shall comply with the format, parameters and requirements set out in Articles 91 and 92 and in appendix No. 10 of the superseded Regulations of Application of the Value Added Tax Act.(4) In the cases of 4 (5) of the transitional and final provisions of the Value Added Tax Act the registration inventory of the assets available at the registration date or the assets available at the re-registration date shall be submitted in a standard form - appendix No. 3, appendix No. 4 respectively of the superseded Regulations of Application of the Value Added Tax Act.(5) For the assets under Paragraph 4 the right to deduct credit for input tax occurs where the conditions of Chapter Twelve of the superseded Value Added Tax Act apply. 5. For presentation of the effected deduction of input tax claimable for the tax periods until entry into force of these Regulations a standard form appendix No. 5 of the superseded Regulations of Application of the Value Added Tax Act shall be completed and submitted. 6. The balance of the input tax claimable under 6 (3) of the transitional and final provisions of the Value Added Tax Act shall be stated in cell 80 of appendix No. 8 and in the statement on appendix № 5 of the superseded Regulations of Application of the Value Added Tax Act . 7. The sales report covering the tax periods prior to the entry into force of these Regulations shall be prepared in accordance with the provisions of Article 93 (5) of the superseded Regulations of Application of the Value Added Tax Act. 8. (1) Any registered person shall have the right to deduct the tax charged on the assets upon deregistration under Article 119 (3) of the superseded Value Added Tax Act , which are available at the date of said person's re-registration under the Value Added Tax Act .(2) The right under Paragraph 1 shall arise where the following conditions obtain simultaneously:1. available assets within the meaning of the Accountancy Act at the date of re-registration under the Value Added Tax Act have been charged upon the deregistration under Article 119 (3) of the superseded Value Added Tax Act;2. the tax charged upon the deregistration has been effectively paid or set off by the revenue authority;3. with the available assets under Item 1 the person has effected, is effecting or will effect taxable supplies within the meaning of Article 69 of the Act;4. the registration inventory in a standard form - appendix № 3, of the assets under Item 1 has been prepared at the date of re-registration and has been submitted not later than 7 days from the registration date;5. the assets under Item 1 have been acquired by the person up to 5 years, and for immovable things, up to 20 years before the date of re-registration under the Act.(3) In the cases where the asset under Paragraph 2 has been used, is used or will be used for both taxable and exempt supplies or for supplies or activities in respect of which no right to deduct credit for input tax exists, a right to deduct partial credit for input tax exists for the tax charged, calculated under the terms of Article 73 of the Act.(4) The right to deduct credit for input tax under Paragraph 1 shall be exercised in the tax period in which it occurred or in one of the following consecutive three tax periods and the relevant document under Article 71 of the Act shall be recorded in the purchases log for the relevant tax period.(5) The right to deduct credit for input tax under Paragraph 1 shall not occur and may not be exercised if the inventory under Item 4 of Paragraph 2 is submitted after the time limit under Item 4 of Paragraph 2. 9. (1) Where the time limit for submission of information under Article 120 (1) of the superseded Regulations of Application of the Value Added Tax Act expires after entry into force of these Regulations, commercial banks shall submit the information within 7 days from opening/closing of the "VAT account".(2) By the 14th day of the month following the month of entry into force of these Regulations, banks shall submit the information under Article 120 (2) and (3) of the superseded Regulations of Application of the Value Added Tax Act for the last calendar month preceding the month of entry into force of these Regulations. 10. Where an obligation for issuing a memorandum under the procedure of the superseded Regulations of Application of the Value Added Tax Act has arisen before entry into force of these Regulations and no such memorandum has been issued until entry into force of these Regulations, the person shall issue a memorandum, which shall satisfy the provisions of the Value Added Tax Act and these Regulations. 11. For goods and services received from other taxable persons for the direct benefit of the tourist and in respect of which the tour operator or travel agent have exercised their right to deduct credit for input tax before entry into force of these Regulations, no adjustment under the terms of Article 79 of the Value Added Tax Act shall be effected. 12. (Amended, SG No. 101/2006) (1) Notwithstanding 14 (1) of the transitional and final provisions of the Value Added Tax Act no tax shall be due upon execution of customs formalities regarding declaration of free circulation of goods where the following conditions obtain simultaneously:1. at the time of declaration the goods are under customs procedure and customs warehousing, inward processing under excise duty suspension arrangement, temporary importation with full or partial exemption from duty, or have the status of goods in temporary storage, or placed in a free zone or a free warehouse, and2. simultaneously with the declaration:(a) the goods leave the territory of the country to a third country or territory, or(b) the goods placed under temporary importation with full exemption from duty leave the territory of the country to the Member State from which they were exported (including the Republic of Romania) and the recipient is the person who exported them.(2) The provision of Article 16 (2) shall furthermore apply to the cases where goods have been temporarily exported from the territory of the country to the territory of a Member State or to the territory of the Republic of Romania before 31 December 2006 inclusive, for treatment, processing or repair under outward processing and said goods are imported again to the territory of the country after 1 January 2007 inclusive. 13. (New, SG No. 101/2006) The factor under Article 73 (5) of the Act for the previous 2006 shall be calculated according to the formula set out in Article 68 of the superseded regulations for the application of the Value Added Tax Act on the basis of all supplies effected in 2006. In determining the type of supplies the tax arrangement of the supplies at the date of occurrence of the chargeable event for them shall be taken into account. 14. (New, SG No. 101/2006) The numbering of the documents under Article 78, issued after 1 January 2007 inclusive, shall commence from "0000000001". 15. (New, SG No. 101/2006) (1) Introduction on the territory of the country of goods which were exported by 31 December 2006 inclusive from the territory of another Member State or from the territory of the Republic of Romania shall be considered importation of goods within the meaning of Article 16 of the Act.(2) In the cases of Paragraph 1 no intra-Community acquisition of goods shall exist. 16. (New, SG No. 101/2006) (1) No tax shall be charged on intra- Community acquisition of goods where the following conditions obtain simultaneously:1. the right of ownership over the goods is passed after 1 January 2007 inclusive;2. in respect of the goods a tax has been paid or charged upon importation of goods.(2) In the cases referred to in Paragraph 1, where the taxable amount of an intra-Community acquisition is higher than the taxable amount upon importation it shall be considered that an intra-Community acquisition of goods exists in respect of which the tax becomes chargeable under the Act and the difference shall be considered a taxable amount of the acquisition. 17. (New, SG No. 101/2006) (1) Where hoteliers, tour operators and travel agents have received advance payments by 31 December 2006 inclusive for supplies under chapter twenty one of the superseded Value Added Tax Act and in respect of such supplies after entry into force of the Act the provisions of Article 66 (2) or chapter sixteen of the Act apply, upon occurrence of a chargeable event the persons shall issue a tax document for the supplies in accordance with the procedures and time limits of the Act, stating:1. the total taxable amount for the supply formed in accordance with the Act;2. the amount of the rate of tax determined on the taxable amount under Item 1;3. the amount of the tax charged on advance payments by 31 December 2006 inclusive;4. the amount of the tax charged on advance payments after 1 January 2007 inclusive;5. the difference between the amount of the tax under Item 2 and the amount of the tax under Items 3 and 4.(2) In the cases referred to in Paragraph 1 the difference under Item 5 of Paragraph 1 shall be recorded in the sales log. 18. (New, SG No. 101/2006) The provisions of 9 of the transitional and final provisions of the Act shall furthermore apply to supply of goods under the terms of a financial lease contract in respect of which the tax procedure is changed upon entry into force of the Act from taxable to exempt supply or from exempt to taxable supply. For the instalments due after 1 January 2007 the tax procedure at the time of occurrence of the chargeable event under the Act shall apply. 19. (New, SG No. 101/2006) (1) Where an advance payment is received by 31 December 2006 inclusive, for a supply under chapter three of the Act and by 31 March 2007 the supplier has not obtained the documents certifying existence of circumstances under chapter four hereof, it shall be considered that the supply is taxable at a rate of 20 per cent.(2) In the cases referred to in Paragraph 1 a tax shall be charged on the supplier by issuing a memorandum under Article 117 (2) of the Act within 5 days, effective 31 March 2007.(3) Where the supplier obtains the required documents subsequently, said supplier shall correct the result of the application of Paragraph 2 in accordance with the terms of Article 39 (4) - (7) hereof. 20. (New, SG No. 101/2006) (1) Where an advance payment is received by 31 December 2006 inclusive for supply of goods or a service in respect of which the tax treatment is modified by the Act concerning the rate of tax, the place of transaction of the supply, equalisation of the supply to a taxable one under Article 69 (2) of the Act and the chargeable event for which occurs after said date, the supplier shall document the supply by issuing an invoice, stating the total taxable amount of the supply. The tax treatment at the date of occurrence of the chargeable event of the supply under the Act shall apply.(2) Where an advance payment is made by 31 December 2006 inclusive for supply of goods or a service the chargeable event for which occurs after said date and the tax on the supply is chargeable on the recipient under the terms of the Act and these Regulations, the recipient who is a registered person shall charge a tax on the total taxable amount of the supply, including the advance payment made.(3) Paragraph 2 shall not apply where a tax is charged on the advance payment under the repealed Value Added Tax Act. The provisions of the Act and these Regulations shall apply to the tax treatment of the supply, including any subsequent advance payments. 21. (New, SG No. 101/2006) These Regulations shall come into force on 1 January 2007.Regulations to Amend and Supplement the Regulationsfor Application of the Value Added Tax ActSG No. 16/20.02.2007, effective 1.01.2007TRANSITIONAL AND FINAL PROVISIONS 16. (1) The permits issued by the Minister of Finance under Article 58b of the repealed Value Added Tax Act shall survive for the term for which they were issued as permits under Article 166 of the Act. (2) Confirmations issued under the terms of Article 83 of the repealed Regulations for Application of the Value Added Tax Act shall survive in respect of the contracts for which they were issued. 17. These Regulations shall come into force on 1 January 2007 with the exception of з 11, which shall come into force on the date of promulgation of the Regulations in the State Gazette. - For more information visit www.solicitorbulgaria.com id: 339 Mon, 04 Aug 2008 07:04:24 -0700 http://solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act http://solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/REGULATIONS_FOR_APPLICATION_OF_THE_VALUE_ADDED_TAX_ACT.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-regulations-for-application-of-the-value-added-tax-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 340 Chapter ElevenDOCUMENTING SUPPLIESTax DocumentsArticle 112. (1) "Tax document," within the meaning given by this Act, shall be:1. the invoice;2. the advice to an invoice;3. the memorandum.(2) Tax documents can be issued manually or by automated mean.(3) In the event of theft, loss, damage or destruction of any tax documents, the registered person shall notify in writing the competent National Revenue Agency territorial directorate not later than 24 hours after learning of the relevant circumstance.Issuing InvoicesArticle 113. (1) Each taxable person who is a supplier shall be obligated to issue an invoice for a supply of goods or service effected thereby or upon receipt of an advance payment before effecting such a supply except in the cases where the supply is documented by a memorandum under Article 117 herein.(2) The invoice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.(3) An invoice may not be issued:1. for any supplies in which the recipient is a non-taxable natural person;2. for any supplies of financial services under Article 46 herein;3. for any supplies of insurance services under Article 47 herein;4. for sales of air tickets;5. upon supplies effected free of charge;6. for supplies of services under Chapter Eighteen herein.7. (new, SG No. 108/2006) for deliveries, performed by individuals not registered under this Act, other than sole proprietors, when for the deliveries made by them:a) a document is issued under the procedure of a special act, orb) a receipt about the paid amounts or a document under Article 9 from the Income Taxes on Natural Persons Act is issued, orc) the document issuance is not obligatory under the Income Taxes on Natural Persons Act. (4) The invoice shall mandatorily be issued not later than five days after the date of occurrence of the chargeable event for the supply, and in the cases of advance payment, not later than five days after the date of receipt of the payment.(5) Notwithstanding Paragraph (4), upon an intra-Community supply, including in the cases of advance payment, the invoice shall mandatorily be issued not later that the 15th day of the month following the month during which the chargeable event under Article 51 (1) herein occurred.(6) When issuing an invoice is not mandatory, it shall be issued upon the request of the supplier or of the recipient, with either party being obligated to render to the other party the cooperation necessary for the issuing.(7) The supplier may authorize in writing another person to issue invoices on behalf of the said supplier.(8) An invoice may not be issued in the cases referred to in Article 131 (1) herein.(9) Any taxable persons, who are not registered under this Act or are registered in pursuance of Article 99 and Article 100 (2) herein, shall not have the right to state the tax in the invoices issued thereby.(10) Where the registered person effects a taxable supply for which the said person has received an advance payment prior to the date of registration of the said person under this Act, the said person shall issue an invoice stating therein the full taxable amount of the supply.Requirements to InvoicesArticle 114. (1) An invoice shall mandatorily state:1. title of document;2. sequential ten-character number, containing only Arabic numerals, based on one or more series depending on the reporting needs of the taxable person, which identifies uniquely the invoice;3. date of issue;4. name and address of the supplier;5. supplier's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , where the supplier is a person not registered under this Act;6. forename, surname and signature of the drafter;7. name and address of the recipient of the supply.8. recipient's identification number referred to in Article 94 (2) herein or, respectively, the number referred to in Article 84 of the Tax and Social Insurance Procedure Code, where the recipient is a person not registered under this Act, identification number for VAT purposes, where the recipient is registered in another Member State, another number for identification of the person, where such a number is required according to the legislation of the State where the recipient is established;9. quantity and type of the goods, type of the service;10. date on which the chargeable event for the supply occurred, or date on which the payment was received;11. unit price net of the tax and the taxable amount of the supply, as well as any trade discounts and rebates allowed, unless included in the unit price;12. rate of the tax and, when the rate is zero, the grounds for application of the said rate, as well as the grounds for not charging tax;13. amount of tax;14. amount payable, if other than the sum of the taxable amount and of the tax;15. the circumstances which define the goods as a new means of transport: applicable to an intra-Community supply of new means of transport.(2) Where a person effects distance selling of goods, is registered for VAT purposes in another Member State, and the place of supply under the terms of distance selling is within the territory of that other Member State, in addition to the essential elements covered under Paragraph (1), the invoice shall mandatorily state:1. the person's identification number for VAT purposes issued by that other Member State;2. the rate of tax applicable to the supply in that other Member State;3. the amount of tax due on the supply.(3) When the registered person who is an intermediary in a triangular operation documents a supply of goods effected to the acquirer in the triangular operation, the invoice shall state "Article 28a (E) (3) [of the Sixth Council Directive] 77/388/EEC" as grounds for not charging tax.(4) Where the tax is chargeable from the recipient, the invoice shall not state the amount of tax and the rate of tax. In such case, the invoice shall expressly state that the tax is chargeable from the recipient, as well as the grounds for this.(5) The amount in the invoice may be stated in any currency, provided that the taxable amount and the amount of the tax are stated in Bulgarian leva complying with the requirements of Article 26 (6) herein.(6) Issued invoices may be dispatched on a paper-based medium or electronically. Invoices received electronically shall be accepted when the recipient has confirmed the receipt of the said invoices, provided that the authenticity of origin and the integrity of content are guaranteed.Debit and Credit AdvicesArticle 115. (1) Upon any change of the taxable amount of a supply or upon rescission of a supply on which an invoice has been issued, the supplier shall be obligated to issue an advice to the invoice.(2) The advice shall mandatorily be issued not later than five days after the occurrence of the relevant circumstance under Paragraph (1).(3) A debit advice shall be issued upon an increase in the taxable amount, and a credit advice shall be issued upon a decrease in the taxable amount or upon rescission of supplies.(4) In addition to the essential elements covered under Article 114 herein, an advice to the invoice shall mandatorily state:1. number and date of the invoice to which the advice is issued;2. grounds for issuing of the advice.(5) An advice shall be issued at least in duplicate: one copy for the supplier and one copy for the recipient.(6) Upon termination or rescission of a lease contract under Item 3 of Article 6 (2) herein, the supplier shall issue a credit advice on the difference between the taxable amount of the supply under Item 3 of Article 6 (2) herein and the amount which the said supplier is withholding pursuant to such contract, net of the tax under this Act.Adjustment of Invoices and AdvicesArticle 116. (1) No corrections and additions may be made in the invoices and the advices thereto. Any documents which have been erroneously drafted or corrected shall be cancelled and new documents shall be issued.(2) Any invoices and advices thereto, in which no tax is charged even though it should have been charged, shall likewise be deemed erroneously drafted documents.(3) Any invoices and advices thereto, in which tax is charged even though it should not have been charged, shall likewise be deemed erroneously drafted documents.(4) Where erroneously drafted documents or corrected documents are shown in the ledgers of accounts of the supplier or the recipient, a memorandum shall furthermore be drafted on the cancellation, with a copy for each of the parties, which shall state:1. the grounds for cancellation;2. number and date of the document which is being cancelled;3. number and date of the new document issued;4. signatures of the persons who drafted the memorandum for each of the parties.(5) All copies of the documents cancelled shall be kept with the issuer, and the said documents shall be accounted for by the supplier and the recipient according to a procedure established by the Regulations for Application of this Act.Issuing MemorandumsArticle 117. (1) A memorandum shall mandatorily be issued:1. (amended, SG No. 108/2006) in the cases referred to in Article 82 (2), (3), (4) and (5) and Article 84 herein: by the registered person who is a recipient of the supply;2. in the cases referred to in Article 57 herein: by the registered person who is an importer;3. in the cases referred to in Article 6 (3), Article 7 (4), Article 9 (3), Article 142 (1) and Article 144 (4) herein: by the registered person who is a supplier.4. (new, SG No. 108/2006) in the cases under Articles 161 and 163a - from the registered person - beneficiary under the delivery, when the supplier is a tax liable person that is not registered under the act.(2) A memorandum referred to in Paragraph (1) shall mandatorily state:1. number and date;2. (supplemented, SG No. 108/2006) name and identification number under Article 94, paragraph 2 of the person referred to in Paragraph (1);3. quantity and type of the goods or type of the service;4. date of occurrence of the chargeable event for the supply;5. taxable amount;6. rate of tax;7. grounds for charging of the tax by the person referred to in Paragraph (1);8. amount of tax.(3) (Amended, SG No. 108/2007) The memorandum shall be issued not later than 15 days after the date on which the tax became chargeable.(4) Upon any change of the taxable amount of a supply or upon rescission of a supply on which a memorandum has been issued, the person shall issue a new memorandum which shall mandatorily state:1. number and date of the initial memorandum issued on the supply;2. grounds for issuing the new memorandum;3. the increase/decrease in the taxable amount;4. the increase/decrease in the tax.(5) (Amended, SG No. 108/2007) The memorandum referred to in Paragraph (4) shall be issued not later than 15 days after the date on which the relevant circumstance under Paragraph (4) has occurred.Cash ReceiptsArticle 118. (1) Any person registered and any person not registered under this Act shall be obligated to register and report the supplies/sales effected thereby at a commercial outlet by means of issuing a fiscal cash receipt printed by a fiscal device, regardless of whether another tax document has been requested, and the recipient shall be obligated to receive the fiscal cash receipt and to keep it until he or she leaves the outlet.(2) The fiscal cash receipt (fiscal slip) shall be a paper document recording a sale/supply of goods or service at a commercial outlet which is paid for in cash, by cheque, by voucher, by bank credit or debit card, or by any other cash equivalents, issued using a commissioned fiscal device of an approved type, for which a registration certificate has been authenticated. The fiscal cash receipt (fiscal bill), issued by an Integrated Automated Commercial Activities Management System approved for the relevant commercial outlet, shall also be a fiscal cash receipt (fiscal slip).(3) The application of this Article, as well as the terms, procedure and manner for type approval, for type cancellation, for commissioning/ decommissioning, registration, reporting and service maintenance, expert examination and control of fiscal devices (electronic fiscal memory cash registers, fiscal printers and electronic fiscal memory systems for sale of liquid fuels) the technical and functional requirements for the said devices, the procedure and manner for issuing fiscal cash receipts and the minimum for issuing of fiscal cash receipts, as well as the minimum essential elements of fiscal cash receipts, shall be established by an ordinance of the Minister of Finance.(4) Upon operation of a fiscal device, the persons referred to in Paragraph (1) shall conclude a written contract for service maintenance and repair with service companies registered by the State Agency for Metrological and Technical Surveillance. Service maintenance during the warranty period shall be free of charge within the warranties assumed by the manufacturer.Sales ReportArticle 119. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report on the supplies for which the issuing of an invoice or memorandum is not mandatory, which shall contain consolidated information on such supplies for the relevant tax period.(2) The sales report shall be prepared on the last day of the tax period at the latest.(3) Optionally, the person may prepare separate sales reports for each day of the tax period and/or for each of the commercial outlets thereof.(4) The content of the consolidated information referred to in Paragraph (1) shall be specified by the Regulations for Application of this Act.Sales or purchases Report under Special Arrangements for Taxing(Title supplemented, SG No. 108/2006) Article 120. (1) Any supplier, who is a person registered under this Act, shall prepare a sales report for every type of supply effected during the tax period for which the special arrangements for taxing under Chapters Sixteen, Seventeen and Nineteen herein are applicable, which, as a minimum, shall contain the following information:1. quantity and type of the goods for each particular supply, or type of the service;2. date on which the chargeable event for the supply occurred;3. description of the invoices issued on the supply, when issuing of such invoices is mandatory;4. the elements necessary for assessment of the taxable amount;5. taxable amount;6. rate of tax;7. amount of tax;(2) The sales report referred to in Paragraph (1) shall be prepared on the last day of the tax period at the latest.(3) The person registered under Article 152 herein shall prepare an electronic register on the services performed under Chapter Eighteen herein, which, as a minimum, shall contain the following information on each supply effected:1. name, address and electronic address of the customer;2. type and quantity of the electronically supplied service;3. date on which the chargeable event for the supply occurred;4. number and date of the invoice issued on the supply;5. taxable amount;6. rate of tax as applicable;7. amount of tax;8. mode of payment.(4) (New, SG No. 108/2006) For the delivery of the goods and services, for which the special procedure for taxation is applicable under chapter nineteen "a", where the suppliers are individuals, who are not tax liable persons, the recipient - the person registered under the present Act, shall draw up a report about the purchases made during the tax period, containing at least the following information:1. quality and type of the good or type of service - for each delivery;2. the date, on which the tax for the delivery has become executable;3. the purchase price - for each delivery;4. the tax rate;5. the tax amount.(5) (New, SG No. 108/2006) The report on the sales performed under paragraph 1 shall be drawn up not later than the last day of the tax period.Chapter TwelveOTHER OBLIGATIONSStorage of DocumentsArticle 121. (1) Any taxable person shall ensure the storage of the tax documents issued by or on behalf of the said person, as well as of all tax documents received thereby, for five years after the expiry of the prescription period for extinguishment of the public liability which such documents certify.(2) The authenticity of origin and the integrity of content of the tax documents, as well as the readability thereof, must be guaranteed during the entire period of storage.(3) Paragraphs (1) and (2) shall furthermore apply in respect of the sales reports referred to in Articles 119 and 120 herein, the registers referred to in Article 123 (2) and (3), as well as the customs declarations.Right of Access to Invoices Stored by Electronic Means in Another MemberStateArticle 122. When a taxable person stores invoices issued or received thereby by an electronic means, and when the place of storage is in another Member State, the said person shall be obligated to ensure the competent revenue authorities access by electronic means to the data stored. The revenue authorities shall have the right to download and use the invoices so stored for control purposes.AccountsArticle 123. (1) Each registered person shall keep detailed accounts sufficient for assessment of the liabilities thereof under this Act by the revenue authorities.(2) Each registered person shall be obligated to keep a register of goods under Items 8 to 10 of Article 7 (5) and Items 8 to 10 of Article 13 (4) herein.(3) Each taxable person shall keep a register of the goods transported thereto from another Member State by a person registered for VAT purposes in the said Member State, in connection with the supply of services involving assessment or work on movable things.(4) The form and the essential elements of the registers referred to in Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.Chapter ThirteenDECLARATION AND REPORTINGLedgers of AccountArticle 124. (1) Persons registered under this Act shall mandatorily keep the following ledgers:1. a purchase day book;2. a sales day book.(2) (Amended, SG No. 108/2006) The registered person shall be obligated to show the tax documents issued by or on behalf of the said person, as well as the sales reports under Article 119 herein, in the sales day book for the tax period during which the said documents were issued.(3) (Amended, SG No. 108/2006) Notwithstanding Paragraph (2), the tax documents issued in connection with an intra-Community acquisition, including such on a payment received, shall be shown in the sales day book for the tax period during which the tax became chargeable according to Article 51 herein.(4) (Supplemented, SG No. 108/2006) The registered person shall be obligated to show tax the documents received thereby in the purchase day book not later than until the third tax period following the tax period during which the said documents were issued but not later than the last tax period under Article 72, paragraph 1.(5) Notwithstanding Paragraph (4), the registered person shall be obligated to show the credit advices received thereby in the purchase day book for the tax period during which the said advices were issued.(6) The type, content of and requirements for the ledgers covered under this Article, as well as the procedure and manner of showing documents therein, shall be determined by the Regulations for Application of this Act.(7) (New, SG No. 108/2006) The registered persons that during the calendar quarter have made intercommunity deliveries of new vehicles, the recipients of which are persons not registered for VAT purposes in other Member States, shall register the deliveries performed in the register for intercommunity deliveries of new vehicles.(8) (New, SG No. 108/2006) The type, contents and requirements to the register under paragraph 7 shall be determined by the Rules on the Implementation of the Act.Declaration of TaxArticle 125. (1) For every tax period, the registered person shall submit a VAT return, prepared on the basis of the ledgers of account covered under Article 124 herein, with the exception of the cases referred to in Article 157 herein.(2) A registered person, who has effected intra-Community supplies or supplies as an intermediary in a triangular operation for the tax period, shall submit a VIES return on the said supplies for the relevant tax period together with the VAT return referred to in Paragraph (1).(3) Together with the VAT return referred to in Paragraph (1), the registered person shall submit the ledgers of account covered under Article 124 herein for the relevant tax period.(4) A VAT return referred to in Paragraph (1) shall furthermore be submitted where there is no payable or refundable tax, as well as in the cases where the registered person has not effected or received any supplies or acquisitions or has effected any importation for the said tax period.(5) The returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) shall be submitted on or before the 14th day of the month following the tax period to which the said returns and ledgers refer.(6) The VIES return referred to in Paragraph (2) and the ledgers of account referred to in Paragraph (2) shall be submitted on a magnetic or optical data storage medium as well.(7) Alternatively, the returns referred to in Paragraphs (1) and (2) and the ledgers of account referred to in Paragraph (3) may be submitted electronically under the terms and according to the procedure established by the Tax and Social-Insurance Procedure Code . Where the return and the ledgers of account are submitted electronically, Paragraph (6) shall not apply.(8) The VAT return referred to in Paragraph (1) and the return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.(9) (New, SG No. 108/2006) The register under Article 124, paragraph 7 shall be submitted on a magnetic or optical carrier by the 14th day of the month, following the respective calendar quarter.Corrections of Errors Made in DeclaringArticle 126. (1) Any errors made in returns submitted under Article 125 (1) or (2) herein as a result of documents not shown or shown incorrectly in the ledgers of account covered under Article 124 herein shall be corrected according to the procedure established in Paragraphs (2) and (3).(2) Any errors detected prior to the expiry of the time limit for submission of the VAT return shall be corrected by the person making the necessary corrections and submitting again the returns referred to in Article 125 (1) and (2) herein and the ledgers of account covered under Article 124 herein.(3) Beyond the cases referred to in Paragraph (2), errors shall be corrected by:1. the person making the necessary corrections in the tax period during which the error was detected and including the document that has not been shown in the relevant ledger of account for the same tax period: applicable to documents not shown in the ledgers of account covered under Article 124 herein;2. the person notifying in writing the competent revenue authority which shall take action to modify the liability of the person for the relevant tax period: applicable to documents shown incorrectly in the ledgers of account.PART SEVENSPECIFIC CASESChapter FourteenSPECIFIC CASES OF SUPPLIESSupply Effected by Person Acting in His Own Name and for Account ofAnotherArticle 127. (1) Where a taxable person (commission agent/mandatory) supplies goods or services in his own name and for the account of another, the person shall be presumed to have received and supplied the goods or the services.(2) In the cases under Paragraph (1), three supplies shall be effected:1. a supply between the commission agent/mandatary and the third party, for which the date of occurrence of the chargeable event for and the taxable amount of the supply shall be determined under the general rules of this Act;2. a supply between the principal/mandator and the commission agent/mandatary of the goods or the services subject to the supply referred to in Item 1; the taxable amount of such supply shall be equal to the taxable amount of the supply referred to in Item 1, and the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act but may not be later than the date of occurrence of the chargeable event referred to in Item 1;3. a supply of service between the commission agent/mandatary and the principal/mandator; the taxable amount of such supply shall be the compensation of the commission agent/mandatary, which shall include the reimbursement for the expenses incurred thereby in connection with the supply, if so agreed; the date of occurrence of the chargeable event for such supply shall be determined under the general rules of this Act.(3) Where the commission agent/mandatary is a person not registered under this Act, for assessment of the taxable amount for the supply referred to in Item 2 of Paragraph (2), the agreed price for the supply referred to in Item 1 of Paragraph (2) shall be deemed to include the tax.(4) Where the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein differs from the taxable amount referred to in Item 1 of Paragraph (2), grounds for modification of the taxable amount of the supply referred to in Item 4 of Article 6 (2) herein shall arise on the date of occurrence of the chargeable event for the supply referred to in Item 1 of Paragraph (2).Ancillary SupplyArticle 128. Where the principal supply is accompanied by another supply and the payment is determined as a total, it shall be deemed that there is only one principal supply.Warranty ServicesArticle 129. (1) The provision of goods by a manufacturer or a person authorized thereby for the purpose of replacement or elimination of defects under the terms of agreed warranty services, which is carried out for the account of the manufacturer, shall not be considered to be a supply.(2) The provision of a service for the elimination of defects under the terms of agreed warranty services shall not be considered to be a supply where the following conditions are simultaneously fulfilled:1. the service is performed by a person authorized to do so by the manufacturer;2. the manufacturer is not established within the territory of the country;3. the warranty services are for the account of the manufacturer.(3) The provision of goods and services for elimination of defects by a supplier, where the elimination of the defects is for the account of the said supplier in connection with amounts retains under Item 2 of Article 26 (4) herein, shall not be considered to be a supply.BarterArticle 130. (1) When there is a supply under which the consideration (in full or in part) is expressed in goods or services, it shall be considered that there are two counter supplies, with each of the suppliers being considered to be a seller of what the said supplier gives and buyer of what the said suppliers receives.(2) The chargeable event for both supplies referred to in Paragraph (1) shall occur on the date of occurrence of the chargeable event for whichever of the said supplies is the earlier.Supply of Goods or Services upon Public Auction under Tax andSocial-Insurance Procedure Code or under Code of Civil Procedure or Saleunder Registered Pledges Act Article 131. (1) In the cases of public auction according to the procedure established by the Tax and Social-Insurance Procedure Code or by the Code of Civil Procedure or upon a sale according to the procedure established by the Registered Pledges Act or by Article 60 of the Credit Institutions Act and where the debtor is a person registered under this Act, the public enforcement agent, the bailiff or the pledgee shall be obligated, within five days after receipt of the full price of the sale:1. to pay the tax payable under the sale by crediting the bank account of the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act;2. to prepare a document on the sale, as specified in the Regulations for Application of this Act, in triplicate: one copy for the public enforcement agent/bailiff/pledgee, one copy for the debtor, and one copy for the recipient (buyer);3. to provide the document referred to in Item 2 to the debtor and the recipient within three days after the issuing of the said document;4. to notify the competent National Revenue Agency territorial directorate whereat the debtor is registered under this Act of the document issued under Item 2 according to a procedure established by the Regulations for Application of this Act.(2) In the cases under Paragraph (1), the selling price shall be deemed to be inclusive of the tax, and the said tax shall be remitted (paid) by the recipient (buyer) to the public enforcement agent/bailiff/pledgee together with the selling price.(3) (Amended, SG No. 59/2007) Paragraph (1) shall not apply where the thing has been awarded to the execution creditor on a motion thereby in payment of the claim thereof according to the procedure established by the Tax and Social Insurance Procedure Code. (4) (Amended, SG No. 59/2007) In the cases under Paragraph (3), the taxable amount of the supply shall be the price of the thing determined according to the procedure established by Article 250 (3) or Article 254 (7) of the Tax and Social Insurance Procedure Code and the tax shall be deemed included in the price of the said thing.(5) (New, SG No. 113/2007) In case the competent court repeals the public auction or sale under Paragraph (1) the remitted tax on the auction/sale shall be refunded according to a procedure set out by the Regulations for Application of this Act. Chapter FifteenSPECIFIC CASES OF REGISTRATION AND DEREGISTRATIONCompulsory Registration as Result of TransformationArticle 132. (1) Registration under this Act shall be compulsory for any person who acquires goods and services from a registered person in pursuance of Article 10 (1) herein.(2) The registration referred to in Paragraph (1) shall be effected by submission of an application for registration within 14 days after the recording of the circumstance referred to in Article 10 (1) herein in the Commercial Register.(3) The date of registration in the cases referred to in Paragraph (1) shall be the date of recording of the circumstance referred to in Article 10 herein in the Commercial Register.(4) In the cases of registration under Paragraph (1), the registration inventory referred to in Item 3 of Article 74 (2) herein for the assets available (excluding the assets received in pursuance of Article 10 herein) shall be drawn up at the date of registration under Paragraph (3) and shall be submitted on or before the 14th day after that date.Registration of Non-Resident who Is Not Established within CountryArticle 133. (1) Any non-resident person, who has a fixed establishment within the territory of the country from which the said person carries out economic activity and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative, with the exception of branches of non-residents which shall be registered according to the standard procedure.(2) Any non-resident person, who is not established within the territory of the country but effects taxable supplies whereof the place of transaction is within the territory of the country and who satisfies the conditions of this Act for compulsory registration or for optional registration, shall be registered through the agency of an accredited representative.(3) (Amended, SG No. 108/2007) Registration under Paragraphs (1) and (2) shall be effected according to the procedure established by Article 101 herein at the National Revenue Agency territorial directorate under Article 8 of the Tax Social-Insurance Procedure Code. (4) Upon dissolution of the person who is an accredited representative, or upon occurrence of other circumstances which lead to an impossibility for such person to fulfil the obligations thereof under this Act, the non-resident person shall be obligated to designate a new accredited representative within 14 days after the date of occurrence of the intervening circumstances.(5) Paragraphs (1) to (4) shall not apply to any non-resident persons supplying services under Chapter Eighteen herein.Termination of Registration (Deregistration) of Non-Residents Registeredunder This ActArticle 134. (1) The registration of a non-resident person registered in pursuance of Article 133 herein shall be terminated if the general conditions for deregistration under this Act are fulfilled.(2) Deregistration under Paragraph (1) shall be effected according to the procedure established by Article 109 herein.(3) Where the non-resident person fails to designate a new accredited representative within the time limit referred to in Article 133 (4) herein, the registration of the said person shall be terminated on the initiative of the revenue authority by issuing of a deregistration act.(4) In the cases referred to in Paragraph (3), the deregistration act shall not be delivered to the person, and the date of deregistration shall be the date of expiry of the time limit referred to in Article 133 (4) herein.(5) Upon deregistration under Paragraphs (1) and (3), the non-resident person shall be presumed to effect a supply under Article 111 herein.Accredited RepresentativeArticle 135. (1) (Amended, SG No. 108/2007) Only a natural person capable of performing juridical act with permanent address or permanently residing only in the country, or a local legal person which is not subject to liquidation proceeding or has not been adjudicated bankrupt and does not incur chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency may be an accredited representative of a non-resident person.(2) The accredited representative shall represent the non-resident person referred to in Article 133 herein in all tax legal relations of the said person which arise in pursuance of this Act.(3) The accredited representative shall incur solidary and unlimited liability for the obligations under this Act of the registered non-resident person.PART EIGHTSPECIAL TAXING ARRANGEMENTSChapter SixteenSERVICES TO TOURISTSSupply of Single Service to TouristsArticle 136. (1) The provision by a tour operator or a travel agent, acting in his own name, of goods or services in connection with the journey of a tourist, for the carrying out of which goods or services for the direct benefit of the tourist are used, shall be treated as a supply of a single service to tourists.(2) The goods and services referred to in Paragraph (1) directly benefiting the tourist shall be the goods and services which the tour operator or the travel agent has received from other taxable persons and has provided to the tourist without alteration.Place of Transaction of Single Service to TouristsArticle 137. The place of transaction of a single service to tourists shall be the place where the tour operator or the travel agent has established the economic activity thereof or has a fixed establishment from which the said operator or agent effects the transaction.Date of Occurrence of Chargeable Event and Chargeability of TaxArticle 138. (1) The date of occurrence of the chargeable event for the supply of a single service to tourists shall be the date on which the tourist benefits from the supply for the first time.(2) The tax on the supply of a single service to tourists shall become chargeable on the date of occurrence of the chargeable event referred to in Paragraph (1).Taxable Amount of Single Service to TouristsArticle 139. (1) The taxable amount of the supply of a single service to tourists shall be the margin which represents the difference, less the amount of the tax payable, between:1. the total amount, which the tour operator or travel agent has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses such as commission and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;2. the amount which has been paid or will be paid for supplies of goods and services received by the tour operator or the travel agent from other taxable persons for the direct benefit of the tourist, including the tax under this Act.(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.Zero-Rating upon Supply of Single Service to TouristsArticle 140. (1) The supply of a single service to tourists shall be liable to tax at the zero rate, if the supplies of goods and services are for the direct benefit of the tourist, shall have a place of transaction within the territory of third countries and territories.(2) Where only part of the supplies of goods and services referred to in Paragraph (1) which are for the direct benefit of the tourist have a place of transaction within the territory of third countries and territories, only the part of the said supplies corresponding to the supply of the single service to tourists shall be liable to tax at the zero rate.Credit for Input Tax to Tour Operator or Travel AgentArticle 141. The tour operator or the travel agent shall not have the right to deduct credit for input tax in respect of the supplies of goods and services received from other taxable persons for the direct benefit of the tourist.Charging Tax and Documenting Supply of Single Service to TouristsArticle 142. (1) The tax on the supply of a single service to tourists shall be charged by the issuing of a memorandum.(2) The supply of a single service to tourists shall be documented and reported according to a procedure established by the Regulations for Application of this Act.Chapter SeventeenSPECIAL ARRANGEMENTS FOR TAXING PRICE MARGINSupply of Second-Hand Goods, Works of Art, Collectors' Items andAntiquesArticle 143. (1) (Supplemented, SG No. 108/2006) The provisions in this Chapter shall apply to a supply effected by a taxable dealer of second-hand goods, works of art, collectors' items, antiques, supplied to the said dealer within the territory of the country (including imported) or from the territory of another Member State by:1. a non-taxable person;2. another taxable person as a subject of an exempt supply under Article 50 herein;3. another taxable person who is not registered under this Act;4. another taxable dealer applying the special arrangements for taxing the price margin.(2) The provision of Paragraph (1) shall not apply upon an intra-Community supply of new means of transport.(3) Taxable dealers shall have the right to apply the provisions of this Chapter also in respect of a supply of:1. works of art, collectors' items or antiques which they have imported;2. works of art supplied to them by their creators or by the successors in title of the said creators.(4) (Amended, SG No. 108/2006) The right of option under Paragraph (3) shall be exercised by means of submission of a notification to the competent National Revenue Agency territorial directorate.(5) Taxable dealers who have exercised a right of option under Paragraph (4) shall apply the special arrangements for taxing the margin for a supply covered under Paragraph (3) as from the first day of the month following the month of submission of the notification, and for a period not shorter than 24 months including the month following the month of submission of the notification.(6) After the lapse of the time period referred to in Paragraph (5), the taxable dealer may discontinue the application of the special arrangements for taxing the margin for supplies covered under Paragraph (3) by submitting a notification to the competent National Revenue Agency territorial directorate. The application of the special arrangements for taxing the margin shall be discontinued as from the month following the month of submission of the notification.(7) Notifications referred to in Paragraphs (4) and (6) shall be submitted in a standard form specified in the Regulations for Application of this Act.Place of Transaction, Chargeable Event and Chargeability of Tax onSupplies of Goods under Special Arrangements for Taxing MarginArticle 144. (1) The place of transaction of supplies covered under Article 143 herein shall be the place where the taxable dealer has the registered office or fixed establishment from which the said dealer effects such supplies.(2) The chargeable event for the supplies covered under Article 143 herein shall occur according to the general rules under this Act.(3) The tax on supplies covered under Article 143 herein shall become chargeable on the last day of the tax period during which the chargeable event occurred according to Paragraph (2).(4) The tax shall charged by the issuing of a memorandum according to a procedure and in a manner established by the Regulations for Application of this Act.Taxable AmountArticle 145. (1) The taxable amount of the supply of goods under this Chapter shall be the price margin which represents the difference, less the amount of the tax payable, between:1. the selling price, representing the total amount which the taxable dealer has received or will receive from the customer or the third party for the supply, including any subsidies and investment grants directly linked to such supply, the taxes and fees, as well as the incidental expenses on packing, transport, commissions and insurance, charged by the supplier to the recipient but exclusive of any trade discounts allowed;2. the amount which has been paid or will be paid for goods received by the persons under Article 143 (1) and (3) herein, including the tax under this Act, and where the goods have been imported, the taxable amount upon importation, including the tax under this Act.(2) The taxable amount referred to in Paragraph (1) may not be a negative quantity.Supply of Goods under Special Arrangements for Taxing Margin at ZeroRateArticle 146. The supply of goods under the special arrangements for taxing the margin shall be liable to tax at the zero rate where the conditions established by Article 28 herein are fulfilled in respect of the supply.Credit for Input TaxArticle 147. (1) The taxable dealer shall have the right to credit for input tax in respect of any goods and services acquired or imported thereby which the said dealer uses only for the effecting of supplies under this Chapter.(2) The total credit for input tax referred to in Paragraph (1) used for the year may not exceed the total amount of the tax charged by the dealer for supplies covered under Article 143 herein,(3) Where the credit for input tax used during the year exceeds the tax charged during the year, a tax to the amount of the excess shall be chargeable from the person.(4) The excess referred to in Paragraph (3) shall be declared in the VAT return for the last tax period of the year.(5) The taxable dealer shall not have the right to deduct credit for input tax in respect of any goods received or imported thereby to which the said dealer applies the special arrangements for taxing the margin.Documenting Supply of Goods under Special Arrangements for Taxing MarginArticle 148. The supply of goods under the special arrangements for taxing the margin shall be documented and reported according to a procedure established by the Regulations for Application of this Act.Taxable Turnover of Taxable Dealer from Supplies of Goods under SpecialArrangements for Taxing MarginArticle 149. The taxable turnover of a taxable dealer from supplies of goods under the special arrangements for taxing the margin shall be the sum total of the margins.Charging Tax on Goods in Stock upon Taxable Dealer's DeregistrationArticle 150. (1) The deregistration of the taxable dealer shall be effected according to the general conditions for deregistration of this Act.(2) Upon deregistration, the taxable dealer shall be liable for a tax on the goods in stock covered under this Chapter. The amount of the said tax shall be determined on the basis of the average margin achieved by the taxable dealer during the 12 months last preceding the deregistration date.(3) The procedure and manner for determining the average margin referred to in Paragraph (2) shall be established by the Regulations for Application of this Act.(4) Upon deregistration, the taxable dealer shall be liable for tax under Article 111 herein, with the exception of the tax on the goods in stock referred to in Paragraph (2).Right of OptionArticle 151. (1) A taxable dealer may apply the standard procedure under this Act for taxing the supply of second-hand goods, works of art, collectors' items and antiques.(2) The right referred to in Paragraph (1) shall be exercised by the person for each particular supply and, to this end, the invoice issued shall not state that the special arrangements under this Chapter are applied.(3) The taxable amount of the supply shall be determined according to the procedure established by Articles 26 and 27 herein and may not be lower than the taxable amount upon acquisition of the goods or lower than the taxable amount upon importation.(4) In the cases referred to in Paragraph (2), the right to credit for input tax in respect of the goods received or imported by the person to which the special arrangements for taxing the margin are not applied shall arise and shall be exercised during the tax period in which the tax on the subsequent supply of such goods has become chargeable.(5) The supplies referred to in Paragraph (2) shall be documents according to the standard procedure established by this Act.(6) Where the taxable dealer applies both the special arrangements for taxing the margin and the standard procedure for taxing the supplies, the said dealer shall be obligated to keep separate accounts for the supplies as specified by the Regulations for Application of this Act.Chapter EighteenTAXING SUPPLIES OF SERVICES SUPPLIED ELECTRONICALLY BY PERSONSWHO ARE NOT ESTABLISHED WITHIN COMMUNITYSpecial RegistrationArticle 152. (1) Any taxable person for which the following conditions are simultaneously fulfilled shall have the right to register under this Chapter:1. the said person effects supplies of electronically supplied services to recipients who are non-taxable persons who are established or have a permanent address, or usually reside in a Member State;2. the said person is not established within the territory of the Community;3. the said person is not obligated to register for VAT purposes on any other grounds within the territory of the country or within the territory of another Member State.(2) The right referred to in Paragraph (1) shall be exercised by the person submitting, by electronic means, an application for registration to the Sofia Territorial Directorate of the National Revenue Agency.(3) Together with the application referred to in Paragraph (1), the person shall provide the following information:1. name, mailing address, electronic addresses, including Internet sites;2. a national tax number, if any;3. a statement certifying that the person is not registered for VAT purposes in another Member State.(4) The person shall notify the territorial directorate referred to in Paragraph (2) by electronic means of any intervening changes in the information provided under Paragraph (3).(5) Within seven days after receipt of the application, the territorial directorate referred to in Paragraph (2) shall notify the person by electronic means of the registration effected according to the procedure established by this Chapter, of the identification number referred to in Article 94 (2) herein, and of the date of registration.(6) The first day of the month following the month of the notification referred to in Paragraph (5) shall be considered to be a date of registration.Termination of Special RegistrationArticle 153. (1) The registration referred to in Article 152 herein shall terminate on the initiative of the person where:1. the person terminates the activity thereof under this Chapter;2. the person no longer fulfils the conditions under Article 152 (1) herein.(2) For termination of the registration under Paragraph (1), the person shall submit an application for termination of registration by electronic means to the territorial directorate referred to in Article 152 (2) herein.(3) The registration under Article 152 herein may be terminated on the initiative of the revenue administration where:1. the administration ascertains that the activity of the person has been terminated, or2. the person does not fulfil the conditions under Article 152 (1) herein, or3. the person systematically fails to comply with the provisions of this Chapter.(4) In the cases covered under Paragraph (3), the territorial directorate referred to in Article 152 (2) shall notify the person that his registration has been terminated, indicating also the date of termination of registration.(5) In the cases covered under Paragraph (1), the registration shall terminate on the date of submission of the application referred to in Paragraph (2).(6) In the cases covered under Paragraph (3), the registration shall terminate on the date of the notification referred to in Paragraph (4).Place of Transaction of Supplies of Electronically Supplied ServicesArticle 154. The place of transaction of services supplied electronically by a registered person under Article 152 herein shall be the Member State in which the recipient under Item 1 of Article 152 (1) herein is established.Taxable Amount, Date of Occurrence of Chargeable Event and Chargeabilityof TaxArticle 155. The taxable amount, the date of occurrence of the chargeable event and the chargeability of tax on supplies of services under this Chapter shall be determined under the general rules of this Act.Rate of TaxArticle 156. The rate of tax on the supplies of electronically supplied services under this Chapter shall be the rate applicable in the Member State in which the recipient referred to in Item 1 of Article 152 (1) herein is established.Tax Period, Declaration and Remittance of TaxArticle 157. (1) The tax period for persons registered under this Chapter shall be three months and shall coincide with a calendar quarter.(2) A person registered under this Chapter shall submit a return completed in a standard form specified in the Regulations for Application of this Act for each tax period within 20 days after the end of the period, regardless of whether any supplies of electronically supplied services have been effected during the said period. The said return shall be submitted to the territorial directorate referred to in Article 152 (2) herein by electronic means.(3) The return shall state the identification number of the registered person, the total value, net of value added tax, of the supplies for each separate Member State, the total amount of tax for each Member State, the rate of tax applicable in the respective Member State and the total value of the tax payable for all Member States for the tax period.(4) The values covered under Paragraph (3) shall be stated in Euro and in Bulgarian leva, and Article 26 (6) herein shall apply to the translation.(5) The tax chargeable for the tax period shall be remitted by crediting the account of the territorial tax directorate referred to in Article 152 (2) herein within the time limit for submission of the return under Paragraph (2).Credit for Input Tax and Tax RefundArticle 158. (1) Persons registered under this Chapter shall not have the right to credit for input tax in respect of any supplies of goods and services received within the territory of the country and from importation.(2) Persons registered under this Chapter shall have the right to a refund of the tax paid within the territory of the country according to the procedure established by Item 2 of Article 81(1) herein.Documentation and Provision of InformationArticle 159. (1) Any person registered under this Chapter shall be obligated to keep an electronic register referred to in Article 120 (3) herein for the supplies of services effected under this Chapter in a manner enabling the tax administration of the Member States in which the recipients are established to determine whether the information stated in the return referred to in Article 158 (2) herein is full and accurate.(2) Upon request, the information from the electronic register must be provided by electronic means to the Bulgarian revenue administration or to the competent authorities of the Member States in which the recipients are established.(3) The information in the electronic register shall be stored for a period of not less than ten years reckoned from the end of the year during which the relevant supply was effected.Chapter NineteenINVESTMENT GOLDSupplies of Investment GoldArticle 160. (1) Supplies concerning investment gold shall be exempt where, for the purposes of this Act, the said supplies are:1. supplies of investment gold, including: supplies of investment gold represented by certificates for allocated or unallocated gold; gold traded on gold accounts, gold loans and swaps, involving the right of ownership or claim in respect to investment gold; supplies concerning investment gold involving futures and forward contracts leading to a transfer of the right of ownership or claim in respect of investment gold;2. services of agents who act in the name and for the account of another, in connection with supplies of investment gold.(2) Taxable persons, who produce investment gold or transform gold into investment gold, as well as taxable persons who normally supply gold for industrial purposes, shall be allowed a right of option for taxation of the supplies covered under Item 1 of Paragraph (1). Taxable persons who perform intermediation services in respect or supplies of investment gold shall be allowed a right of option for taxation of the supplies referred to in Item 2 of Paragraph (1) when the supply in connection with which the intermediation service was provided is taxable.(3) The right referred to in Paragraph (2) may be exercised where the following conditions are simultaneously fulfilled:1. a person registered under this Act is a recipient of the supplies;2. the invoice issued on the supply states that the tax is to be charged from the recipient.Chargeability of Tax from RecipientArticle 161. (1) The tax shall be charged from the recipient who is a person registered under this Act upon:1. supplies of gold material or semi-manufactured products of a purity of 325 thousandths or greater;2. supplies concerning investment gold where the right referred to in Article 160 herein has been exercised and the invoice issued by the supplier states that the tax is to be charged from the recipient.(2) The tax shall be charged by the issuing of a memorandum.Right to Credit for Input TaxArticle 162. (1) Although the subsequent supply concerning investment gold is exempt, registered persons shall have the right to credit for input tax in respect of:1. the tax charged from them according to the procedure established by Article 161 herein;2. the received supply or importation of gold other than investment gold which has then been transformed into investment gold by the person or for the account thereof;3. received services leading to a change of form, weight or purity of gold, including investment gold.(2) Although the subsequent supply concerning investment gold is exempt, registered persons who produce investment gold or transform gold into investment gold shall have the right to deduct credit for input tax in respect of the supplies or importation within the territory of the country of goods or services related to the production or transformation of such gold.DocumentingArticle 163. (1) The supplies concerning investment gold, as well as the supplies involving gold material or semi-manufactured products of a purity of 325 thousandths or greater, shall be documented by issuing of an invoice which, in addition to the essential elements covered under Article 114 herein, must also state:1. description of the gold sufficient for the identification thereof, as a minimum: form, weight, purity etc.;2. date and address of the physical delivery of the gold;3. name, address and Standard Public Registry Personal Number and/or type, number, issuer of an official identification document of the persons who prepared the document.(2) The invoices referred to in Paragraph (1) shall be stored for a period of ten years reckoned from the end of the year during which the relevant supply was effected.Chapter Nineteen "a"(New, SG No. 108/2006)DELIVERYDEDELIVERY OF GOODS AND SERVICES ACCORDING TO APPENDIX No 2 WITHA PLACE OF EXECUTION THE TERRITORY OF THE COUNTRY, WHERE TAX ISEXECUTABLE BY THE RECIPIENTTax event and executable taxArticle 163a. (New, SG No. 108/2006) (1) The tax event of the goods and services delivered, specified in appendix № 2, shall occur according to the general rules of the present Act.(2) The tax for the supplies under paragraph 1 shall be executable by the recipient - a person registered under this Act, regardless of whether the supplier is a tax liable person or not.(3) The tax for the supplies under paragraph 1 shall become executable according to the procedures of Article 25, paragraphs 5 and 6.Tax accruing by the recipientArticle 163b. (New, SG No. 108/2006) (1) Tax shall be accrued by the recipient via the issuance of:1. a protocol under Article 117, paragraph 2 within the deadline set in Article 117, paragraph 3 - when the supplier is a tax liable person.2. a general protocol of all supplies, for which tax has become executable in during respective tax period - when the suppliers are natural persons that are not liable for tax; the protocol shall be issued on the last day of the respective tax period.(2) The protocol under paragraph 1, sub-paragraph 2 must contain:1. a number and a date;2. the name and the identification number under Article 94, paragraph 2 of the person, who issues it;3. a tax period;4. a description of the goods and services;5. the total amount of the purchase prices of the goods and services under item 4 for the tax period;6. accrued tax for the period.Documenting the suppliesArticle 163c. (New, SG No. 108/2006) When the supplier is a tax liable person, the supplies of goods and services, specified in appendix № 2, shall be documented by the issuance of an invoice, in which "Article 163a, paragraph 2" shall be indicated as grounds for not accruing tax.Chapter TwentyINVESTMENT PROJECTSSpecial Arrangements for Charging Tax upon ImportationArticle 164. (1) Notwithstanding Article 56 herein, the tax upon importation of goods may be charged by the person registered under this Act if the said person holds a permission issued according to the procedure established by Article 166 herein and imports goods (with the exception of excisable goods) according to a list approved by the Minister of Finance.(2) The importer shall exercise the right thereof under Paragraph (1) by:1. declaring in the customs declaration as submitted that the importer will use this arrangement;2. declaring that at the time of effecting the importation the importer is a person registered under this Act and does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency.(3) Where the importer has exercised the right thereof under Paragraph (1), the customs authorities shall admit the release of the goods without the tax being effectively remitted or secured.(4) The importer shall charge the tax referred to in Paragraph (1) according to the procedure established by Article 57 (3) herein.(5) The importer shall have the right to credit for input tax in respect of the tax charged under Paragraph (4) under the terms established by Articles 69 and 73 herein.Shortened 30-Day Period for Tax RefundArticle 165. Any person registered under this Act shall have the right to refund the tax referred to in Article 88 (3) herein within 30 days after submission of the VAT return where the conditions referred to in Article 92 (4) are fulfilled.Issuing PermissionArticle 166. (1) A permission to apply the special arrangements for charging tax upon importation and for refund of the tax within 30 days shall be issued to any person who simultaneously satisfies the following conditions:1. the person implements an investment project approved by the Minister of Finance;2. the person is registered under this Act;3. the person does not incur chargeable and unpaid tax liabilities and liabilities for social insurance contributions collected by the National Revenue Agency;4. (amended, SG No. 86/2006, No. 113/2007) the conditions for grant of minimum aids under Regulation (EC) No. 1998/2006 of the Commission on the Application of Articles 87 and 88 of the Treaty to de minimis aid exist.(2) The investment project shall be approved by the Minister of Finance where the following circumstances simultaneously exist:1. the time limit for implementation of the project does not exceed two years;2. the amount of investment exceeds BGN 10 million for a period not longer than two years;3. more than 50 new jobs are created;4. the person is capable of financing the project, as well as of constructing and maintaining facilities ensuring the implementation of the said project, such as:(a) agreements on credit and commercial loans;(b) financial lease contracts;(c) bank and other guarantees;(d) letters of commitment to finance the project by the equity owners;(e) own funds;(f) the projected cash inflows are true, correspond to market conditions and are sufficient to cover the investment and current costs of the project.(3) A permission shall be issued for a period of up to two years on the basis of a request in writing whereto the following documents shall be attached:1. designs, elaborations and plans for construction and maintenance of facilities and a business plan for economic stability and profitability of the investment project;2. an analysis of the financial position, confirmed by a registered auditor or a specialized audit enterprise within the meaning given by the Independent Financial Audit Act , in case the person has operated for more than one year; the full annual financial statements for the periods analysed shall be attached to the said analysis;3. documents certifying the capabilities to finance the project under Item 2 of Paragraph (2);4. a list of the goods which the person is to import in implementation of the investment project; the said list shall mandatorily contain information on the quantity, value, code under the Combined Nomenclature of the Republic of Bulgaria, and the number of the contract for the supply of the goods;5. certificates on the circumstances covered under Items 2 and 3 of Paragraph (1);6. (amended, SG No. 113/2007) a declaration by the persons of the amount of the received minimum aids, irrespective of their form and source, for the last three tax years; received minimum aids for the period shall not exceed the lev equivalent of EUR 200,000 at the official BGN/EUR exchange rate at the date of the permission; for undertakings carrying out road transport activity the total amount of the minimum aid shall be the lev equivalent of EUR 100,000 at the date of the permission; these thresholds shall apply irrespective of whether the aid is financed in full or in part with resources of the European Community.(4) (New, SG No. 113/2007) To determine the maximum admissible intensity of the aid introduced by a National Regional State Aid Map (OB, No. C 73 of 30 March 2007), the minimum aid under Item 6 of Paragraph (3) shall be added to another state aid received for the same investment project, approved by a decision of the European Commission or in respect of which Article 9 of the State Aids Act applies. (5) (Amended, SG No. 86/2006, renumbered from Paragraph 4, No. 113/2007) The Minister of Finance shall issue permission within one month after receipt of the request if the requirements covered under Paragraphs (1) and (2) are fulfilled. Where notification of the European Commission is required according to the State Aids Act and the Regulations for Application thereof, the permission shall be issued within one month after the date of the decision of the European Commission whereby the grant of the aid is authorized.(6) (New, SG No. 113/2007) The permission under Paragraph (5) shall not be issued where on receipt of the minimum aid under this Article the maximum admissible intensity of the aid fixed in the National Regional State Aid Map is exceeded.(7) (New, SG No. 113/2007) The permission under Paragraph (5) shall specify the amount of the minimum aid for the approved investment project.(8) (Renumbered from Paragraph 5, SG No. 113/2007) A permission shall be issued or refused by a written order of the Minister of Finance.(9) (Renumbered from Paragraph 6, amended SG No. 113/2007) Within six months after the issuing of the permission under Paragraph (5), it shall be permissible to issue a new permission on goods which are to be imported or acquired additionally in implementation of the investment project as already approved. Adjustments to a permission already issued shall be inadmissible.(10) (Renumbered from Paragraph 7, SG No. 113/2007) A refusal to issue a permission shall be appealable according to the procedure established by the Administrative Procedure Code. Withdrawal of PermissionArticle 167. (1) A permission issued shall be withdrawn in the following cases:1. where the person ceases to satisfy the conditions covered under Article 166 (1) herein;2. upon the lapse of the period referred to in Article 166 (3) herein.(2) Where the relevant competent authority ascertains that the conditions under Article 166 herein are not fulfilled, the said authority shall forthwith notify the Minister of Finance.(3) The permission shall be withdrawn by an order of the Minister of Finance, which shall be appealable according to the procedure established by the Administrative Procedure Code. (4) The Minister of Finance shall provide the customs administration with information on the permissions issued and revoked, as well as with the lists referred to in Item 4 of Article 166 (3) herein.Chapter Twenty-OneSPECIAL ARRANGEMENTS REGARDING NEW MEANS OF TRANSPORTSpecial Arrangements for Intra-Community Supply and Intra-CommunityAcquisition of New Means of TransportArticle 168. (1) Any person not registered under this Act, who effects an intra-Community acquisition of a new means of transport referred to in Article 13 (2) herein or effects an incidental intra-Community supply of a new means of transport referred to in Article 7 (2) herein, shall be obligated to declare the intra-Community acquisition or the incidental supply as effected within 14 days after the expiry of the tax period during which the tax on the acquisition or the supply became chargeable under Articles 63 or 51 herein.(2) Declaration shall be effected by the submission of a return at the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code. (3) The return referred to in Paragraph (2) shall be submitted in a standard form specified by the Regulations for Application of this Act.(4) The tax due on the intra-Community acquisition shall be remitted according to the procedure and within the time limits established by Article 91 herein.(5) In the cases of effecting of an intra-Community acquisition under Paragraph (1), credit for input tax paid on the acquired means of transport shall become refundable in respect of the person if the following conditions are fulfilled:1. the person:(a) holds an invoice satisfying the requirements of Article 114 herein: where the means of transport has been purchased within the territory of the country, or(b) holds a customs declaration: in the cases of importation, or(c) the person has submitted a return under Paragraph (2) on the intra-Community acquisition: in the cases of intra-Community acquisition under Paragraph (1);2. the tax on the intra-Community acquisition or on the importation has been remitted to Executive Budget Revenue according to the procedure and within the time limits established by Articles 90 and 91 herein.(6) The right to refund of the tax under Paragraph (5) shall be exercised by stating the amount of the input tax claimable in the return referred to in Paragraph (2).(7) The amount of the tax refundable under Paragraph (5) may not exceed the tax which would have been chargeable from the person if the supply was not liable to tax at the zero rate.(8) Where a natural person who is not a sole trader effects an incidental supply referred to in Paragraph (1), the said person shall issue a document which contains the essential elements covered under Items 3 to 15 of Article 114 (1) herein.PART NINEMISCELLANEOUS PROVISIONSChapter Twenty-TwoINFORMATIONPublic InformationArticle 169. (1) Public information shall be the information on the registration under this Act which includes:1. business name, identification number referred to in Article 84 of the Tax and Social-Insurance Procedure Code , identification number referred to in Article 94 (2) herein, and mailing address of the person;2. date of registration and termination of registration;3. date of posting of the circumstances referred to in Items 1 and 2.(2) The information covered under Paragraph (1) shall be accessible and shall be posted on the Internet site of the revenue administration.(3) The information covered under Paragraph (1) may alternatively be provided by the revenue administration upon a person's written request.(4) The circumstances covered under Paragraph (1) shall be presumed known to bona fide third parties as from the date of posting of the information under Item 3 of Paragraph (1).Exchange of Information with Customs AdministrationArticle 170. (1) The customs administration shall provide the revenue administration with information, by electronic means, on the accepted customs declarations and the received payments of tax upon importation within 14 days after the end of every calendar month.(2) Such information shall be supplied under terms and according to a procedure established by an order of the Minister of Finance.Exchange of Information with Tax Administrations of Other Member StatesArticle 171. (1) The revenue administration shall be free to exchange information relating to the levy of value added tax with the tax administrations of other Member States, provided that such information will be used only for assessment of the tax liabilities of persons and/or in the course of appealing the amount of such tax liabilities.(2) The information received according to the procedure established by Paragraph (1) from other Member States may be used as evidence for assessment of liabilities under this Act, as well as in administrative and court procedures.(3) Paragraphs (1) and (2) shall furthermore apply in the cases where the information is exchanged by electronic means.Chapter Twenty-ThreeAPPLICATION OF INTERNATIONAL TREATIES AND REFUND OF TAX TO PERSONS NOTESTABLISHED WITHIN TERRITORY OF COUNTRYImportation Exempted by Virtue of International Treaties and Importationof Goods by Armed Forces of Other StatesArticle 172. (1) Exemption from tax shall be granted in respect of importation of goods for which a law or an international treaty, ratified and promulgated according to the relevant procedure, provides for exemption of the importation from taxes, levies or other charges (payments, duties) having an effect equivalent to an indirect tax, including where such treaties are financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) (Supplemented, SG No. 113/2007) Exemption from tax shall be granted in respect of importation of goods imported by the staff/headquarters of the North Atlantic Treaty Organisation or by the armed forces of other States which are parties to the North Atlantic Treaty for the use by such armed forces or by the civilian staff accompanying them, or for supplying their messes or canteens, where such forces take part in the common defence effort of the North Atlantic Treaty within the territory of the country.(3) The procedure for application of Paragraphs (1) and (2) shall be established by the Regulations for Application of this Act.Supplies Exempted by Virtue of International Treatiesand Supplies in Which Recipients Are Armed Forces of OtherStates or Institutions of European UnionArticle 173. (1) Any supplies, which are exempted from value added tax by virtue of international treaties, agreements, accords conventions or other such whereto the Republic of Bulgaria is a party, which are ratified and promulgated according to the relevant procedure, shall be liable to tax at the zero rate, including on the part of the supply which is financed by resources of the executive budget or the municipal budgets or by loans guaranteed by the Government.(2) For application of the zero rate, the supplier shall be obligated to request in writing an opinion as to the grounds for such exemption from the competent National Revenue Agency territorial directorate. Documents proving the grounds for application of the exemption, specified by the Regulations for Application of this Act, shall be attached to any such request.(3) The restrictions of the right to credit for input tax under Article 70 herein shall not apply in respect of goods or services which are used only for the effecting of supplies referred to in Paragraph (1).(4) The supplies of goods and services, in which the recipients are the persons referred to in Article 172 (2) herein and the institutions of the European Union, shall be liable to tax at the zero rate.(5) For application zero tax rate under Paragraph (4), the supplier shall be obligated to possess documents specified by the Regulations for Application of this Act.Refund of Tax to Diplomatic Missions, Consular Posts, Missions ofInternational Organizations and Members of Staff ThereofArticle 174. (1) The tax charged on supplies in which the following are recipients shall be refunded:1. diplomatic missions;2. consular posts;3. missions of international organizations;4. members of the staff of the recipients referred to in Items 1, 2 and 3.(2) The terms and the documents required for refund of the tax under Paragraph (1) shall be determined by an ordinance of the Minister of Foreign Affairs and the Minister of Finance.Chapter Twenty-FourPOWERS OF MINISTER OF FINANCEPowers of the Minister of FinanceArticle 175. (1) The Minister of Finance shall issue rules Regulations for Application of this Act.(2) The Minister of Finance shall issue the ordinances referred to in Article 81 (2), Article 118 (3) and Article 174 (2) herein.(3) The Minister of Finance may determine, where necessary, by an order:1. special arrangements for documenting and reporting certain types of supplies for which the application of the standard procedure presents practical difficulties;2. the information collected under this Act which is public;3. the information collected under this Act which may be provided to the tax administrations of other States;4. the list of coins which constitute investment gold;5. the procedure, manner and form for exchange of information with the persons not established within the territory of the Community for the purposes of levy of tax on the supplies of electronically supplied services.(4) The orders covered under Paragraph (3) shall be promulgated in the State Gazette.Chapter Twenty-FivePOWERS OF REVENUE AUTHORITIES AND PREVENTION OF TAX FRAUDRefusal to Register or Termination of Registration in Connection withTax ViolationsArticle 176. Any competent revenue authority may refuse to register or may terminate the registration of a person who:1. cannot be reached at the mailing address named thereby according to the procedure established by the Tax and Social-Insurance Procedure Code ;2. changes the mailing address thereof and does not provide notification according to the established procedure;3. fails systematically to fulfil the obligations thereof under this Act;4. incurs tax liabilities whereof the total value exceeds the value of the assets thereof less the liabilities thereof.Registration upon SecurityArticle 176a. (New, SG No. 108/2007) (1) The competent revenue authority shall refuse registration to a person having failed to provide, within the specified time period, security in cash, in government securities or in unconditional and irrevocable bank guarantee for a term of one year and on which data exist that one or more of its owners, managing directors, procurators, majority partners or shareholders:1. are or have been, at the time of occurrence of the liabilities, owners, procurators, majority partners or shareholders, members of managing or controlling bodies of persons with unsettled value added tax liabilities exceeding BGN 5,000, or2. have unsettled value added tax liabilities exceeding BGN 5,000 in the capacity as natural persons, or3. are persons against whom penal proceedings have been initiated or have been convicted for offenses against the tax system.(2) Paragraph (1) shall not apply to the persons subject to registration under Article 99 (1).(3) The competent revenue authority shall terminate the registration of a person registered under the terms of Article 132, which has failed to provide, within the specified time period, the security for a term of one year, where the transformation, confiscation or in-kind contribution is performed by a person with unsettled value added tax liabilities exceeding BGN 5,000.Security Requirements and AmountArticle 176b. (New, SG No. 108/2007) (1) The competent revenue authority shall require provision of the security by a written request which shall specify:1. the grounds for requiring the security;2. the amount of the security;3. the time period in which the person shall submit evidence of the provided security, which shall not be less than 7 days.(2) The amount of the security shall be equal to the sum total of unsettled liabilities in respect of which the security is required. In the cases under Item 3 of Article 176a (1) the amount of the security shall be BGN 250,000 where the amount of the liabilities is not established at the date the security is required.(3) The security may be released or reduced prior to expiry of the one year time period if after the registration of the person the grounds on the basis of which the amount of the required security is determined are removed or changed.(4) The revenue authority which has established existence of the grounds for release or reduction of the security under Paragraph (3) shall notify the bank that the security may be released or reduced up to a specific amount.Persons' Liability in Case of AbuseArticle 177. (1) Any registered person who is the recipient in a taxable supply shall be liable for the value added tax due and unremitted by another registered person insofar as the former person has exercised a right to deduct credit for input tax related directly or indirectly to the due and unremitted tax.(2) The liability referred to in Paragraph (1) shall be enforced where the registered person knew or was obligated to know that the tax will not be remitted, and this is proved by the auditing authority according to the procedure established by Articles 117 to 120 of the Tax and Social-Insurance Procedure Code. (3) For the purposes of Paragraph (2), the person shall be presumed to have been obligated to know where the following conditions are simultaneously fulfilled:1. the tax due under Paragraph (1) was not effectively effected as paid in as a net tax for a tax period by any of the previous suppliers under a taxable supply whereof the subject are the same goods or services, regardless of whether in the same, modified or processed form, and2. the taxable supply is simulated, circumvents the law, or is at a price which significantly departs from the market price.(4) The liability referred to in Paragraph (1) shall not be contingent on the obtaining of a specific benefit from the non-remittance of the tax due.(5) Any preceding supplier of the person who owes the unremitted tax shall also incur liability under the terms established by Paragraphs (2) and (3).(6) In the cases under Paragraphs (1) and (2), the liability shall be enforced in respect of the person who is the direct recipient of the supply on which the tax due has not been remitted, and where the collection fails, the liability may be enforced in respect of any succeeding recipient in the order of supplies.(7) Paragraph (6) shall apply, mutatis mutandis, in respect of the preceding suppliers as well.Chapter Twenty-SixCOERCIVE ADMINISTRATIVE MEASURES AND ADMINISTRATIVE PENALTY PROVISIONSArticle 178. Any taxable person under this Act who is obligated but fails to submit an application for registration or an application for termination of registration within the time limits established under this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 5,000.Article 179. (Amended, SG No. 108/2007) Any person registered under this Act, who while obligated to do so, fails to submit a VAT return referred to in Article 125 (1) herein, a return referred to in Article 125 (2) herein, the ledgers of account referred to in Article 124 herein, a return referred to in Article 157 (2) herein, or fails to submit the said returns and ledgers in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.Article 180. (1) (Amended, SG No. 108/2007) Any registered person who, while obligated to do so, fails to charge tax within the time limits provided for in this Act, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of the uncharged tax but not less than BGN 500.(2) Paragraph (1) shall furthermore apply where the person has failed to charge tax because the said person has failed to submit an application for registration and has not registered under this Act in due time.(3) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has charged the tax in the period following the period during which the tax should have been charged, the fine or the pecuniary penalty, as the case may be, shall amount to 25 per cent of the tax but not less than BGN 250.(4) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraphs (1) and (2), the amount of the fine or the pecuniary penalty shall be equivalent to the uncharged tax but not less than BGN 5,000.Article 181. (1) (Amended, SG No. 108/2007) Any registered person, who fails to submit information from the ledgers of account or who submits information on a magnetic or optical data storage medium departing from the information stated in the ledgers of account, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 10,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be BGN 1,000 or exceeding this amount but not exceeding BGN 20,000.Article 182. (1) (Amended, SG No. 108/2007) Any registered person, who fails to issue a tax document, or to show a tax document issued or received in the ledgers of account for the relevant tax period, which leads to an assessment of the tax in a smaller amount, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, in the amount of the smaller tax amount but not less than BGN 1,000.(2) (Amended, SG No. 108/2007) Upon a violation under Paragraph (1), where the registered person has issued or shown a tax document for the tax period following the tax period in which the said document should have been issued or shown, the fine or the pecuniary penalty, as the case may be, shall be in the amount of 25 per cent of the smaller tax amount but not less than BGN 250.Article 183. (1) (Amended, SG No. 108/2007) Any person, which is not registered under this Act and who issues a tax document stating therein tax, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, equivalent to the amount of tax stated in the document but not less than BGN 1,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation under Paragraph (1) the amount of the fine or the pecuniary penalty shall be the double amount of the uncharged tax but not less than BGN 5,000.Article 184. (1) (Amended, SG No. 108/2007) Any person, who fails to submit a return referred to in Article 168 (2) herein or who fails to submit the said return in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or to a pecuniary penalty, applicable to legal persons and sole traders, of BGN 1,000 or exceeding this amount but not exceeding BGN 10,000.(2) (Amended, SG No. 108/2007) Upon a repeated violation, the fine or the penalty under Paragraph (1), as the case may be, shall be BGN 5,000 or exceeding this amount but not exceeding BGN 20,000.Article 185. (1) Any person, who fails to issue a fiscal cash receipt (fiscal slip) or who breaches the procedure and manner for type approval, registration or commissioning/decommissioning, or reporting, or service maintenance of fiscal devices, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500, applicable to natural persons who are not merchants, or to a pecuniary penalty of BGN 200 or exceeding this amount but not exceeding BGN 10,000, applicable to legal persons and sole traders.(2) In the cases under Paragraph (1), the natural person who is actually obligated to issue a fiscal cash receipt (fiscal slip) and has accepted payment without issuing such a receipt, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 500.(3) Upon a repeated violation under Paragraph (1), the fine shall be BGN 500 or exceeding this amount but not exceeding BGN 2,500, and the pecuniary penalty shall be BGN 500 or exceeding this amount but not exceeding BGN 20,000.(4) Any person, who fails to fulfil the obligation thereof to keep the fiscal cash receipt (fiscal slip) until he or she leaves the commercial outlet, shall be liable to a fine of BGN 5, which shall be collected on the spot, against a receipt.Article 186. (1) The coercive administrative measure of sealing an outlet for a period of up to one month, notwithstanding the fines or pecuniary penalties provided for, shall be imposed on any person who:1. fails to observe the procedure or manner for:(a) issuing the relevant document on sale (fiscal slip, cash receipt from a receipt book or a sales certifying mark), printed and issued according to the established procedure for supply/ sale;(b) commissioning or registration of fiscal devices;(c) daily reporting of sales turnovers, where this is mandatory;2. uses a re-designed or modified fiscal device.(2) In the cases under Item 2 of Paragraph (1), the re-designed or modified fiscal device shall be confiscated by the revenue authority and shall be destroyed. The expenses shall be for the account of the person.(3) The coercive administrative measure referred to in Paragraph (1) shall be applied by a reasoned order of the revenue authority or by an official empowered by the said authority.(4) Any order referred to in Paragraph (3) shall be appealable according to the procedure established by the Administrative Procedure Code. Article 187. (1) Upon application of the coercive administrative measure referred to in Article 186 (1) herein, the person shall furthermore be barred from the outlet or outlets, and the merchandise in stock at the said outlets and at the warehouses thereto appertaining shall be removed by the person or by a person authorized thereby. Such measure shall be applied in respect of the outlet or outlets where violations have been ascertained.(2) Where such removal involves substantial difficulties for the revenue authorities and/or significant expenses for the person, the authority who decreed the sealing may order that the goods at the outlet or outlets be left to the person for safekeeping. Such order shall not apply to any goods which are the subject of violation referred to in Item 2 of Article 186 (1) herein.(3) In the cases under Paragraph (1), where the person has failed to remove the goods within the prescribed time limit, the revenue authority shall remove the said goods, placing them in front of the outlet, without any obligation to guard the said goods, and shall not be held liable for their damage, waste or loss which shall be for the account of the person.(4) The coercive administrative measure shall be terminated by the authority who applied the said measure at a request of the person on whom the administrative sanction has been imposed and after the said person proves that the file or pecuniary penalty has been paid in full. The person shall be obligated to cooperate upon the unsealing.Article 188. The coercive administrative measure referred to in Article 186 (1) herein shall be subject to anticipatory enforcement under the terms established by the Administrative Procedure Code. Article 189. (1) Any taxpayer under Article 91 (1) to (3) herein, who fails to remit the chargeable tax in due time, shall be liable to a fine, applicable to natural persons who are not merchants, or by a pecuniary penalty, applicable to legal persons and sole traders, of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine or the pecuniary penalty shall be equivalent to the unremitted tax but not less than BGN 4,000.Article 190. (1) Any revenue authority, who fails to refund a tax within the time period as provided for, where the conditions for refund of the said tax under this Act are fulfilled, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.Article 191. (1) Any customs authority, which, while obligated to do so, fails to charge tax under this Act, or who charges tax in a lower amount, or releases goods from customs control without payment of the tax due, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 2,000.(2) Upon a repeated violation under Paragraph (1), the fine shall be BGN 1,000 or exceeding this amount but not exceeding BGN 4,000.Article 192. Upon ascertainment of any violations covered under Article 185 herein, committed by manufacturers, importers or service maintenance providers of fiscal devices, the Chairperson of the State Agency for Metrological and Technical Surveillance or a person empowered thereby:1. issue mandatory prescriptions in connection with the powers vested therein;2. shall cancel the fiscal devices type approval or the approval of an Integrated Automated Commercial Activities Management System;3. shall terminate the registration of the service maintenance provider upon systematic violations of Article 185 herein.Article 193. (1) The ascertainment of violations of this Act and of the statutory instruments on the application thereof, the issuing, appeal and execution of penalty decrees shall follow the procedure established by the Administrative Violations and Sanctions Act. (2) The written statements on violations shall be drawn up by the revenue authorities, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official empowered thereby.SUPPLEMENTARY PROVISION 1. For the purposes of this Act:1. "Territory of the country" shall comprise the geographic territory of the Republic of Bulgaria, the continental shelf and the exclusive economic zone.2. (Amended, SG No. 108/2007) "Territory of a Member State" shall be the area of application of the Treaty establishing the European Community, as defined in respect of each Member State in Article 299 of the said Treaty, with(a) the following territories being excluded from the said territory:(aa) for the Federal Republic of Germany: the Island of Heligoland and the territory of Bтsingen;(bb) for the Kingdom of Spain: Ceuta, Melilla, and the Canary Islands;(cc) for the Republic of Italy: Livigno, Campione d'Italia, and the Italian waters of Lake Lugano;(dd) for the French Republic: the overseas departments;(ee) for the Hellenic Republic: (Mt Athos);(ff) for the Republic of Finland: Ahvenanmaa (the Oland Islands).(gg) (new, SG No. 108/2007) for the United Kingdom of Great Britain and Northern Ireland: the Anglo-Norman Islands;(b) the supplies originating in or intended for:(aa) the Principality of Monaco being treated for the purposes of this Act as supplies originating in or intended for the French Republic;(bb) the Isle of Man being treated for the purposes of this Act as supplies originating in or intended for the United Kingdom of Great Britain and Northern Ireland.(cc) (new, SG No. 108/2007) The sovereign base areas of the United Kingdom of Great Britain and Northern Ireland in Akrotiri and Dhekelia - for the purposes of this Act they shall be treated as supplies originating in or intended for Cyprus.3. "Community" and "territory of the Community" shall be the territory of the Member States.4. "Third territory" or "third country" shall be any territory other than the territory of the Member States.5. "New buildings" shall be any buildings:(a) which are in a state of completion "rough construction work" at the date on which the tax on the supply of the said buildings became chargeable, or(b) in respect of which the tax on the supply thereof became chargeable before the lapse of 60 months from the date on which a use permit was granted according to the procedure established by the Spatial Development Act. 6. (Amended, SG No. 108/2006) "Adjacent site" shall be the amount of the built up area in the meaning of the Spatial Development Act and the area around the built up area, determined on the base of a distance of 3 m from the external outlines of each of the surrounding walls on the first overground floor or the semi underground floor of the building, within the regulated land estate.7. "Activities or supplies effected by the State, the state bodies and the local bodies in their capacity as central or local government authorities" shall be such activities or supplies effected by a person created by virtue of a law, where:(a) such activities or supplies are effected in exercise of the powers vested therein arising from a statutory instrument and which may not be effected by a merchant, unless such duty is imposed thereon by a law;(b) a fee has been established by a statutory instrument.8. A supply effected "free of charge" shall be any supply effected without consideration or such in which the value of the benefit provided exceeds manifold the value of the benefit received.9. "Goods of negligible value" and "services of negligible value" shall be any goods or services whereof the open market value does not exceed BGN 30 and whereof the supply is not part of a series of supplies in which the recipient is one and the same person.10. "Fixed establishment" shall be a representative office, a branch, an office, a bureau, a studio, a plant, a workshop (factory), a retail shop, a wholesale storage facility, an after-sales service establishment, an assembly project, a construction site, a mine, quarry, prospecting drill, oil or gas well, a water spring or any other place of extraction of natural resources, a fixed place (whether owned, rented, or allocated for use) or a fixed base wherethrough a person carries out economic activity within the territory of a country, whether wholly or partly.11. "Person established within the territory of the country" shall be any person who has a registered office and address of the place of management within the territory of the country or who has a fixed establishment within the territory of the country.12. "Person established within the territory of the Community" shall be any person who has a registered office and an address of the place of management within the territory of the Community or who has a fixed establishment within the territory of the Community.13. (Amended SG No. 41/2007) "Electronic communications services" shall be electronic communications services within the meaning given by the Electronic Communications Act. Electronic communications services shall furthermore include a transfer or cession of a right to use the capacity for conveyance, emission, transmission or reception or the provision of access to global information networks.14. "Electronically supplied services" shall be:(a) providing personal presence on the Internet, delivery of digitized content on the Internet (website and webpage hosting), online and distance maintenance of programmes and computer equipment;(b) online accessing or downloading of software plus updates;(c) accessing or downloading of images, writing and information and granting access to databases by electronic means;(d) online accessing or downloading of music, films and games, including lotteries, games of chance and games giving cash prizes and merchandise awards, as well as of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events;(e) supply of distance teaching by electronic means.When the service provider and a customer thereof communicate by electronic mail, this does not imply by itself that the service provided is electronically supplied.15. (Amended, SG No. 113/2007) "Subsidies and investment grants directly linked to a supply" shall be such subsidies and investment grants whereof the allocation is directly dependent on the price of the goods or services provided. Subsidies and investment grants directly linked to a supply shall exclude any subsidies and investment grants intended solely for:(a) cover of losses;(b) financing of expenses, including the acquisition or liquidation of assets.16. "Open market value" shall be the price within the meaning given by Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code , determined according to the methods for determination of open market values within the meaning given by Item 10 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code.17. "New means of transport" shall be:(a) any vessels exceeding 7.5 metres in length (with the exception of such intended for the transport of persons or goods, for navigation, for the purpose of commercial, industrial or fishing activities, for rescue or assistance at sea), where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have sailed for more than 100 hours;(b) aircraft the take-off weight of which exceeds 1,550 kilograms, intended for the transport of persons or goods (with the exception of such intended for airlines operating on international routes), where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within three months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have flown for more than 40 hours;(c) motorized land vehicles the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7.2 kilowatts, intended for the transport of persons or goods, where one of the following conditions is fulfilled:(aa) the date of the chargeable event has occurred within six months after the date of their first entry into service, or(bb) the date of the chargeable event has occurred before they have travelled more than 6,000 kilometres.18. "Passenger car" shall be any automobile designed to seat no more than five persons (excluding the driver). Any light-duty cargo truck intended to carry goods or any passenger car with permanently in-built technical equipment for the purposes of the activities carried out by the registered person shall not be treated as passenger car.19. "Second-hand goods" shall be any used tangible movable property that is suitable for further use as it is or after repair, which can be used for the purpose for which it was made. The following shall not be second-hand goods:(a) works of art;(b) collectors' items;(c) antiques;(d) precious metals and precious stones in whatever form.20. "Works of art" shall be:(a) pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas;(b) original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process;(c) original sculptures and statuary, in any material, provided that they are executed entirely by the artist; sculpture casts the production of which is limited to eight copies and supervised by the artist or by artists authorized thereby;(d) tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more than eight copies of each;(e) individual pieces of ceramics executed entirely by the artist and signed thereby;(f) enamels on copper, executed entirely by hand, limited to eight copies bearing the signature of the artist or the seal of the studio, excluding articles of jewellery and goldsmiths' and silversmiths' wares;(g) photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes included.21. "Collectors' items" shall be any postage or revenue stamps, franked or if unfranked not being of or being intended for use as legal tender, as well any collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest.22. "Antiques" shall be any objects other than works of art or collectors' items, which are more than 100 years old.23. "Taxable dealer of second-hand goods, works of art, collectors' items and antiques" shall be a taxable person who, in the course of his economic activity, purchases or acquires or imports with a view to resale, second-hand goods, works of art, collectors' items or antiques, whether that taxable person is acting [for himself or] as a commission agent within the meaning given by the Commerce Code. 24. "Investment gold" shall be:(a) gold, in the form of a bar or a wafer of weights accepted by the bullion markets, and of a purity equal to or greater than 995 thousandths;(b) gold coins designated by an order of the Governor of the Bulgarian National Bank and the Minister of Finance, where the following conditions are simultaneously fulfilled:(aa) they are of a purity equal to or greater than 900 thousandths;(bb) they are minted after 1800;(cc) they are or have been legal tender in the country of origin;(dd) they are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 per cent.25. "Standard software" shall be any software product recorded on a physical medium, which is intended for common use and which does not take account of the specifics in the activity of a concrete user.26. "Handling of goods in transit" shall be services for unloading, loading, reloading, stowage and securing of the goods, provision of containers, as well as other services provided directly in connection with the transport.27. "Taxable dealer of natural gas and electricity" shall be a taxable person whose economic activity is related to purchases of natural gas or electricity and subsequent resale of such products.28. (Amended, SG No. 108/2007) "Handling of a vessel" shall be all operations concerning the admission, stay and departure of a vessel performed by the port within the territory of the country.29. "Handling of an aircraft on international service" shall be the ground servicing of an aircraft within the meaning given by Item 18 of 3 of the Supplementary Provisions of the Civil Aviation Act , with the exception of the services for which stamp duty is payable under the Ordinance on Public-Transport Airport Charges and Air Navigation Charges in the Republic of Bulgaria (promulgated in the State Gazette No. 2 of 1999; amended in No. 15 of 2000, Nos. 9 and 62 of 2001, No. 19 of 2002, No. 16 of 2003, Nos. 32 and 71 of 2004, Nos. 15 and 96 of 2005, No. 22 of 2006).30. "Handling of railway rolling stock on international service" shall comprise the following operations: shunting for the purpose of moving wagons to and from the points of loading and unloading; stay of the wagon during loading and unloading; weighing of empty wagons by a wagon weighbridge prior to loading; weighing of loaded wagons by a wagon weighbridge; disinfection, elimination of harmful insects and rodents of wagons intended for loading of goods, where this requirement is according to the Bulgarian State Standard; maintenance of controlled temperature during loading and transport of goods, which require such controlled temperature; carrying out customs and other administrative formalities related to the carriage of goods intended for import and for export; providing or withdrawing wagons, inter alia sorting wagons from and for a rail ferry; switching of wagon wheel sets with different track gauges.31. "Repair" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which do not lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.32. "Improvement" shall be the activity involving the incurrence of subsequent costs in connection with a specific asset which lead to an economic benefit in excess of the benefit from the initially estimated standard return on the said asset.33. "Cash equivalents" shall be:(a) receipts for purchases;(b) gift vouchers or gift coupons;(c) metal or plastic tokens.34. "Connected persons" shall be the persons within the meaning given by Item 3 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code. 35. "Repeated violation" shall be any violation committed within one year after the entry into effect of a penalty decree whereby the offender was penalized for a violation of the same kind.36. "Free zone", "free warehouse", "goods in temporary storage", "customs procedure", "suspensive arrangement", "non-Community goods" shall be the terms within the meaning given by customs legislation.37. (Supplemented, SG No. 108/2006) "Tourist", "hotelier", "tour operator", "travel agent", "main tourist services" and "package tour" shall be the terms within the meaning given by Items 1, 3, 8, 10, 12 and 14 of 1 of the Supplementary Provision of the Tourism Act. 38. "Importer" shall be the person liable to pay the import duties, as well as the person who has received goods within the territory of the country from third countries or territories which form part of the customs territory of the Community.39. (Supplemented, SG No. 108/2007, No. 113/2007) "Excisable goods" shall be the goods covered under Items 1, 2 and 3 of Article 2 of the Excise Duties and Tax Warehouses Act except for natural gas supplied through transfer pipelines and electricity.40. "Fiscal device" shall be a device for registration and reporting of sales of goods or services by means of issuing of fiscal cash receipts and for storage of data on the registered turnovers in a fiscal memory.41. "Commercial outlet" shall be any place, premise or facility (for example: tables, stalls and other such) situated outdoors or under sheds, whereat or wherefrom sales of goods or services are effected, regardless of the fact that such premise or facility may concurrently serve for other purposes as well (for example: an office, a dwelling or other such), may be part of owned corporeal immovable (for example: a parking garage, a basement, a room or other such), or may be a manufacturing warehouse or a means of transport wherefrom sales are effected.42. "Systematic violations" shall be any violations committed within one year after the entry into effect of a penalty decree whereby the offender was penalized again for a violation of the same kind.43. "Work on goods" shall be treatment, processing or repair of goods.44. "VIES (Value Added Tax Information Exchange System) return" shall be a consolidated return used for the purposes of control and exchange of information among the Member States.45. (New, SG No. 108/2006) "Accommodation" means basic tourist services in the meaning of sub-paragraph 12 from the additional provision of the Tourism Act. 46. (New, SG No. 108/2006) "Waste production" is every activity as a result of which waste is generated.47. (New, SG No. 108/2006) "Waste processing" is any activity associated with the collection, storage, sorting and mechanical processing of waste without any changes to its chemical composition.48. (New, SG No. 108/2006) "Waste treatment" is any activity, which changes the properties or composition of waste, transforming it into recourses for the production of end products or into end products.49. (New, SG No. 108/2007) "Small vessel" is a vessel with the size set out in Article 34 (2) of the Merchant Shipping Code. 50. (New, SG No. 108/2007) "Large vessel" is a vessel with the size set out in Article 34 (3) of the Merchant Shipping Code. 51. (New, SG No. 108/2007) "Majority partner or shareholder" is a person holding more than 33 per cent of the participating interest or shares, as the case may be, in the company.52. (New, SG No. 108/2007) "Unsettled liabilities" are the established chargeable liabilities of the person except for the fully secured, rescheduled and deferred liabilities.53. (New, SG No. 108/2007) "Active implantable medical device" is a device within the meaning of Item 1 of 1 of the supplementary provisions of the Medical Devices Act. TRANSITIONAL AND FINAL PROVISIONS 2. This Act shall supersede the Value Added Tax Act (promulgated in the State Gazette No. 153 of 1998; corrected in No. 1 of 1999; amended in Nos. 44, 62, 64, 103 and 111 of 1999, Nos. 63, 78 and 102 of 2000, No. 109 of 2001, Nos. 28, 45 and 117 of 2002, Nos. 37, 42, 86 and 109 of 2003, Nos. 53, 70 and 108 of 2004, Nos. 28, 43, 76, 94, 95, 100, 103 and 105 of 2005, Nos. 30 and 54 of 2006), 3. (Effective 4.08.2006) (1) The Minister of Finance shall issue the Regulations for Application of this Act and the ordinances under this Act within three months after the promulgation of the said Act in the State Gazette.(2) The Regulations and the ordinances referred to in Paragraph (1) shall enter into force as from the day of entry into force of this Act. 4. (1) All persons registered under the Value Added Tax Act as hereby superseded at the date of entry into force of this Act shall be presumed registered under this Act as well. In such cases, the identification number referred to in Article 94 (2) herein and the registration certificate referred to in Article 104 herein shall be issued ex officio.(2) Any registration or deregistration procedures that have been initiated and have not been concluded at the date of entry into force of this Act shall be completed according to the procedure established by this Act.(3) Notwithstanding Paragraph (2), when grounds for termination of registration in respect to a registered person have arisen during the last tax period prior to the date of entry into force of this Act, such person may remain registered under this Act if the grounds for optional registration under this Act exist.(4) The tax charged on assets available in connection with termination of registration prior to the entry into force of this Act shall be remitted within 30 days after the date of termination of registration.(5) Where the time limit for submission of the registration inventory referred to in Article 68 or Article 70 of the Value Added Tax Act as hereby superseded expires after the entry into force of this Act, the said inventory shall be submitted within three days after the date of registration under the Value Added Tax Act as hereby superseded. 5. (1) The VAT return for the last tax period prior to the entry into force of this Act shall be submitted not later than the 14th day of the month following the month to which the said return refers, and all rights and obligations under this Act shall accrue in respect to the net tax (input tax claimable or output tax payable) stated therein.(2) The annual VAT return referred to in Article 101 (1) of the Value Added Tax Act as hereby superseded shall be submitted not later than the 15th day of April 2007, and the net tax stated therein shall not be included in the deduction procedure under this Act but the tax shall be remitted or recovered within three months after the submission of the said return. 6. (1) For registered persons in respect of whom the three-month deduction procedure for input tax claimable under the Value Added Tax Act as hereby superseded has been initiated and has not been concluded at the date of entry into force of this Act, the deduction procedure shall continue according to the procedure established by Article 92 (1) of this Act.(2) All nine-month deduction procedures for income tax payable under the Value Added Tax Act as hereby superseded which have not been completed at the date of entry into force of this Act shall be concluded at the last day of the month preceding the month of entry into force of this Act.(3) In the cases referred to in Paragraph (2), the balance of the input tax claimable shall be declared by the persons in the VAT returns for the last tax period prior to the entry into force of this Act, and the said balance shall be set off and refunded by the revenue authority within 45 days after the submission of the said VAT return.(4) Any balance of the input tax claimable under Item 4 of Article 77 (1) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within 45 days after the submission of the VAT return wherein the said balance is stated.(5) Any tax refundable in pursuance of Article 77 (2) of the Value Added Tax Act as hereby superseded which has not been refunded at the date of entry into force of this Act shall be set off and refunded by the revenue authority within the relevant time limits referred to in Article 77 (2) of the Value Added Tax Act as hereby superseded. 7. (1) Where an advance payment has been received in connection with an exempt supply within the meaning given by the Value Added Tax Act as hereby superseded, which is a taxable supply within the meaning given by Article 12 (1) (excluding zero-rated supplies) of this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by issuing an invoice stating therein the full taxable amount for the said supply. The said supply shall be subject to the tax treatment effective at the date of the occurrence of the chargeable event for the supply under this Act.(2) Where an advance payment has been received in connection with a taxable supply within the meaning given by the Value Added Tax Act as hereby superseded, which is an exempt supply within the meaning given by this Act, and the chargeable event for which occurs after the entry into force of this Act, the registered person who is the supplier shall document the supply by cancelling the invoice issued on the advance payment and issuing a new invoice, stating therein the full taxable amount for the said supply. A memorandum under Article 116 (4) of this Act shall furthermore be issued on the said cancellation. The said supply shall be subject to the tax treatment effective at the date of occurrence of the chargeable event for the supply under this Act. 8. (1) Where the chargeable event for a supply has occurred prior to the entry into force of this Act and the tax document on the supply is to be issued after the entry into force of the said, the supply shall be documented by issuing an invoice under Article 114 of this Act, and upon the issuing the said invoice, the tax treatment effective at the date of occurrence of the chargeable event for such supply shall apply.(2) Where, after the entry of this Act into force, grounds arise for modification of the taxable amount of a supply which has been actually effected and documented prior to the entry into force of this Act, the taxable amount shall be modified by issuing a tax advice under Article 115 of this Act, and upon the issuing of the said advice, the tax treatment effective at the date of occurrence of the chargeable event for the supply as effected and documented shall apply. 9. (1) Where goods have actually been supplied under the terms of a financial lease contract prior to the date of entry into force of this Act, each subsequent payment (instalment) under such contract due after the entry into force of this Act shall be considered a separate supply for which the chargeable event shall occur on the earlier of the date of payment and the date on which the said payment became due.(2) Paragraph (1) shall apply only where the taxable person who is the supplier submits an inventory, which shall mandatorily contain the following information, to the National Revenue Agency territorial directorate whereat the said person is registered within one month after the entry into force of this Act:1. recipient under the contracts referred to in Paragraph (1);2. number and amount of instalments under each contract on which a tax document has been issued but which have not been received;3. number and amount of instalments under each contract for which the chargeable event referred to in Paragraph (1) will occur after the entry into force of this Act.(3) For any contracts which are not included in an inventory submitted according to the procedure established by Paragraph (2), the person shall be presumed to effect a supply under Item 3 of Article 6 (2) herein on the date of entry into force of this Act, whereof the taxable amount is equal to the sum total of the instalments due after the entry into force of this Act, net of tax due on the said instalments. 10. Where goods have actually been supplied by a principal/mandator to a commission agent/mandatary and the said goods have not been delivered by the commission agent/mandatary to a third party prior to the entry into force of this Act, the chargeable event for such supply of goods between the principal/mandator and the commission agent/mandatary shall be presumed to occur on the date of occurrence of the chargeable event for the supply of the goods to the third party. 11. The provision of Article 50 of this Act shall furthermore apply in cases of supplies of goods or services for which a right to deduct credit for input tax in pursuance of Article 65 (1) of the Value Added Tax Act as hereby superseded did not exist. 12. Any tax documents issued prior to the entry into force of this Act and complying with the requirements of the Value Added Tax Act as hereby superseded shall be deemed compliant with the requirements of this Act. 13. The right to deduct credit for input tax, which has accrued in pursuance of the Value Added Tax Act as hereby superseded and which has not been exercised until the date of entry into force of this Act and for the exercise of which the time limits under Articles 67 , 69 and 71 of the Value Added Tax Act as hereby superseded have not expired, may be exercised in any of the three tax periods following the tax period during which the said right has accrued. 14. (1) Importation shall furthermore refer to the completion of customs formalities in respect of declaring for free circulation of any goods for which the circumstances under Annex V, Chapter 4 "Customs Union," of the Protocol to the Treaty concerning the Accession of the Republic of Bulgaria to the European Union exist.(2) In the cases referred to in Paragraph (1), the chargeable event shall occur and the tax shall become chargeable according to the procedure established in Article 54 (2) of this Act.(3) The taxable amount in the cases referred to in Paragraph (1) shall be determined according to the procedure established in Article 55 (1) to (4) of this Act.(4) The tax shall be charged according to the procedure established in Article 56 of this Act.(5) The provisions of Articles 60 and 90 of this Act shall apply to the remittance of the tax.(6) Until occurrence of the chargeable event referred to in Paragraph (2), security shall be provided in respect of the tax according to the procedure and in the amounts specified in Article 59 of this Act.(7) (New, SG No. 113/2007) Notwithstanding Paragraph (1), no tax shall be due on the performance of customs formalities for declaring vehicles for free circulation where the following conditions exist simultaneously:1. as of 31 December 2006 inclusive the vehicles are under temporary import regime with full exemption from customs duties;2. the vehicles are acquired in or imported from another Member State, including Romania;3. at the time of declaring the free circulation the vehicles are under temporary import regime with full exemption from customs duties;4. the date of the first registration of the vehicles is not later than 31 December 1998 inclusive;5. the amount of the tax does not exceed BGN 100 inclusive. 15. (Amended, SG No. 108/2006) (1) The VAT accounts in the meaning of Article 20, sub-paragraph 17 of the repealed Value Added Tax Act, on which no funds are available, shall be closed at the request of the title-holders or ex officio by banks as at 31 January 2007.(2) If there are funds available in the VAT account, by 31 January 2007 the account holder may specify an account, to which the funds to be transferred and the VAT account shall be closed.(3) If within the deadline under paragraph 1 the holder of the VAT account in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act does not specify an account, to which the available amounts to be transferred, they shall be transferred as at 31 January 2007 ex officio by the bank to another account of the holder in the same bank, and if the holder does not have another account with the bank - to a current account opened by the bank ex officio in the name of the holder, whereas the VAT account shall be closed.(4) The frozen funds in the VAT accounts in the meaning of Article 20, sub-paragraph 17 from the repealed Value Added Tax Act may be transferred only to an account of the same holder, whereas the imposed freezing shall remain in force, including with regard to its imposition date."; 15a. (New, SG No. 108/2006) (1) When in 2006 reasons have occurred for an adjustment to a tax credit used according to the procedures of Article 81, paragraph 4 from the repealed Value Added Tax Act, the person shall accrue and pay tax to an amount, determined under the procedures of Article 76 from the repealed Rules for the Implementation of the Value Added Tax Act (promulgated in State Gazette No 19 from 1999; amended No 55 from 1999, amended No 9 from 2000; amended No 15 from 2000, amended No 12 from 2001 - Ruling № 404 from 2001 of the Supreme Administrative Court under administrative file № 1581 of 2000; amended No 15 and No 58 from 2001, No 43 and No 63 from 2002, amended No 29 from 2003, amended No 26 from 2004, amended No 32 from 2005, amended No 9 from 2006; repealed, State Gazette No 76 from 2006).(2) The adjustment under paragraph 1 shall be made by issuing a protocol under Article 117 of the present Act during the first tax period of 2007. The protocol shall be registered in the sales journal for that tax period as the tax, accrued under the act in other cases. 16. The Corporate Income Tax Act (promulgated in the State Gazette No. 115 of 1997; corrected in No. 19 of 1998; amended in Nos. 21 and 153 of 1998, Nos. 12, 50, 51, 64, 81, 103, 110 and 111 of 1999, Nos. 105 and 108 of 2000, Nos. 34 and 110 of 2001, Nos. 45, 61, 62 and 119 of 2002, Nos. 42 and 109 of 2003, Nos. 18, 53 and 107 of 2004, Nos. 39, 88, 91, 102, 103 and 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:1. (Effective 4.08.2006) In Article 16 , Paragraph (1) shall be amended to read as follows:"(1) For the purposes of this Section, fair market value shall be determined according to the methods for determination of market prices within the meaning given by Item 10 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ."2. In Article 36a , Item 6 of Paragraph (1) shall be repealed.3. (Effective 4.08.2006) In Article 55 , a new Paragraph (5) shall be added to read as follows:"(5) Taxes withheld at source from non-resident persons which do not carry out economic activity through a permanent establishment or a fixed base within the territory of the country shall be set off and refunded by the territorial directorate referred to in Paragraph (1)."4. Article 66 shall be amended as follows:(a) in Paragraph (1), the words "Article 136" shall be replaced by "Article 183";(b) in Paragraph (2), the words "Article 137" shall be replaced by "Article 185". 17. (Effective 4.08.2006) In the Waste Management Act (promulgated in the State Gazette No. 86 of 2003; amended in No. 70 of 2004, Nos. 77, 87, 88, 95 and 105 of 2005, Nos. 30 and 34 of 2006), in Item 27 of 1 of the Supplementary Provisions , the words "Item 5 of Article 20 of the Value Added Tax Act" shall be replaced by "Item 8 of 1 of the Supplementary Provisions of the Tax and Social-Insurance Procedure Code ." 18. (Effective 4.08.2006) The Excise Duties and Tax Warehouses Act (promulgated in the State Gazette No. 91 of 2005; amended in No. 105 of 2005, Nos. 30 and 34 of 2006) shall be amended and supplemented as follows:1. In Article 4 :(a) in Item 8, after the words "30 litres" there shall be added "of ethyl alcohol (rakiya)";(b) Item 10 shall be amended to read as follows:"10. "Dual use energy product" shall be a product which is used both as heating fuel and for purposes other than as motor fuel and heating fuel; the use of energy products for chemical reduction and in electrolytic and metallurgical processes shall be regarded as dual use.";(c) in Item 18, the figure "5,000" shall be replaced by "15,000".2. In Article 9 , a new Item 3 shall be added to read as follows:"3. obtained from distillation and potable, containing other products, whether in solution or not."3. In Article 14 , the words "Section VI and of Chapter Eight" shall be deleted.4. In Article 21 :(a) in Item 2 of Paragraph (1), the word "at importation" shall be deleted;(b) there shall be inserted a new Paragraph (2) to read as follows:"(2) Where excise duty has not been paid on the goods referred to in Items 1 and 3 of Paragraph (1), exemption shall be granted by a refund.";(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.5. In Article 22: (a) Paragraph (1) shall be amended to read as follows:"(1) Completely denatured ethyl alcohol shall be exempted from levy of excise duty.";(b) there shall be inserted a new Paragraph (2) to read as follows:"(2) The excise duty paid on ethyl alcohol, which is both expressly denatured and used for the manufacture of products not for human consumption, shall be refunded.";(c) the existing Paragraphs (2) and (3) shall be renumbered to become Paragraphs (3) and (4), respectively.(d) the existing Paragraph (4) shall be renumbered to become Paragraph (5) and shall be amended to read as follows:"(5) The excise duty paid under Paragraphs (2), (3) and (4) shall be refunded after the sale of the manufactured products referred to in Paragraphs (2) and (3) or, respectively, after the use thereof under Paragraph (4)."6. In Article 24 (2) :(a) in Item 1, the words "other than being used as motor fuel or heating fuel" shall be deleted;(b) there shall be added a new Item 4 to read as follows:"4. used for purposes other than as motor fuel and heating fuel."7. In Article 32 :(a) in Paragraph (2), the text before Item 1 shall be amended to read as follows: "The excise rate on motor fuel used for tillage of agricultural land by agricultural producers approved for financial assistance under the Agricultural Producers Support Act, shall be as follows:";(b) there shall be added new Paragraphs (3), (4), (5) and (6) to read as follows:"(3) The rates of excise duty referred to in Items 1 and 2 of Paragraph (2) shall be applied by means of reimbursement of the difference between the relevant rate under Paragraph (1) and the rate under Paragraph (2) for a quantity calculated on the basis of an annual fuel consumption rate of 73 litres per hectare of registered arable agricultural land.(4) Not later than the 1st day of July of each year, the Minister of Agriculture and Forestry shall provide the Director of the National Customs Agency with the following information from the Register of Agricultural Producers:1. identification particulars of the agricultural producer;2. legal form of business organization, name (business name), permanent address (registered office and address of the place of management), telephone, fax, electronic mail address;3. data on the agricultural land farmed (in hectares) according to the agricultural land parcel identification.(5) The right to reimbursement shall be exercised by the agricultural producers on a single occasion in respect of the motor fuel purchased thereby during the current year. A request for reimbursement shall be submitted from the 1st day of July until the 31st day of December in the current year,(6) Reimbursement under Paragraph (3) shall be effected within two months after submission of the request according to a procedure established the Regulations for Application of this Act."8. In Article 33 (1), the words "used" and "and household purposes" shall be deleted.9. In Article 34 , the words "Article 32, Paragraph 2 and" shall be deleted.10. In Item 5 of Article 47 , the words "of the tax or customs legislation" shall be replaced by "under this Act".11. In Item 5 of Article 51 (1) , the words "and tax number" shall be deleted.12. In Item 3 of Article 54 (2) and Item 2 of Article 56 (2) , the words "and tax number" shall be deleted.13. In Article 57 , Item 5 of Paragraph (3) shall be amended to read as follows:"5. a copy of BULSTAT Register identification card, certified by the person;".14. In Article 59 (1), after the word "including" there shall be inserted "extraction, recovery and".15. In Article 60 , Paragraphs (5) and (60 shall be repealed.16. In Article 65 (2) , Item 2 shall be amended to read as follows:"2. have been released for free circulation with simultaneous placing under an excise duty suspension arrangement;".17. In Article 66 , there shall be added new Paragraphs (3) and (4) to read as follows:"(3) Authorized warehousekeepers shall be obligated to use measuring instruments complying with the requirements of the Measurements Act and the statutory instruments on the application thereof.(4) The specific requirements and the control over the measuring instruments referred to in Paragraph (3) shall be determined according to the procedure established by Article 61 (2) herein."18. In Article 67 , Item 3 shall be amended to read as follows:"3. Transportation of excisable goods, released for free circulation with simultaneous placing under an excise duty suspension arrangement, to a tax warehouse."19. In Article 77 (2) at the end, there shall be placed a comma and there shall be added "with the exception of the cases referred to in Article 78 (3) herein."20. In Article 78 :(a) there shall be inserted a new Paragraph (3) to read as follows:"(3) The amount of the security for a tax warehouse for production and storage of excisable goods may not exceed BGN 30 million.";(b) the existing Paragraph (3) shall be renumbered to become Paragraph (4).21. In Article 88 (4) , the words "the Tax Procedure Code" shall be replaced by "the Tax and Social-Insurance Procedure Code".22. In Article 94 , Paragraph (2) shall be repealed.23. In Article 97 (1) , the word "Denaturing" shall be replaced by "Complete denaturing".24. In Article 106 (1) , the word "tax" shall be replaced by "revenue".25. In Article 125 , there shall be added a new Paragraph (4) to read as follows:"(4) The sanctions referred to in Paragraphs (1), (2) and (3) shall furthermore be imposed on any agricultural producer which uses motor fuel at reduced rates in violation of Article 32 herein."26. The Transitional and Final Provisions shall be amended and supplemented as follows:(a) in 2 :(aa) Paragraph (1) shall be amended to read as follows:"(1) Any proceedings for the establishment and collection of excise duty liabilities, initiated on or before the 30th day of June 2006, as well any proceedings for reimbursement of excise duty initiated until the said date, shall be completed by the National Revenue Agency authorities.";(bb) Paragraph (2) shall be amended to read as follows:"(2) The excise duty charged on or before the 30th day of June 2006 shall be declared and remitted according to the procedure and within the time limits established by the Excise Tax Act and the Regulations for Application thereof.";(cc) there shall be added new Paragraphs (3) and (4) to read as follows:"(3) The provisions of the Excise Tax Act shall apply to any excise duty liabilities which have arisen on or before the 30th day of June 2006, and the said liabilities shall be established, secured and collected by the National Revenue Agency authorities according to the procedure established by the Tax and Social-Insurance Procedure Code.(4) The security furnished under the Excise Tax Act, furnished on or before the 30th day of June 2006, shall be released or utilized by the National Revenue Agency according to the procedure and under the terms established by the Excise Tax Act and the Regulations for Application thereof.";(b) there shall be inserted 2a and 2b to read as follows:" 2a. (1) Authorized warehousekeepers shall have the right to reimbursement of the excise duty paid until the 30th day of June 2006 on:1. ethyl alcohol (alcohol-containing raw materials) used in the production of alcoholic beverages;2. gases intended for processing, falling within CN codes 2901 24 100, 2711 14 000, 2901 22 000 and 2901 21 000, which have undergone specific or chemical processing into excisable finished products;3. heavy oils intended for processing, falling within CN codes 2710 19 710 and 2710 19 750, and for heavy fuel oils, falling within CN codes 2710 19 510 and 2710 19 550, which have under undergone specific or chemical processing into excisable finished products;4. naphtha used in the production of ethylene;5. ethylene used in the production of ethylene dichloride.(2) Reimbursement shall be effected after release for consumption of the excisable goods in which the goods covered under Paragraph (1) are used or, respectively, after the sale of the ethylene dichloride, but not later than the 1st day of July 2007. 2b. The annual fuel consumption rate, referred to in Article 32 (3) herein, for 2006, shall be 44 litres per hectare of registered arable agricultural land.";(c) in 5 , the words "Article 21, Paragraph 2" shall be replaced by "Article 21, Paragraph 3";(d) in 12 :(aa) Item 1 shall be amended to read as follows:"1. the provisions of Articles 1 to 31, Article 32, Items 2, 4, 5 and 6 of Article 33 (1) and Article 33 (2), Articles 34 to 46, Articles 59 to 128, 1 (1) regarding the repeal of the Excise Tax Act, as well as 1 (3), which shall enter into force as from the 1st day of July 2006;".(bb) there shall be added a new Item 3 to read as follows:"3. The provisions of Items 1 and 3 of Article 33 (1), which shall enter into force as from the 1st day of January 2007." 19. (Effective 4.08.2006) The Tax and Social-Insurance Procedure Code (promulgated in the State Gazette No. 105 of 2005; amended in Nos. 30, 33 and 34 of 2006) shall be amended and supplemented as follows:1. In Article 30 (3) , the words "Article 29 (8) or (9)" shall be replaced by "Article 29 (6), (7) and (8)".2. In Article 140 (3) , the figure "139" shall be replaced by "138".3. In Article 143 , there shall be added a new Paragraph (4) to read as follows:"(4) Upon receipt of a request for exchange of information under Paragraph (1) from another country and on a basis of reciprocity, the Minister of Finance or a person authorized thereby may approach the court for disclosure of information constituting a bank secret within the meaning given by Article 52 of the Banking Act, a secret within the meaning given by Articles 71 and 133 of the Public Offering of Securities Act or within the meaning given by another provision of Bulgarian legislation on safeguarding the confidentiality of pecuniary funds, financial assets and other property, where the facts set forth in the request for exchange of information make clear that the said request is made in compliance with the requirements for exchange of information in the relevant international treaty."4. In Article 157 (3) , the words "and Paragraph (8)" shall be deleted.5. In sentence one of Article 183 (11) , the words "Article 148 (1)" shall be replaced by "Article 184 (1)", and sentence two shall be deleted.6. In Article 189 , the heading shall be amended to read as follows: "Rescheduling and Deferral in Bankruptcy Proceedings".7. In Article 202 (1) and in the heading of Article 228, the words "and persons connected therewith" shall be deleted.8. In Item 1 of Article 251 (3) at the end, the words "and address" shall be replaced by "address and certificate of current status."9. In Article 252: (a) in Paragraph (6), after the word "same" there shall be inserted "highest";(b) In Paragraph (7), the words "non-attending bidders" shall be replaced by "bidders and at least one of them is not present at the review of the offers".10. In Article 254 (2) :(a) a new sentence two shall be inserted, to read as follows: "If the second highest price has been offered by two or more participants, the public enforcement agent shall determine the succeeding buyer through a draw of lot.";(b) the existing sentence two shall become sentence three.11. In Article 255 , the words "the interest and the principal" shall be replaced by "the principal and the interest".12. In 6 of the Transition and Final Provisions , there shall be added a new Paragraph (7) to read as follows:"(7) Upon appointment to civil service at the National Customs Agency to a position whereof the functions are directly related to administration and control of excise duties, Article 10 (1) of the Civil Servants Act shall not apply if the candidates are in employment relationships with the National Customs Agency and with the National Revenue Agency." 20. (Effective 4.08.2006) In the Banking Act (promulgated in the State Gazette No. 52 of 1997; supplemented in No. 15 of 1998; amended in Nos. 21, 52, 70 and 98 of 1998, Nos. 54, 103 and 114 of 1999, Nos. 24, 63, 84 and 92 of 2000, No. 1 of 2001, Nos. 45, 91 and 92 of 2002, No. 31 of 2003, Nos. 19, 31, 39 and 105 of 2005, Nos. 30, 33 and 34 of 2006) Article 52 (5) shall be amended and supplemented as follows:1. There shall be inserted the following new Item 2 to read as follows:"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively. 21. (Effective 4.08.2006) In the Public Offering of Securities Act (promulgated in the State Gazette No. 114 of 1999; amended in Nos. 63 and 92 of 2000, Nos. 28, 61, 93 and 101 of 2002, Nos. 8, 31, 67 and 71 of 2003, No. 37 of 2004, Nos. 19, 31, 39, 103 and 105 of 2005), Article 71 (6) shall be amended and supplemented as follows:1. There shall be inserted a new Item 2 to read as follows:"2. the Minister of Finance or a person authorized thereby: in the cases referred to in Article 143 (4) of the Tax and Social-Insurance Procedure Code;".2. The existing Items 2, 2a, 3 and 4 shall be renumbered to become Items 3, 4, 5 and 6, respectively. 22. (Effective 4.08.2006) In the Personal Income Tax Act (promulgated in the State Gazette No. 118 of 1997, modified by Constitutional Court Judgment No. 6 of 1998, promulgated in No. 35 of 1998; amended in Nos. 71 and 153 of 1998, Nos. 50, 103 and 111 of 1999, No. 105 of 2000, No. 110 of 2001, Nos. 40, 45, 61 and 118 of 2002, Nos. 42, 67, 95 and 112 of 2003, Nos. 36, 37, 53, 70 and 108/2004, Nos. 43, 102, 103 and 105 of 2005, No. 17 of 2006) in Article 20 (7) , the words "Paragraph (5)" shall be replaced by "Paragraph (6)". 23. (Effective 4.08.2006) In the Accountancy Act (promulgated in the State Gazette No. 98 of 2001; amended in No. 91 of 2002, No. 96 of 2004, Nos. 102 and 105 of 2005, No. 33 of 2006) Article 7 shall be amended and supplemented as follows:1. In Item 3 of Paragraph (1), after the word "address", the comma shall be deleted and the words "BULSTAT Code and number in the national tax register" shall be replaced by "and identification under Article 84 of the Tax and Social-Insurance Procedure Code".2. There shall be added new Paragraphs (5) and (6) to read as follows:"(5) The address referred to in Item 3 of Paragraph (1) shall be:1. the permanent address: applicable to natural persons;2. the address of the place of management: applicable to legal persons;3. the mailing address under the Tax and Social-Insurance Procedure Code: applicable to persons who do not have an address of the place of management.(6) A sole trader shall identify himself or herself only through a BULSTAT Register single identification code." 24. (Effective 4.08.2006) The Financial Support for Culture Act (promulgated in the State Gazette No. 103 of 2005; amended in Nos. 30 and 34 of 2006) shall be amended as follows:1. In Article 11: (a) in Paragraph (3), Item 5 shall be repealed;(b) in Item 1 of Paragraph (5), the words "tax registration number" shall be deleted.2. In Annex No. 1, in "I. Applicant Data", the words "number of tax registration" shall be deleted.3. In Annexes Nos. 2 and 3, the words "Tax registration number" shall be deleted. 25. The Integration of Persons with Disabilities Act (promulgated in the State Gazette No. 81 of 2004; amended in Nos. 28, 88, 94, 103 and 105 of 2005, Nos. 18, 30, 33 and 37 of 2006) shall be amended as follows:1. In Article 35 (2) , the words "and from value added tax" shall be deleted.2. In Article 44, Paragraph (2) shall be repealed. 26. This Act shall enter into force as from the day of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, with the exception of 3, Items 1 and 3 of 16, 17, 18, 19, 20, 21, 22, 23 and 24 herein, which shall enter into force as from the day of promulgation of the Act in the State Gazette.This Act was passed by the 40th National Assembly on the 21th day of July 2006 and the Official Seal of the National Assembly has been affixed thereto. Annex No. 1 to Article 32 (1) (Previous Annex to Article 32 (1), SG No. 108/2006, effective 1.01.2007)Description of Goods Combined Nomenclature of Republic of Bulgaria CodeTin 8001Copper 7402 7403 7405 7408Zinc 7901Nickel 7502Aluminium 7601Lead 7801Indium ex 811291ex 811299 Cereals 1001 to 10051006: unprocessed rice only1007 to 1008 Oil seeds and oleaginous fruit 1201 to 1207Coconuts, Brazil nuts and cashew nuts 0801Other nuts 0802Olives 0711 20Grains and seeds (including soya beans) 1201 to 1207Coffee, not roasted 0901 11 000901 12 00Tea 0902Cocoa beans, whole or broken, raw or roasted 1801 Raw sugar 1701 111701 12Rubber, in primary forms or in plates, sheets or strip 40014002Wool 5101Chemicals in bulk Chapters 28 and 29Mineral oils (including propane and butane, also including crude petroleum oils) 2709 2710 2711 12 2711 13Silver 7106Platinum (palladium, rhodium) 7110 11 007110 21 007110 31 00Potatoes 0701Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified 1507 to 1515 Annex No. 2 to Chapter Nineteen "a" (New, SG No. 108/2006, effective 1.01.2007) 1. Household waste under the Waste Management Act. 2. Production waste under the Waste Management Act. 3. Construction waste under the Waste Management Act. 4. Hazardous waste under the Waste Management Act. 5. Services associated with the production, processing or treatment ofwaste under sub-paragraphs 1 - 4. For more information visit www.solicitorbulgaria.com id: 340 Mon, 04 Aug 2008 07:16:01 -0700 http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/VALUE_ADDED_TAX_ACT1.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) PART ONEGENERAL DISPOSITIONSPurpose of ActArticle 1. This Act regulates the levy of value added tax (VAT).Subject to TaxationArticle 2. The following shall be subject to value added tax:1. each taxable supply of goods or services effected for consideration;2. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, by a person registered under this Act or by a person in respect of which an obligation to register has arisen;3. each intra-Community acquisition of new means of transport effected for consideration, whereof the place of transaction is within the territory of the country;4. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, of excisable goods, where the recipient is a taxable person or a non-taxable legal person which is not registered under this Act;5. the importation of goods.Taxable PersonsArticle 3. (1) "Taxable person"… For more information visit http://www.solicitorbulgaria.com id: 341 PART ONEGENERAL DISPOSITIONSPurpose of ActArticle 1. This Act regulates the levy of value added tax (VAT).Subject to TaxationArticle 2. The following shall be subject to value added tax:1. each taxable supply of goods or services effected for consideration;2. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, by a person registered under this Act or by a person in respect of which an obligation to register has arisen;3. each intra-Community acquisition of new means of transport effected for consideration, whereof the place of transaction is within the territory of the country;4. each intra-Community acquisition effected for consideration, whereof the place of transaction is within the territory of the country, of excisable goods, where the recipient is a taxable person or a non-taxable legal person which is not registered under this Act;5. the importation of goods.Taxable PersonsArticle 3. (1) "Taxable person" shall mean any person who independently carries out an economic activity, whatever the purpose and results of that activity.(2) (Partially declared unconstitutional by the Constitutional Court of the Republic of Bulgaria regarding the expression "as well as the practice of a liberal profession, including as private enforcement agents and notaries" - SG, No. 37/2007, supplemented, SG No. 108/2007) Independently carried out economic activities shall comprise the activities of producers, traders and persons supplying services, including mining and agriculture, as well as the practice of a liberal profession, including as private enforcement agents and notaries. Any remunerative activity, carried out on a continuing basis or as a regular occupation or business on a professional basis for the purpose of obtaining income therefrom, including the exploitation of tangible and intangible property, shall also be considered an independently carried out economic activity.(3) The following shall not be considered an independently carried out economic activity:1. the activity carried out by natural persons under an employment relationship or under a legal relationship equivalent to an employment relationship;2. (amended, SG. No. 108/2006) the activity of natural persons, who are not sole traders, in respect of the activity carried out by such natural persons and regulated by law, concerning management and control of legal persons.(4) Any person, who from time to time effects an intra-Community supply for consideration of a new means of transport, shall also be regarded as a taxable person.(5) The State, the state and the local bodies shall not be taxable persons in respect of all activities and supplies in which they engage in their capacity as a central or local government authority, even where they collect fees, contributions or payments in connection with these activities or supplies, with the exception of:1. the following activities or supplies:(a) (amended, SG No. 41/2007) electronic communications services;(b) supply of water, gas, electricity or steam;(c) transport of goods:(d) port and airport services;(e) passenger transport;(f) sale of new goods manufactured for sale;(g) supplies effected for the purpose of intervention on the market in agricultural products;(h) organizing or running of trade fairs, exhibitions;(i) warehousing;(j) the activities of commercial publicity bodies, advertising services, including rental of advertising space;(k) tourist services;(l) running of shops, industrial canteens and other commercial outlets, the letting of buildings, parts of buildings and sales areas;(m) activities of radio and television bodies of a commercial nature.2. Any supplies other than those covered under Item 1, which will lead to significant distortion of competition.Non-taxable Legal PersonArticle 4. "Non-taxable legal person" shall mean any legal person which is not a taxable person within the meaning given by Article 3 herein and which effects intra-Community acquisition of goods.GoodsArticle 5. (1) "Goods," within the meaning given by this Act, shall be any movable and immovable thing, including electric current, gas, water, heat or refrigeration and other such, as well as standard software.(2) Money in circulation and foreign currency used as tender shall not be goods within the meaning given by this Act.Supply of GoodsArticle 6. (1) "Supply of goods," within the meaning given by this Act, shall be the transfer of the right of ownership or another right in rem to goods.(2) For the purposes of this Act, the following shall also be considered supply of goods:1. the transfer, resulting from a request or an act of a central or local government authority or the administrations thereof or in pursuance of the law, of a right of ownership or another right in rem against payment of compensation;2. the actual handing over of goods, pursuant to a lease contract which provides for the passing of the right of ownership of the said goods under a suspensive condition or in the normal course of events;3. the actual handing over of goods, pursuant to a lease contract which expressly provides for passing of the right of ownership of the goods; this provision shall not apply where passing of ownership of the goods is stipulated in the contract solely as an option;4. the actual handing over of goods to a person acting in his own name and for the account of another.(3) For the purposes of this Act, the following shall also be considered supply of goods effected for consideration:1. the setting aside or handing over of goods for the private use or consumption of the taxable natural person, of the owner, of the factory or office workers thereof or of third parties and subject to the condition that credit for input tax has been deducted wholly or partly upon the production, importation or acquisition of the said goods;2. the transfer of ownership or another right in rem to goods to third parties, effected free of charge, where credit for input tax has been deducted wholly or partly upon the production, importation or acquisition of the said goods.(4) Paragraph (3) shall not apply upon:1. the handing over of special-purpose, working, uniform and presentable clothing by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the person;2. the provision, free of charge, of goods of negligible value for advertising purposes or upon distribution of samples.Intra-Community Supply of GoodsArticle 7. (1) "Intra-Community supply of goods" shall be any supply of goods, transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person registered for VAT purposes in another Member State.(2) Any supply of a new means of transport, dispatched or transported by or for the account of the supplier or of the recipient from the territory of the county to the territory of another Member State, regardless of whether the recipient is a taxable person or a non-taxable person, shall also be considered intra-Community supply of goods.(3) Any supply of excisable goods, dispatched or transported by or for the account of the supplier who is a person registered under this Act, or of the recipient from the territory of the country to the territory of another Member State, where the recipient is a taxable person or a non-taxable legal person which is not registered for VAT purposes in another Member State, shall also be considered intra-Community supply of goods.(4) The dispatch or transport of any goods produced, extracted, processed, purchased or imported into the territory of the country by a person registered under this Act within the framework of the economic activity thereof shall also be considered intra-Community supply of goods effected for consideration, where the said goods are dispatched or transported for the purposes of the economic activity thereof by or for the account of the said person from the territory of the country to the territory of another Member State in which the said person is registered for VAT purposes.(5) The following shall not be intra-Community supply:1. the supplies of any goods in respect of which the supplier applies the special procedure for taxation under Chapter Seventeen herein;2. the supplies of any goods which are assembled or installed by or for the account of the supplier;3. the supplies of any goods under Article 18 herein;4. the supplies of any goods referred to in Items 1, 2 and 7 of Article 31 and Article 34 herein;5. the supplies of natural gas through the natural gas distribution system or of electricity;6. the supplies by a person registered under this Act who is an intermediary in a triangular operation to the acquirer in a triangular operation;7. the distance selling of goods effected under the identification number issued by the Member State whereto the goods have been dispatched or transported;8. the dispatch and transport of any goods from the territory of the country to the territory of another Member State for the purpose of work on the said goods, which is carried out in that other Member State, provided that the said goods, after being worked upon, are re-dispatched to the sender within the territory of the country;9. the dispatch and transport of any goods from the territory of the country to the territory of another Member State for the purpose of use of the said goods for the purposes of the supply of services within the territory of that other Member State, provided that the said goods are re-dispatched to the sender within the territory of the country after supply of the services;10. the dispatch and transport of any goods from the territory of the country to the territory of another Member State, if the following conditions are simultaneously fulfilled:(a) the import of the same goods from a third country or territory to the territory of that other Member State would be eligible for the arrangements for temporary importation with total exemption from import duty;(b) the goods are re-dispatched to the sender within the territory of the country within a period not exceeding 24 months after their dispatch.(6) (Amended, SG No. 113/2007) Where the conditions under Items 8 to 10 of Paragraph (5) no longer apply, intra-Community supply for consideration shall be considered to be effected by that time.ServicesArticle 8. "Services" within the meaning given by this Act, shall mean everything which has a value and which is other than goods, money in circulation and foreign currency used as legal tender.Supply of ServicesArticle 9. (1) "Supply of services" shall be any performance of services.(2) The following shall also be considered supply of services:1. the sale or transfer of rights to intangible property;2. the assumption of an obligation not to perform any acts or not to exercise any rights;3. any manual and intellectual work, including treatment in the sense of production, construction or assembly of a tangible asset using raw and prime materials placed by the client at the disposal of the service provider;4. the performance of services by a tenant/user for repair and/or improvement of an asset hired out or allocated for use.(3) The following shall also be considered supply of services effected for consideration:1. the provision of services for the private use of the taxable natural person, of the owner, of the factory and office workers or of third parties, the performance of which involves use of goods upon the production, importation or acquisition whereof credit for input tax has been wholly or partly deducted.2. the provision, free of charge, of services for the private use of the taxable person, of the owner, of the factory or office workers or of third parties.(4) Paragraph (3) shall not apply upon:1. the provision, free of charge, of transport services from the place of residence to the place of work and back, by an employer to the factory and office workers thereof, including such under management contracts, where for the purposes of the economic activity of the person;2. the performance, free of charge, of services by a tenant/user for repair of an asset hired out or allocated for use in the cases where the said asset was hired out or allocated for use to the tenant/user and has been actually used on a continuing basis for a period of not less than three years;3. the performance, free of charge, of services by a concessionaire for improvement of an asset allocated for use, where this is a condition and/or obligation under the contract of concession;4. the performance, free of charge, of services of negligible value for advertising purposes.Where No Supply or Goods or Services Has Taken PlaceArticle 10. (1) No supply of goods or services has taken place where the supply to the transferee from the transforming corporation, from the transferor or from the contributor of a non-cash asset results from:1. transformation of a commercial corporation according to the procedure established by Chapter Sixteen of the Commerce Act; 2. transfer of an enterprise according to the procedure established by Article 15 or Article 60 of the Commerce Act;3. contributing a non-cash asset in consideration of a capital allotment in a commercial corporation.(2) In the cases covered under Paragraph (1), the recipient of the goods or services shall furthermore accede to all rights and obligations under this Act and in connection with them, including the right to deduct credit for input tax and of the obligations to adjust credit for input tax used.(3) Paragraph (2) shall furthermore apply in the cases where the goods and services have been acquired by legal or testamentary succession by a taxable person under this Act.(4) The procedure and the requisite documents for application of Paragraphs (2) and (3) shall be determined by the Regulations for Application of this Act.Supplier and RecipientArticle 11. (1) "Supplier," within the meaning given by this Act, shall be the person who effects the supply of goods or services.(2) "Recipient," within the meaning given by this Act, shall be the person who receives the goods or the services.Taxable SupplyArticle 12. (1) "Taxable supply" shall be each supply of goods or services within the meaning given by Articles 6 and 9 herein, where effected by a taxable person under this Act and whereof the place of transaction is within the territory of the country, as well as the zero-rated supplies effected by a taxable person, save in the cases in which this Act provides otherwise.(2) A supply in which the recipient is a taxpayer under Chapter Eight herein shall not be subject to taxation by the supplier.Intra-Community AcquisitionArticle 13. (1) "Intra-Community acquisition" shall mean acquisition of the right of ownership of goods, as well as the actual receipt of goods in the cases under Article 6 (2) herein, which are dispatched or transported to the territory of the country from the territory of another Member State, where the supplier is a taxable person registered for VAT purposes in another Member State.(2) The acquisition of a new means of transport, which is dispatched or transported to the territory of the country from the territory of another Member State, regardless of whether the supplier is a taxable person for VAT purposes in another Member State, shall also be considered an intra-Community acquisition.(3) The receipt of goods within the territory of the country by a person registered under this Act, which will be used for the purposes of the economic activity of the said person, shall also be considered an intra-Community acquisition for consideration where the said goods are dispatched or transported by or for the account thereof from the territory of another Member State in which the person is registered for VAT purposes and where the said goods were produced, extracted, processed, purchased, acquired or imported thereby within the framework of the economic activity thereof.(4) The following shall not be an intra-Community acquisition:1. the acquisition of any goods to which the supplier applies special arrangements for taxing of second-hand goods, works of art, collectors' items and antiques, as regulated in the legislation of the relevant Member State;2. the acquisition of any goods which are assembled or installed by or for the account of the supplier;3. the acquisition of any goods covered under Article 18 herein;4. the acquisition of any goods referred to in Items 1, 2 and 7 of Article 31 and Article 34 herein;5. the acquisition of natural gas through the natural gas distribution system or of electricity;6. the acquisition of any goods by a person registered under this Act who is an acquirer in a triangular operation from an intermediary in a triangular operation;7. the acquisition of any goods dispatched or transported from the territory of another Member State for the purpose of distance selling whereof the place of transaction is within the territory of the country, where selling is effected under the supplier's identification number referred to in Article 94 (2) herein;8. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country for the purpose of work on the said goods, which is carried out within the territory of the country, provided that the said goods, after being worked upon, are re-dispatched to the sender within the territory of that other Member State;9. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country for the purpose of use of the said goods for the purposes of the supply of services within the territory of the country, provided that the said goods are re-dispatched to the sender within the territory of that other Member State after supply of the services;10. the receipt of any goods dispatched or transported from the territory of another Member State to the territory of the country, if the following conditions are simultaneously fulfilled:(a) the import of the same goods from the territory of the country would be eligible for the arrangements for temporary importation with total exemption from customs duty;(b) the goods are re-dispatched to the sender within the territory of another Member State within a period not exceeding 24 months after their dispatch.(5) (Amended, SG No. 113/2007) Where the conditions under Items 8 to 10 of Paragraph (4) no longer apply, intra-Community acquisition for consideration shall be considered to be effected by that time.Distance Selling of GoodsArticle 14. (1) "Distance selling" shall be a supply of goods where the following conditions are simultaneously fulfilled:1. the goods are dispatched or transported by or for the account of the supplier from the territory of a Member State other than the Member State in which the transport ends;2. the supplier of the goods is registered for VAT purposes in a Member State other than the Member State in which the transport ends;3. the recipient of the supply is a person who is not obliged to charge tax upon intra-Community acquisition of the goods in the Member State where the transport ends;4. the goods:(a) are not new means of transport, or(b) are not assembled and/or installed by or for the account of the supplier, or(c) are not subject to special arrangements for taxing the price margin for second-hand goods, works of art, collectors' items and antiques.(2) For the purposes of Paragraph (1), where the goods are supplied, dispatched or transported from a third country or territory and are imported by the supplier into a Member State other than the Member State in which the transport to the recipient ends, the goods shall be deemed to be dispatched or transported from the Member State of import of the goods.Triangular OperationArticle 15. "Triangular operation" shall be the supply of goods between three persons registered for VAT purposes in three different Member States A, B and C, where the following conditions are simultaneously fulfilled:1. a registered person in Member State A (transferor) effects a supply of goods to a person registered for the purposes of VAT in Member State B (intermediary) who then effects a supply of the said goods to a person registered for the purposes of VAT in Member State C (acquirer);2. the goods are transported directly from A to B;3. the intermediary is not registered for VAT purposes in Member States A and B;4. the acquirer charges VAT as a recipient of the supply.Importation of GoodsArticle 16. (1) "Importation of goods," within the meaning given by this Act, shall be the introduction of non-Community goods into the territory of the country.(2) "Importation of goods" shall furthermore mean the release of goods for free circulation after placing under the outward processing procedure.(3) "Importation of goods" shall furthermore mean the introduction of Community goods into the territory of the country from third countries or territories which form part of the customs territory of the Community.(4) "Importation of goods" shall furthermore mean any other event from which a customs debt arises.(5) Notwithstanding Paragraphs (1) to (4), where upon introduction into the territory of the country the customs status of goods in temporary storage is conferred on the goods or the goods are place in a free zone or free warehouse, or are placed under the customs procedures of: customs warehousing, inward processing, temporary importation with total exemption from duty, external transit, the importation shall be deemed effected when the goods cease to be under the relevant procedure within the territory of the country.PART TWOTAXATION OF SUPPLIESChapter OnePLACE OF TRANSACTIONPlace of Supply of GoodsArticle 17. (1) "Place of supply of goods which are not dispatched or transported" shall mean the place where the goods are when ownership passes or upon the actual handing over of the goods under Article 6 (2) herein.(2) "Place of supply of goods which are dispatched or transported either by the supplier or by the recipient or by a third person" shall be the place where the goods are at the time when dispatch or transport to the recipient begins.(3) "Place of supply of goods by an intermediary in a triangular operation to an acquirer in a triangular operation" shall be the Member State where the acquirer in a triangular operation is registered for VAT purposes.(4) "Place of supply of goods which are assembled or installed by or for the account of the supplier" shall be the place where the goods are assembled or installed.Place of Supply of Goods Effected on Board Ships, Aircraft and TrainsArticle 18. (1) The place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be the territory of the country where:1. the point of departure of the transport of passengers is within the territory of the country and the point of arrival of the transport of passengers is within the territory of another Member State without a stop in the territory of a third country or territory, or2. the point of departure of the transport of passengers is within the territory of the country and the point of arrival of the transport of passengers is within the territory of a third country or territory without a stop in the territory of another Member State, or3. the point of departure of the transport of passengers is within the territory of a third country or territory and the point of arrival is within the territory of another Member State and the first stop within the territory of the Community has taken place within the territory of the country, or4. the transport of passengers is effected between two points within the territory of the country.(2) The place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be determined according to the procedure established by Items 2 and 3 of Paragraph (1) solely in respect of the part of the transport of passengers effected between the territory of the country and the other Member States.(3) In the cases not covered by Paragraphs (1) and (2), the place of supply of goods effected on board ships, aircraft or trains during a transport of passengers shall be outside the territory of the country.Place of Supply of Natural Gas and ElectricityArticle 19. The place of supply of natural gas through the natural gas distribution system or of electricity shall be:1. the place where the recipient has established his registered office or fixed establishment or, in the absence of such an office or establishment, the place where the said recipient, who is a taxable dealer of natural gas or electricity, has his permanent address or usually resides;2. the place where the goods are effectively consumed: where a person other than the person referred to in Item 1 is a recipient;3. the place where the recipient referred to in Item 2 has his registered office or fixed establishment or, in the absence of such an office or establishment, the place where the recipient referred to in Item 2, who effects a subsequent supply or all or part of the goods received thereby, has his permanent address or usually resides.Place of Supply under Terms of Distance SellingArticle 20. (1) The place of supply of goods under the terms of distance selling referred to in Article 14 herein shall be the territory of the Member State where the transport ends and where the following conditions are simultaneously fulfilled:1. the supplier is a person registered under this Act on grounds other than for registration for intra-Community acquisition;2. the supplies effected by the person referred to in Item 1 under the terms of distance selling for a Member State exceed the threshold established in the legislation of that Member State for the current calendar year or have exceeded the said threshold for the last preceding calendar year.(2) The place of supply under the terms of distance selling shall be the territory of the country where the following conditions are simultaneously fulfilled:1. the supplier is a person registered for VAT purposes in another Member State;2. the supplies effected under the terms of distance selling for the territory of the country will exceed the amount of BGN 70,000 for the current calendar year or have exceeded the said amount for the last preceding calendar year.(3) The amount referred to in Item 2 of Paragraph (2) shall be net of the VAT due in the Member State where the supplier is registered for VAT purposes on the supplies of any goods other than excisable goods.(4) Where excisable goods for the private consumption of a natural person who is not a sole trader are subject of the supply, the place of supply under the terms of distance selling shall be the place where the goods arrive or the transport ends.(5) Where the conditions referred to in Item 2 of Paragraph (1) are not fulfilled, the place of supply shall be the territory of the country, with the exception of the cases where the supplier has notified the territorial directorate exercising competence over the place of registration that the said supplier wishes that the place of supply be the territory of another Member State, where the transport ends, and the said supplier is registered for VAT purposes in that other Member State.(6) Paragraph (2) shall not apply where the place of supply is the territory of the country, where the supplier is registered in pursuance of Article 100 (3) herein.Place of Supply of GoodsArticle 21. (1) The place of supply of services shall be the place where the supplier has established his independently carried out economic activity or has a fixed establishment from which the supply is effected or, in the absence of such a place or establishment, the place of his permanent or habitual residence.(2) The place of supply of services shall be:1. the place where the immovable property is situated, where the supply of services is connected with immovable property, including upon:(a) expert services or the services of estate agents;(b) the services for preparing and coordinating construction works connected with immovable property, such as the services of architects, engineers, firms providing on-site supervision etc.;2. the place where transport services are performed, having regard to the part of the distance covered for the supply of the said services;3. the place where the services are physically carried out, upon:(a) services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, including the activities of the organizers of such activities;(b) services relating to transport handling of goods;(c) valuation, expert examination or work on a movable thing.(3) The place of supply of services shall be the place where the recipient has his registered office or permanent establishment from which the said recipient carries out his economic activity or, in the absence of such an office or establishment, the place where the said recipient has his permanent address or usually resides, where the following conditions are simultaneously fulfilled:1. (amended, SG No. 108/2006) the recipient is a person established outside the Community, or a taxable person established in a Member State other than the State in which the supplier is established;2. the services supplied are:(a) assignment or transfer of licence, patent, copyright, trade mark, know-how rights or other similar industrial or intellectual property rights, as well as transfer of rights to software products other than standard software;(b) advertising services;(c) services performed by consultants, engineers, accountants, lawyers and other similar services, including the services for the redesign of software;(d) data processing or supplying of information;(e) banking, financial, social insurance, commercial insurance and reinsurance services, with the exception of the hire of safes;(f) supply of staff;(g) hiring out of movable things, with the exception of all types of means of transport;(h) (amended SG No. 41/2007) electronic communications services;(i) radio and television broadcasting services;(j) electronically supplied services;(k) services for the provision of access to, and of transport or transmission through, natural gas and electricity distribution systems and the provision of other directly linked services;(l) assumption of an obligation not to perform any acts or not to exercise any rights referred to in Litterae (a) to (k);(m) the services of intermediaries performed by a person acting in the name of and for the account of another, in connection with the services referred to in Litterae (a) to (l).(4) (Amended SG No. 41/2007) The place of provision of electronic communications services and radio and television broadcasting services shall be the territory of the country, where the following conditions are simultaneously fulfilled:1. the recipient of the said supplies is a non-taxable person who is established, has his permanent address or usually resides within the territory of the country;2. (supplemented, SG No. 113/2007) the supplier is a taxable person with registered office or a permanent establishment from which the said supplier carries out his economic activity or, in the absence of such an office or establishment, the place of his permanent address or habitual residence is outside the Community;3. the services are effectively used within the territory of the country.(5) The place of supply of electronically supplied services shall be the territory of the country, where the following conditions are simultaneously fulfilled:1. the recipient of the said supplies is a non-taxable person who is established, has a permanent address or usually resides within the territory of the country;2. the supplier is a person whose registered office or fixed establishment or, in the absence of such an office or establishment, whose permanent address or habitual residence is outside the territory of the Community.Place of Supply of Services in Intra-Community Transport of GoodsArticle 22. (1) The place of supply of services in the intra-Community transport of goods shall be the territory of the country, where the place of departure is situated within the territory of the country and the place of arrival is situated within the territory of another Member State.(2) Where a recipient of the supply referred to in Paragraph (1) is a person registered for VAT purposes in another Member State, the place of supply shall be the territory of the Member State which issued the said recipient with the VAT identification number under which the service was rendered thereto.(3) (New, SG. No. 108/2006) Beyond the cases under paragraphs 1 and 2, the place of performance of the delivery of a service, concerning the transportation of goods between two Member States shall be the territory of the Member State, in which the transportation of goods is initiated.(4) (New, SG. No. 108/2006) When the recipient of the delivery under paragraph 3 is a person, registered for the purposes of VAT in a Member State, other than the Member State where the transportation was initiated, the place of performance of the delivery shall be the territory of the Member State, which has issued the VAT identification number to the recipient, under which the service was rendered.(5) (New, SG No. 108/2007) For the purposes of this Act, forwarding, courier and postal services other than those referred to in Article 49 provided in connection with transportation of goods between Member States shall be equivalent to services for transportation of goods between Member States.(6) (New, SG No. 108/2007) A forwarding service under paragraph 5 shall be a service for organizing, carrying out or handling transportation of goods between Member States and related activities involving transport handling, document processing, storage and insurance.(7) (New, SG No. 108/2007) Where a forwarder acts under the terms and conditions of a forwarding contract and provides a forwarding service related to supply of services for transportation of goods between Member States, the provision of Article 127 shall not apply.Place of Supply of Services Ancillary to Supply of Services inIntra-Community Transport of GoodsArticle 23. (1) The place of supply of services involving transport handling of goods ancillary to the supplies referred to in Article 22 herein shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.(2) (Amended, SG No. 108/2006) The place of supply of services rendered by an agent, broker and another intermediary acting in the name and for the account of another person in connection with the supplies of services under Article 22 herein, shall be on the territory of the Member State, in which the transportation of goods was initiated.(3) (Amended, SG No. 108/2006) Where the recipient of the supply referred to in Paragraph (2) is a person registered for VAT purposes in a Member State, other than the Member State, where transportation was initiated, the place of supply shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.(4) The place of supply of services rendered by an intermediary acting in the name of and for the account of another person in connection with the provision of services for transport handling of goods under Paragraph (1) shall be the place where the transport handling of the goods is physically performed.(5) (Amended, SG No. 108/2006) Where the recipient of the supply under Paragraph (4) is a person registered for VAT purposes in a Member State, other than the Member State, where transportation was actually performed, the place of supply shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto.Place of Supply of Services Involving Valuations or Work on MovableThings and Intermediation ServicesArticle 24. (Amended, SG No. 108/2006, No. 113/2007) (1) The place of supply of services rendered by an intermediary acting in the name of and for the account of another person, when such services are linked to intra-Community acquisition of goods, to the supplies of goods or services other than those referred to in Article 21 (3), Articles 22 and 23 herein, shall be the place of supply of the intra-Community acquisition or of the supply in connection with which the intermediation is rendered.(2) When the recipient of the delivery under paragraph 1 is a person, registered for the purposes of VAT in a Member State, other than the Member State in which the place of supply of Intra-community acquisition is or performance of the delivery, with regard to which the intermediation was made, the place of performance of the delivery shall be the territory of the Member State, which issued the VAT identification number to the recipient, under which the service was rendered.(3) The place of supply of services involving valuations or work on movable things shall be the territory of the Member State which issued the recipient with the VAT identification number under which the service was rendered thereto, where the following conditions are fulfilled simultaneously:1. the recipient of the supply is a person registered for VAT purposes in a Member State other than the Member State in which the valuation or the work on movable things was actually performed;2. after completion of the valuation or the work on movable things the goods are sent or transported outside the territory of the Member State in which the valuation or the work on movable things was actually performed.Chapter TwoCHARGEABLE EVENT AND TAXABLE AMOUNTOccurrence of Chargeable Event and Chargeability of TaxArticle 25. (1) "Chargeable event," within the meaning given by this Act, shall be the supply of goods or services effected by taxable persons under this Act, the intra-Community acquisition, as well as the importation of goods under Article 16 herein.(2) A chargeable event shall occur on the date on which ownership of the goods passes or on which the services are performed.(3) In addition to the cases referred to in Paragraph (2), a chargeable event shall occur on:1. (supplemented, SG No. 108/2007) the date of actual handing over of the goods under Article 6 (2) herein, except for the cases under Paragraph (8);2. the date of setting aside or handing over of the goods under Article 6 (3) herein;3. the date on which the transport under Article 7 (4) herein starts;4. the date on which the supplier receives the payment: applicable to sale of goods by mail order or by electronic means;5. the date of retrieval of the coins or tokens: applicable to effecting of supplies by means of vending machines or other similar devices actuated by coins, tokens or other such;6. the date of the actual return of the asset repaired and/or improved upon termination of the contract or discontinuance of the use of the asset: in the cases of performance, free of charge, by a tenant/user of services for repair and/or improvement of an asset hired out or allocated for use, where the conditions under Items 2 and 3 of Article 9 (4) herein do not apply.(4) (Amended, SG No. 108/2006) In supplies effected periodically, by stages or continuously, with the exception of the supplies covered under Article 6 (2) herein, each period or stage for which payment has been agreed shall be considered to be a separate supply and the chargeable event for it shall occur on the date on which the payment became executable.(5) On the date of occurrence of the chargeable event under Paragraphs (2), (3) and (4):1. the tax under this Act shall become chargeable in respect of the taxable supplies and an obligation for the registered person to charge the said tax shall arise, or2. grounds shall arise for exemption from the charging of tax in respect of the exempt supplies and the supplies whereof the place of transaction is outside the territory of the country.(6) (Amended, SG No. 113/2007) Where an advance payment in full or in part is effected on a supply before the occurrence of a chargeable event under Paragraphs (2), (3) and (4), the tax shall become chargeable upon receipt of the payment (for the payment amount), with the exception of a payment received in connection with an intra-Community supply.(7) Where a person who is not registered under this Act receives an advance payment in connection with a taxable supply and actually effects the said supply after the date of registration of the said person under this Act, the advance payment received shall be presumed to include a tax which becomes chargeable on the date on which the tax on the supply becomes chargeable.(8) (New, SG No. 108/2007) The chargeable event for supply under Item 4 of Article 6 (2) of newspapers, magazines, books and other publications, music audio and video recordings and recordings of films on electronic or technical medium shall occur at the earlier of the following two dates:1. the date on which the principal/mandator receives the payment from the commission agent/mandatory under Article 127, or2. the last day of the quarter following the tax period in which actual handing over of the goods under Item 4 of Article 6 (2) is carried out.Taxable Amount in Supplies within the Territory of the CountryArticle 26. (1) "Taxable amount," within the meaning given by this Act, shall be the value whereon the tax is charged or not charged depending on whether the supply is taxable or exempt.(2) The taxable amount shall be determined on the basis of everything which constitutes the consideration which has been obtained by or is due to the supplier from the recipient or another person in connection with the supply, expressed in leva and stotinki exclusive of the tax under this Act. Any payment of interest and damages of a compensatory nature shall not be considered a consideration for a supply.(3) The taxable amount referred to in Paragraph (2) shall be credited with:1. all other taxes and fees, including excise duty, where such are payable on the supply;2. all subsidies and investment grants directly linked to the supply;3. the incidental expenses charged by the supplier to the recipient, such as commission, packing, transport, insurance costs etc., directly linked to the supply;4. the cost of the usual or customary packing materials or containers, unless returnable or if the recipient is not a taxable person; if such packing materials or containers are returned by the recipient, the taxable amount shall be debited with the value of the said materials or containers upon return.(4) The taxable amount shall be deemed to include:1. the value of the subsequent warranty services for the goods;2. the value retained by the recipient as a performance bond.(5) The taxable amount shall not include:1. the amount of the trade discount or rebate, if allowed to the recipient on the date of occurrence of the chargeable event; if the said discount or rebate is allowed to the recipient after the date of occurrence of the chargeable event, the taxable amount shall be debited therewith upon allowance;2. the cost of the usual or customary packing materials or containers, if the recipient is a taxable person and the said materials or containers are returnable; if such materials or containers are not returned within 12 months after dispatch thereof, the taxable amount shall be credited with the value of the said materials or containers at the end of this time period;3. the costs incurred by a lessor and lessee in connection with the use of goods under the terms and within the term of validity of a lease contract, such as: costs of property insurance, civil liability insurance and other such, for all or part of the term of validity of the contract, the costs of property taxes and fees, environmental fees and registration costs;4. the amounts paid to the supplier as repayment for the expenses incurred in the name and for the account of the recipient, where the said amounts are expressly entered in the accounts of the supplier; the supplier must hold proof of the actual amount of this expenditure and shall not have the right to credit for input tax in respect of the tax which may have become chargeable upon the incurrence of the said expenditure.(6) (Amended, SG No. 113/2007) Where the values required for calculation of the taxable amount are expressed in a foreign currency, the taxable amount shall be determined on the basis of the lev equivalent of the said currency at the exchange rate announced by the Bulgarian National Bank for the date on which the tax became chargeable.(7) Where the consideration is expressed wholly or partly in goods or services (the payment is effected wholly or partly in goods or services), the taxable amount of the supply shall be the open market value of the goods or services supplied, calculated at the date on which the tax became chargeable.Special Cases of Determination of Taxable AmountArticle 27. (1) The taxable amount of the supply may not be less than the taxable amount upon acquisition of the costs or than the cost price, and in the cases where the goods are imported, than the taxable amount upon importation, for any supplies of:1. goods under Article 6 (3) and Article 7 (4) herein;2. land which is a regulated lot within the meaning given by the Spatial Development Act, with the exception of building land of buildings which are not new;3. new buildings or parts thereof and the building land thereof.(2) The taxable amount of supplies of services under Article 9 (3) herein shall be the amount of the direct costs incurred in connection with the performance of the said services.(3) The taxable amount shall be the open market value in respect of the following supplies:1. any supplies between connected persons;2. (supplemented, SG No. 108/2007) any supplies of goods and/or services under Article 111 herein;3. any supplies effected free of charge under Item 4 of Article 9 (2) herein.Chapter ThreeZERO-RATED SUPPLIESSupplies of Goods Dispatched or Transported to Destination outsideTerritory of CommunityArticle 28. The following shall be supplies liable to tax at the zero rate:1. the supply of any goods which are dispatched or transported from a place within the territory of the country to a destination in a third country or territory, by or for the account of the supplier;2. the supply of any goods which are dispatched or transported from a place within the territory of the country to a destination in a third country or territory, by or for the account of the recipient, if the recipient is a person who is not established within the territory of the country; this provision shall not apply where the goods are intended for the fuelling, equipment and provisioning of vessels and aircraft which are used for sporting and entertainment purposes or for private use.International Transport of PassengersArticle 29. (1) Transport of passengers shall be a supply liable to tax at the zero rate where the transport is effected:1. from a place within the territory of the country to a destination outside the territory of the country, or2. from a place outside the territory of the country to a destination within the territory of the country, or3. between two places within the territory of the country, where the transport is not part of a transport referred to in Items 1 and 2.(2) The transport of goods and motor vehicles, where they are part of the luggage of passengers, shall also be considered as transport of passengers under Paragraph (1).International Transport of GoodsArticle 30. (1) (Previous Article 30, SG No. 108/2007) Transport of goods shall be a supply liable to tax at the zero rate where the transport is effected:1. from a place within the territory of the country to a destination within the territory of a third country or territory or to a destination within the territory of the islands making up the autonomous regions of the Azores and Madeira, or2. from the territory of a third country or territory or from the territory of the islands making up the autonomous regions of the Azores and Madeira to a destination within the territory of the country, or3. between two places within the territory of the country, where the transport is not part of a transport referred to in Items 1 and 2.(2) (New, SG No. 108/2007) For the purposes of this Act, forwarding, courier and postal services other than those referred to in Article 49 provided in connection with international transport of goods under Paragraph (1) shall be equivalent to international transport services under Paragraph (1).(3) (New, SG No. 108/2007) A forwarding service under Paragraph (2) shall be a service for organizing, carrying out or handling international transport of goods under Paragraph (1) and related activities involving transport handling, customs clearance, storage and insurance.(4) (New, SG No. 108/2007) Where a forwarder acts under the terms and conditions of a forwarding contract and provides a forwarding service related to supply of services for international transport of goods under Paragraph (1), the provision of Article 127 shall not apply.Supply Linked to International TransportArticle 31. The following shall be supplies liable to tax at the zero rate:1. (amended, SG No. 108/2007) the supply of goods for the equipping with spare parts, fuelling and lubricating, and provisioning with food, beverages, water and other victuals of small vessels, aircraft and railway rolling stock on international service, including in the Community, where the goods supplies are intended for consumption on board; this shall not apply to vessels or aircraft which are used for sporting and entertainment purposes or for private use;2. (amended, SG No. 108/2007) the supply of goods for the equipping with spare parts, fuelling and lubricating, and provisioning with food, beverages, water and other victuals intended for consumption on board:(a) large vessels used for transportation of goods or passengers, or vessels used for the purposes of commercial, industrial or fishing activities outside the maritime space of the Republic of Bulgaria;(b) vessels used for rescue or assistance at sea;(c) vessels of war, as defined in subheading 89.01 of the Common Customs Tariff, leaving the country and bound for foreign ports or anchorages;3. the supply of services for the building, maintenance, repair, modification, transformation, assembly, equipping, furnishing, transport and destruction of ships and aircraft, with the exception of those referred to in Item 2 (c); this shall not apply to any ships and aircraft which are used for sporting and entertainment purposes or for private use;4. (amended, SG No. 108/2007) the chartering of:(a) small vessels, aircraft and railway rolling stock for the effecting of international transport, including in the Community;(b) large vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;5. (amended, SG No. 108/2007) the handling of:(a) small vessels, aircraft and railway rolling stock on international service, including in the Community;(b) large vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;6. (amended, SG No. 108/2006, No. 108/2007) the supply of services linked to transport handling of goods or passengers, including transport containers:(a) carried by a small vessel, aircraft or railway rolling stock where the services are rendered in relation to the international transport under Articles 29 and 30;(b) carried by a large vessel;7. the supply of vessels and aircraft, with the exception of those used for sporting and entertainment purposes or for private use;8. (new, SG No. 108/2006, supplemented, SG No. 108/2007) the rendering of services, for which fees are collected under Article 120, paragraph 1 of the Civil Aviation Act, rendered by an airport operator Ц concessionaire in relation to aviation facilities in an international flight, including in the Community;9. (new, SG No. 108/2007) the supply of services under Chapter Nine of the Merchant Shipping Code, rendered to vessels; this shall not apply to vessels which are used for sporting and entertainment purposes or for private use;10. (new, SG No. 108/2007) the supply of services for rescue or assistance at sea.Supply Linked to International Goods TrafficArticle 32. (1) (Amended, SG No. 108/2006) The supply of non-Community goods, with the exception of such specified in Annex 1 hereto in respect of which the circumstances covered under Article 16 (5) herein apply, shall be a supply liable to tax at the zero rate.(2) (Amended, SG No. 113/2007) A supply liable to tax at the zero rate shall be the supply of services involving loading, unloading, re-loading, arrangement, strengthening of the goods and/or customs clearance, where these are rendered in connection with the supply of goods liable to tax at the zero rate under Paragraph (1), with the exception of the supplies exempt within the meaning given by this Act.Supply for Handling of GoodsArticle 33. The performance of services involving work on goods, such as treatment, processing or repair or goods, shall be a supply liable to tax at the zero rate where the following conditions are fulfilled:1. the goods are acquired or imported for the purposes of performance of such work within the territory of the Community;2. after being worked upon, the goods are dispatched or transported to a third country or territory by or for the account of the supplier or the recipient;3. the recipient of the goods is not established within the territory of the country.Supply of Gold for Central BanksArticle 34. The supply of gold other than investment gold within the meaning given by this Act shall be a supply liable to tax at the zero rate where the recipient is the Bulgarian National Bank or the Central Bank of another Member State.Supply Linked to Duty-Free TradeArticle 35. (Supplemented, SG No. 105/2006) The sales of goods in duty- free distributive trade establishments shall be a supply liable to tax at the zero rate when the sale is considered to be export as defined by the Duty Free Sales Act. Supply of Goods Provided by Agents, Brokers and Other IntermediariesArticle 36. (1) The supply of goods provided by agents, brokers and other intermediaries acting in the name and for the account of another shall be a supply liable to tax at the zero rate where linked to the supplies specified in this Chapter.(2) (Repealed, SG No. 113/2007). Documenting SuppliesArticle 37. (1) The documents certifying the existence of circumstances under this Chapter shall be specified by the Regulations for Application of this Act.(2) (Amended, SG No. 108/2007) If the supplier fails to obtain the documents referred to in Paragraph (1) prior to the lapse of the calendar month succeeding the calendar month during which the tax became chargeable, the provisions of this Chapter shall not apply. If the supplier obtains the documents referred to in Paragraph (1) subsequently, the supplier shall adjust the result of the application of this Paragraph according to a procedure established by the Regulations for Application of this Act. (3) (New, SG No. 108/2007) Paragraph 2 shall not apply to advance payments received.Chapter FourEXEMPT SUPPLIES AND ACQUISITIONSGeneral DispositionsArticle 38. (1) The supplies specified in this Chapter shall be exempt from tax.(2) Any intra-Community supplies shall likewise be exempt if they would have been exempt if effected within the territory of the country according to the procedure established by this Chapter.(3) Any intra-Community acquisition of goods, whose supply within the territory of the country is an exempt supply under this Chapter, shall likewise be exempt from taxation.Supply Linked to Health CareArticle 39. The following supplies shall be exempt:1. the performance of health (medical) services and of services directly linked thereto, rendered by health-care facilities under the Health Act and by medical-treatment facilities under the Medical-Treatment Facilities Act; 2. the supply of human organs, tissues and cells, blood, blood components and milk;3. the supply of prostheses, as well as the services for provision of prostheses to people with disabilities, where the said supplies are part of the health services referred to in Item 1;4. (new, SG No. 108/2007) the supply of actively implantable medical devices where the supply is part of the health services under item 1;5. (renumbered from item 4, SG No. 108/2007) the supply of dental prostheses;6. (renumbered from item 5, SG No. 108/2007) the performance of transport services for sick or injured persons in vehicles specially designed for the purpose by duly authorized bodies;7. (renumbered from item 6, SG No. 108/2007) the supply of goods and services within the framework of humanitarian activity carried out by the Bulgarian Red Cross and other not-for-profit legal entities pursuing public-benefit activities and entered into the Central Register of Not-for-Profit Legal Entities for Pursuit of Public-Benefit Activities.Supply Linked to Welfare and Social Security WorkArticle 40. The following supplies shall be exempt:1. the performance of social services under the Social Assistance Act; 2. the supply of social assistance benefits according to the procedure established by the Social Assistance Act; 3. the compulsory and voluntary social, retirement and health insurance under the terms and according to the procedure established by a special law, including the intermediation services directly linked thereto.Supply Linked to Education, Sports or Physical EducationArticle 41. The following supplies shall be exempt:1. pre-school instruction and character education, school or university education, vocational education and training, post-graduate training, retraining and upgrading of qualifications, provided by:(a) kindergartens, schools or auxiliary units under the Public Education Act , institutions within the vocational education and training system under the Vocational Education and Training Act , or cultural and educational or research institutions;(b) higher schools under the Higher Education Act;2. tuition given privately by teachers, covering school or university education under Item 1;3. the supply of textbooks and teaching aids, approved by the Minister of Education and Science or by the Minister of Culture in accordance with the endorsed compulsory teaching and educational syllabi and curricula, where the said goods are supplied by the organizations covered under Item 1 (a), as well as the supply of textbooks and teaching aids, where the said goods are supplied by the organizations covered under Item 1 (b);4. the services directly linked to sports or physical education, provided by sporting organizations under the Physical Education and Sports Act which are registered under the Non-Profit Legal Persons Act as organizations designated for pursuit of public-benefit activities.Supply Linked to CultureArticle 42. The following supplies shall be exempt:1. charges by cultural organizations and cultural institutions under the Protection and Promotion of Culture Act for admissions to:(a) circuses, music and musical performing-arts shows and concerts, with the exception of admissions to bars, variety show bars and erotic shows;(b) museums, art galleries, libraries and theatres;(c) zoos and botanical gardens;(d) architectural, historical, archaeological, ethnographic and museum reserves and complexes;2. the activities of the Bulgarian National Radio, the Bulgarian National Television and the Bulgarian News Agency for which they receive payment from the executive budget.Supply Linked to Religious DenominationsArticle 43. The supply of goods and the performance of services by the Bulgarian Orthodox Church and other registered religious denominations under the Religious Denominations Act shall be an exempt supply where the said supply is linked to the performance of their religious, social, educational and health activities.Supply of Non-Profit-Making NatureArticle 44. (1) The following supplies shall be exempt:1. the supply of goods and the performance of services by the organizations covered under Articles 39, 40, 41 and 42 herein, where the said supply is linked to fund-raising events organized for the benefit of the activities of the said organizations;2. the supply of goods and the performance of services by organizations which are not merchants and which have aims of a political, trade-union, religious, patriotic, philosophical, philanthropic or civic nature, where the said supply is linked to fund-raising events organized for the benefit of the activities of the said organizations;3. the supply of goods and the provision of services by the organizations referred to in Item 2 for the benefit of their members in return for a subscription fixed in accordance with the rules of the said organizations;4. the provision of services by independent groups of persons whose activities are exempt from or are not subject to tax for the purpose of rendering their members the services directly necessary for the exercise of their activity, where these groups merely claim from their members exact reimbursement of their share of the joint expenses.5. (new, SG No. 108/2007) procedural representation whereby the right to defence of natural persons in preliminary, legal, administrative and arbitration proceedings is exercised.(2) The supplies covered under Paragraph (1) shall be exempt insofar as they do not lead to distortion of competition.Supply Linked to Land and BuildingsArticle 45. (1) The transfer of the right of ownership of land, the creation or transfer of limited rights in rem to land, as well as the letting or leasing of land, shall be an exempt supply.(2) The creation or transfer of a building right shall be considered an exempt supply under Paragraph (1) until the time of completion of rough construction work on the building for which the building right is created or transferred. The building right shall not cover the building and erection works performed.(3) The supply of buildings or parts thereof, which are not new, the supply of building land, as well as the creation and transfer of other rights in rem thereto, shall likewise be an exempt supply.(4) The letting of a building or part thereof for residential use to a natural person who is not a merchant shall likewise be an exempt supply.(5) Paragraph (1) shall not apply in respect of:1. the transfer of a right of ownership of a regulated lot within the meaning given by the Spatial Development Act , with the exception of the building land of buildings which are not new;2. the transfer of a right of ownership or other rights in rem, as well as the letting of plant, machinery, equipment and structures immovably fixed to or built under the ground;3. the transfer of a right of ownership or other rights in rem, as well as the letting of camping sites, caravan parks, holiday camps, sites for parking vehicles and other such;4. the transfer of a right of ownership of building land of new buildings, as well as the creation and transfer of other rights in rem to such land.(6) Paragraph (4) shall not apply to provision of accommodation in hotels, motels, cottage villages and holiday villages, rented rooms in family houses, villas, houses, cabanas, camping sites, hikers' chalets, guest houses, inns, boarding houses, caravan parks, holiday camps, holiday accommodations owned by businesses for their employees, spa centres and sanatorium complexes.(7) In the cases of supplies covered under Paragraphs (1), (3) and (4), the supplier shall be allowed a right of option for taxation.Supply of Financial ServicesArticle 46. (1) The following supplies shall be exempt:1. the negotiation, the granting and the management of credit for a consideration (interest) by the person granting it, including the granting, negotiation and management of credit upon supply of goods pursuant to a lease contract;2. the negotiation of guarantees and transactions in guarantees or securities establishing title to money receivables, as well as management of guarantees by the creditor;3. the transactions, including negotiation, concerning bank accounts, transfers, payments, debts, receivables, cheques and other such negotiable instruments, excluding transactions concerning debt collection and factoring and the hire of safes;4. the transactions, including negotiation, concerning currency, banknotes and coins used as legal tender, with the exception of banknotes and coins which are not normally used as legal tender or are of numismatic interest;5. the transactions, including negotiation, concerning corporate interests, shares or other securities and derivatives thereof, with the exception of management and safekeeping; this shall not apply to any securities establishing titles to goods or services other than such specified in this Article;6. (amended and supplemented, SG No. 52/2007) management of the activity of collective investment schemes, investment companies of the closed-end type and pension funds, and the provision of investment advice according to the procedure established by the Public Offering of Securities Act, and the Markets in Financial Instruments Act; 7. the transactions, including negotiation, concerning financial-futures contracts and options.(2) In the cases of a supply pursuant to a lease contract under Item 1 of Paragraph (1), the supplier shall be allowed a right of option for taxation of the granting of the credit.(3) In respect of the supplier of the financial services covered under Item 1 of Paragraph (1), credit for input tax shall become fully deductible in compliance with the requirements of Article 71 herein for the goods subject to the lease contract.Supply of Insurance ServicesArticle 47. The performance of services under the terms and according to the procedure established by the Insurance Code shall be an exempt supply where performed by:1. (supplemented, SG No. 108/2006) insurers and reinsurers;2. insurance brokers and insurance agents.GamblingArticle 48. The organizing of games of chance, within the meaning given by the Gambling Act, shall be an exempt supply.Supply of Postage Stamps and Postal ServicesArticle 49. The following supplies shall be exempt:1. the supply at face value of postage stamps or an indication equivalent to a postage stamps;2. the performance of a universal postal service under the terms and according to the procedure established by the Postal Services Act. Supply of Goods or Services for which Credit for Input Tax Has Not BeenUsedArticle 50. The following supplies of goods or services shall be exempt:1. where the said goods or services have been used entirely for the performance of exempt supplies and, on these grounds, the right to deduct credit for input tax has not been exercised in respect of the tax charged upon their production, acquisition or importation;2. where a right to deduct credit for input tax pursuant to Article 70 herein was not in place upon the production, acquisition or importation of the said goods or services.Chapter FiveTAXATION OF INTRA-COMMUNITY SUPPLIESChargeable Event and Chargeability for Intra-Community SuppliesArticle 51. (1) The chargeable event for an intra-Community supply shall occur on the date on which the chargeable event would have occurred for a supply within the territory of the country.(2) The chargeable event for an intra-Community acquisition referred to in Article 7 (4) herein shall occur on the date on which the transport of the goods from the territory of the country starts.(3) The tax upon an intra-Community acquisition shall become chargeable on the 15th day of the month following the month during which the chargeable event occurs.(4) (Supplemented, SG No. 108/2006) Notwithstanding Paragraph (3), the tax shall become chargeable on the date of issue of the invoice respectively the document under Article 168, paragraph 8, where the said invoice is issued before the 15th day of the month following the month during which the chargeable event occurs.(5) Paragraph (4) shall not apply where the invoice is issued in connection with payment on the supply received before the date of occurrence of the chargeable event.Taxable Amount of Intra-Community SuppliesArticle 52. (1) The taxable amount for intra-Community acquisitions shall be determined according to the procedure established by Article 26 herein.(2) The taxable amount of intra-Community supplies under Article 7 (4) herein shall be the taxable amount upon acquisition of the goods, the cost price thereof or the taxable amount thereof upon importation, credited according to the procedure established by Article 26 (3) herein.(3) The taxable amount referred to in Paragraph (2) shall not be credited with the value of the services covered under Articles 22, 23 and 24 herein, whereof the place of transaction is within the territory of the country, for which the person registered under this Act is obliged to charge tax as a payer covered under Article 82 (2) herein.Rate of Tax and Documenting of Intra-Community SuppliesArticle 53. (1) The intra-Community supplies referred to in Article 7 herein, with the exception of the exempt intra-Community supplies referred to in Article 38 (2) herein, shall be liable to tax at the zero rate.(2) The documents certifying the effecting of the intra-Community supply shall be specified by the Regulations for Application of this Act.(3) If the supplier fails to obtain the documents referred to in Paragraph (2) prior to the lapse of the calendar month succeeding the calendar month during which the tax on the supply became chargeable, Paragraph (1) shall not apply. If the supplier obtains the documents referred to in Paragraph (1) subsequently, the supplier shall adjust the result of the application of this Paragraph according to a procedure established by the Regulations for Application of this Act.PART THREETAXATION OF IMPORTSChargeable Event for ImportationArticle 54. (1) The chargeable event for importation of goods shall occur and the tax shall become chargeable on the date on which the obligation to pay import duty within the territory of the country arises, or should have arisen, including where such an obligation does not exist or the rate of the said obligation is zero.(2) Where an obligation to pay import duty within the territory of the country does not arise upon importation of goods under Article 16 (3) herein, the chargeable event shall occur and the tax shall become chargeable on the date on which the customs formalities are completed.Taxable AmountArticle 55. (1) The taxable amount upon importation of goods under Article 16 herein shall be the value for customs purposes credited with:1. the customs duties, excise duties and other charges due in connection with the importation of the goods within the territory of the Community, as well as those due by reason of importation into the territory of the country;2. the expenses incidental to the importation, such as commission, packing, transport and insurance costs, incurred up to the first place of destination of the goods within the territory of the country.(2) The taxable amount shall furthermore be credited with any costs referred to in Item 2 of Paragraph (1) where the said costs result from transport of the goods from the territory of the country to the territory of another Member State, if the documents accompanying the goods show that the goods are intended for that other Member State.(3) When goods have been temporarily exported from the territory of the country to a place outside the territory of the Community for treatment, processing or repair under the outward processing procedure and are re-imported into the territory of the country, the taxable amount shall be the value of the treatment, processing or repair, credited according to the procedure established by Paragraph (1).(4) The taxable amount under the Paragraphs (1), (2) and (3) shall not include the trade discount or rebate, if allowed to the recipient not later than the date of occurrence of the chargeable event.(5) Upon importation of goods under Article 16 (3) herein, the taxable amount shall be determined according to the procedure established by Article 26 herein.Charging of Tax upon Importation by Customs AuthoritiesArticle 56. The tax upon importation under Article 16 herein shall be charged by the customs authorities, with the amount of tax being accounted for according to the procedure established for the customs debt.Charging of Tax upon Importation by ImporterArticle 57. (1) The tax upon importation may be charged by the importer if the said importer is a registered person and is granted authorization to apply this regime in connection with the implementation of an investment project under Article 166 herein.(2) In the cases under Paragraph (1), the importer shall exercise the right thereof according to the procedure established by Article 164 (2) herein.(3) The importer shall charge the tax in respect of the import for which the importer has exercised the right thereof under Paragraph (1) by a memorandum on the tax period during which the chargeable event under Article 54 herein occurred.(4) In the cases referred to in Article 58 (2) herein, the tax shall be charged by the importer by a memorandum on the tax period during which the tax became chargeable.Exemption from Tax upon ImportationArticle 58. (1) Exemption from tax shall be granted in respect of the importation of:1. goods subject to exemption from customs duties other than as provided for in the Common Customs Tariff;2. goods which are imported by the persons under Article 174 herein, which qualify for exemption from import duties;3. human organs, tissues and cells, blood, blood components, milk, dental prostheses;4. textbooks and teaching aids referred to in Item 3 of Article 41 herein by the organizations covered under Item 1 of Article 41 herein;5. sea fishing products and other products harvested outside the territorial waters of the Community by ships, where the said products are imported into ports unprocessed or after undergoing preservation for marketing;6. goods, where the following conditions are simultaneously fulfilled:(a) the importer is a person registered under this Act;(b) the documents accompanying the goods show that the goods are intended for another Member State;(c) the importer will effect a subsequent intra-Community supply of the goods;7. gold by the Bulgarian National Bank;8. aircraft, vessels, as well as of spare parts for them, with the exception of such for sporting and entertainment purposes;9. investment gold;10. electricity and natural gas, through a distribution system;11. data storage mediums as part of the participation of Bulgaria in the international exchange of publications where exempt from customs duties;12. goods within the duty-free allowances upon:(a) receipt of international postal items and other consignments, or importation of goods of negligible value, within the meaning given by customs legislation;(b) importation of personal luggage by travellers;(c) importation of goods acquired abroad by travellers;(d) importation of personal property acquired by inheritance;(e) importation of used personal property by natural persons transferring their normal place of residence to the Republic of Bulgaria;(f) importation of property on the occasion of a marriage;(g) importation of used household effects after the end of temporary residence outside the Republic of Bulgaria;(h) importation of orders, medals and honorary awards;(i) importation of own works of art and goods and works of science, regardless of the type of the data storage medium, by persons who are permanently resident within the territory of the country;(j) importation of gifts received within the framework of international relations;(k) importation of goods intended for the personal use of heads of State;(l) importation of goods for the benefit of disaster victims;(m) importation of goods related to services supplied by undertakers;(n) importation of goods required for the carrying out of transport operations;(o) importation of documentation;13. goods which are destroyed or abandoned to the Exchequer according to the procedure established by customs legislation, as well as of goods provided free of charge, which are abandoned and confiscated, with the exception of motor vehicles;14. goods placed under customs control, which are destroyed or irreversibly lost by reason related to the nature of the goods or through force majeure;15. goods in an unaltered state, which have been exported and are reimported in an unaltered state, within the time limits provided for in customs legislation;16. goods which have been temporarily exported for repair or putting in order, if the conditions provided for in customs legislation are fulfilled;17. goods which have been exported and returned within one year on a claim;18. motor vehicles subject to misappropriation or theft and for which the import duties due have been repaid or remitted according to the procedure established by customs legislation.(2) Where the importer of the goods covered under Item 6 of Paragraph (1) fails to obtain the documents referred to in Article 53 (2) herein prior to the lapse of the month succeeding the month of occurrence of the chargeable event under Article 54 herein, the tax on the importation shall become chargeable by the importer.(3) The tax referred to in Paragraph (2) shall become chargeable on the last day of the calendar month succeeding the month of occurrence of the chargeable event under Article 54 herein.Provision of Security in Respect of Tax upon ImportationArticle 59. (1) Where provision of security in respect of customs duties is not required or is required according to customs legislation, security shall not be provided or shall be provided in respect of the tax in accordance with the amounts specified in customs legislation and according to the procedure established for provision of security in respect of customs duties.(2) Where an obligation to pay interest on customs duties under a customs debt arises according to customs legislation, an obligation to pay interest on the uncollected tax shall arise as well.(3) Any person, who has been granted authorization to open and manage a customs warehouse (warehousekeeper) according to the procedure established by customs legislation, shall be solidarily liable with the depositor of the goods in the warehouse for the tax due upon removal of the goods from customs supervision during the storage thereof in the warehouse.(4) Where exemption from tax is provided for according to the procedure established by Article 173 (1) herein upon importation of motor vehicles and the said vehicles remain under customs supervision, such exemption from tax shall furthermore apply if the motor vehicles, imported by any persons enjoying privileges according to the Vienna Convention on Diplomatic Relations, the Vienna Convention on Consular Relations, consular conventions or other international treaties whereto the Republic of Bulgaria is a party, were subject to misappropriation or theft within the period of customs supervision and this has been established by the competent authorities according to the procedure provided for this.Payment of Tax upon ImportationArticle 60. (1) The tax charged by the customs authorities shall be remitted to Executive Budget Revenue according to the procedure and within the time limits provided for payment of customs duties.(2) The tax charged by the customs authorities upon importation into the territory of the country may not be set off against other receivables by the revenue or customs authorities.(3) (New, SG No. 108/2007) In case of import under Article 16 under a regime "temporary importation with partial exemption from import duty" the tax charged by the customs authorities shall be remitted to Executive Budget Revenue before the release of the goods.Release of GoodsArticle 61. The customs authorities shall release the goods after payment of the tax charged or after provision of security in respect of the said tax according to the procedure established for the customs debt, save in the cases where the tax is charged by the importer.PART FOURTAXATION OF INTRA-COMMUNITY ACQUISITIONPlace of Supply of Intra-Community AcquisitionArticle 62. (1) The place of supply of an intra-Community acquisition shall be the territory of the country, where the goods arrive and the transport thereof ends within the territory of the country.(2) Notwithstanding Paragraph (1), the place of supply of the intra-Community acquisition shall be the territory of the country, where the person acquiring the goods is registered under this Act and made the acquisition of the said goods under an identification number issued in the country.(3) Paragraph (2) shall not apply where the person holds proof that an intra-Community acquisition of the goods has been subject to tax in the Member State where the goods have arrived or the transport thereof has ended.(4) If the intra-Community acquisition is subject to tax according to Paragraph (2) and the person subsequently establishes that this intra-Community acquisition has been subject to tax as well in the Member State where the goods arrive or where the transport thereof ends, the person shall adjust the result of the application of Paragraph (2).(5) Notwithstanding Paragraph (2), the place of supply of the intra-Community acquisition shall be the Member State where the goods arrive or where the transport thereof ends, where the following conditions are simultaneously fulfilled:1. the intermediary in a triangular operation acquires goods under the identification number thereof referred to in Article 94 (2) herein;2. the person referred to in Item 1 effects a subsequent supply of the goods to the acquirer in the triangular operation;3. the person referred to in Item 1 issues an invoice on the supply referred to in Item 2, satisfying the requirements of Article 114 herein, stating therein that the said person is an intermediary in a triangular operation and that the acquirer in the triangular operation is the person liable for the tax due on the supply;4. the person referred to in Item 1 declares the supply referred to in Item 2 in the VIES return for the relevant tax period.(6) The documents certifying the circumstances covered under Paragraphs (3), (4) and (5), and the procedure for effecting the adjustment under Paragraph (4), shall be specified by the Regulations for Application of this Act.Chargeable Event and Chargeability of Tax upon Intra-CommunityAcquisitionArticle 63. (1) The chargeable event upon an intra-Community acquisition shall occur on the date on which the chargeable event would have occurred upon a supply within the territory of the country.(2) The chargeable event upon an intra-Community acquisition referred to in Article 13 (3) herein shall occur on the date on which the transport of the goods ends within the territory of the country.(3) The tax upon an intra-Community acquisition shall become chargeable on the 15th day of the month following the month during which the chargeable event occurs.(4) Notwithstanding Paragraph (3), the tax shall become chargeable on the date of issue of the invoice, where the said invoice is issued before the 15th day of the month following the month during which the chargeable event occurs.(5) Paragraph (4) shall not apply, where the invoice is issued in connection with payment effected before the date of occurrence of the chargeable event.Taxable Amount for Intra-Community AcquisitionArticle 64. (1) The taxable amount for an intra-Community acquisition shall be determined according to the procedure established by Article 26 herein.(2) The taxable amount for an intra-Community acquisition referred to in Article 13 (3) herein shall be equal to the taxable amount formed for the purposes of the intra-Community acquisition in the Member State from which the goods were dispatched or transported.(3) The taxable amount for an intra-Community acquisition of excisable goods shall also include the excise duty due or paid on the goods in the Member State from which the goods were dispatched or transported. If after acquisition the excise duty is refundable to the recipient, the taxable amount shall be debited according to a procedure established by the Regulations for Application of this Act.(4) The taxable amount referred to in Paragraphs (1), (2) and (3) shall not include the taxable amount of the services covered under Articles 22, 23 and 24 herein whereof the place of transaction is within the territory of the country, in respect of which the person registered under this Act is obliged to charge the tax as a person covered under Article 82 (2) herein.Exempt Intra-Community AcquisitionsArticle 65. (1) Exemption from tax shall be granted in respect of any intra-Community acquisitions of goods whereof the place of transaction is within the territory of the country, whose supply within the territory of the country is among those specified in Chapter Four herein.(2) Exemption from tax shall be granted in respect of any intra-Community acquisitions, whereof the place of transaction is within the territory of the country, of goods:1. where any persons covered under Article 172 (2) and Article 174 (1) herein are recipients;2. the importation of which into the territory of the country would be exempted from tax according to the procedure established by Article 58 (1) herein;3. where any institutions of the European Union are recipients;4. from an intermediary in a triangular operation, who is a person registered for VAT purposes in another Member State.PART FIVERATES OF TAX AND ASSESSMENT OF TAX LIABILITYChapter SixRATES OF TAXRate of TaxArticle 66. (1) The rate of tax shall be 20 per cent applicable to:1. the taxable supplies, except for those expressly specified as subject to the zero rate;2. the importation of goods into the territory of the country;3. the taxable intra-Community acquisitions.(2) The rate of tax applicable to accommodation provided by a hotelier, where part of a package tour, shall be 7 per cent.Amount of TaxArticle 67. (1) The amount of tax shall be determined by multiplying the taxable amount by the rate of tax.(2) Where upon contracting a supply the tax was not expressly stated as due separately, the said tax shall be presumed to be included in the agreed price.(3) The tax shall furthermore be presumed to be included in the named price where goods subject to a supply are offered in the retail network.Chapter SevenCREDIT FOR INPUT TAXCredit for Input Tax and Right to Deduct Credit for Input TaxArticle 68. (1) "Credit for input tax" shall be the amount of tax which a registered person has the right to deduct from the tax liabilities thereof under this Act in respect of:1. goods or services received thereby in a taxable supply;2. a payment effected thereby prior to the occurrence of the chargeable event for a taxable supply;3. importation effected thereby;4. the tax chargeable therefrom as a payer under Chapter Eight herein.(2) The credit for input tax shall become deductible where the tax subject to deduction becomes chargeable.(3) In the cases of legal succession under Article 10 herein, the credit for input tax shall become deductible:1. on the date of recording of the circumstance referred to in Article 10 herein in the Commercial Register: where the legal successor is a person registered under this Act;2. on the date of registration under Article 132 (3) herein.(4) In the cases referred to in Article 116 (2) herein, credit for input tax shall become deductible on the date of issue of the new tax document.(5) In the cases referred to in Article 131 herein, credit for input tax shall become deductible on the date of issue of the document referred to in Item 2 of Article 131 (1) herein.Supplies Conferring Right to Deduct Credit for Input TaxArticle 69. (1) Where the goods and services are used for the purposes of the taxable supplies effected by the registered person, the person shall have the right to deduct credit for:1. the tax in respect of goods or services which the supplier, who is a person registered under this Act, has supplied or is to supply to the said person;2. the tax charged upon importation of goods under Articles 56 and 57 herein;3. the tax chargeable therefrom as a payer under Chapter Eight herein.(2) For the purposes of Paragraph (1), the following shall furthermore be considered taxable supplies:1. the supplies within the framework of the economic activity of the registered person, whereof the place of transaction is outside the territory of the country but which would have been taxable if effected within the territory of the country;2. the supplies of financial services under Article 46 herein and of insurance services under Article 47 herein, where the recipient of the services is established outside the Community or where the supplies of such services are directly linked with goods for which the conditions of Article 28 herein are fulfilled.Block on the Right to Deduct Credit for Input TaxArticle 70. (1) The right to deduct credit for input tax shall not be exercisable even though the conditions under Articles 69 or 74 herein are fulfilled, where:1. the goods or services are intended for effecting of any exempt supplies under Chapter Four herein;2. the goods or services are intended for supplies effected free of charge or for activities other than the economic activity of the person;3. the goods or services are intended for business entertainment purposes;4. a motorcycle or a passenger car has been acquired, imported or rented;5. the goods or services are linked with the maintenance, repair, improvement or operation of the means of transport referred to in Item 4, as well as for transport services or taxi transport by any means of transport referred to in Item 4;6. the goods have been confiscated, or the building has been demolished as unlawfully constructed.(2) Items 4 and 5 of Paragraph (1) shall not apply where:1. the means of transport referred to in Item 4 of Paragraph (1) are used solely for transport and security services, taxi transport, rental, courier services or motor vehicle driving instruction, including upon their subsequent resale;2. the means of transport referred to in Item 4 of Paragraph (1) are intended solely for resale (merchandise in stock);3. the goods or services are intended solely for re-sale (merchandise in stock), including after processing;4. the goods or services are linked to the maintenance, repair, improvement or operation of the means of transport referred to in Item 1.(3) Item 2 of Paragraph (1) shall not apply to:1. the special-purpose, working, uniform or presentable clothing provided, free of charge, by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the said employer;2. the provision, free of charge, of transport services from the place of residence to the place of work and back, by an employer to the factory and office workers thereof, including such under management contracts, for the purposes of the economic activity of the said employer;3. the goods or services used in the performance, free of charge, of services by a tenant/user for repair of an asset hired out or allocated for use in the cases where the said asset was hired out or allocated for use to the tenant/user on a continuing basis for a period of not less than three years;4. the goods or services used in the performance, free of charge, of services by a concessionaire for improvement of an asset allocated for use, where this is a condition and/or obligation under the contract of concession;5. the provision, free of charge, of goods or services of negligible value for advertising purposes and upon distribution of samples;6. the food and/or food additives which are provided according to the procedure established by Article 285 of the Labour Code; 7. the transport and overnight stays of persons seconded by the person;8. the goods or services used in connection with the performance of warranty services under Article 129 herein.(4) Any person registered in pursuance of Article 99 and Article 100 (2) herein shall have no right to credit for input tax.(5) The right to credit for input tax shall not be exercisable in respect of any mischarged tax.Conditions for Exercise of Right to Deduct Credit for Input TaxArticle 71. The person shall exercise the right thereof to deduct credit for input tax where one of the following conditions is fulfilled:1. the said person holds a tax document drawn up in accordance with the requirements of Articles 114 and 115 herein, wherein the tax is indicated on a separate line: in respect of supplies of goods or services for which the person is a recipient;2. (amended, SG No. 108/2006) has issued a protocol under Article 117 and Article 163b, paragraph 2 and has complied with the requirements of Article 86 - in the cases, when tax is executable by the person as a payer under chapter eight; in the cases under Article 161 or 163a, when the supplier is a tax liable person, the recipient must possess a tax document, drawn up in compliance with the requirements of Articles 114 and 115, where the respective grounds for not calculating tax is specified;3. the said person holds a customs declaration wherein the person is specified as importer and the tax has been remitted according to the procedure established by Article 90 (1) herein: in the cases of importation under Article 16 herein;4. the said person holds a customs declaration wherein the person is specified as importer, has issued a memorandum under Article 117 herein, and has complied with the requirements of Article 86 herein: in the cases under Article 57 herein;5. the said person holds a document which satisfies the requirements of Article 114 herein, has issued a memorandum under Article 117 herein, and has complies with the requirements of Article 86 herein: in the cases of an intra-Community acquisition;6. the said person holds a document referred to in Item 2 of Article 131 (1) herein;7. the said person holds the documents specified in the Regulations for Application of this Act: in the cases of legal succession under Article 10 herein.Period of Exercisability of Right to Deduct Credit for Input TaxArticle 72. (1) A person registered under this Act may exercise the right thereof to deduct credit for input tax for the tax period during which the said credit becomes deductible or during one of the three succeeding tax periods.(2) The right referred to in Paragraph (1) shall be exercised by the person by means of:1. including the amount of the credit for input tax upon assessment of the net tax for the tax period under Paragraph (1) in the VAT return under Article 125 for the same tax period;2. indicating the document under Article 71 herein in the purchase day book under Article 124 herein for the tax period referred to in Item 1.Right to Deduct Partial Credit for Input TaxArticle 73. (1) A registered person shall have the right to deduct a partial credit for input tax in respect of the tax on goods or services which are used for effecting of both supplies in respect of which credit for input tax is deductible and of supplies or activities in respect of which such a credit is not deductible.(2) The amount of the partial credit for input tax shall be determined by multiplying the amount of the credit for input tax by a factor rounded up to the second decimal place, made up of a fraction having, as numerator, the turnover attributable to the supplies in respect of which credit for input tax is deductible and, as denominator, the turnover attributable to all supplies and activities effected by the person.(3) The turnover attributable to supplies in respect of which credit for input tax is deductible shall include:1. the taxable amounts of the taxable supplies effected by the person;2. the taxable amounts of the payments received by the person in respect of which the tax became chargeable before occurrence of the chargeable event for a taxable supply;3. the taxable amounts of the supplies effected by the person whereof the place of transaction is outside the territory of the country, treated as equivalent to taxable supplies according to Article 69 (2) herein, with the exception of the supplies whereof the place of supply is outside the territory of the country, effected from a fixed establishment of the person outside the territory of the country;4. the taxable amounts of the payments received by the person before effecting of the supplies referred to in Item 3;5. (amended, SG No. 108/2006) the tax base of the deliveries of goods or services, for which the right of deducting tax credit under Article 70, paragraph 1, sub-paragraphs 3 - 5, has not been exercised.(4) The turnover attributable to all supplies and activities of the person shall include:1. the turnover referred to in Paragraph (3);2. the taxable amounts of the supplies effected by the person whereof the place of transaction is outside the territory of the country, which are not treated as equivalent to taxable supplies within the meaning given by Article 69 (2) herein, with the exception of any supplies effected from a fixed establishment by the person outside the territory of the country;3. the taxable amounts of the exempt supplies effected, with the exception of any supplies referred to in Item 2 of Article 50 herein;4. the value of the supplies and the activities outside the framework of the economic activity of the person;5. the taxable amounts of the payments received by the person before effecting the supplies and the activities referred to in Items 2, 3 and 4 herein;6. the amount of the subsidies received other than those included in the taxable amount.(5) The factor shall be calculated on the basis of the turnovers referred to in Paragraphs (3) and (4) for the entire preceding calendar year and, where there are no such turnovers for the preceding calendar year, on the basis of the turnovers referred to in Paragraphs (3) and (4) for the tax period during which credit for input tax becomes deductible.(6) The right to partial credit for input tax under Paragraph (2) shall be recalculated during the last tax period of the current calendar year on the basis of the parameters covered under Paragraphs (3) and (4) for the current calendar year.(7) In the cases of deregistration, the amount of the partial credit for input tax under Paragraph (2) shall be recalculated at the end of the last tax period on the basis of the parameters under Paragraphs (3) and (4) in respect of the part of the current calendar year during which the person was not registered.(8) The difference resulting from the recalculation under Paragraphs (6) and (7) shall be included as an adjustment (upwards or downwards) in the amount of the credit for input tax in the VAT return for the last tax period.Right to Deduct Credit for Input Tax for Assets Available and ServicesReceived before Registration DateArticle 74. (1) Any person registered under Articles 96, 97, 98, Article 100 (1) and (3), Articles 102 or 132 herein shall have the right to deduct credit for input tax in respect of any assets, within the meaning given by the Accountancy Act , which were purchased or otherwise acquired or imported prior to the date of registration of the said person under this Act, which are available at the date of registration.(2) The credit referred to in Paragraph (1) shall become deductible solely in respect of assets available at the date of registration, in respect of which the following conditions are simultaneously fulfilled:1. the requirements of Articles 69 and 71 herein are satisfied;2. the supplier was a person registered under this Act at the date of issue of the tax document and the supply was taxable at that date;3. the registration inventory in standard form of the available assets was drawn up at the date of registration under this Act and was submitted within seven days after the date of registration;4. the assets were acquired by the person within five years and, applicable to immovable property, within 20 years before the date of registration under this Act.(3) Any registered person referred to in Paragraph (1) shall furthermore have the right to deduct credit for input tax in respect of any services received before the date of registration of the said person under this Act, where the following conditions are simultaneously fulfilled:1. the services are directly linked with the registration of the person according to the procedure established by the Commerce Act;2. the services were received not earlier than one month before registration of the person under the Commerce Act;3. the person has submitted an application for registration under this Act within 30 days after recording of the person in the register referred to in Article 82 of the Tax and Social-Insurance Procedure Code ;4. the person holds an invoice under Item 1 of Article 71 herein in respect of the services received;5. the supplier of the services was a person registered under this Act at the date of issue of the tax document and the supply was taxable at the said date;6. the registration inventory in standard form of the services received was drawn up at the date of registration under this Act and was submitted within seven days after the date of registration.Accrual and Exercise of Right to Deduct Credit for Input Tax in Respectof Available Assets and Services Received before RegistrationArticle 75. (1) Credit for input tax under Article 74 herein shall become deductible on the date of registration under this Act.(2) The right referred to in Paragraph (1) shall be exercised during the tax period during which the said right accrued or in one of the three succeeding tax periods, with the available assets, the services received and the tax included in the registration inventory under Article 74 herein being recorded in the purchase day book for the relevant tax period.(3) The right to deduct credit for input tax under Article 74 herein shall not accrue and may not be exercised by the registered person if the registration inventory was submitted later than seven clear days after the date of registration under this Act.Right to Deduct Credit for Input Tax upon Re-registrationArticle 76. (1) Any registered person shall have the right to deduct the tax charged upon deregistration of the said person under this Act in respect of the taxed assets under Item 1 of Article 111 (1) herein, which are available at the date of the subsequent registration of the said person.(2) The right referred to in Paragraph (1) shall accrue where the following conditions are simultaneously fulfilled:1. the assets, within the meaning given by the Accountancy Act, available at the date of the subsequent registration under this Act, were taxed upon the deregistration according to the procedure established by Item 1 of Article 111 (1) herein;2. the tax charged upon the deregistration was remitted effectively or was set off by the revenue authority;3. the available assets referred to in Item 1 were, are, or will be used by the person for effecting of taxable supplies within the meaning given by Article 69 herein;4. the registration inventory in standard form of the assets referred to in Item 1 was drawn up at the date of re-registration and was submitted within seven clear days after the date of registration;5. the assets referred to in Item 1 were acquired by the person within five years and, in respect of immovable property, within 20 years before the date of re-registration under this Act.Accrual and Exercise of Right to Deduct Charged Tax in Connection withDeregistration under this Act and Subsequent Registration of PersonArticle 77. (1) Credit for input tax under Article 76 herein shall become deductible on the date of re-registration under this Act.(2) The right to deduction under Paragraph (1) shall be exercised during the tax period during which the said right accrued or during one of the three succeeding tax periods, with the available assets and the tax included in the registration inventory under Article 74 herein being recorded in the purchase day book for the relevant tax period.(3) The right to deduct credit for input tax under Article 76 herein shall not accrue and may not be exercised by the registered person if the registration inventory was submitted later than seven clear days after the date of registration under this Act.Adjustments of Credit for Input Tax Used upon Change of Taxable Amountand upon Change of Type of SupplyArticle 78. (1) Any registered person shall be obliged to adjust the amount of the credit for input tax used upon any change of the taxable amount of the supply or upon rescission of the supply, as well as upon any change of the type of the supply.(2) The adjustment shall be effected during the tax period during which the circumstances referred in Paragraph (1) occurred, by means of recording the document referred to in Article 115 or the new document referred to in Article 116 herein, whereby the adjustment was effected, in the purchase day book and in the VAT return for the relevant tax period.Adjustment of Credit for Input Tax Used in Other CasesArticle 79. (1) Any registered person, who has wholly or partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services for effecting any exempt supplies or for any supplies or activities in respect of which credit for input tax is not deductible, shall be liable for tax to the amount of the credit for input tax used.(2) Any registered person, who has wholly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services for effecting of supplies in respect of which credit for input tax is deductible as well as for supplies or activities in respect of which such a credit is not deductible, and where the person cannot determine what portion of the goods or services is used for supplies conferring the right to credit for input tax and such that do not confer the right to credit for input tax, shall be liable for tax according to the procedure established by Paragraph (7).(3) (Supplemented, SG No. 113/2007) Any registered person, who has wholly or partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby shall charge and be liable for tax to the amount of the credit for input tax deducted upon destruction, ascertainment of shrinkages or upon discarding of goods, as well as upon change of the intended use of the said goods in respect of which credit for input tax is no longer deductible.(4) The adjustment under Paragraphs (1) and (3) shall be effected in the tax period during which the relevant circumstances have occurred, by means of drawing up a memorandum on the adjustment as effected and recording the said memorandum in the purchase day book and in the VAT return for the said tax period.(5) The adjustment referred to in Paragraph (2) shall be effected during the last tax period of the year during which the circumstances referred to in Paragraph (2) occur.(6) Notwithstanding Paragraphs (1) and (3), in respect of any goods and services which are fixed assets within the meaning given by the Corporate Income Tax Act, the person shall be liable for tax to an amount determined according to the following formula:1. in respect of immovable things: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraphs (1) or (3), including the year of occurrence of the circumstances, and the lapse of the 20-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;2. in respect of all other goods or services: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraphs (1) or (3), including the year of occurrence of the circumstances, and the lapse of the five-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;(7) In the cases under Paragraph (2), the person shall be liable to tax determined according to the following formula:1. in respect of immovable things: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraph (2), including the year of occurrence of the circumstances, and the lapse of the 20-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;F shall be the factor referred to in Article 73 herein, calculated on the basis of the turnover for the year during which the circumstances under Paragraph (2) occurred;2. in respect of all other goods or services: where:TD shall be the tax due;CITU shall be the amount of credit for input tax used;NoY shall be the clear number of years between the occurrence of the circumstances under Paragraph (2), including the year of occurrence of the circumstances, and the lapse of the five-year period, reckoned from the year of exercise of the right to credit for input tax inclusive;F shall be the factor referred to in Article 73 herein, calculated on the basis of the turnover for the year during which the circumstances under Paragraph (2) occurred.(8) Any registered person, who has partly deducted credit for input tax in respect of any goods or services produced, purchased, acquired or imported thereby and subsequently uses the said goods or services solely for effecting of taxable supplies under Article 69 herein, shall have the right to adjust (upwards) the amount of the partial credit for input tax upwards according to a procedure and to an amount established in the Regulations for Application of this Act.(9) Adjustments under Paragraphs (1) to (8) shall be effected on a single occasion.(10) (New, SG No. 108/2006) A registered person that has entirely or partially deducted tax credit for goods produced, purchased, acquired or imported by it and has later made an intercommunity delivery with these goods shall pay tax to the amount of the tax credit used.(11) (New, SG No. 108/2006) The adjustment under paragraph 10 shall be made during the tax period, in which the tax for the intercommunity delivery against no consideration has become executable, by drawing up a protocol and its registration in the sales journal for that tax period.Block on AdjustmentsArticle 80. (1) (Supplemented, SG No. 108/2007) Adjustments under Article 79, (1) - (7) herein shall not be effected:1. if the goods or services are used for supplies under Article 70 (3) herein, as well as in the cases under Article 10 herein;2. if the tax treatment of the supplies for which the registered person uses the goods or services is modified by law;3. for any goods or services if five years or, applicable to immovable property, -20 years, have elapsed since the commencement of the year during which the right to credit for input tax was exercised.(2) Adjustments under Article 79 (3) herein shall not be effected in the cases of:1. (supplemented, SG No. 108/2006) destruction, shrinkage or discarding caused by force majeure as well as in the cases of destroying excise goods under administrative control in accordance with the procedures of the Excise Duties and Tax Warehouses Act; 2. destruction, shrinkage or discarding caused by accidents or disasters which the person cannot prove that were not caused through the fault of the said person;3. shrinkages arising from alteration of physical and chemical properties within reasonable limits, conforming to the maximum permissible allowances for natural wastage and shrinkages of goods in the storage and transportation thereof according to the established standards, specifications and other statutory instruments;4. spoilage within permissible limits, established by the technological documentation as applicable to the production or activity concerned;5. discarding due to expiry of the service life or shelf life, determined according to the requirements of a statutory instrument;6. write-off of tangible fixed assets, within the meaning given by the Accountancy Act , where the balance-sheet value of the said assets is less than 10 per cent of the book value thereof.(3) (New, SG No. 108/2006) In the cases of adjustments under Article 79, paragraph 10 the person shall pay the full amount of the tax credit used regardless of the deadline under paragraph 1, sub-paragraph 3.Refund of Tax to Persons Not Established within Territory of CountryArticle 81. (1) The tax paid shall be refunded to:1. any taxable persons who are not established within the territory of the country but who are established and registered for VAT purposes within another Member State in respect of any goods purchased and services received thereby within the territory of the country;2. any persons who are not established within the territory of the Community but who are registered for VAT purposes in another State: on a basis of reciprocity;3. any non-taxable natural persons, who are not established within the territory of the Community, who have effected purchases of goods for private use inclusive of tax charged, after leaving the territory of the country, subject to the condition that the said goods are exported in an unaltered state.(2) The procedure and the documents required for refund of the tax under Paragraph (1) shall be determined by an ordinance of the Minister of Finance.Chapter EightCHARGING AND REMITTANCE OF TAXTaxpayer upon Effecting of Taxable SuppliesArticle 82. (1) (Amended, SG No. 108/2006) The tax shall be chargeable from a person registered under this Act who is a supplier of a taxable supply, with the exception of the cases covered under Paragraphs (4) and (5).(2) (Amended, SG No. 108/2006) Where the supplier is not a person registered under the Act and is not established within the territory of the country, the tax shall be chargeable from the recipient of the supply upon:1. supply of natural gas through the natural gas distribution system or of electricity: where the recipient is a person registered under this Act;2. supply of any services specified in Article 21 (3) herein: where the recipient is a taxable person;3. supply of any services referred to in Articles 22, 23 and 24 herein: where the recipient is a person registered under this Act and the supplier is established within the territory of another Member State;4. supply of any goods which are assembled or installed by or for the account of the supplier: where the recipient is a person registered under this Act and the supplier is established within the territory of another Member State.(3) The tax shall be chargeable from the acquirer in a triangular operation effected under the conditions of Article 15 herein.(4) The tax shall be chargeable from the recipient who is a person registered under this Act in the cases covered under Article 161 herein.(5) (New, SG No. 108/2006) The tax is executable by the recipient - the person registered under the present Act, in the cases of Article 163a regardless of whether the supplier is a tax liable person or not.Taxpayer upon ImportationArticle 83. (1) The tax upon importation under Article 16 herein shall be chargeable from the importer.(2) Where two and/or more persons are solidarily liable for payment of customs duties according to customs legislation, the said persons shall be solidarily liable for payment of the tax due as well.Taxpayer upon Intra-Community AcquisitionsArticle 84. The tax upon intra-Community acquisitions shall be chargeable from the person who effects the acquisition.Taxpayer under Invoices IssuedArticle 85. The tax shall furthermore be chargeable from any person who indicates the tax in a tax document under Article 112 herein.Registered Person's Obligation to Charge TaxArticle 86. (1) Any registered person, in respect of whom the tax has become chargeable, shall be obliged to charge the said tax and, to this end, must:1. issue a tax document and indicate the tax on a separate line therein;2. include the amount of the tax upon assessment of the net tax for the relevant tax period in the VAT return under Article 125 herein for the said tax period;3. indicate the document referred to in Item 1 in the purchase day book for the relevant tax period.(2) The registered person shall be liable for the tax in respect of the tax period during which the tax document was issued, and in the cases where no such document was issued or was issued beyond the time limit under this Act, in respect of the tax period during which the tax became chargeable.(3) No tax shall be charged in the cases of effecting an exempt supply, an exempt intra-Community acquisition, as well as in respect of any supply whereof the place of transaction is outside the territory of the country.(4) Items 1 and 2 of Paragraph (1) and Paragraph (2) shall not apply in the cases under Article 131 (1) herein.Tax PeriodArticle 87. (1) "Tax period," within the meaning given by this Act, shall be the period of time upon the lapse of which a registered person must submit a VAT return showing the net tax for the same tax period.(2) The tax period shall be fixed as one month in respect of all registered persons and shall be concurrent with the calendar month, except in the cases under Chapter Eighteen herein.(3) The first tax period after the date of registration shall comprise the clear time between the date of registration and the last day of the calendar month during which the registration under this Act was effected.(4) The last tax period shall comprise the clear time between the commencement of the tax period and the date of deregistration.Net Tax for Tax PeriodArticle 88. (1) The net tax for the tax period shall be the difference between the total amount of the tax chargeable from the person in respect of the said tax period and the total amount of the credit for input tax in respect of which the right to deduction has been exercised during the said tax period.(2) Where the tax charged exceeds the credit for input tax, the difference shall constitute a net tax for the period: output tax payable.(3) Where the credit for input tax exceeds the tax charged, the difference shall constitute a net tax for the period: input tax claimable.(4) The registered person shall self-assess the net tax for each tax period: output tax payable to Executive Budget Revenue or input tax claimable from Executive Budget Expenditures.Remittance of Tax by Registered PersonsArticle 89. (1) Where there is an output tax payable, the registered person shall be obligated to remit the tax to Executive Budget revenue by crediting an account of the competent National Revenue Agency territorial directorate within the time limit for submission of the VAT return for that tax period.(2) The tax shall be deemed remitted on the date on which the amount was credited to the relevant account referred to in Paragraph (1).Remittance of Tax upon Importation of GoodsArticle 90. (1) In the cases covered under Article 16 herein, the importer of goods shall remit the tax as effectively charged by the customs authorities to Executive Budget revenue as follows:1. by crediting an account of the relevant customs office releasing for free circulation the goods liable to import duties;2. by crediting an account or in cash at the cash department of the relevant customs office releasing for free circulation the goods liable to import duties, where the importer is a natural person not registered under this Act who is not a sole trader.(2) The tax referred to in Paragraph (1) may not be set off against other liabilities by the revenue authorities or the customs authorities.(3) In the cases under Paragraph (1), the customs authorities shall release the goods upon payment of the tax charged or after provision of security in respect of the said tax according to the procedure established for the customs debt.(4) (Repealed, SG No. 113/2007). Remittance of Tax by Person Who Is Not RegisteredArticle 91. (1) Upon an intra-Community acquisition of a new means of transport under Article 13 (2) herein by a person who is not registered under this Act, the tax shall be remitted by the said person within 14 days after the lapse of the tax period during which the tax on the acquisition became chargeable.(2) Upon an intra-Community acquisition of excisable goods under Item 4 of Article 2 herein, the tax shall be remitted by the person who effected the acquisition within 14 days after the lapse of the month during which the tax became chargeable.(3) Upon receipt of services under Article 21 (3) herein, where the supplier is not established within the territory of the country and the recipient is a taxable person who is not registered under this Act, the tax shall be remitted by the recipient within 14 days after the lapse of the month during which the tax became chargeable.(4) The tax referred to in Paragraphs (1), (2) and (3) shall be remitted to Executive Budget revenue by crediting an account of the National Revenue Agency territorial directorate whereat the person is registered or is subject to registration under the Tax and Social-Insurance Procedure Code.(5) The tax referred to in Paragraph (4) shall be deemed remitted on the date on which the amount was credited to the relevant account referred to in Paragraph (4).Set-off, Deduction and Refund of Net Tax for Period: Input Tax ClaimableArticle 92. (1) The input tax claimable referred to in Article 88 (3) shall be set off, deducted or refunded as follows:1. where there are other chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency which have accrued prior to the date of submission of the VAT return, the revenue authority shall set off such liabilities against the input tax claimable as stated in the VAT return; the procedure established in Item 2 shall apply to the balance, if any;2. where there are no other chargeable and unpaid liabilities referred to in Item 1 or where the amount of such liabilities is less than the input tax claimable as stated in the VAT return, the registered person shall deduct the input tax claimable or the balance referred to in Item 1 from the due output tax payable as stated in the VAT returns to be submitted in the next succeeding three tax periods;3. if after the deduction under Item 2 there remains any output tax payable, it shall be due within the time period established under Article 89 herein;4. if after the lapse of the time limit referred to in Item 2 there is a balance of the input tax claimable, the revenue authority shall set off such balance for redemption of other chargeable and unpaid tax liabilities or liabilities for social-insurance contributions collected by the National Revenue Agency, or shall refund the said balance within 45 days after submission of the most recent VAT return;5. if the input tax claimable in respect of which a deduction procedure has commenced has not been fully deducted at the time of submission of a VAT return for the last of the three tax periods, any other input tax claimable under a VAT return for any of the said three tax periods shall be added to it and shall be subject to refund or set-off together with such balance and within the time limit referred to in Item 4;6. if the conditions under Item 5 are not fulfilled, another three succeeding tax periods for deduction following the period in which such tax was stated shall commence in respect of the input tax claimable as stated next under a VAT return.(2) The revenue authority shall have no right to set off other chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency against an input tax claimable as stated in the VAT returns for the three tax periods of the deduction procedure under Paragraph (1).(3) (Amended, SG No. 108/2007) Notwithstanding Paragraph (1), the input tax claimable under Article 88 (3) herein shall be refunded within 30 days after submission of the VAT return, where the person has effected supplies liable to tax at the zero rate during the 12 months last preceding the current month and supplies under Articles 22, 23 and Article 24 (3) with place of transaction within the territory of another Member State on which a recipient is a person registered for VAT purposes in another Member State to a total value exceeding 30 per cent of the total value of all taxable supplies and supplies under Articles 22, 23 and Article 24 (3) with place of transaction within the territory of another Member State on which a recipient is a person registered for VAT purposes in another Member State, for the same period.(4) Notwithstanding Paragraph (1), the input tax claimable under Article 88 (3) herein shall be refunded within 30 days after submission of the VAT return, where the person has been granted permission under Article 166 herein.(5) Where, in the cases under Paragraphs (3) and (4), there are chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency which have accrued prior to the date of submission of the VAT return, within the same time limits the revenue authority shall effect a set-off and refund of the balance, if any.(6) The revenue authority shall effect the set-off under Paragraphs (1) to (2) in the following sequence: value added tax, other taxes collected by the National Revenue Agency, compulsory social-insurance contributions to the public social insurance funds, contributions for supplementary compulsory social insurance contributions, contributions to the National Health Insurance Fund and to the Factory and Office Workers' Guaranteed Claims Fund.(7) The circumstances covered under Paragraphs (3) and (4) shall be certified in writing to the competent National Revenue Agency territorial directorate according to a procedure established by the Regulations for Application of this Act.(8) (New, SG No. 108/2007) Notwithstanding Item 4 of Paragraph 1 and Paragraphs 3 - 6, where an audit of the person has commenced, the time period for refund of the tax shall be the time period for issuance of the audit act except for the cases where the person provides security in cash, in government securities or in unconditional and irrevocable bank guarantee which shall be valid for not less than 4 months, and in the cases under Article 114 (3) of the Tax Social-Insurance Procedure Code, not less than 8 months.(9) (New, SG No. 108/2007) The tax shall be refunded and/or set off to the amount of the security under Paragraph (8) within three days after provision thereof.(10) (Renumbered from paragraph 8, amended SG No. 108/2007) Any input tax claimable, which has not been refunded without grounds or which has not been refunded by reason of lapsed grounds (including upon revocation of an act) within the time limits provided for in this Act, shall be refunded together with the legal interest for a delay, reckoned from the date on which the said tax should have been refunded under this Act and until the final payment thereof, regardless of the interruption and resumption of the time periods under the tax proceedings.Interruption and Resumption of Time Periods under Article 92Article 93. (1) The time periods for refund under Item 4 of Article 92 (1) and Article 92 (3) and (4) herein shall be interrupted:1. where no accounts have been kept according to the requirements of the Accountancy Act, and shall resume upon commencement of keeping of such accounts;2. in the absence or upon failure to present documents that are mandatory under this Act, or of any other documents requested by the revenue authority, if such documents must mandatorily be drawn up according to a statutory instrument, and shall resume upon presentation of the said documents to the revenue authority.3. upon a failure to grant access to an authorized revenue body to office, production or other premises related to the activity of the registered person, and shall resume upon granting such access;4. where the person cannot be found according to the procedure established by the Tax and Social-Insurance Procedure Code by the revenue authority at the mailing address named by the said person, and shall resume upon written notification on the part of the registered person to the revenue authority on the change of the address thereof in the country and the finding of the said person at the named addressed by a revenue authority;5. (repealed, SG No. 108/2007). (2) The time periods for refund under Item 4 of Article 92 (1) and Article 92 (3) and (4) herein shall be interrupted after consultation with the Executive Director of the National Revenue Agency for a period not exceeding 60 days where:1. a revenue authority ascertains data of a criminal offence against the tax system and refers the said data to the pre-trial proceeding authorities within one month after ascertainment of the said data;2. the interruption has been requested in writing by the authorities of the Ministry of Interior or by the judicial authorities upon institution of a pre-trial or judicial proceeding.(3) In the cases referred to in Paragraph (2), the time periods for refund shall resume upon receipt of a written refusal to institute a proceeding or, respectively, after notification of a completion of the proceeding as institutedPART SIXOBLIGATIONS OF PERSONSChapter NineREGISTRATIONGeneral DispositionsArticle 94. (1) The National Revenue Agency shall establish and maintain a special register under this Act, which shall be part of the register referred to in Article 80 (1) of the Tax and Social-Insurance Procedure Code. (2) Upon recording in the register, the persons shall be issued with an identification number for VAT purposes, having a prefix "BG".(3) Registration under this Act shall be compulsory and optional.Registration in Connection with Supplies Effected within Territory ofCountryArticle 95. (1) The registration requirement under this Act shall apply to each taxable person who is established within the territory of the country and who effects taxable supplies of goods or services covered under Article 12 herein.(2) The registration requirement under this Act shall furthermore apply to each taxable person who is not established within the territory of the country and who effects taxable supplies of goods or services covered under Article 12 herein other than those for which the tax is chargeable from the recipient.Compulsory RegistrationArticle 96. (1) Any taxable person having a taxable turnover of BGN 50,000 or more for a period not exceeding twelve consecutive months last preceding the current month shall be obligated to submit an application for registration under this Act within 14 days after the lapse of the tax period during which such turnover has accrued to the said person.(2) The taxable turnover shall be the sum of taxable amounts of the following supplies effected by such person:1. taxable supplies, including supplies liable to tax at the zero rate;2. supplies of financial services under Article 46 herein;3. supplies of insurance services under Article 47 herein.(3) (Amended, SG No. 108/2006) The taxable turnover shall not include any supplies referred to in Items 2 and 3 of Paragraph (2), where not related to the core activity of the person, any supplies of tangible or intangible fixed assets employed in the activity of the person, as well as any supplies for which tax is executable by the recipient under Article 82, paragraphs 2 and 3.(4) The taxable turnover shall furthermore include any advance payments received for supplies covered under Paragraph (2), with the exception of advance payments received prior to the occurrence of the chargeable event under Article 51 (1) herein.(5) The obligation to register shall arise notwithstanding the time period over which the taxable turnover has accrued, but not for a period exceeding the period defined in Paragraph (1).(6) Determination of the taxable turnover shall give consideration to the tax treatment of the supplies applicable at the date of occurrence of the chargeable event or at the date of the payment prior to the occurrence of the chargeable event for the supply.(7) Paragraph (1) shall not apply to any persons for whom the following conditions are simultaneously fulfilled:1. they supply services electronically to recipients who are non-taxable persons, who are established or have a permanent address or usually reside within the territory of the country;2. they are not established within the territory of the Community;3. they are registered for VAT purposes for their activity referred to in Item 1 in another Member State.(8) (Supplemented, SG No. 108/2007) Notwithstanding Paragraph (1), a person whose registration has been terminated or refused by the revenue administration in pursuance of Article 176 herein cannot be registered before the grounds for such registration refusal or the grounds for deregistration lapse, or before the lapse of 24 months from the beginning of the month following the month of deregistration or refusal of registration.Obligation to Register in Case of Supplies of Assembled and InstalledGoodsArticle 97. (1) Notwithstanding the taxable turnover under Article 96 herein, the registration requirement under this Act shall apply to each person who is established in another Member State, who is not established within the territory of the country and who effects taxable supplies of goods which are assembled or installed within the territory of the country by or for the account of the said person.(2) An obligation to submit an application for registration shall arise in respect of the persons referred to in Paragraph (1) not later than seven days prior to the date of occurrence of the chargeable event for the supply referred to in Paragraph (1).(3) Paragraph (1) shall not apply where the recipient of such supply is a person registered under this Act.Obligation to Register in Case of Distance Selling of GoodsArticle 98. (1) The registration requirement under this Act shall apply to each taxable person who effects a supply of goods whereof the place of transaction is within the territory of the country under Article 20 herein under the terms of distance selling referred to in Article 14 herein.(2) An obligation to submit an application for registration under this Act shall arise in respect of the persons referred to in Paragraph (1) not later than seven days prior to the date of occurrence of the chargeable event for the supply by which the total value of distance selling during the current year exceeds the amount referred to in Item 2 of Article 20 (2). The supply referred to in sentence one shall be liable to tax under this Act.(3) Where the place of transaction of the supply referred to in Article 20 (4) herein is within the territory of the country, the persons referred to in Paragraph (1) shall submit an application for registration not later than seven days prior to the occurrence of the chargeable event for the supply or prior to the receipt of the advance payment.Obligation to Register in Case of Intra-Community AcquisitionArticle 99. (1) The registration requirement under this Act shall apply to each non-taxable legal person and taxable person which is not registered in pursuance of Articles 96, 97, 98, Article 100 (1) and (3), and Article 102 herein, and which effects intra-Community acquisition of goods.(2) Paragraph (1) shall not apply where the total value of taxable intra-Community acquisitions for the current calendar year does not exceed BGN 20,000.(3) An obligation to submit an application for registration under this Act shall arise in respect of the persons referred to in Paragraph (2) not later than seven days prior to the date of occurrence of the chargeable event for the acquisition by which the total value of taxable intra-Community acquisitions exceeds BGN 20,000 The intra-Community acquisition by which the said threshold is exceeded shall be liable to tax under this Act.(4) The value referred to in Paragraph (2) shall be the sum total of taxable intra-Community acquisitions, with the exception of the acquisition of new means of transport and of excisable goods, net of the value added tax payable or paid in the Member State from which the goods were transported or dispatched.(5) Paragraph (1) shall not apply in respect of:1. any persons referred to in Article 168 herein, who acquire new means of transport;2. any persons referred to in Item 4 of Article 2 herein.(6) Any person, who is registered in pursuance of this Article and for whom grounds for compulsory registration under Articles 96, 97 and 98 herein or for optional registration under Article 100 (1) and (3) herein arise, shall register according to the procedure and within the time limits applicable to compulsory registration or optional registration.Optional RegistrationArticle 100. (1) Any taxable person, whereto the conditions for compulsory registration covered under Article 96 (1) herein do not apply, shall have the right to register under this Act.(2) Any taxable and non-taxable legal person, whereto the conditions for compulsory registration under Article 99 (1) herein do not apply, shall have the right to register under this Act for intra-Community acquisition.(3) Any taxable person may register under this Act, notwithstanding the amount referred to in Item 2 of Article 20 (2) herein, where the said person has notified the tax administration of the Member State where the said person is registered for VAT purposes that the said person wishes the distance selling effected thereby to have a place of transaction within the territory of the country.(4) (Supplemented, SG No. 108/2007) Notwithstanding Paragraphs (1) and (3), a person whose registration under this Act has been terminated or refused by the revenue administration in pursuance of Article 176 herein cannot be registered before the grounds for refusal of registration or the grounds for deregistration lapse, or before the lapse of 24 months after the beginning of the month following the month of deregistration or refusal of registration.Registration ProcedureArticle 101. (1) For the effecting of registration, the person who is obligated or has the right to register shall submit an application for registration, completed in a standard form, to the competent National Revenue Agency territorial directorate.(2) Any such application shall be submitted:1. in person, where the taxable person is a natural person capable of performing juridical acts or a sole trader;2. by a person vested with representative authority by law, where the taxable person is a legal person or a cooperative;3. by a person vested with representative authority according to a contract of incorporation, where the taxable person is an unincorporated association or a social insurance fund;4. by an accredited representative referred to in Article 135 herein;5. by a person who has been expressly authorized for this act by the persons referred to in Items 1, 2, 3 and 4 by means of a notarized power of attorney.(3) The application may be submitted electronically according to the procedure established by the Tax and Social-Insurance Procedure Code. (4) Any application referred to in Paragraph (1) must state the grounds for registration. Documents specified in the Regulations for Application of this Act shall be attached to any such application.(5) (Supplemented, SG No. 108/2007) Within seven days after receipt of the application, the revenue authority shall verify the grounds for registration. Where the revenue authority has required the security under Article 176a, the time period for performing the verification shall be 30 days from submitting the application for registration.(6) Within seven days after completion of the verification, the revenue authority shall issue an act whereby it shall effect the registration or shall refuse to effect the registration, stating the reasons for such refusal.(7) Notwithstanding Paragraphs (5) and (6), the registration under Articles 97, 98 and 99 herein shall be effected by the revenue authority within three days after submission of the application for registration.Registration Initiated by Revenue AuthorityArticle 102. (1) Where a revenue authority ascertains that a person has failed to fulfil in due time the obligation thereof to submit an application for registration, the said authority shall register the said person by issuing a registration act, if the conditions for registration are fulfilled.(2) The act referred to in Paragraph (1) shall state the grounds and the date on which the obligation to register has arisen.(3) For the purposes of determining the tax liabilities of the person in the cases where the said person was obligated but has failed to submit an application for registration in due time, the person shall be presumed to be liable for tax on the taxable supplies and taxable intra-Community acquisitions effected thereby:1. for the period from the expiry of the time limit for submission of an application for registration until the date on which the person was registered by the revenue authority;2. for the period from the expiry of the time limit for submission of an application for registration until the date on which the grounds for registration have lapsed.(4) The liabilities referred to in Paragraph (3) shall be determined by an audit act according to the procedure established by the Tax and Social-Insurance Procedure Code. Date of RegistrationArticle 103. (1) The date of delivery of the registration act shall be deemed a date of registration under this Act.(2) As at the date of registration, the person shall draw up a registration inventory in a standard form of the assets, within the meaning given by the Accountancy Act, and of the services for which the person has the right to deduct credit for input tax under Articles 74 or 76 herein, and shall submit the said inventory not late than seven days after the date of registration.Documents Certifying RegistrationArticle 104. (1) A registration certificate, protected by plastic foil, drawn up in a standard form specified by the Regulations for Application of this Act, shall be delivered to the registered person simultaneously with the delivery of the registration act.(2) Upon written request by the registered person, the revenue authority shall issue more than one certificate.(3) Upon written request by the registered person, the director of the competent National Revenue Agency territorial directorate shall issue, within seven days, a separate certificate for the purposes of evidencing the registration under this Act abroad in a standard form specified in the Regulations for Application of this Act.Loss, Damage or Destruction of CertificateArticle 105. (1) In the event of a loss, damage or destruction of the certificate, the registered person shall be obligated to notify in writing the competent National Revenue Agency territorial directorate whereat the said person is registered within seven days after occurrence of any such circumstance.(2) In the cases referred to in Paragraph (1), the revenue authority shall issue a replacement certificate within seven days after notification.Chapter TenTERMINATION OF REGISTRATION (DEREGISTRATION)General DispositionsArticle 106. (1) Termination of registration (deregistration) under this Act shall be a procedure pursuant to which, after the date of deregistration, the person shall have no right to charge tax and to deduct credit for input tax, except where otherwise provided for in this Act.(2) Registration shall terminate:1. on the initiative of the registered person, when there are grounds for deregistration, whether compulsory or optional;2. on the initiative of the revenue authority, where:(a) the said authority has ascertained grounds for compulsory deregistration;(b) any circumstance covered under Article 176 herein exists.Grounds for Compulsory DeregistrationArticle 107. The following shall be grounds for compulsory deregistration:1. the death of the natural person;2. the death of the natural person who is a sole trade, with or without expungement in the Commercial Register;3. (supplemented, SG No. 108/2007) the expungement of the sole trade in the Commercial Register, unless the person is subject to compulsory registration under the procedure of Article 96 (1) for the taxable turnover of the supplies provided by him, representing independent economic activities, or if the grounds under Article 108 (2) exist;4. the dissolution of the person in the cases of:(a) dissolution of the legal person which is a merchant, with or without liquidation;(b) dissolution of the cooperative;(c) dissolution of the legal person which is not a merchant;(d) dissolution of the unincorporated association or the social insurance fund.Grounds for Optional DeregistrationArticle 108. (1) Grounds for optional deregistration shall arise:1. in respect of any person registered pursuant to Articles 96, 97 (3) or Article 100 (1) herein, upon the lapse of the relevant grounds for compulsory registration;2. in respect of any person registered pursuant to Article 98 (2) or Article 100 (3) herein, where:(a) the sum total of the taxable amounts of the supplies effected under the terms of distance selling within the territory of the country (excluding the supplies of excisable goods) does not exceed BGN 70,000 for each of the two calendar years preceding the current year, and(b) at the date of submission of the application for deregistration application, grounds for compulsory registration do not exist;3. in respect of any person registered pursuant to Article 99 and Article 100 (2) herein, where:(a) the sum total of the taxable amounts of the taxable intra-Community acquisitions, with the exception of new means of transport and excisable goods, does not exceed BGN 20,000 for the preceding calendar year, and(b) at the date of submission of the application for deregistration, grounds for compulsory registration do not exist.(2) Any persons who have opted to register according to Article 100 herein shall not have the right to terminate the registration thereof pursuant to Paragraph (1) before the lapse of 24 months reckoned from the beginning of the calendar year following the year of registration under this Act.Deregistration Procedure Initiated by PersonArticle 109. (1) In the cases referred to in Items 3 and 4 of Article 107 herein, the person shall submit an application for deregistration to the competent National Revenue Agency territorial directorate within 14 days after the occurrence of the relevant circumstance under Article 107 herein.(2) In the cases referred to in Article 108 (1) herein, the registered person shall have discretion to decide when to submit an application for deregistration to the competent National Revenue Agency territorial directorate.(3) Any application referred to in Paragraphs (1) and (2) must state the grounds for deregistration. Documents specified in the Regulations for Application of this Act shall be attached to any such application.(4) Within seven days after receipt of the application, the revenue authority shall verify the grounds for deregistration.(5) Within seven days after completion of the verification, the revenue authority shall issue an act whereby it shall effect the deregistration or shall refuse to effect the deregistration, stating reasons for such refusal.(6) (Amended, SG No. 113/2007) In the cases referred to in Paragraph (1) the date of occurrence of the respective circumstance under Article 107 shall be deemed a date of deregistration.(7) (New, SG No. 113/2007) In the cases referred to in Paragraph (2) the date of delivery of the deregistration act under Paragraph (5) shall be deemed a date of deregistration.Deregistration Procedure Initiated by Revenue AuthorityArticle 110. (1) Registration shall terminate on the initiative of the revenue authority by issuing a deregistration act, where:1. grounds for compulsory deregistration exists under Items 1 and 2 of Article 107 herein;2. the revenue authority ascertains that the person has failed to fulfil in due time the obligation thereof to submit an application for deregistration under Article 109 (1) herein.3. (new, SG No. 108/2007) grounds for deregistration under Article 176 exist.(2) (Supplemented, SG No. 108/2007) In the cases covered under Items 1 and 2 of Paragraph (1), the deregistration act shall not be delivered to the person, and the date of deregistration shall be the date of occurrence of the relevant event under Article 107 herein. In all the other cases the date of deregistration shall be the date of delivery of the deregistration act.Supply Linked to Deregistration and Assessment of Liabilities for LastTax PeriodArticle 111. (1) (Supplemented, SG No. 108/2007) At the date of deregistration, it shall be deemed that the person effects supplies, within the meaning given by this Act, of all available goods and/or services for which the said person has used, wholly or partly, credit for input tax, and which constitute:1. any assets, within the meaning given by the Accountancy Act, or2. any assets, within the meaning given by the Corporate Income Tax Act, other than such referred to in Item 1.(2) Paragraph (1) shall not apply:1. upon deregistration by reason of death of a natural person who is not a sole trader;2. upon the death of a person registered under this Act who is a sole trader, if the enterprise of the person has been taken over by legal or testamentary succession by a person who is registered under this Act, or who registers within six months after the date of such death: applicable only to the goods available at the date of registration;3. upon transformation of a registered legal person, if the newly formed person or the acquiring person is registered under this Act or registers according to the procedure and within the time limit established by Article 132 herein: applicable only to the goods available at the date of registration;4. to the available assets which constitute public state or public municipal property.(3) The tax referred to in Paragraph (1) shall be included in the net tax for the last tax period.(4) Where, at the date of deregistration the person is in a deduction procedure according to the procedure established by Article 92 herein, it shall be presumed that the three one-month periods have expired at the said date. For more information visit www.solicitorbulgaria.com id: 341 Mon, 04 Aug 2008 07:20:45 -0700 http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/VALUE_ADDED_TAX_ACT.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-value-added-tax-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 327 Chapter OneGENERAL PROVISIONSArticle 1This Act establishes the procedure for preparatory work and conclusion of international treaties by the Republic of Bulgaria, as well as the procedure for observance, amendment, suspension of the operation, termination, custody and registration of the international treaties whereto the Republic of Bulgaria is a party.Article 2(1) This Act shall apply to any bilateral or multilateral treaty concluded in written form between the Republic of Bulgaria and other States or international organizations, whether embodied in a single instrument or in two or more related instruments.(2) The provisions of this Act shall furthermore apply, mutatis mutandis, to the agreements of the Republic of Bulgaria with non-resident persons wherein the Republic of Bulgaria participates as a subject of public law, where any such agreements are subject to ratification by the National Assembly according to Article 85 (1) of the Constitution of the Republic of Bulgaria. Chapter TwoPREPARATORY WORK FOR CONCLUSION OFINTERNATIONAL TREATIESArticle 3The drafts of international treaties shall be prepared by the competent minister or head of central-government department after detailed research and in accordance with the Constitution, the legislation and the international obligations of the Republic of Bulgaria.Article 4(1) Together with the draft referred to in Article 3 herein, there shall be prepared a draft of a report to the Council of Ministers which shall substantiate the need to conclude the treaty and shall set forth the expected results and financial consequences of the application thereof, the consistency thereof with the provisions of the Constitution, the legislation and the international obligations of the Republic of Bulgaria, as well as with the law of the European Union.(2) Should the observance of the treaty require that statutory instruments be adopted or that domestic legislation be amended and supplemented, the draft of the report shall specify the relevant actions which must be taken in statutory and subordinate legislation, as well as the public authorities which are competent to prepare the said actions.(3) Where the draft of an international treaty contains provisions which require amendments to the Constitution of the Republic of Bulgaria, the draft of a report shall substantiate the need of participation of the Republic of Bulgaria in the said treaty and, respectively, the need of such amendments, motivating the specific proposals for effecting them. The international treaty shall be concluded after adoption of the said amendments.Article 5(1) The draft of an international treaty and the draft of a report to the Council of Ministers shall be coordinated with the Minister of Foreign Affairs, as well as with the other ministers and heads of the central-government departments concerned, inter alia on the matter of the amendments which have to be effected in domestic legislation regulating the subject matter lying within the competence of the said ministers and heads in connection with the application of the treaty.(2) Where, upon coordination according to the procedure established by Paragraph (1), it shall be ascertained that the draft of an international treaty contains any provisions conflicting with the legislation of the Republic of Bulgaria, the report shall expressly specify the relevant statutory instruments and provisions, as well as the proposals by the Minister of Justice and the other ministers and heads of central-government departments concerned for elimination of the said conflicts.Article 6(1) The draft of an international treaty shall be introduced before the Council of Ministers for approval together with a report and a draft of decision. The written observations of the other ministers and heads of central-government departments concerned shall be attached to the report, specifying which of their recommendations have not been accepted and on what grounds.(2) Where conclusion of the treaty requires the consent of the National Assembly under Item 9 of Article 84 of the Constitution or the authorization of the Grand National Assembly under Article 158 (2) of the Constitution, the said consent or authorization shall likewise be attached to the report.Article 7(1) The provisions of Articles 3 to 6 herein shall furthermore apply where a draft of an international treaty, prepared by another State or by an international organization, is proposed as a basis for the conduct of negotiations. In such a case, the proposer shall submit, in addition to the original version in a foreign language, a translation of the draft into the Bulgarian language.(2) The provisions of Articles 4 to 5 herein shall apply accordingly to the preparatory work for accession of the Republic of Bulgaria to a multilateral international treaty, with the proposer submitting, in addition to the original version in a foreign language, a translation of the draft into the Bulgarian language. Where it shall be necessary for the Republic of Bulgaria to formulate any reservations to or declarations on a multilateral treaty, the proposer shall substantiate the said reservations or declarations in the draft of a report and shall include them in the draft of a Council of Ministers decision.(3) The provisions of Articles 3 to 6 herein shall apply accordingly to the preparation of a draft of an agreement to amend an international treaty, as well as to a proposal to terminate a treaty, to suspend the operation thereof and to withdraw from a multilateral treaty whereto the Republic of Bulgaria is a party.Article 8(1) The Council of Ministers shall adopt a decision approving the draft of an international treaty or the draft of an amendment of an international treaty whereto the Republic of Bulgaria is a party as a basis for the conduct of negotiations and shall designate the head of the delegation to hold the negotiations and to sign the treaty.(2) By the decision thereof referred to in Paragraph (1), the Council of Ministers in the cases under Article 4 (2) and (3) herein shall entrust the competent ministers and heads of central-government departments with preparation of the requisite measures and shall establish time limits for implementation of the said measures.(3) By the decision thereof referred to in Paragraph (1), the Council of Ministers shall mandatorily pronounce regarding the proposal referred to in Article 6 (2) herein.(4) The Council of Ministers shall adopt a decision approving the proposals referred to in Article 7 (2) and (3) herein.Chapter ThreeCONCLUSION OF INTERNATIONAL TREATIESArticle 9(1) International treaties shall be concluded:1. by the President of the Republic of Bulgaria, after coordination with the Council of Ministers depending on the significance and subject matter of the treaty or conforming with the level of public authorities who will sign the treaty as coordinated between the parties;2. by the Council of Ministers, in conformity with the subject matter of the treaty and of the provisions thereof.(2) In the cases where an international treaty lies within the discretionary competence of a specified minister or head of central-government department, the said minister or head shall conclude the treaty with the relevant authority of another State in pursuance of a Council of Ministers decision.(3) Any Council of Ministers decision adopting a draft treaty shall expressly specify who must sign the said treaty.Article 10(1) The Minister of Foreign Affairs shall hand the draft as approved to the other party and shall coordinate the time and venue of the negotiations.(2) With regard to any treaties referred to in Article 9 (2) herein, the acts provided for in Paragraph (1) shall be performed by the competent minister or head of central government department.Article 11(1) The draft of an international treaty or the draft of an amendment of an international treaty whereto the Republic of Bulgaria is a party, as approved by the Council of Ministers, shall serve as a basis of the negotiations.(2) Where a material departure from the draft referred to in Paragraph (1) shall become necessary in the course of the negotiations, the initialling and signing of the treaty shall follow approval by the Council of Ministers.Article 12Any bilateral international treaty shall be drawn up in two identical copies, each one in the Bulgarian language and in the language of the other party. The treaty may furthermore be drawn up in a third language as well or in a third language only. Each of the copies shall be equally authentic.Article 13(1) Full powers for the negotiating and signing of international treaties shall emanate from the Minister of Foreign Affairs in pursuance of a Council of Ministers decision.(2) The President of the Republic, the Prime Minister and the Minister of Foreign Affairs may conclude international treaties without having to produce full powers.Article 14The consent of the Republic of Bulgaria to be bound by international treaties shall be expressed by ratification or by approval, acceptance, accession, definitive signature not followed by ratification or approval, as well as by exchange of the instruments constituting the treaty.Article 15(1) Where an international treaty shall be subject to ratification according to the Constitution of the Republic of Bulgaria, the Council of Ministers shall move to the National Assembly to ratify the said treaty by statute.(2) Where the Constitution does not require the ratification of an international treaty, the Council of Ministers shall approve the said treaty by decision.Article 16Where a multilateral international treaty provides for the possibility of accession or acceptance, the consent of the Republic of Bulgaria to be bound by the said treaty shall be expressed by means of ratification or approval according to the procedure established in Article 15 herein.Article 17Where an international treaty provides for the consent to be bound thereby to be expressed by definitive signature or accession not followed by ratification or approval, any consent to be so bound shall be given by the Council of Ministers and shall be incorporated into the decision on approval of the treaty.Article 18Where consent to be bound by an international treaty is expressed by exchange of the instruments constituting the treaty, any such exchange shall be effected by the Minister of Foreign Affairs in pursuance of a Council of Ministers decision.Article 19(1) Any reservations to and declarations on a multilateral international treaty shall be formulated upon signature, ratification, approval, acceptance or upon accession.(2) The text of any reservations and declarations referred to in Paragraph (1) shall be approved by the public authority which has expressed the consent of the Republic of Bulgaria to be bound by the treaty.(3) Any objections to reservations or declarations made by other parties to a treaty, as well as any withdrawal of reservations and declarations, shall be prepared and adopted according to the procedure established by this Act and shall be declared by the Minister of Foreign Affairs.Article 20The Minister of Foreign Affairs shall prepare the instruments of ratification and the instruments of approval, acceptance or accession proceeding from the statute of ratification or the Council of Ministers act of approval and shall deliver the said instruments to the other party or to the depositary of the treaty.Article 21The Minister of Foreign Affairs shall notify the other contracting party or the depositary of the treaty of the ratification, approval, acceptance or accession and shall affect the exchange or deposit of the relevant instruments. A protocol shall be drawn up on the exchange of the instruments of ratification.Article 22(1) Upon detection of any apparent errors in the text of an international treaty whereto the Republic of Bulgaria is a party, the Minister of Foreign Affairs shall take action through diplomatic channels in order to obtain the consent of the other party or parties for correction of any such error.(2) In the cases where a treaty has already been promulgated, the correction therein shall be promulgated in the State Gazette upon obtaining of the consent referred to in Paragraph (1). Any such correction shall enter into force on the date of promulgation thereof.Chapter FourENTRY INTO FORCE, PROMULGATION AND LEGAL EFFECT OFINTERNATIONAL TREATIESArticle 23Save in the cases referred to in Article 17 herein, an international treaty, once signed, shall be introduced before the Council of Ministers together with a report by the competent minister in coordination with the Minister of Foreign Affairs, with the other ministers and with the heads of the central government departments concerned.Article 24(1) An international treaty shall enter into force for the Republic of Bulgaria under the terms and according to the procedure as provided for therein or as additionally agreed between the parties.(2) Any international treaty referred to in Article 9 (2) herein, which is not subject to ratification by the National Assembly, may enter into force on the date of signature not followed by approval, and this shall be expressly stated in the Council of Ministers decision on approval of the draft of the said treaty.Article 25(1) Any international treaty shall be promulgated in the State Gazette within fifteen days after the date of entry thereof into force for the Republic of Bulgaria. Promulgation shall be prepared by the minister or the head of the central-government department which has introduced the proposal for participation of the Republic of Bulgaria in the relevant treaty.(2) The authority which expresses the consent of the Republic of Bulgaria to be bound by an international treaty may provide for non-promulgation of the said treaty in the act of expression of such consent.(3) Where an international treaty has been promulgated, the amendment, termination or suspension of the operation of the said treaty shall be subject to promulgation according to the procedure established by Paragraph (1).Chapter FiveOBSERVANCE OF INTERNATIONAL TREATIESArticle 26(1) The obligations arising from an effective international treaty whereto the Republic of Bulgaria is a party shall be performed in good faith irrespective of which competent public authority expressed the consent to be bound.(2) A public authority may not invoke provisions of domestic law as grounds for non-observance of an international treaty whereto the Republic of Bulgaria is a party.(3) The effect of the provisions of an international treaty in the domestic legal system shall be determined depending on the nature of the said provisions, whether self-executing or not, and on the place of the act of expression of consent to be bound in the hierarchy of the domestic legal system in conformity with the Constitution and the laws of the land.Article 27Where adoption of statutes or other statutory instruments or introduction of amendments into the effective legislation shall be necessary for performance of the obligations of the Republic of Bulgaria under an international treaty, the Council of Ministers shall ensure in due course the preparation and presentation before the National Assembly of the relevant draft acts of statutory legislation or the preparation and adoption of the relevant acts of subordinate legislation.Article 28(1) Verification of compliance with the international treaties of the Republic of Bulgaria shall be performed by the Council of Ministers.(2) The ministers, who are competent to apply the international treaty in conformity with the subject matter and provisions thereof, shall be responsible for the performance of the obligations arising from the said treaty for the Republic of Bulgaria.(3) The Minister of Foreign Affairs shall be monitoring the observance of the international treaties of the Republic of Bulgaria and shall inform the Council of Ministers of any cases of non-observance, should any such cases come to the notice of the said Minister, and may propose remedial action.Article 29The provisions of Articles 26 through 28 herein shall apply, mutatis mutandis, to any resolution of an international organization or of an organ thereof which are binding upon the Republic of Bulgaria in virtue of an international treaty.Chapter SixCUSTODY, REGISTRATION OF INTERNATIONAL TREATIES ANDDEPOSITARY FUNCTIONSArticle 30(1) The originals of all international treaties with the participation of the Republic of Bulgaria, including any bilateral and multilateral treaties, for which no depositary has been designated, as well as certified copies of multilateral treaties, shall be in the custody of the Ministry of Foreign Affairs.(2) The originals of the international treaties referred to in Paragraph (1) shall be delivered into custody immediately after the signature thereof together with the accompanying documents, as well as with all succeeding instruments amending, supplementing, terminating or suspending the operation thereof.Article 31The Minister of Foreign Affairs shall perform the acts required for registration of the international treaties of the Republic of Bulgaria with the United Nations and with other intergovernmental organizations in conformity with the obligations assumed by the Republic of Bulgaria.Article 32Where the Republic of Bulgaria has been designated depositary of a multilateral international treaty, these functions shall be performed by the Minister of Foreign Affairs.SUPPLEMENTARY PROVISION 1. Within the meaning of this Act:1. "Non-resident person" shall be:(a) any juristic person with registered office outside the territory of the Republic of Bulgaria;(b) any association which is not a juristic person and which is registered abroad.2. "Central-government department" shall be an institution of State established by statute or by Council of Ministers decree, whereof the head is empowered to conclude international treaties.TRANSITIONAL AND FINAL PROVISIONS 2. Any international treaties which were ratified came into force for the Republic of Bulgaria and were promulgated prior to the entry into force of the effective Constitution, shall have the legal effect of the international treaties referred to in Article 5 (4) of the Constitution of the Republic of Bulgaria. 3. The Council of Ministers shall ensure the promulgation in the State Gazette of the effective non-promulgated international treaties, approved according to the legal procedure effective upon their entry into force, within six months after the entry of this Act into force. 4. This Act supersedes Decree No. 1496 on Participation of the People's Republic of Bulgaria in International Treaties (SG No. 62 of 1975). 5. In Article 5 of the State Gazette Act (promulgated, SG No. 89 of 1995; corrected, No. 92 of 1995; amended, No. 123 of 1997, No. 56 of 1999 and No. 1 of 2000), Paragraph (1) shall be amended to read as follows:"(1) Any international treaties, which are subject to promulgation, shall be transmitted and promulgated in the State Gazette within fifteen days after the date of their entry into force for the Republic of Bulgaria."This Act was passed by the 39th National Assembly on the thirty first day of October in the year two thousand and one, and the Official Seal of the National Assembly has been affixed thereto. For more information visit www.solicitorbulgaria.com id: 327 Fri, 01 Aug 2008 07:41:03 -0700 http://solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act http://solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/International_Treaties_of_the_Republic_of_Bulgaria_Act.jpg EUR http://solicitorbulgaria.com/index.php/international-treaties-of-the-republic-of-bulgaria-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 328 Section XISuspension of Connection and Electricity SupplyArticle 122. (1) The transmission company or the distribution companies shall have the right to suspend the electricity transmission through the relevant network by written advance notice in the event of planned repair, redevelopment or inspection of facilities of the electric energy company requiring the switching off of the said facilities for safety purposes.(2) The transmission company or the distribution companies shall have the right to suspend electricity transmission through the relevant network without advance notice:1. for prevention of an imminent risk to human health and security or to the security of facilities;2. upon failures of the electricity networks and facilities for reasons beyond the control of the electric energy company;3. where electricity is consumed unmetered or is incorrectly metered by means of commercial metering devices;4. where an uncleared modification of the connection diagram of the consumer is detected.(3) The transmission company or the distribution companies shall have the right to suspend the connection:1. of persons who have connected to the relevant network without having a right to do so;2. of consumers who have suffered the connection of a third party to their own electric fixtures without the express consent of the energy company;3. upon failure to perform a prescription issued by a control authority for remedy of a violation within the prescribed time limit;4. of consumers who cause disturbances to the electric power grid through their own network.(4) Upon suspension of the transmission and connection under Paragraphs (2) and (2), the public provider or the public suppliers shall not incur any liability for damages resulting from limitation or suspension of the supply.Article 123. (1) The public provider and public suppliers shall have the right to suspend the supply of electricity to consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the public provider or of the public supplier, as the case may be.(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.Article 123a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall be entitled to temporarily suspend the electricity supply to any consumers which fail to fulfil any obligations under the contract for sale of electricity, including a failure to fulfil the obligation to pay for the electricity consumed when due, or in the event of exceeding the agreed capacity.(2) The advance notice periods and the other conditions for suspension of supply shall be regulated by the contracts for purchase of electricity or in the general conditions, as the case may be.(3) The transmission company or the relevant distribution company shall suspend the transmission of electricity to the consumers referred to in Paragraph (1) at the request of the end supplier.(4) Upon fulfilment of the obligation thereof under Paragraph (3), the transmission company or the relevant distribution company shall not incur any liability for damages resulting from suspension of the transmission of electricity.Article 124. The energy shall restore the supply and/or connection of consumers upon elimination of the reasons that led to the suspension of the said supply and/or connection.Chapter TenHEAT SUPPLYSection IGeneral ProvisionsArticle 125. (1) Heat supply is the process of generation, transmission, delivery, distribution and consumption of heat with water steam and hot water as a heat-transfer medium for household and business uses.(2) Heat supply shall be implemented by means of facilities and installations for generation, transmission, delivery and distribution connected in a heat supply system.(3) The procedure and the technical conditions for heat supply, for operational management of the heat supply system, for connection of producers and consumers to the heat transmission network, for distribution, disconnection of heat supply and suspension of heat supply shall be established by an ordinance of the Minister of Energy and Energy Recourses.(4) The technical rules and standard specifications for design, construction and operation of the facilities and installations for generation, transmission and distribution of heat shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.Section IIHeat GenerationArticle 126. (1) Heat shall be generated by an energy company licensed for generation according to the procedure established by this Act.(2) (Amended, SG No. 55/2007) Persons may generate heat even without holding a licence in the cases under Item 2 and 4 of Article 39 (4) herein.Article 127. (1) Heat shall be generated at:1. combined heat and power plants;2. heat generation plants;3. installations for recovery of waste heat and for utilization of renewable energy sources.(2) In case of a declared demand for heat, new plants with a capacity exceeding 5 megawatts and using natural gas as fuel shall be constructed for the combined generation of heat and electricity (co-generation).Article 128. Producers of heat at heat power plants and/or heat generation plants shall be obligated to maintain stocks of fuels in a quantity guaranteeing reliable generation, determined under the terms and according to the procedure established by the ordinance referred to in Article 85 (2) herein.Section IIIHeat TransmissionArticle 129. (1) (Amended, SG No. 74/2006) The heat transmission network shall be operated by a heat transmission company.(2) (Amended, SG No. 74/2006) The heat transmission company may, in addition, perform an activity comprehended in the generation of heat and electricity.Article 130. The heat transmission company shall be obligated:1. to supply heat to consumers connected to the heat transmission network on equal and non-discriminatory terms;2. to maintain the facilities and installations of the heat transmission network in accordance with technical requirements and safe operation requirements;3. to develop the heat transmission network in accordance with the plans for development of the areas for which the said company has been issued a licence;4. to purchase the contracted quantities of heat from producers located within the area for which the said company is licensed.Section IVOperational ManagementArticle 131. (1) The operational management of the heat transmission system shall be performed by a heat transmission network operator.(2) A heat transmission network operator shall be a specialized unit of the heat transmission company.(3) The directives of the operator shall be mandatory for the heat producers and consumers.Article 132. (1) The heat transmission network operator shall be obligated to ensure:1. a mode of operation of the heat transmission network in accordance with the requirements established by the ordinance referred to in Article 125 (3) herein;2. maintenance of the balance between generation and consumption;3. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) coordination with the electric power grid operator and/or the electricity distribution network operator in accordance with the contracts as concluded: in cases of combined generation of heat and electricity (co-generation);4. coordination with the natural gas transmission network operator and/or the natural gas distribution network operator in accordance with the contracts as concluded: where natural gas is used.(2) (Amended, SG No. 74/2006) The heat transmission network operator shall regulate the distribution of the heat load among the heat generation plants under criteria determined by the ordinance referred to in Article 125 (3) herein.Section VConnection to the Heat Transmission NetworkArticle 133. (1) The heat transmission company shall be obligated to connect to the heat transmission network producers and consumers located within the relevant area specified by the licence for transmission of heat.(2) (Supplemented, SG No. 74/2006) The connection of consumers in a condominium-project building through a subscriber sub-station or self-contained branches there from shall require a resolution of the general meeting of the condominium owners, taken with an express written consent by two thirds of all owners and titleholders of real right to use in a condominium-project building.(3) The heat transmission company may refuse to connect a producer to the heat transmission network if the said producer has failed to comply with the requirements under this Act and under the ordinance referred to in Article 125 (3) herein.(4) The heat transmission company may refuse to connect consumers to the heat transmission network:1. where no heat transmission network has been constructed;2. upon shortage of generating capacities;3. upon insufficient transmission capacity of the heat transmission network;4. (amended, SG No. 74/2006) where the systems of consumers in a condominium-project buildings are not equipped with the devices and appliances covered under Items 2 and 3 of Article 140 (1) herein.(5) The heat transmission company shall provide a reasoning in writing for a refusal to connect any producer or consumer.Article 134. Producers shall be connected to the heat transmission network by means of connecting heating mains which shall be constructed by and for the account of the producer and shall be owned thereby.Article 135. Consumers shall be connected to the heat transmission network by means of a connecting heating main and a subscriber sub-station.Article 136. (1) Upon connection of a consumer of heat for business uses, the connecting heating mains and the appurtenant facilities and the subscriber sub-station shall be constructed by and for the account of the consumer and shall be owned thereby.(2) Connection of a new consumer of heat for business uses by means of an existing connecting heating main owned by another consumer for business uses may be performed if technically practicable, provided the heat transmission company buys out the common use section of the connecting heating main or the owner creates an onerous right of use to the said section in favour of the said company.Article 137. (1) Upon connection of consumers of heat for household uses, the connecting heating main, the appurtenant facilities and the subscriber sub-station shall be constructed by the heat transmission company and shall be owned thereby.(2) (Amended, SG No. 74/2006) Construction of the facilities referred to in Paragraph (1)may be performed by the consumers after clearance with the heat transmission company. In this case, the heat transmission company shall pay a price to use the consumer-constructed facilities under Paragraph 1.(3) (New, SG No. 74/2006) Ownership of consumer-constructed facilities shall be transferred within three years, and any related relationships thereto shall be settled by the connection contract referred to in Article 138, Paragraph 1.(4) (Renumbered from Paragraph 3, SG No. 74/2006) Connection of consumers from one or more buildings to a subscriber sub-station in another building shall only be permissible where:1. the owners of the corporeal immovables in the buildings without a subscriber sub-station have concluded a contract for use of the premise of the existing subscriber sub-station, and2. the said owners have complied with the technical requirements established by the ordinance referred to in Article 125 (3) herein.(5) (Renumbered from Paragraph 4, amended, SG No. 74/2006) The connecting heating main from the existing subscriber sub- station to the building of the consumers referred to in Paragraph (4) shall be constructed by and for the account of the connecting consumers and shall be owned thereby.Article 138. (1) Producers and consumers shall be connected to the heat transmission network shall on the basis of a written contract with the heat transmission company under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.(2) Producers and consumers referred to in Paragraph (1) shall pay the heat transmission company a connection price which shall be formed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein.(3) Consumers connected to the heat transmission network shall be obligated to provide the licensed heat transmission company access through their own facilities for the purposes of heat transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.Section VIHeat DistributionArticle 139. (1) Head shall be distributed in a condominium project building on the basis of a share distribution system.(2) (Amended, SG No. 74/2006) Heat share distribution in a condominium-project building among the consumers shall be done by the heat transmission company or by a heat provider, or shall be assigned to a person, listed in the public register under Article 139a.Article 139a. (New, SG No. 74/2006) (1) Persons performing the share distribution service shall be registered in a public register with the Ministry of Economy and Energy.(2) A person meeting the following requirements shall be listed in the public register under Paragraph 1:1. is presenting a commercial registration document and a current status certificate;2. is a producer of individual heat distribution devices or is a duly authorised representative of such producer, which shall be certified by a statement from the producer person, and for the producer representatives - by a notarised letter of attorney or other document, with which the producer authorises the person to conduct such activities;3. is offering and/or using individual heat distribution and/or metering devices, meeting the effective standards in the country;4. is providing warranty and post-warranty service for the share distribution devices offered and installed;5. owns the hardware and licensed software needed to conduct its activities;6. has qualified personnel and an authorised representative at the respective city or village;7. applies a heat share distribution methodology, compliant with the rules on distribution according to the ordinance under Article 126, Paragraph 3;8. is not in any liquidation proceedings;9. is not declared bankrupt, and is not in any bankruptcy proceedings;10. presents a certificate for being a personal data administrator under the Personal Data Protection Act;11. does not have its right to conduct commercial activities revoked;12. has no monetary obligations to the state, established by an act of a competent authority, or obligations to social insurance funds, except in cases where the competent authority has allowed the obligation to be rescheduled or deferred.(3) In order to obtain registration, the person shall submit an application to the Minister of Economy and Energy, attaching thereto any documents certifying the conditions under Paragraph 2. When the share distribution is to be done by a foreign natural or legal person, the application shall be submitted in Bulgarian language, and any foreign-language documents attached thereto shall be also presented in translation.(4) For all conditions under Paragraph 2, Items 4-6, the person shall attach a statement to the application, stating the number of employees used, and their qualifications.(5) The conditions under Paragraph 2, Item 3 and Items 8-12 shall be certified by documents from the respective competent administrative or judicial authorities.(6) The application shall be reviewed by a Committee, appointed by order of the Minister of Economy and Energy, which, within one month after the date the application is submitted, shall prepare a motivated proposal for the Minister.(7) The Committee under Paragraph 6 shall be entitled, over the course of review of this application, to verify the data stated by the person, to ask for clarifications regarding the conditions and the documents under Paragraph 2, as well as to require written presentation within a given period of additional proof of any conditions stated in the application.(8) The Minister of Economy and Energy shall make a decision on the application based on the Committee's proposal within 7 days after preparation of the latter. The applicant shall be notified under the procedure of the Code of Civil Procedure.(9) The authority under Paragraph 8 shall make a decision with a motivated refusal on the application, when the person does not meet any requirements in Paragraph 2, and/or has not provided any documents under Paragraph 4 or Paragraph 5. The refusal may be appealed under the procedure of the Code of Administrative Procedure.(10) The entry into the register shall be effected within three days after the decision of the authority under Paragraph 8, on which the applicant shall have a certificate issued. The registration shall be considered effective as of the date of presenting the certificate.(11) Any person, listed in the register under Paragraph 1, shall be de-listed by an act of the authority under Paragraph 8:1. upon application for de-listing, submitted by the person;2. upon termination of activity or death of the natural person - sole trader, or upon placement of the latter under full judicial disability, as well as upon termination - for a legal person;3. when, as a result of any change in conditions, does not meet the requirements under Paragraph 2;4. when by two or more effective acts by competent state authorities it has been established that the company has been in regular violations of the law.(12) Persons, listed in the register under Paragraph 1, shall inform the Minister of Economy and Energy on all changes in conditions under Paragraph 2 within 7 days after such changes have occurred;(13) For the application review and the register listing, a fee shall be paid, set forth in a schedule by the Council of Ministers, upon proposal by the Minister of Economy and Energy.(14) The rules to maintain and store all data in the register shall be defined in an instruction by the Minister of Economy and Energy.Article 139b. (New, SG No. 74/2006) (1) Consumers in a condominium-project building shall designate a person, registered under the procedure of Article 139a, to perform the share distribution service.(2) The designation under Paragraph 1 shall be based on decision by heat consumers in the condominium-project building, taken on a general meeting of the condominium-project, held under the procedure of the Condominium Management, Order and Supervision Rules (prom., Not., No. 101/1951; amended No. 16/1952, No. 14 and 32/1957, SG, No. 76/1978, No. 73/1979, No. 21/1991, No. 87/2002).(3) Consumers shall notify in writing the heat transmission company or the heat supplier on the result of this designation decision.Article 139c. (New, SG No. 74/2006) (1) When the heat transmission company or the heat supplier have not been registered under Article 139a, they shall execute a written agreement on the performance of the share distribution service with the person designated by consumers under Article 139b.(2) The agreement under Paragraph 1 shall be executed on general conditions proposed by the heat transmission company or the heat supplier and approved by the Commission.(3) The agreement under Paragraph 1 shall contain:1. rights and obligations of the parties;2. the methodology for heat share distribution;3. the terms, procedure, timeframes and content of any required information the parties provide each other in order to perform the share distribution;4. price for the share distribution service, paid by the heat transmission company or the supplier, which compensates any service costs proven before the heat transmission company or the heat supplier and an economically justified rate of return on investment;5. the obligation of the person designated by consumers under Article 139b to read the share distribution meters and to prepare amount equalization for the actual consumed heat quantity in the event of agreement termination;6. all liabilities and charges upon any violation of the agreement, as well as the control the heat transmission company or the heat supplier has over the correct performance of the share distribution service;7. the agreement termination terms;8. the terms, procedure, timeframes, access, and conditions to provide all information needed to prepare the bills for consumers in the condominium-project building by the share distribution performing person, to the heat transmission company or the heat supplier.(4) Upon termination of the agreement under Paragraph 1, consumers in the condominium-project building, or the association under Article 151, Paragraph 1, shall designate another person registered under Article 139a, with whom the heat transmission company or the heat supplier shall execute an agreement.Article 140. (1) The share distribution of heat among consumers in a condominium-project building shall be performed by means of:1. commercial metering devices for the quantity of heat in the subscriber sub-station;2. (amended, SG No. 74/2006) heating share distribution devices: individual allocators conforming to the current standards in Bulgaria, or individual heat meters;3. (amended, SG No. 74/2006) household hot-water supply share distribution devices: individual hot water meters installed on all branches from the building hot-water supply system to the properties of the consumers;4. (repealed, SG No. 74/2006) .(2) Consumers connected to the subscriber sub-station in a condominium-project building shall use heating share distribution devices of one and the same model, delivered by one and the same merchant or approved by the said merchant for use in the building.(3) (Amended, SG No. 74/2006) Building heating and household hot-water supply installations shall be condominium-project property.(4) (Amended, SG No. 74/2006) The heating units, the appurtenant control fittings, the branches from the heating building systems, the branches from the hot-water supply systems and the share distribution devices referred to in Paragraph 1, Item 2, and the individual water meters referred to in Paragraph 1, Item 3 shall be owned by the consumers.(5) (Repealed, SG No. 74/2006).(6) (Repealed, SG No. 74/2006).Article 140a. (New, SG No. 74/2006) The total consumed quantity of heat in a condominium-project building, connected to a subscriber sub-station or a separate branch thereto, shall be allocated for hot-water supply and heating.Article 141. (1) The heat for hot-water supply in a condominium project building shall be calculated by means of:1. the quantity of household hot water supplied and consumed in the building according to the readings of the common water meter;2. the consumption of heat for heating of 1 cubic metre of water of the quantity referred to in Item 1, determined under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.(2) The heat referred to in Paragraph (1) shall be distributed among consumers under the terms and according to the procedure established by the ordinance referred to in Article 125 (3) herein.Article 142. (1) (Amended, SG No. 74/2006) The heat for heating of a condominium-project building shall be the difference between the total quantity of heat for allocation in a condominium-project building and the quantity of heat for hot water supply, calculated under Article 141 (1) herein.(2) The heat for heating of a condominium-project building shall be divided into heat released by the building system, heat for heating of common parts, and heat for heating of the properties.Article 143. (1) (Amended, SG No. 74/2006) The heat released by the building system, upon application of share distribution system through individual allocators, shall be calculated by the person performing heat share distribution in the building using methodology in the ordinance under Article 125, Paragraph 3.(2) The heat for heating of the common parts with installed heating units in condominium-project buildings, upon application of share distribution through individual allocators, shall be calculated on the basis of:1. the capacity of the heating units, or2. the readings of the individual allocators installed on the said heating units.(3) The heat referred to in Paragraphs (1) and (2) shall be distributed among all consumers in proportion to the design heated volume of the individual properties.Article 144. (1) The heat for heating of the properties shall be distributed among the individual properties on the basis of share units according to the readings of the individual allocators installed on the heating units in each property.(2) The value of one share unit shall be calculated on the basis of readings of the individual allocator, taking into consideration evaluation factors in accordance with the standard of the said allocator.(3) The heat per share unit shall be calculated by dividing the heat for heating of the building, less the quantity of heat calculated under Paragraph (1) and Item 1 of Paragraph (2) of Article 143 herein, by the sum total of the share units for all heating units in the building.(4) The heat released by one heating unit shall be the product of the share units as determined according to the readings of the individual allocator installed on the radiator, and the heat per share unit.(5) (New, SG No. 74/2006) The heat under Paragraph 4 shall not exceed the maximum heat the heating unit is able to emit within a heating period, calculated using methodology in the ordinance under Article 125, Paragraph 3, at the respective building installation operating mode.(6) (New, SG No. 74/2006) If there are no heating share distribution devices in a particular property and/or on particular premises, the heat for the heating thereof shall be calculated by multiplying the installed capacity of the heating units installed therein by the maximum specific consumption for the building, arrived at according to the procedure established by the ordinance referred to in Article 125 (3) herein.Article 145. (1) The heat for heating of the properties in a condominium-project building, upon application of share distribution through individual heat meters, shall be calculated on the basis of the readings of the heat meters in the individual properties.(2) The heat released by the building system and the heat for the heating of the common parts, upon application of share distribution through individual heat meters, shall be calculated as the difference between the heat for heating of the building, arrived at under Article 142 (1) herein, and the heat for heating of the properties, calculated under Paragraph (1).(3) The heat referred to in Paragraph (2) shall be distributed among all consumers in proportion to the heated volume of the individual properties.Article 146. (Repealed, SG No. 74/2006).Article 147. (Repealed, SG No. 74/2006).Article 148. (Repealed, SG No. 74/2006).Section VIICommercial RelationshipsArticle 149. (1) Heat shall be sold on the basis of written contracts under general conditions, concluded by and between:1. a producer and a heat transmission company;2. a producer and directly connected consumers of heat for business uses;3. a heat transmission company and consumers of heat for business uses;4. a heat transmission company and associations of heat consumers in a condominium-project building.5. (new, SG No. 74/2006) a heat transmission company and a heat supplier;6. (new, SG No. 74/2006) a heat supplier and consumers in condominium-project building.(2) (Amended and supplemented, SG No. 74/2006) The general conditions of any contracts referred to in under Items 1, 3 and 4 of Paragraph (1) shall be proposed by the heat transmission company, and the general conditions of any contracts referred to in Item 2 of Paragraph (1) shall be submitted by the producer to the Commission for approval.Article 149a. (New, SG No. 74/2006) (1) Heat consumers in a condominium-project building may purchase heat from a supplier, selected on a general meeting of the condominium owners. This selection shall be reflected in a protocol under the Condominium Management, Order, and Supervision Rules.(2) Heat suppliers shall be legal persons, registered as companies under Bulgarian law, meeting all financial-guarantee requirements for all transactions they execute with the heat transmission company.(3) The financial guarantees under Paragraph 2 shall be presented by the supplier to the benefit of the heat transmission company under the terms and procedure set forth in the ordinance under Article 125, Paragraph 3.Article 149b. (New, SG No. 74/2006) (1) Upon any sale of heat by supplier to consumers in a condominium-project building, the written agreement shall define:1. the rights and obligations of the parties;2. the price of heat;3. the procedure to measure, read, distributes and pay for the heat;4. the procedure to provide access to the heating units and the share distribution devices;5. the requirements to the quality of the service;6. the responsibility upon any failure to meet obligations;7. the procedure to review all consumer complaints and claims;8. the terms and procedure for agreement termination.(2) Integral part of the agreement under Paragraph 1 shall be:1. a copy of the agreement with the heat transmission company;2. the consumed heat share distribution methodology;3. a protocol from the general meeting of the condominium owners;(3) In the agreement under Paragraph 1, the share distribution service shall be performed by and at the expense of the supplier separately, or under an agreement the supplier has executed with a person registered under Article 139a.Article 150. (1) Heat shall be sold by the heat transmission company to consumers of heat for household uses under publicly known general conditions as proposed by the heat transmission company and as approved by the Commission; the said conditions shall stipulate:1. the rights and obligations of the heat transmission company and the consumers;2. the procedure for metering, reading, distribution and payment of the quantity of heat;3. the liability for non-fulfilment of the obligations;4. the terms and procedure for connection, suspension and disconnection of heat supply;5. the procedure for provision of access to the heating units, the commercial metering devices or other control appurtenances.6. (new, SG No. 74/2006) the procedure and the timeframes for the consumers to provide and receive their individual heat distribution bills in a manner setting forth the time, when the appeal period commences.(2) Heat transmission companies shall mandatorily publish the general conditions as approved by the Commission in at least one national and one local daily newspaper in the cities where heat supply for household uses is available. Such general conditions shall take effect 30 days after the first publication thereof, without the need of an express written acceptance by consumers.(3) Within 30 days after the effective date of the general conditions, the consumers who disagree with the said conditions shall have the right to submit a statement to the relevant heat transmission company, proposing thereby special conditions. Any special conditions departing from the general conditions as published, which are accepted by the heat transmission companies, shall be entered in supplemental written agreements.Article 151. (1) Heat consumers in a condominium-project building may establish an association wherewith the heat transmission company may conclude a contract for sale of heat to be used by the consumers in the said building.(2) Any contract referred to in Paragraph (1) shall stipulate:1. the rights and obligations of the parties to the contract;2. the procedure for metering, reading and payment of the quantity of heat according to the readings of the heat meter in the subscriber sub- station;3. warranties ensuring fulfilment of the obligations of the parties to the contract;4. the liability for non-fulfilment of the obligations;5. the procedure for consideration of consumer claims;6. the terms and procedure for termination of the contract.(3) Any contract referred to in Paragraph (1) shall be concluded at a preferential price of heat for the association, fixed by the Commission at a proposal by the heat transmission companies.(4) The contract for sale of heat at a preferential price shall be terminated upon dissolution of the association referred to in Paragraph (1) or upon cessation of a consumer's membership in the said association. As of the time of termination of the contract, the owners or users of the properties in a condominium-project building shall be considered to be the heat consumers.Article 152. (1) The association referred to in Article 151 (1) herein shall be a voluntary association of all heat consumers in a condominium- project building. The registration of any such association shall be effected according to the procedure established by Chapter One of the Not-for-Profit Legal Entities Act. The court shall record in the register the particulars referred to in Items 1 to 3, 5, 6, 8 and 9 of Article 18 (1) of the Not-for- Profit Legal Entities Act.(2) The association referred to in Article 151 (1) herein shall be incorporated for enhancement and improvement of the living conditions and environment in a condominium-project buildings and may:1. purchase heat from the heat transmission company which is to be used in the condominium-project building;2. take the readings of the metering devices and the heat distribution devices;3. create new or update existing documentation with data on the heated facilities and on the consumption of hot water;4. exercise control over the heating units and water meters, including such where to heat delivery and hot-water delivery has been discontinued;5. perform repair and adjustment of the building systems, whether independently or through other persons, including rehabilitation of the condominium-project building;6. take care of the building systems and of the condominium project building;7. perform other activities related to the servicing of the properties in the condominium-project building;8. carry out economic activity.(3) The association referred to in Article 151 (1) herein shall be a legal person and shall not distribute profit.(4) The association shall be dissolved on the grounds and according to the procedure established by the Not-for-Profit Legal Entities Act.(5) Upon dissolution, the association shall be liquidated. Liquidation shall be carried out by the Manager or by a person designated by the General Meeting. The provisions of the Commerce Act shall apply, mutatis mutandis, to the insolvency or bankruptcy, as the case may be, to the procedure for liquidation and to the powers of the liquidator.(6) The incorporators shall adopt a Charter which must state:1. the corporate name of the association;2. the purposes and the means for attainment thereof;3. the seat;4. the amount of initial contributions;5. the objects of economic activity;6. the governing bodies;7. the powers of the bodies of the association;8. the rules regarding the commencement and cessation of membership, as well as the procedure for settlement of property relations upon cessation of membership;9. the duration wherefore the association is incorporated, if applicable;10. the procedure for determination of the amount and the manner of transfer of contributions.(7) Each member shall have the right to participate in the management of the association, to stand informed of the operation of the association, to benefit from the property thereof and from the results of the activity according to a procedure established in the Charter. Each member shall be obligated to make contributions in an amount provided for in the Charter. Membership shall cease according to the procedure and in the manner established in the Charter.(8) Contributions by the members of the association which do not exceed the amount owed by the association under the contract for sale of heat referred to in Article 151 herein shall not form part of the economic activity of the association.(9) The General Meeting and the Manager shall be the bodies of the association.(10) The General Meeting shall be composed of all members of the association who are heat consumers.(11) The General Meeting shall exercise the following powers:1. amend and supplement the Charter;2. approve other internal acts;3. elect and remove a Manager and a Liquidator;4. admit, release and expel members;5. pass upon dissolution of the association;6. adopt the guidelines and a programme of action of the association;7. adopt the budget of the association;8. pass upon the dueness and amount of membership dues and/or of contributions;9. approve the report on the activities of the association;10. pass upon any other matters as provided for in the Charter.(12) Any resolution of the General Meeting shall be subject to judicial review as to the legal conformity thereof and compatibility with the Charter, the said review lying within the competence of the district court exercising jurisdiction over the seat of the association.(13) The General Meeting shall be called to a session by the Manager on his or her own initiative or on a requisition of one third of the members of the association. Should the Manager fail to transmit a written notice of convocation of the General Meeting within one week, the meeting shall be called by the interested members or by a person authorized thereby.(14) Any notice of convocation must state the agenda, the date, time and venue of the session of the General meeting, as well as the initiative for convocation.(15) Any notice of convocation shall be posted on the notice board in the building where the management of the association resides not later than one week prior to the appointed date.(16) For the valid transaction of business at any session of the General Meeting, more than one half of all members shall have to be present there, save as otherwise provided for by the Charter. Unless the required quorum is present, the session of the General Meeting shall stand adjourned to a time within one hour thereafter at the same venue and with the same agenda and can be held, with the attendance of whatever number of members have presented themselves, save as otherwise provided for in the Chamber.(17) No member of the General Meeting shall be entitled to vote in determination of any matter affecting the member himself or herself, the spouse thereof, or any lineal relative thereof up to any degree of consanguinity, or any collateral relative thereof up to the fourth degree of consanguinity, or any affine thereof up to the second degree of affinity.(18) A single person may not represent more than three members of the General Meeting by virtue of a written authorization, unless the Charter provides for a different representation quota or for a meeting of delegates. Re-authorization shall be inadmissible.(19) Each member of the General Meeting shall be entitled to one vote. The General Meeting shall pass resolutions by a majority of the members attending.(20) The Manager of the association shall be a natural person who is a member of the association and who shall perform the following functions:1. represent the association;2. ensure implementation of the resolutions of the General Meeting;3. dispose of the property of the association in compliance with the provisions of the Charter;4. prepare a draft budget and lay it before the General Meeting;5. prepare a report on the activities of the association and lay it before the General Meeting;6. make decisions on any matters which by law or according to the Charter do not lie within the competence of the General Meeting;7. discharge any other duties provided for in the Charter.Article 153. (1) All owners and holders of a real right of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch there from, shall be considered heat consumers and shall be obligated to install share distribution devices referred to in Item 3 of Article 140 (1) herein on the heating units in the properties thereof and to a price for heat under the terms and according to the procedure established in the relevant ordinance referred to in Article 36 (3) herein.(2) (Amended, SG No. 74/2006) Where two thirds of all owners and holders of a real rights of use in a condominium-project building, who are connected to a subscriber sub-station or to a self-contained branch thereof, do not wish to be considered consumers of heat for heating and/or for hot water supply, the said owners and holder shall be obligated to declare this in writing to the heat transmission company and to request disconnection of the heat supply for heating and/or hot water supply from the said subscriber sub-station or from the self contained branch there from.(3) The persons referred to in Paragraph (2) shall be considered heat consumers until the date of disconnection of the heat supply.(4) The heat transmission company shall be obligated to perform the disconnection as requested under Paragraph (2) within fifteen days after receipt of the application.(5) If a heat share distribution system is applied, the consumers in a condominium-project building shall have no right to discontinue the delivery of heat to the heating units in the properties thereof by means of physical disconnection of the said heating units from the building system.(6) (Amended, SG No. 74/2006) Any consumers in a condominium-project building, who discontinue the heat delivery to the heating units in the properties thereof, shall continue to be considered consumers of the heat released by the building system and by the heating units in the common parts of the building.Article 154. (Amended and supplemented, SG No. 74/2006, amended, SG No. 59/2007) In respect of the liabilities of any customers, who are defaulting payers, and of the association referred to in Article 151 (1) herein to the heat transmission company, an enforcement order may be issued under Article 410 (1) of the Code of Civil Procedure, regardless of the amount of the said liabilities. An equalizing bill for the respective year for which the liability applies must have been prepared in respect of the liabilities of any customers with application of a share distribution system, who are defaulting payers.Article 155. (1) (Supplemented, SG No. 74/2006) Heat consumers in a condominium-project building shall pay for the heat consumed using one of the following options available to them:1. (amended, SG No. 74/2006) in ten equal monthly instalments and two equalizing instalments;2. in monthly instalments calculated on the basis of a forecast consumption for the building and one equalizing instalment;3. on the basis of the actual monthly consumption.(2) The rules for calculation of the forecast consumption and equalization of the bills for the quantity of heat actually consumed by each individual consumer shall be established by the ordinance referred to in Article 125 (3) herein.Article 156. (1) Heat shall be measured by means of commercial metering devices owned by the heat transmission company and installed on the property boundary of the facilities.(2) The property boundary of the facilities:1. between the producer and the heat transmission company shall be the last stop valve of the producer;2. between the heat transmission company or the producer and the business consumers shall be the last stop valve upstream of the connecting mains of the consumers;3. between the heat transmission company and the heat consumers in a self-contained building or in a condominium-project building shall be the last stop valve upstream of the distribution network of the building systems.(3) Where the heat is metered by means of commercial metering devices installed on a site other than the property boundary referred to in Paragraph (2), the manner of heat metering shall be regulated according to the ordinance referred to in Article 125 (3) herein.Chapter ElevenPROMOTION OF POWER GENERATION CO-GENERATION(Title amended, SG No. 49/2007) Section IGeneration of Electricity from Renewable Energy Sources(Repealed, SG No. 49/2007)Article 157. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 158. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 159. (Amended and supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 160. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). Article 161. (Repealed, SG No. 74/2006) .Section IIGeneration of Electricity by Combined Heat and Power PlantsArticle 162. (1) (Amended and supplemented, SG No. 74/2006, effective 1.07.2007) The public provider and the end suppliers, respectively, shall be obligated to purchase from producers, connected to the respective network, the entire quantity of electricity from high- efficiency combined generation of heat and electricity, registered by a certificate of origin, with the exception of quantities used by the producer for own needs or for which the said producer has concluded contracts according to the procedure established by Section VII of Chapter Nine, or quantities with which the said producer participates on the balancing market.(2) (Amended, SG No. 74/2006) The electricity referred to in Paragraph (1) shall be purchased at preferential prices according to the respective ordinance under Article 36, Paragraph 3.(3) (Amended, SG No. 74/2006) The method for metering the co-generated electricity generated depending on the type of the technological cycle, the requirements for the technical metering and recording devices for co-generated electricity shall be specified by an ordinance of the Minister of Economy and Energy.(4) (New, SG No. 74/2006) The form, content, terms and procedure to issue the certificates of origin for the electricity from combined electricity and heat generation shall be set forth by the ordinance under Article 159, Paragraph 3.Article 162a. (New, SG No. 74/2006) (1) The transmission company and the distribution companies shall perform priority connection of all power plants generating electricity using high-efficiency combined generation, having installed capacity up to 10 MW, to the transmission, and the distribution network, respectively.(2) Any costs required to connect the power plant to the respective network up to the border of ownership of the electric works shall be borne by the producer.(3) Expansion and reconstruction of the transmission and/or distribution network, related to the connection of the power plant under Paragraph 1, shall be carried out by the transmission, and the distribution company, respectively, upon payment of a connection price.(4) In order to implement the expansion and reconstruction of the networks under Paragraph 3, the transmission and/or the distribution company, respectively, may apply for outside financing.Article 163. (Amended, SG No. 74/2006) The criteria, to which the analysis of the national potential for high-efficiency combined generation under Article 4, Paragraph 2, Item 11 shall conform, shall be set forth in the ordinance under Article 162, Paragraph 3.Chapter TwelveGAS SUPPLYSection IGeneral ProvisionsArticle 164. Gas supply is a totality of activities comprehended in the transmission, transit transmission, storage, distribution and delivery of natural gas for the purpose of meeting the demand of consumers.Article 165. The facilities and installations for performance of the activities comprehended in the transmission, storage and distribution of natural gas within the national territory, which are interconnected, shall function within an integral natural gas transmission system with a common mode of operation.Section IINatural Gas Transmission, Transit Transmission, Storage and DistributionArticle 166. Natural gas shall be transmitted and the natural gas transmission network shall be operated by the transmission company licensed under Item 2 of Article 39 (1) herein.Article 167. (1) Transit transmission of natural gas through the national territory to other countries shall be performed by the transmission company.(2) Transit transmission may furthermore be performed by any person licensed under Item 9 of Article 39 (1) herein.Article 168. Natural gas shall be stored and the storage facilities shall be operated by a person licensed under Item 4 of Article 39 (1) herein.Article 169. Natural gas shall be distributed and the distribution works shall be operated by distribution companies licensed under Item 3 of Article 39 (1) herein.Article 170. The transmission company shall ensure:1. integrated management and reliable functioning of the natural gas transmission network;2. transmission of natural gas through the natural gas transmission network and metering of the said gas;3. maintenance of the facilities and installations of the natural gas transmission network in accordance with technical requirements and with safe operation requirements;4. expansion of the gas-transmission network in accordance with long- term forecasts and plans for development of gas supply and outside the framework of such plans, where economically justified;5. maintenance and expansion of the auxiliary networks.Article 171. The distribution company shall ensure:1. management and reliable functioning of the natural gas distribution network;2. distribution of natural gas through the natural gas distribution network and metering of the said gas;3. maintenance of the facilities and installations of the natural gas distribution network in accordance with technical requirements;4. development of the distribution network in accordance with natural gas consumption forecasts adopted by the Commission, and outside the framework of such forecasts where economically justified;5. maintenance and development of the auxiliary natural gas distribution facilities and networks.Article 172. (1) The transmission company and the distribution companies shall be obligated to provide access on non discriminatory terms to the transmission network and/or the distribution networks thereof to persons responsive to conditions set in rules adopted by the Commission.(2) The transmission company or the distribution company, as the case may be, may refuse to provide access for lack of capacity or in case the provision of access would lead to breach of the technical conditions and the security of networks or would prevent the companies from fulfilling the public service obligations thereof, or if provision of access would result in substantial economic and financial difficulties to the transmission company or to the distribution company, as the case may be, as a result of contracts for delivery concluded with a "take or pay" clause.Article 172a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) The public provider, the public supplier, the end supplier and the merchant may file a request to the Commission for temporary relief of the transmission or distribution company of its obligation to grant access under Article 172, Paragraph 1 in cases when granting such access would lead to serious economic and financial difficulties resulting from "take or pay" agreements executed before this Act becomes effective.(2) The request under Paragraph 1 shall be submitted for each separate case before or immediately after the denial of access to the system.(3) The request under Paragraph 1 shall be accompanied by detailed information on the type and scope of the economic and financial difficulties, and the measures taken to overcome them.(4) The Commission shall grant the temporary relief under Paragraph 1 upon lack of any other economically feasible option to grant access and upon taking into consideration the following criteria:1. fulfilment of obligations to the public and ensuring the safety of supply;2. the company's position on the gas market and the actual state of competition on this market;3. the degree of economic and financial difficulties;4. the contract terms and conditions;5. the measures taken to overcome the difficulties;6. the degree to which, upon accepting the "take or pay" obligations, the company has been able to predict, under the provisions of this Act, the occurrence of serious difficulties;7. the level of connectivity of the system to other systems and the degree of interaction of these systems;8. the consequences of the temporary relief for the efficient application of the provisions of this Act, related to the development of a competitive market for natural gas.(5) The Commission decision under Paragraph 4 shall be motivated.(6) There shall be no serious difficulties under Paragraph 1, when:1. natural gas sales have not fallen under the level of the minimum contracted quantities on "take or pay" gas purchase contracts;2. the terms of the respective "take or pay" gas purchase contract may be renegotiated.(7) The Commission shall notify the European Commission immediately on any effective temporary relief decision under Paragraph 4 and shall send the required information.(8) Upon request by the European Commission, the Commission may, within 28 days, to amend or repeal its decision under Paragraph 4, and shall notify the European Commission thereof.(9) The Commission shall notify the European Commission in all cases, when the Commission does not amend or repeal its decision under Paragraph 8. In this case, the temporary relief shall be decided by the European Commission.Article 172b. (New, SG No. 74/2006, effective 1.07.2007) (1) Gas storage operators shall grant access to natural gas storage facilities to transmission and distribution network operators, the public provider, the public suppliers, the end suppliers, the natural gas merchants and the eligible consumers on equal-treatment basis.(2) Gas storage operators may deny access:1. for lack of capacity;2. if granting access would result in compromising the technical conditions and safety of the facilities;3. if granting access would prevent operators from fulfilling their public service obligations.Article 172c. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Upon any significant changes for the development of the transmission network, the distribution networks in a self-contained area under Article 43, Paragraph 5, and in order to promote investment, the Minister of Economy and Energy, per request from the interested parties, may submit a request to the European Commission for temporary relief from the application within this area of any provisions under Article 37 and Article 48, Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2.(2) The Minister of Economy and Energy shall evaluate the grounds for the request under Paragraph 1 upon taking into account the following criteria:1. need for infrastructure investment, which in a competitive market environment would not be economically feasible;2. rate of return of the needed investment;3. size and age of the gas system at the self-contained area;4. prospects for the respective gas market development;5. size, location, features, social-economic and demographic factors at the self-contained area.(3) For newly-built transmission networks, a temporary relief may be granted only if within the self-contained area there are no other such networks or if the existing ones have been built no more than 10 years ago. In these cases, the relief may not be for more than 10 years, commencing on the date of the first delivery of natural gas to the self-contained area.(4) For distribution networks, a temporary relief may be granted for a period of no more than 20 years since the first delivery of natural gas to the self-contained area.(5) The Minister of Economy and Energy shall make a decision on the request within three months, and immediately after the act accepting the request as reasonable becomes effective shall submit a request for temporary relief to the European Commission.Section IIINatural Gas TransactionsArticle 173. (1) Transactions in natural gas shall be effected on the basis of written contracts in compliance with the provisions of this Act and of the natural gas trading rules adopted by the Commission.(2) The rules referred to in Paragraph (1) shall specify the manner of administering transactions in natural gas.Article 174. Transactions in natural gas shall be delivery, transmission through a transmission network and distribution networks, and storage of natural gas.Article 175. The following may be parties to transactions in natural gas:1. a public provider of natural gas;2. (repealed, SG No. 74/2006, effective 1.07.2007) ;3. gas extraction companies;4. gas storage operators;5. a transmission company;5a. (new, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) a combined operator;6. a distribution company;7. natural gas traders;8. eligible consumers;9. consumers other than eligible consumers.10. (new, SG No. 74/2006, effective 1.07.2007) a natural gas end supplier;11. (new, SG No. 74/2006, effective 1.07.2007) end supplier customer consumers.Article 176. (1) Gas extraction companies may conclude natural gas delivery transactions with the public provider of natural gas, with the public supplier of natural gas, with storage operators, with natural gas traders and with eligible consumers.(2) Gas extraction companies may conclude natural gas transmission transactions with the transmission company and the distribution company.(3) Gas extraction companies may conclude natural gas storage transactions with the natural gas storage operators.(4) Gas extraction companies and natural gas consumers referred to in Article 175 (8) and (9) herein inside and outside Bulgaria may construct direct gas pipelines between each other and may conclude contracts for delivery of natural gas through the said gas pipelines.Article 176a. (New, SG No. 74/2006) The extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers may execute natural gas supply transactions with resident persons of a European Union member country, or persons registered in a country, with which the Republic of Bulgaria has an agreement under an international act for mutual application of the respective European Communities law:1. when the extraction companies, the public natural gas provider, the public natural gas suppliers, the end suppliers, the gas storage operators, the natural gas merchants and the eligible consumers are entitled to free trade in natural gas under the law of the other country, and2. on conditions of mutuality, when the law of the other country makes a provision for free trade in natural gas for its eligible consumers.Article 177. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public provider of natural gas shall be a legal person registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which may conclude natural gas delivery transactions with gas extraction companies, with natural gas traders, with public suppliers of natural gas, with eligible consumers and with consumers directly connected to the transmission network.(2) The public provider of natural gas may conclude natural gas transmission transactions with the transmission and distribution companies.(3) The public provider of natural gas may conclude natural gas storage transactions with the gas storage operators.(4) (Repealed, SG No. 74/2006, effective 1.07.2007) .Article 178. (1) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The public suppliers of natural gas shall be legal persons registered under the Commerce Act or under the law of a European Union member country, or under the law of another country party to the European Economic Area Agreement, which conclude natural gas delivery transactions with end consumers connected to the natural gas distribution network for the area for which the said suppliers are licensed.(2) (Repealed, SG No. 74/2006, effective 1.07.2007).Article 178a. (New, SG No. 74/2006, effective 1.07.2007) The end supplier shall be any person, licensed for its activity, providing natural gas supply to household consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover, according to the rules under Article 21, Paragraph 1, Item 8.Article 178b. (New, SG No. 55/2007) The delivery of natural gas by the public provider and by the end suppliers shall be a universal service within the meaning given by this Act.Article 179. (1) A natural gas trader may be any Bulgarian or foreign legal person registered as a merchant under the Commerce Act or under the national legislation thereof.(2) (Amended, SG No. 74/2006) Outside the cases under Article 176a, natural gas traders shall conclude natural gas transactions with gas extraction companies inside or outside Bulgaria, with eligible consumers, with other natural gas traders, with the public provider of natural gas and with the natural gas storage operators.Article 180. (1) Eligible consumers shall be natural gas consumers responsive to certain eligibility conditions specified in the rules referred to in Article 173 (1) herein and having the right to choose the persons wherefrom to purchase natural gas inside and/or outside Bulgaria.(2) Eligible consumers shall be obligated to notify the transmission company and/or the distribution company in advance of any natural gas contracts concluded thereby according to a procedure and in a form established in the rules referred to in Article 173 (1) herein.(3) The transmission company and/or the distribution company shall meter the natural gas consumed according to a procedure and a method specified in the rules referred to in Article 173 (1) herein.Article 181. Natural gas contracts shall be concluded:1. at prices regulated by the Commission for universal services of natural gas transmission, distribution and delivery;2. at prices freely negotiated between the parties on an organized market, administered and managed by the transmission system operator, under the terms and according to the rules referred to in Article 173 (1) herein.Article 182. (1) Gas extraction companies, natural gas traders and eligible consumers shall conclude natural gas transactions between each other at freely negotiated prices.(2) The parties referred to in Paragraph (1) and the transmission company may furthermore conclude natural gas market balancing transactions under terms, according to a procedure and according to rules for price formation of natural gas intended for balancing, as provided for in the rules referred to in Article 173 (1) herein.Article 183. (Repealed, SG No. 74/2006, effective 1.07.2007).Article 183a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall sell natural gas on publicly known general conditions.(2) The general conditions shall include:1. the conditions on supply quality;2. information, provided by the supplier;3. term of validity of the contract;4. the energy company liability for any violation of the general terms.(3) The end supplier shall publish the general terms in at least one national and one local daily publication.(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.Article 183b. (New, SG No. 74/2006, effective 1.07.2007) (1) End supplier's consumers shall execute an agreement with the distribution company on the transmission through distribution networks of the natural gas consumed by them on publicly known general conditions.(2) The general conditions shall include:1. the conditions on supply quality;2. the terms for supply termination or suspension;3. liability incurred by the energy company in the event of unwarranted suspension or poor quality of supply.(3) The distribution company shall publish the general conditions in at least one national and one local daily publication.(4) The published general conditions shall become effective for all consumers, buying natural gas from an end supplier, without the need for express written acceptance.Article 184. (Amended and supplemented, SG No. 74/2006, effective 1.07.2007, amended, SG No. 59/2007) The public provider, the public suppliers, and the end suppliers of natural gas shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for supply of natural gas regardless of the amount of the said receivables.Section IVOperational ManagementArticle 185. (1) The centralized operational management, the coordination and control of the mode of operation of the natural gas transmission network shall be performed by the transmission network operator.(2) Operational management of each distribution network shall be performed by the distribution network operator.(3) (Supplemented, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The directives of the natural gas transmission network operator shall be mandatory for the natural gas distribution network operators, the consumers, the gas extraction companies and the gas storage operators connected to the transmission network, and for the other companies in the vertically integrated company, in cases when the combined operator is part of a vertically integrated company.(4) The natural gas transmission network operator shall be a specialized unit within the structure of the transmission company.(5) The natural gas distribution network operators shall be specialized units within the structure of distribution companies.Article 186. (1) The transmission network operator shall ensure:1. reliable, safe and efficient functioning of the natural gas transmission network;2. maintenance of a balance between import, extraction and consumption of natural gas;3. transmission of natural gas through the natural gas transmission network in compliance with quality requirements;4. non-discrimination of consumers upon transmission of natural gas;5. secure and efficient functioning of auxiliary networks;6. operational management of the modes of operation of storage facilities during injection of natural gas under pressure and extraction of natural gas;7. optimum mode of operation of the transmission network upon performance of the activity comprehended in the transit transmission of natural gas.(2) The transit transmission network operator shall ensure:1. reliable, safe and efficient functioning of the transit transmission network;2. transit transmission of natural gas through the transit transmission network;3. secure and efficient functioning of auxiliary networks and facilities;4. operational management of the modes of operation of storage facilities upon injection of natural gas under pressure and extraction of natural gas.Article 186a. (New, SG No. 74/2006) (1) When the combined operator is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, not related to transmission, transit transmission, and storage.(2) In order to ensure the operator's independence under Paragraph 1, any persons responsible for the management, including operational management of the combined operator:1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, distribution, public delivery, public supply and trade in natural gas;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The combined operator shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The combined operator shall designate an employee, responsible for the control over this programme's implementation.(4) The combined operator shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 187. (1) For the purposes of metering of natural gas, the transmission network operator shall ensure:1. technical and metrological support, development and modernization of the commercial metering devices for the quantity of natural gas entering and leaving the transmission system;2. maintenance of a data base with the readings of commercial metering devices of the quantity of natural gas referred to in Item 1 and under transactions at freely negotiated prices and on the balancing market.(2) The owners of natural gas commercial metering devices shall submit to the transmission network operator the readings taken by such devices regarding the transactions at freely negotiated prices and balancing transactions in natural gas.(3) Parties to natural gas transactions shall have the right to receive information from the data base regarding the quantities of natural gas traded by the said parties under the transactions.(4) The terms and procedure for maintenance of the commercial metering devices, maintenance of the data base and access thereto shall be regulated by the rules referred to in Article 173 (1) herein.Article 188. The natural gas transmission network operator shall administrate natural gas transactions at freely negotiated prices and shall organize the balancing of the natural gas market in accordance with the rules referred to in Article 173 (1) herein and, to this end shall:1. keep registers of the persons concluding transactions at freely negotiated prices and for balancing the natural gas market;2. keep registers of the contracts concluded between the persons referred to in Item 1;3. receive, arrange on priority lists according to price and technological criteria, and dispatch proposals and orders for purchase/sale for balancing the natural gas market;4. apply a method for computation and fix balancing natural gas prices for each settlement period;5. prepare advance and final notices of the amounts due for natural gas market balancing transactions from the participants for each settlement period;6. control the financial security of natural gas market balancing transactions and issue mandatory instructions to market participants in connection with this;7. have the right, upon occurrence of circumstances endangering the security of operation of the natural gas transmission system or of parts thereof, to suspend the performance of transactions or to change the quantities of natural gas contracted there under, under terms and in a manner described in the rules referred to in Article 173 (1) herein;8. provide information regarding forecast consumption of natural gas, transmission system limitations, references about natural gas prices upon market balancing in prior periods, and other information as may be required by the participants.Article 189. (1) The transmission company shall be party to all natural gas market balancing transactions.(2) The transmission company shall generate no profit from any transactions referred to in Paragraph (1).(3) The costs of performance of the functions referred to in Article 188 herein shall be allowed as economically justified costs under Item 2 of Article 31 herein.Article 190. Distribution network operators shall ensure:1. reliable, safe and efficient functioning of the distribution network;2. distribution of natural gas to consumers while in compliance with security and quality requirements;3. secure and efficient functioning of the auxiliary networks;4. non-discrimination of consumers upon natural gas distribution.Article 190a. (New, SG No. 74/2006) (1) When the distribution company is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, which are not related to distribution.(2) In order to ensure the distribution company's independence under Paragraph 1, any persons responsible for the management, including operational management of the gas distribution networks:1. may not take part in the management of the other companies in the vertically integrated company, performing extraction, transmission, public delivery, public supply and trade in natural gas;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The distribution company shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The distribution company shall designate an employee, responsible for the control over this programme's implementation.(4) The distribution company shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.(5) Provisions in Paragraphs 1-4 shall not apply to vertically integrated natural gas companies, when less than 100 000 end users of natural gas are connected to the respective distribution network.Article 191. (Amended, SG No. 74/2006) Transmission and distribution network operators shall be obligated to respect the confidentiality of any information, which constitutes commercial secret, obtained in the course of or in connection with the fulfilment of the obligations thereof, as well as provide information related to their activities in a non-discriminatory manner.Article 192. The terms and procedure for the performance of the activities of transmission and distribution network operators shall be established by an ordinance of the Minister of Energy and Energy Resources.Section VNatural Gas MeteringArticle 193. Natural gas shall be transmitted through a natural gas transmission network using high-pressure gas pipelines to the outlets of natural gas metering stations or natural gas regulation stations.Article 194. Natural gas shall be distributed through the natural gas distribution network from the outlets of natural gas metering stations or from outlets of natural gas regulation stations of the transmission network to the consumer natural gas metering device.Article 195. (1) The quantity of natural gas destined for consumers connected to the transmission network shall be metered by means of commercial metering devices which are owned by the transmission company.(2) The quantity of natural gas destined for consumers connected to the distribution network shall be metered by means of commercial metering devices owned by the distribution company.(3) The quantity of natural gas destined for storage shall be metered by means of commercial metering devices owned by the company licensed for natural gas storage.(4) Natural gas consumers or owners on the properties whereof the commercial metering devices are installed shall be obligated to provide access to the said devices to authorized representatives of the public supplier for installation and inspection, reading and maintenance of the metering devices under terms stipulated in the general conditions referred to in Article 183 herein.(5) Transmission network operators, distribution network operators and/or storage facility operators shall determine the location and type of the commercial metering devices to be installed.Section VIConnection to Natural Gas Pipeline NetworkArticle 196. (1) Connection to the transmission and distribution networks shall be established under terms and according to a procedure established in an ordinance on connection, issued by the Minister of Energy and Energy Resources.(2) Connection to the natural gas transmission network and/or to the natural gas distribution network of extraction companies, natural gas storage companies, distribution companies and end consumers shall be established at prices fixed according to the procedure established by the relevant ordinance referred to in Article 36 (3) herein and on the basis of a written contract concluded between the transmission company or the distribution companies, as the case may be, and the connecting persons.Article 197. (1) The transmission company shall be obligated to connect to the network thereof, at an interconnection point designated thereby, the distribution companies, extraction companies, and natural gas storage companies.(2) Eligible natural gas consumers may also be connected to the transmission network through direct connecting gas pipelines.(3) The transmission company may refuse to establish connection to the network where:1. there is lack of capacity of the network, or2. there is lack of a link with the network, and3. improvement of the network is economically unjustified.(4) In case of a refusal under Paragraph (3), the extraction companies, the natural gas storage companies and the eligible natural gas consumers may construct, for their own account, the respective link with the transmission network.(5) The owner of the connecting gas pipeline shall be obligated to ensure the servicing, maintenance and repair of the said gas pipeline.(6) The transmission company may service, maintain and repair the connecting gas pipelines at the request of the owner and against payment.(7) Consumers connected to the natural gas transmission network shall be obligated to provide the relevant licensed natural gas distribution company access through their own facilities for the purposes of natural gas transmission to other consumers within the area specified in the licence. The price for the access provided shall be fixed according to a method approved by the Commission.Article 198. Distribution companies shall be obligated to build the distribution network thereof for their own account up to the interconnection point designated by the transmission company.Article 199. (1) The distribution company shall be obligated to connect and to ensure the supply of natural gas to consumers on non-discriminatory conditions and in compliance with technical requirements for reliable and safe operation.(2) By authorization of the Commission, the distribution company may connect a natural gas consumer located within the area of another distribution company where this is technically and economically advisable and is in the interest of consumers.(3) The branches and the facilities for connecting consumers to the relevant distribution network shall be constructed by the distribution company.Article 200. (1) (Amended, SG No. 95/2005) The layout and safe operation of the transmission and distribution gas pipelines, of the natural gas facilities, installations and appliances, shall be regulated by an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and Energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.(2) The technical rules and standard specifications for design, construction and use of the facilities and installations for natural gas transmission, storage, distribution and delivery shall be determined by an ordinance of the Minister of Regional Development and Public Works and the Minister of Energy and Energy Resources.(3) (Amended, SG No. 95/2005) The layout and safe operation of oil pipelines and petroleum product pipelines within the territory of the Republic of Bulgaria shall be stipulated in an ordinance adopted by the Council of Ministers on a motion by the Minister of Energy and energy Resources and the Chairperson of the State Agency for Metrological and Technical Surveillance.Chapter ThirteenCOERCIVE ADMINISTRATIVE MEASURESArticle 201. (1) The Commission or the Minister of Energy and Energy Resources shall impose the measures covered under Paragraph (2) if they establish that the legal persons controlled under this Act, the employees thereof or persons who, under contract, perform managerial functions therein or conclude transactions for their account, have committed or are committing any acts whereby:1. they violate any provisions of this Act, of the statutory instruments of secondary legislation on the application thereof, of acts issued by the Commission and by the Minister of Energy and Energy Resources;2. they endanger the security of the energy system, public interests, or interests of electricity, heat and natural gas consumers or of other energy companies;3. they breach the conditions for performance of the licensed activity;4. they obstruct the exercise of control activities by the Commission or by the Minister of Energy and Energy Resources.(2) In the cases covered under Paragraph (1), for the purpose of prevention or cessation of the violations, as well as for elimination of the harmful consequences of such violations, the Commission or the Minister of Energy and Energy Resources or persons authorized thereby, each acting according to the competence vested therein, shall impose the following coercive administrative measures:1. issue mandatory written instructions:(a) to cease the performance of particular actions or to mandatorily undertake such actions within a prescribed time limit;(b) to conduct expert assessments, inspections, tests of facilities and installations, parts thereof, systems or components;(c) to change operating conditions of energy works, parts thereof, systems or components;(d) to modify designs and structures relevant to the safety of persons and networks;(e) to certify the staff, including testing of knowledge and skills, organizing training and qualification courses;2. to order the licensee to convene a general meeting and/or to schedule a meeting of the management or supervising bodies with a preset agenda for making decisions on the measures that have to be taken;3. direct in writing a suspension or limitation of the licensed activity;4. appoint a special manager in the cases provided for in this Act.(3) The act whereby a coercive administrative measure is imposed shall establish an appropriate time limit for the execution thereof. Coercive administrative measures shall be applied until elimination of the reasons that led to the imposition of such measures.Article 202. (1) The proceedings for imposition of coercive administrative measures shall be initiated by the Commission or by Minister of Energy and Energy Resources, acting on a memorandum of ascertainment drafted by the persons entitled to exercise control under this Act.(2) The persons concerned shall be notified of the initiation of proceedings for imposition of coercive administrative measures.(3) Any notifications and the communications in the proceedings referred to in Paragraph (1) may furthermore be effected by means of registered mail with advice of delivery, by telegraph, teleprinter or facsimile machine.Where effected by means of registered mail with advice of delivery or by telegraph, notification or communication shall be certified by an advice of delivery, where effected by means of telephone call, notification or communication shall be certified in writing by the official who made the call, or where effected by means of teleprinter or facsimile machine, notification or communication shall be certified by confirmation in writing of a message sent.(4) Should any notification or communication in the proceedings referred to in Paragraph (1) be not received at the address, telephone, telex or facsimile number as named by the persons, the said notification or communication shall be deemed effected by the posting thereof in a place expressly provided for this purpose in the building of the Commission or of the Ministry of Energy and Energy Resources.Any such posting shall be attested by a memorandum drafted by officials designated by an order of the Chairperson of the Commission or by the Minister of Energy and Energy Resources.(5) Coercive administrative measures shall be imposed with a reasoned written decision or by an order which shall be communicated to the person concerned within seven days after rendition.Article 203. (1) Any decision referred to in Article 202 (5) herein shall be appealable before the Supreme Administrative Court care of the Commission or care of the Minister of Energy and Energy Resources within fourteen days after communication of the said decision.(2) Any decision or any order imposing a coercive administrative measure shall be subject to immediate execution.(3) An appeal against any decision imposing a coercive administrative measure shall not stay the execution of the said decision.Article 204. Save insofar as any specific rules are provided for in this Chapter, the provisions of the Administrative Procedure Code shall apply.Chapter FourteenADMINISTRATIVE PENALTY PROVISIONSArticle 205. (1) Any person, who performs or suffer the performance of any activities under this Act without a licence in the case where a licence is required, shall be liable to a fine of BGN 50,000 or exceeding this amount but not exceeding BGN 100,000, unless subject to a severer sanction.(2) Where the violations referred to in Paragraph (1) have been committed by a legal person or a sole trader, a pecuniary penalty of BGN 100,000 or exceeding this amount but not exceeding BGN 150,000 shall be imposed.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraphs (1) and (2).Article 206. (1) (Amended, SG No. 49/2007) Any energy company, which breaches the conditions of a licence issued thereto, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 207. (1) Any energy company, which refuses in non conformity with the law:1. to establish a connection to the relevant energy networks;2. to conclude a contract for sale of electricity, heat or natural gas;3. (amended, SG No. 49/2007) to provide access to electricity and natural gas transmission or distribution networks, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 208. (1) (Amended, SG No. 49/2007) Any energy company, which fails to submit the required information in the cases provided for in this Act, shall be liable to pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 100,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 209. (1) Any consumer, who or which fails to provide access to the own fixtures and facilities under the terms established by Article 117 (7) and Article 197 (7) herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000 or to a pecuniary penalty of BGN 7,000 or exceeding this amount but not exceeding BGN 20,000.(2) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1).Article 210. (1) (Amended, SG No. 49/2007) Any person covered under Article 30 (1) herein, which sells electricity, heat or natural gas at prices subject to regulation without such prices having been endorsed or fixed by the Commission or at prices higher than the prices endorsed or fixed by the Commission according to Article 30 herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 211. (1) (Amended, SG No. 49/2007) Any energy company, which fails to comply with the technical standards or requirements for operation of energy works or the standards for building and storage of stocks of fuels by electric power and/or heat generation plants, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 1,000,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 212. (Amended, SG No. 74/2006, repealed, SG No. 49/2007). Article 212a. (New, SG No. 74/2006) (1) Any legal person or a sole trader, who, in violation of Article 139a, Paragraph 1, performs share distribution activities in violation of the registration regime, shall be liable to a pecuniary penalty between BGN 5,000 and BGN 10,000.(2) Upon any recurring violation, the pecuniary penalty shall be three times the maximum amount of the penalty under Paragraph 1.Article 213. (1) (Amended, SG No. 74/2006) Any person, who fails to comply with the technical conditions and procedure set for heat supply, for disconnection of heat supply and the rules for share distribution of heat under Article 125 (3) herein, shall be liable to a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 25,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 214. (Amended, SG No. 74/2006) (1) A fine of BGN 1000 or exceeding this amount but not exceeding BGN 5000 shall be imposed on any person, unless subject to a severer sanction:1. who disrupts the normal electricity supply, heat supply or natural gas supply;2. who causes the introduction of a scheduled outage regime;3. who uses heat without the quantities thereof being metered by means of a commercial metering device and/or without having such heat distributed thereto upon share distribution, or who alters the readings of commercial metering and recording devices, or who impedes the proper functioning of such devices.(2) A repeated violation under Paragraph (1) shall be punishable by a fine equivalent to double the maximum amount of the fine referred to in Paragraph (1).Article 215. (1) Any person, who obstructs with the performance by officials and control authorities of the obligations thereof under this Act, shall be liable to a fine of BGN 100 or exceeding this amount but not exceeding BGN 200, unless the act constitutes a criminal offence.(2) Any person, who fails to perform the prescriptions of the officials or of the control authorities or who tolerates non performance of such prescriptions, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000 unless subject to a severer sanction.(3) Any person, who or which fails to comply with an effective decision of the commission, shall be liable to a fine of BGN 3,000 or exceeding this amount but not exceeding BGN 10,000 or to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 60,000.Article 216. (Amended, SG No. 49/2007) Any official, who fails to fulfil the obligations under this Act, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 5,000, unless subject to a severer sanction.Article 217. A repeated violation under Articles 215 and 216 herein shall be punishable by a fine equivalent to treble the maximum amount of the fine or pecuniary penalty.Article 218. (1) Any violation under Article 214 herein, which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to quintuple the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 219. (1) (Amended, SG No. 49/2007) Any official in an energy company, who suffers the commission of any violation covered under Articles 206, 207, 210, 211 herein, shall be liable to a fine of BGN 1,000 or exceeding this amount but not exceeding BGN 8,000.(2) A repeated violation under Paragraphs (1) to (4) shall be punishable by a fine equivalent to treble the maximum amount of the fine referred to in Paragraph (1).Article 220. (1) Any person, who shall fail to act or who shall suffer another to fail to act on a directive of an operator referred to in Article 109 (2), Article 113 (2), Article 131 (3) and Article 185 (3) herein, shall be liable to a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 10,000 or exceeding this amount but not exceeding BGN 20,000.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).Article 221. (1) Any energy company, whereof an operator fails to comply with Article 73 (2) herein, shall be liable to a pecuniary penalty of BGN 20,000 or exceeding this amount but not exceeding BGN 50,000.(2) A repeated violation shall be punishable by a pecuniary penalty equivalent to treble the maximum amount of the pecuniary penalty as fixed under Paragraph (1).Article 222. (1) Any electricity, heat or natural gas consumer, who fails to fulfil the obligation thereof under Article 117 (7), Article 138 (3) and Article 197 (7) herein, shall be punishable by a fine of BGN 500 or exceeding this amount but not exceeding BGN 5,000.(2) Any violation under Paragraph (1), which is committed by a legal person or by a sole trader, shall be punishable by a pecuniary penalty of BGN 30,000 or exceeding this amount but not exceeding BGN 50,000.(3) A repeated violation shall be punishable by a fine or a pecuniary penalty, as the case may be, equivalent to treble the maximum amount of the fine or pecuniary penalty, as the case may be, as fixed under Paragraph (1) or (2).Article 223. Any person, who violates any mandatory provisions of the statutory instruments on application of this Act, shall be sanctioned by the administrative sanctioning authority by a fine of BGN 500 or exceeding this amount but not exceeding BGN 1,000, unless subject to a severer sanction, or by a pecuniary penalty of BGN 5,000 or exceeding this amount but not exceeding BGN 10,000.Article 224. Any person referred to in Article 79 (1) herein, who discloses, provides, publishes, uses or disseminates in any other manner any data and circumstances constituting an official secret, shall be liable to a fine of BGN 2,000 or exceeding this amount but not exceeding BGN 5,000.Article 224a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 3, Paragraphs 2, 3, and 6, Article 4, Article 5, Article 6, Paragraphs 1, 2, 3, 5, and 6 of Regulation 1228/2003/EC of the European Parliament and the Council on conditions for access to the network for cross-border exchanges in electricity, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.Article 224b. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) Any energy company failing to comply with the requirements of Article 4, Article 5, Paragraphs 2, 3, 4 and5, and Article 6, Article 7, Paragraph 6, and Article 8 of 1775/2005/EC of the European Parliament and the Council on conditions for access gas transmission networks, shall be liable to a pecuniary penalty between BGN 10,000 and BGN 60,000.(2) Upon any recurring violation, the pecuniary penalty shall be double the maximum amount of the penalty under Paragraph 1.Article 225. (1) The violations under this Act shall be ascertained by statements drawn up by the persons referred to in Item 1 of Paragraph (1) and Item 1 of Paragraph (2) of Article 77 herein.(2) (Amended, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, SG No. 49/2007) The penalty decrees under Articles 205, 206, 207, 208, 209, 210, 215, 216, 217, 218, 219, 222, 223 and 224, 224a и 224b herein shall be issued by the Chairperson of the Commission or by an official authorized by the Commission.(3) The penalty decrees under Articles 211, 213, 214, 215, 216, 217, 218, 219, 220, 221, 223 and 224 herein shall be issued by the Minister of Energy and Energy Resources or by an official authorized thereby.(4) Violations shall be ascertained, and penalty decrees shall be issued, appealed and executed under the terms and according to the procedure established by the Administrative Violations and Sanctions Act.(5) Pending the issuance of a penalty decree, the person affected by the administrative violation may approach the administrative sanctioning authority with a request for compensation for the damages sustained by the said person to an amount not exceeding BGN 20,000.SUPPLEMENTARY PROVISION 1. Within the meaning given by this Act:1. "Subscriber sub-station" shall be a fixture whereby heat is delivered, metered, transformed and regulated as to parameters from the heat transmission network to consumers.1a. (New, SG No. 74/2006) "Balancing group" shall be any group comprised of one or more electricity merchants, network users or owners, organised under the requirements of the rules under Article 91, Paragraph 2.2. (Amended, SG No. 74/2006) "Balancing energy" shall be the active energy which the electric power grid operator activates to compensate the difference between the agreed and the actual delivery schedules registered at the operator, as well as the fluctuations of loads without agreed delivery schedule.3. (Supplemented, SG No. 74/2006, repealed, SG No. 49/2007). 3a. (New, SG No. 74/2006) A "vertically integrated company" shall be any energy company or interrelated energy companies, conducting at least one activity of transmission, distribution, storage activity and at least one activity of production/extraction, public delivery, public supply or trade in electricity or natural gas, when one of the companies is capable of controlling other(s) or exercising influence in decisions related to above activities.4. (Amended, SG No. 74/2006) "Universal service" shall be the transport, delivery, or supply of energy of a particular quality, at a regulated price and under other agreed conditions, which may not be refused for reasons not specified in the Act.5. "High-efficiency combined generation of heat and electricity by thermoelectric power plants" shall be such generation performed by plants:(a) constructed after the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 10 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;(b) constructed before the entry of this Act into force, where the said generation of heat and electricity leads to saving of not less than 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity;(c) using renewable energy sources and/or with unit electricity generating capacity of up to 1 megawatt, where the said generation of heat and electricity leads to saving of up to 5 per cent of the fuel necessary for the separate generation of an identical quantity of heat and electricity.6. (Repealed, SG No. 49/2007). 7. "Natural gas metering station" shall be a facility equipped with commercial natural gas metering devices.8. "Natural gas transmission network" shall be a system of high pressure gas pipelines and the appurtenant installations with an integrated technological mode of operation for transmission of natural gas to the outlet of a natural gas metering station or a natural gas regulation station, to which consumers and/or distribution companies are connected9. "Natural gas distribution network" shall be a local or regional system of high-pressure, medium-pressure and low-pressure natural gas pipelines and the appurtenant installations for transmission of natural gas to the relevant consumers within an area specified by a licence.10. "Natural gas regulation station" shall be a facility for regulation of natural gas pressure, also equipped with commercial metering devices11. "Natural gas transmission system" shall be a system of connected networks for transmission, transit transmission ("wheeling") and distribution of natural gas, as well as facilities to and from natural gas storage facilities and extraction companies within the national territory.12. "Direct gas pipeline" shall be a gas pipeline connecting directly a natural gas extraction company to a non-household consumer.13. "Contract for delivery with a 'take or pay' clause" shall be a contract providing for mandatory payment of quantities of natural gas stipulated therein at a fixed price, irrespective of whether the said natural gas has been received.14. "Ancillary services" shall be all services necessary for the operation of the electric power grid, including participation in voltage regulation and delivery of reactive power, participation in primary frequency regulation and secondary frequency regulation and exchange of power, spinning reserve, start-up capacity after a major break-down without the aid of an off-site source, and continuous load following.15. "Access" shall be the right to use the transmission network and/or the distribution networks for paid transmission of electricity or natural gas at a price and under terms specified in an ordinance.16. "Natural gas delivery" shall be sale of natural gas to consumers.17. "Long-term forecast energy balances" shall be forecast energy balances covering a period of 10 to 15 years.18. (Repealed, SG No. 49/2007). 19. "Electric fixture" shall be a totality of machinery, plant and apparatus intended for transmission, conversion and distribution of electricity.20.(Amended, SG No. 74/2006) "Electricity transmission network" shall be a totality of electric power lines and electric fixtures, which serves for transmission of electricity, transformation of electricity from high-voltage to mid-voltage, redistribution of electric power streams, or for electricity transit transmission ("wheeling") to a third party.21. (Amended, SG No. 74/2006) "Electric power lines" shall be overhead or cable facilities for connecting of electric fixtures and intended for transmission, transit, or distribution of electricity, conforming to "linear engineering electric supply networks" as defined by the Spatial Development Act.22. "Electricity distribution network" shall be a totality of electric power lines and high-voltage, medium-voltage and low voltage electric fixtures, which serves for distribution of electricity.23. (Amended, SG No. 74/2006) "Energy work" shall be a work or a totality of works whereat or whereby electricity and/or heat is generated in a particular output, oil or natural gas is extracted or stored, electricity, heat, and natural gas, oil or oil products are transmitted as well as converted as to parameters or type, as well as the ancillary networks and facilities of any such work, electricity, heat or natural gas is distributed through networks, as well as the ancillary networks and facilities of any such work, excluding the on-site systems of consumers.24. (Supplemented, SG No. 74/2006) "Energy company" shall be a legal person which performs one or more of the activities comprehended in the generation, conversion, transmission, storage, distribution, delivery, and supply of electricity, heat or natural gas on the grounds of a licence issued under this Act, or a person, which performs an activity comprehended in the generation of electricity and/or heat without being obligated to obtain a licence for the activity performed thereby under this Act, or a person performing oil and oil product transmission activity through pipelines.24a. (New, SG No. 74/2006) "Energy resources" shall be primary energy resources (coal, oil, gas, et al.), oil products, as well as renewable energy sources used to produce electricity and heat.25. (Repealed, SG No. 74/2006).26. "Economically inexpedient", where applied to an energy company, shall be the construction of connecting facilities wherein the investment cannot be recouped by the resources raised from depreciation charges and the profit from sales of energy and natural gas through the said facilities for a period of eight years, plus the price that a consumer will pay for establishment of the connection.27. "Individual allocator of heat for heating" shall be a technical device whereof the readings are used for distribution of the heat consumed by the heating units in a building.The readings of any such allocator shall be in relative units which shall be adjusted by evaluation factors depending on the type of the device and the type of the heating unit. The individual allocators shall serve only to determine the share of heat consumed by each heating unit as a share in the aggregate consumption of heat by the building.27a. (New, SG No. 74/2006) "Combined operator" shall be any energy company, which has obtained at least two of the licences under Article 39, Paragraph 1, Item 2, Item 4, and/or Item 9.28. "Combined generation of heat and electricity" shall be generation of heat and electricity in a single process depending on the demand for heat.28a. (New, SG No. 74/2006, effective 1.07.2007) "End supplier" shall be any energy company supplying electricity or natural gas to household users and companies having less than 50 employees and less than 19.5 mil. BGN annual turnover, which have not exercised their right to select the person, from which to purchase electricity or natural gas.29. "Short-term forecast energy balances" shall be forecast energy balances covering a period of one year.30. "Cross subsidization for integrated energy companies: between individual activities subject to licensing under this Act, and/or between activities subject to licensing under this Act and other activities" shall be the assimilation of the costs of another licensed activity to the prices for a particular licensed activity and/or assimilation of costs of a non- licensed activity to the prices of a licensed activity.31. "Cross subsidization between individual groups of consumers" shall be the assimilation to the prices for a group of consumers of an amount of costs larger than the costs relevant to the individual supply of the said group or of an amount of costs smaller than the additional costs incurred by the joint supply of the said group with the rest of the groups.31a. (New, SG No. 74/2006) "Oversight on the security of supply" shall be the balance between the supply and demand of electricity and natural gas on the national market, the level of anticipated future consumption and all projected additional capacities, which are in process of planning or building, the quality and the level of network maintenance, as well as the measures to cover peak consumptions and overcoming the shortages of one or more providers, suppliers, or merchants.32. "Material resources" shall be the availability of principal and auxiliary facilities required to ensure the normal functioning of an energy work.33. "Electric power grid interconnection point" shall be any of the points in the structure of the electric power grid owned by the transmission company, whereto the connecting facility of one or more consumers and producers are connected.34. "Aggregate heated volume of a building" shall be the sum total of the volumes of the properties of consumers and the volumes of the premises constituting common parts of a condominium project building, intended to be heated according to the design.35. (Amended, SG No. 74/2006) "Organized electricity market" shall be a totality of forms of trade in electricity whereon the method, place and time of conclusion of transactions are publicly known and pre-announced in trading rules.36. "Organizational structure" shall be the organization of the managerial and shop-floor personnel that reflects the staff size, the functional links, the coordination between the individual positions and units depending on the needs of the licensed activity.36a. (New, SG No. 74/2006) "Principal supplier" shall be any provider company and/or persons related thereto, having market share exceeding 75 percent.37. "Heating units" shall be the tubular heating units and vertical heating pipes, the radiator heating devices, the baseboard heating units and convectors which are structural elements used for release of heat on the premises through radiation and convection of the heat-transfer medium thereto connected.38. "Heated volume of a property" shall comprehend the volume of all premises owned and/or used by the subscriber and the relevant appertaining portions of the common parts of the building, intended to be heated according to the design.39. "Heated volume of common parts" shall be the sum total of the volumes of premises constituting common parts in a condominium project buildings with heating units projected according to the design.40. "Balancing energy market" shall be organized trade in electricity and natural gas for the purposes of maintaining the balance between generation and consumption in the electric power grid and, respectively, between natural gas import and consumption.41. (Supplemented, SG No. 74/2006) "Site energy works" shall be buildings and the energy works permanently affixed thereto or to a lot, excluding the line parts thereof, intended for performance of the activities comprehended in the generation, transmission and distribution of electricity, heat and natural gas, as well as energy resource extraction.41a. (New, SG No. 74/2006, effective 1.07.2007) "Network user" shall be any natural or legal person, providing electricity to the transmission and/or distribution networks or supplied thereby.42. (Amended, SG No. 74/2006) "Consumer of energy or natural gas for household uses" shall be a natural person who is owner or user of a property and who consumes electricity or heat with hot water or steam as a heat- transfer medium for heating, air conditioning and hot water supply, or natural gas, for the household thereof.43. (Amended and supplemented, SG No. 74/2006) "Consumer of energy or natural gas for business uses" shall be a natural or legal person, who or which purchases electricity or heat with hot water or steam as a heat-transfer medium for heating, air conditioning, hot water supply, and technical needs, or natural gas for business purposes, as well as persons financed by the state budget or a municipal budget.44. (Amended, SG No. 74/2006) "Electricity, heat or natural gas, oil and oil product transmission" shall be the transport of electricity, heat or natural gas, oil or oil products through the transmission network or pipelines.45. "Connecting gas pipeline" shall be a totality of gas pipelines and the appurtenant facilities connecting the transmission network to a non- household consumer of natural gas.46. (Amended, SG No. 74/2006) "Producer" shall be a person which generates electricity and/or heat.47. "Direct electric power line" shall be an electric power line which directly connects a producer with a division or branch thereof or with a consumer.48. "Availability" shall be the capability of a producer to provide available capacity over a particular period of time to deliver electricity.Availability shall be measured in watts per hour and the derivative units.49. "Distribution" shall be the transport of electricity or natural gas through the distribution networks.50. "Heat distribution" shall be the transport of heat through the systems for household hot water supply, heating, air conditioning and other such of consumers.51.(Amended, SG No. 74/2006) "Certificate of origin of electricity from combined generation of heat and electricity" shall be an official non transferable document certifying a producer, the quantity of co generated electricity, stating the period of generation, the electricity generation plant, the output of the said plant and other data and parameters specified in the ordinance referred to in Article 159 (3) herein.52. (Amended, SG No. 74/2006, repealed, SG No. 49/2007). 53. "Settlement" shall be a system applied by the electric power grid operator for individual calculation of deviations of the electricity as actually consumed or generated from the contracted quantities for a particular period using a method regulated in trading rules stipulated by an ordinance.53a. (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union amended, amended, SG No. 55/2007) "System services" shall be all services, provided by the network operator, which are necessary for the reliable operation of the electricity power grid and for the viability of the market, including planning, administration, and management of the reliable operation of network users, settlement of the liabilities of the market participants, balanced delivery schedules.54. (Amended, SG No. 18/2005, repealed, SG No. 74/2006).54a. (New, SG No. 74/2006) "Special balancing group" shall be any group comprised of licensed companies under Article 39, Paragraph 1, Items 2, 3, 7, 8 and 10, and producers selling at Commission-regulated prices and/or on long-term agreements, to which special balancing conditions apply according to the rules under Article 91, Paragraph 2.55. "Auxiliary networks" shall be the management, control, safety, communication and information networks required for the efficient functioning of the transmission and distribution networks.56. "Medium-term forecast energy balances" shall be forecast energy balances covering a period of three to five years.57. "Heating share distribution devices for heat consumption" shall be devices installed downstream from the heat commercial metering devices.58. "Commercial metering devices" shall be technical metering devices which possess metrological characteristics and are intended to be used for metering, whether independently or connected to one or more technical devices, and which are used upon sale of electricity, heat or natural gas.59. "Length of seniority in the energy sector" shall be the length of employment and/or civil-service seniority acquired in a managerial or expert position in the state administration of state bodies for management of the energy sector, in commercial corporations whereof the objects are subject to licensing under this Act or to award of concession under the Subsurface Resources Act, as well as in research institutions or commercial corporations servicing such activities.59a. (New, SG No. 18/2005) "Experience in the sphere of water supply and sewerage" shall be a length of civil-service or employment seniority acquired in a managerial or expert position at state or municipal bodies for management of water-supply and sewerage activities, at higher schools, at research institutions, or at commercial corporations whereof the objects are subject to regulation under the Water-Supply and Sewerage Services Regulation Act.59b. (New, SG No. 74/2006) "Standard balancing group" shall be group of commercial participants under Article 100, Paragraph 1, executing transactions in electricity at freely negotiated prices, to which the general conditions on balancing apply according to the rules under Article 91, Paragraph 2.60. "Level of reliability of the electric power grid" shall be the probability, determined in percentage terms by the Minister of Energy and Energy Recourses, of balancing consumption and generation of electricity in case of occurrence of a shortage in the system.61. (Amended, SG No. 74/2006) "Cold reserve" shall be a reserve, necessary to ensure the required level of adequacy, which the electric power grid operator purchases in the form of availability of generating units that are not planned to operate during a particular period of time and which the operator activates in the event of a shortage.62. "Natural gas storage" shall be an activity of injection of natural gas under pressure into natural gas storage facilities and the extraction of the said gas back to the gas transmission network, excluding the delivery of natural gas.63. "Technical capabilities" shall be the overall technical and operational condition of the energy work in accordance with the regulatory requirements for uninterrupted, secure, environmentally sound and safe operation of the facilities whereby the licensed activity is to be performed.64. "Technological costs" shall be the costs of electricity, heat and natural gas which are imputed to the technological process of the generation, transmission, distribution and storage thereof.65. "Heat transmission network" shall be a system of heating mains and technological facilities located between the property boundary of the heat transmission company with the source of heat and/or the consumers, serving for transmission of heat from the source of heat to the consumers.66. (Amended, SG No. 74/2006) "Transit transmissions" shall be the transmission of energy or natural gas, oil or oil products across the borders of a particular country provided that such energy or natural gas, oil or oil products have not been generated and will not be consumer within the territory of the said country.66a. (New, SG No. 55/2007) "Pulling power electricity" shall be the electricity consumed from the contact network of the National Railroad Infrastructure Company by the electricity-driven pulling power rolling stock - electricity-driven locomotives and electricity-driven trains owned by the licensed railroad carriers.67. "Financial capability" shall be the overall financial and economic condition of the applicant with a view to performing the licensed activity.68. "Storage facility" shall be a facility which is used for storage of natural gas and which is owned and/or operated by a natural gas company licensed for storage.69. "Human resources" shall be available to an applicant which has at its disposal the minimum managerial and shop-floor personnel possessing the appropriate level of education and professional qualifications enabling the said applicant to perform the licensed activity.70. "Plant" shall be a totality of technologically connected facilities, installations and auxiliary entities for generation of electricity, heat, and/or for combined generation of heat and electricity.TRANSITIONAL AND FINAL PROVISIONS 2. This Act shall supersede the Energy and Energy Efficiency Act (promulgated in the State Gazette No. 64 of 1999; amended in No. 1 of 2000, No. 108 of 2001, No. 63 of 2002 and No. 9 of 2003), with the exception of Chapter Thirteen thereof. 3. (1) All commercial metering devices, which are owned by consumers upon the entry of this Act into force, shall be purchased by the energy companies at the market value of the said devices within three years after the entry of this Act into force.(2) The obligation of energy companies to purchase the commercial metering devices referred to in Paragraph (1) shall be waived where the said companies install their own devices replacing the existing devices within the time limits provided for the purchase. 4. (1) The energy facilities and installations, constituting elements of the relevant transmission or distribution network which, upon the entry of this Act into force, should be owned by the energy companies but are actually owned by third parties, shall be purchased by the transmission company or by the respective distribution company depending on the appurtenance of the work to the networks within eight years after the entry of this Act into force.(2) The transmission company or, respectively, the distribution company, shall not be obligated to purchase any constructed fixtures and/or electric power lines owned by consumers connected to the transmission network or, respectively, to the distribution network whereto the said consumers have actually connected themselves without a contract for connection of new consumers.(3) The works referred to in Paragraph (1) shall be purchased at market value.In case the parties fail to reach agreement on the value of the said works, the said parties shall commission an independent licensed appraiser to conduct valuation of the said works.The value of the work as determined by the appraiser shall be the price of the purchase transaction.Should no agreement on the designation of an appraiser be reached within 60 days after receipt of a notice of such designation from the other party, the energy company and/or the owner of the works shall have the right to approach the Chairperson of the Commission with a request to designate an independent appraiser.The appraiser designated according to this procedure shall be mandatory to the parties. The costs of the valuation shall be shared equally between the parties.(4) The energy companies and the owners referred to in Paragraph (1) may not refuse, without good reason, to purchase or, respectively, to sell the energy works.(5) The obligation of the energy companies to purchase the energy works referred to in Paragraph (1) shall be waived where the said companies construct their own works replacing the existing works within the time limits provided for the purchase.(6) (Amended, SG No. 18/2004) In case of a refusal without good reason on the part of the owners to sell energy facilities and installations constituting elements of the transmission system and/or of the distribution networks, the said facilities and installations shall be condemned according to the procedure established by Article 63 herein together with the adjoining grounds.(7) The energy works referred to in Paragraph (1), which constitute private state or municipal property at the date of entry of this Act into force, and which have been constructed on resources from the state budget or a municipal budget, shall be transferred onerously to the energy companies within eight years after the entry of this Act into force.(8) Energy companies shall be obligated to transfer gratuitously any outdoor lighting facilities for streets, squares, parks, gardens and other corporeal immovables constituting public municipal property, which are incorporated into the assets of the said companies, to the relevant municipalities within two years after the entry of this Act into force.(9) Upon restitution of any corporeal immovables constituting former state property, should any energy works incorporated into the tangible fixed assets of an energy company be construction within any such immovables, the owners of the said immovables shall have no right to demand the relocation of the said works, to deprive other consumers of energy supply, and to obstruct the operation of the energy companies.(10) The owners of any corporeal immovables wherein energy works are constructed shall have the right to perform construction or other activities in the said immovables in compliance with the regulatory requirements for safe operation of energy works and after consultation with the energy company.(11) Upon privatization of any items of property where within any energy works are constructed, the said works shall be excluded from the subject of the transaction if more than one consumer is supplied with energy or natural gas through the said works. Such works shall be transferred to the relevant energy company according to the procedure established by the foregoing paragraphs. 5. The members of the State Energy Regulatory Commission, including the Chairperson and the Deputy Chairperson, shall complete the terms of office for which they were appointed under the Energy and Energy Efficiency Act as superseded. 6. (Repealed, SG No. 74/2006) . 7. The provision of Item 14 of Article 4 (2) herein shall apply until the 31st day of December 2005. 8. (Amended and supplemented, SG No. 74/2006) The non-recoverable costs incurred by energy companies under Article 34 herein shall be compensable according to the procedure under Article 21, Paragraph 1, Item 13. 9. (Repealed, SG No. 74/2006) . 10. (Repealed, SG No. 74/2006) . 11. (Repealed, SG No. 74/2006) . 12. (1) Any licences and authorizations issued in pursuance of the Energy and Energy Efficiency Act as superseded shall remain in effect insofar they do not conflict with this Act. The requirements for self- contained area under Article 43 (3) to (5) herein shall not apply to any such licences and authorizations.(2) The holders of any authorizations for construction of energy works under Article 37 (1) of the Energy and Energy Efficiency Act as superseded shall be obligated to submit an application to the Commission for issuance of a licence under Article 39 (3) herein within six months after the entry into force of the ordinance referred to in Article 60 herein.(3) Any licences issued, which conflict with this Act or are incomplete, shall be re-issued to the same licensees for the remainder of the term of validity of the effective licences or shall be supplemented at the discretion of the Commission. Any licensees whereof the licences are subject to re-issuance or supplementation shall be obligated to submit an application to the Commission within six months after the entry into force of the ordinance referred to in Article 60 herein. No fees shall be due for the proceedings of re-issuance or supplementation of any such licences.(4) The evidence which was already furnished for the issuance of the initial licences will not have to be furnished for the re issuance or supplementation of any licences referred to in Paragraph (3), provided that no intervening new circumstances have occurred.(5) Pending the issuance of a new licence under Paragraph (2), the licensees shall have the right to perform the licensed activities. 13. Any proceedings for the issuance of authorizations or licences under the Energy and Energy Efficiency Act as superseded, which are pending upon the entry of this Act into force, shall be concluded according to the procedure and under the terms established by this Act. 14. The inventory for construction of new natural gas transmission networks, issued in pursuance of Item 7 of Article 4 of the Energy and Energy Efficiency Act as superseded, shall remain in effect even after the adoption of this Act, and any pending tendering procedures for selection of an investor for construction of new natural gas transmission networks shall be completed according to the hitherto effective procedure. 15. (1) (Amended, SG No. 74/2006) The activities associated with electric power grid management and organizing of an electricity market may be separated in legal and organizational terms from the rest of the activities of the National Electric Company EAD not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. National Electric Company EAD shall submit applications to the Commission to be allowed to transform and/or execute transactions for the disposal of property used to perform its licensed activity, and for the issuance of respective licences.(2) A licence for performance of the activity of public provider of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the functions of a public provider of electricity, as arising from this Act.(3) A licence for transmission of electricity shall be issued to the National Electric Company EAD within six months after the entry of this Act into force. Until the effective date of the relevant licence, the National Electric Company EAD shall perform the activities comprehended in the transmission of electricity, as arising from this Act.(4) (Amended, SG No. 74/2006) A licence for the activities of electric power grid management and organizing an electricity market shall be issued to the electric power grid operator - legal person, after its creation by the National Electric Company EAD. The Commission shall issue such a licence proprio motu, after evidence of the transformation under Paragraph 1 is furnished.(5) (Repealed, SG No. 74/2006) . 16. (1) Any contracts for long term purchase of availability and electricity at fixed parameters and the associated guarantees, concluded by the National Electric Company EAD before the entry of this Act into force, shall continue in effect for the time period for which they were concluded.(2) (Amended, SG No. 74/2006) The public provider shall be a party to the contracts referred to in Paragraph (1) after the corporate transformation of the National Electric Company EAD under 15, Paragraph 1. 17. (Amended, SG No. 74/2006) (1) The activities associated with distribution of electricity and operational management of the distribution networks may be separated in legal and organizational terms from electricity supply and the other activities of the electricity distribution companies until the 31st day of December 2006 but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Electricity distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, as well as for the issuance and/or amendment, and/or termination of respective licences.(2) Licences for the activity of public supplier of electricity shall be issued to the electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the relevant licence, the electricity distribution companies shall perform the functions of public suppliers of electricity for the relevant areas, as arising from this Act.(3) Licences for electricity distribution with the relevant areas shall be issued to the existing electricity distribution companies within six months after the entry of this Act into force. Until the effective date of the said licences, the electricity distribution companies shall perform the functions of electricity distribution within the relevant areas, as arising from this Act.(4) Depending on the type of corporate transformation referred to in Paragraph (1) and the activities carried out by the transformed companies after the transformation, the electricity distribution and electricity supply licences of existing electricity distribution companies and their successors shall be amended and/or terminated, respectively, or new licences shall be issued. For the newly issued or the amended licenses, the transformed companies shall not pay initial licensing fees under Article 29, Paragraph 3, Item 1.(5) After their transformation under Paragraph 1, the electricity distribution companies shall inherit by subrogation all rights and obligations, related to electricity distribution at the self-contained area, defined by the electricity distribution licence, including any rights and obligations arising prior to the transformation, related to respective price regulation, while the public suppliers shall inherit by subrogation all rights and obligations, related to electricity supply at the self-contained area, defined by the public electricity supply licence, including any rights and obligations arising prior to the transformation, related to respective price regulation. 18. (1) Until the corporate transformation of the National Electric Company EAD according to 15 herein, and, respectively, of the electricity distribution companies according to 17 herein, the provisions of Article 104 (1) herein shall apply only to the quantities of electricity traded at freely negotiated prices.(2) The provisions of Article 104 (2) herein shall apply to the public provider, as transformed within the meaning given by 15 herein, and the public suppliers and distribution companies, as transformed within the meaning given by 17 herein. 19. (1) In the cases where a consumer fails to install a hot water meter in a corporeal immovable constituting private property, the heat for water heating shall be calculated according to the rates for water consumption as stipulated in the ordinance referred to in Article 125 (3) herein.(2) In the cases where a residential property is used or allocated to other persons for performance of economic activity, the owner or the holder of the real right of use shall be obligated to notify the heat transmission company within 30 days after commencement of the economic activity or after allocation of the property. Upon failure to fulfil this notification obligation, the owner or holder of the real right of use shall pay for the heat at a price for business uses with a 20 per cent surcharge for the delay. This provision shall be effective as long as different prices apply to heat for household and business uses.(3) (Amended, SG No. 74/2006) If the heat transmission company finds it technically impracticable to apply the heat share distribution system in a condominium-project building, the distribution shall be performed by the heat transmission company under terms and according to a procedure established in the ordinance referred to in Article 125 (3) herein.(4) (New, SG No. 74/2006) Consumers shall not install any additional insulation or blocking fittings to the heating unit inputs and outputs. 20. Until the 1st day of January 2010, the quantity of electricity required to ensure the operational reliability of the principal facilities at the combined heat and power plants existing upon the entry of this Act into force, generated in excess of the quantity of co-generated electricity, shall mandatorily be purchased by the public provider and/or by the public suppliers at negotiated prices. 21. Until the 1st day of January 2010, the public provider and/or the public suppliers shall be obligated to purchase the entire quantity of electricity registered by a certificate of origin from combined generation, generated by the combined heat and power plants existing upon the entry of this Act into force, without high efficiency parameters achieved, at preferential prices, according to the relevant ordinance referred to in Article 36 (2) herein, with the exception of the quantities which the producer consumes for its own uses or for which it has concluded contracts according to the procedure established by Section VII of Chapter Nine herein, or with which it participates in the balancing market. The provisions of Article 163 herein shall apply to any plants which have achieved a high efficiency parameter. 22. (1) (Amended, SG No. 74/2006) Bulgargaz EAD's activities associated with natural gas transmission, shall be separated in legal and organizational terms from the activities, by December 31, 2006, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Bulgargaz EAD shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.(2) A licence for performance of the activity of public provider of natural gas shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the functions of public provider of natural gas, as arising from this Act.(3) A licence for natural gas transmission and transit transmission shall be issued to Bulgargaz EAD pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas transmission, as arising from this Act.(4) A licence for natural gas storage shall be issued to Bulgargaz EAD, pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, Bulgargaz EAD shall perform the activities comprehended in natural gas storage, as arising from this Act.(5) (Repealed, SG No. 74/2006) .(6) The prohibition referred to in Article 44 (2) herein shall apply after the date of the corporate transformation referred to in Paragraph (1).(7) The existing consumers, within the meaning given by Items 8 and 9 of Article 175 herein, of the transmission upon the entry of this Act into force shall be considered directly connected consumers.(8) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of public natural gas supply, issued under Paragraph 2, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas supply agreements executed by Bulgargaz EAD prior to the said licence termination date.(9) (New, SG No. 74/2006) In cases, when, as a result of the restructuring under Paragraph 1, the licence for the activity of natural gas transit transmission, issued under Paragraph 3, is terminated and issued to a different person, the new licence holder shall subrogate Bulgargaz EAD as party to any natural gas transit transmission agreements executed by Bulgargaz EAD prior to the said licence termination date. 22a. (New, SG No. 74/2006, effective as from the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) When all the following conditions are present:1. the Republic of Bulgaria is not directly connected to the gas transport network to another European Union member country and2. the market share of the principal gas supplier or any related persons thereto as defined under the Commerce Act is not exceeding 75 percent, all interested persons may submit a request to the commission for a temporarily relief from application of Chapter Four, Article 172, Paragraph 1, and Article 197, Paragraph 2 provisions.(2) The Commission shall take decision on the request under Paragraph 1 within one month and shall immediately notify the European Commission on any effective decision on granting temporary relief. 23. (1) (Supplemented, SG No. 74/2006) The activities associated with natural gas distribution shall be separated in legal and organizational terms from natural gas supply to end consumers and from the other activities of the natural gas distribution companies when not fewer than 100,000 final consumers of natural gas are connected to the relevant distribution network. Gas distribution companies shall submit requests to the Commission to allow transformation and/or transactions for disposal of property used to perform the licensed activity, and for the issuance of respective licences.(2) Licences for performance of the activity of public supplier of natural gas shall be issued to the natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licence, the natural gas distribution companies shall perform the functions of public suppliers of natural gas, as arising from this Act, for the relevant areas.(3) Licences for natural gas distribution within the relevant areas shall be issued to the existing natural gas distribution companies pending execution of the corporate transformation referred to in Paragraph (1). Until the effective date of the relevant licences, the natural gas distribution companies shall perform the activities comprehended in natural gas transmission, as arising from this Act, within the relevant areas.(4) (Repealed, SG No. 74/2006) . 24. (Repealed, SG No. 74/2006). 25. (Amended, SG No. 74/2006) In cases, when assets of energy companies include property of right-holding persons under the Indemnification of Nationalized Property Owners Act or under Article 18 of the repealed State and Municipal Company Transformation and Privatisation Act (prom., SG No. 38/1992; amended, No. 51/1994, No. 45, 57, and 109/1995, No. 42, 45, 68, and 85/1996; corr., No. 86/1996; amended, No. 55, 61, 89, 98, and 122/1997, No. 39/1998; corr., No. 41/1998; amended, No. 70/1998, No. 12/1999, No. 47/1999 - Constitutional Court Decision No. 8/1999; amended, No. 56, 84, and 96/1999, No. 20, 99, and 108/2000, No. 42/2001; taken out., No. 28/2002), the latter shall be indemnified only by compensatory notes under the procedure of the Indemnification of Nationalized Property Owners Act. 26. (1) All servitude rights arising by virtue of the Energy and Energy Efficiency Act as superseded in favour of energy companies in respect of any energy works existing upon the entry of this Act into force shall continue in effect.(2) The size, location and special regime for exercise of any servitude referred to in Paragraph (1) shall be determined according to the procedure and in the manner provided for in the ordinance referred to in Article 64 (9) herein.(3) Any servitude rights referred to in Paragraph (1) shall be recorded in the recording office and in the property register according to the location of the servant estate at the request of the relevant energy company which owns the energy work. 27. The Spatial Development Act (promulgated in the State Gazette No. 1 of 2001; amended in Nos. 41 and 111 of 2001, No. 43 of 2002, Nos. 20 and 65 of 2003) shall be amended and supplemented as follows:1. In Article 73 (1), the words "the utility company or shared between the said company and" in the second sentence shall be deleted.2. In Article 182 (2), after the number 4 at the end of the first sentence, there shall be added "or a servitude has been established under Article 64 and 26 of the Transitional and Final Provisions of the Energy Act";3. In Item 31 of 5, after the words "electricity supply" there shall be added "heat supply". 28. In Article 15 of the Protection of Competition Act (promulgated in the State Gazette No. 52 of 1998; (modified by) Constitutional Court Judgment No. 22 of 1998, (promulgated in) No. 112 of 1998; amended in No. 81 of 1999, No. 28 of 2002, No. 9 of 2003), Paragraph (2) shall be amended to read as follows:"(2) Alignment of general conditions shall be admissible only where authorized by the Commission, except in cases where the said general conditions have been approved by a competent authority exercising regulation and control. Any such authorization shall be granted within two months after the submission of a request by the companies referred to in Paragraph (1)." 29. The Act Restricting Administrative Regulation and Administrative Control over Economic Activity (promulgated in the State Gazette No. 55 of 2003; corrected in No. 59 of 2003) shall be amended and supplemented as follows:1. In Article 13:(a) the existing text shall be redesignated to become Paragraph (1);(b) there shall be added the following new paragraph:"(2) Paragraph (1) shall only apply where no special law established another procedure on the grounds of exclusive rights."2. Item 28 of the Annex to Item Article 9 (1) shall be amended to read as follows:"28. Activities in the energy sector, as regulated in a special law." 30. The Mandatory Stocks of Crude Oil and Petroleum Products Act (promulgated in the State Gazette No. 9 of 2003) shall be amended as follows:1. Article 3 (2) shall be amended to read as follows"(2) The stocks of petroleum products, which are created and maintained by energy companies according to the procedure established by Article 85 (1) and Article 128 of the Energy Act, shall be assimilated to the total quantity of stocks under this Act."2. Article 4 (4) shall be amended to read as follows:"(4) Annually, the persons obligated under Article 85 (1) and Article 128 of the Energy Act shall prepare information on the stocks of petroleum products thereof for the current calendar year and shall submit the said information to the State Agency of Contingency Reserves and Wartime Stockage on or before the 25th day of February."3. Article 24 (3) shall be amended to read as follows"(3) The persons obligated under Article 85 (1) and Article 128 of the Energy Act shall notify the Chairperson of the Agency of each case of use of the stocks of petroleum products and the time limits for replenishment of such stocks. Any such notification shall be submitted in writing or electronically not later than the working day next succeeding the day when the stocks were drawn from." 31. In Article 47 of the Water Act (promulgated in the State Gazette No. 67 of 1999; amended in No. 81 of 2000, Nos. 34, 41 and 108 of 2001, Nos. 47, 74 and 91 of 2002, Nos. 42, 69 and 84 of 2003), there shall be added the following new paragraph:"(5) A concession compensation, fixed according to a methodology adopted by the Minister of Environment and Water and the Minister of Energy and Energy Resources, shall be paid for production of geothermal energy from mineral waters constituting exclusive state property, where the said waters are used only as a heat-transfer medium and are returned to the respective occurrence." 32. The Forests Act (promulgated in the State Gazette No. 125 of 1997; amended in Nos. 79 and 133 of 1998, No. 26 of 1999, Nos. 29 and 78 of 2000, Nos. 77, 79 and 99 of 2002, No. 16 of 2003) shall be amended and supplemented as follows:1. In Item 1 of Article 16 (5), the words "overhead electric power lines" shall be deleted.2. The following new article shall be inserted:"Article 16b. (1) The provisions of Chapter Five of the Energy Act shall apply to any servitudes around overhead and underground electric power lines, heating mains and natural gas pipelines.(2) Any servitudes around energy works located in forests or in forest stock land tracts shall be consulted by the energy companies with the National Forestry Board.(3) The amount of compensation for any servitudes on forests or forest stock land tracts, referred to in Paragraph (2), shall be fixed according to the procedure established by the ordinance referred to in Article 19 herein." 33. (Effective 10.06.2004) In Article 32 of the Technical Requirements for Products Act (promulgated in the State Gazette No. 86 of 1999; amended in Nos. 63 and 93 of 2002, No. 18 of 2003), after the words "acetylene equipment" there shall be added "oil pipelines and petroleum product pipelines". 34. (1) The statutory instruments of secondary legislation on the application of this Act shall be adopted within six months after the entry of the said Act into force.(2) Pending the issuance of the statutory instruments of secondary legislation as provided for under this Act, the statutory instruments of secondary legislation issued for application of the Energy and Energy Efficiency Act as superseded shall be applied insofar as they do not conflict with this Act. 35. The provision of 33 herein shall enter into force six months after the promulgation of this Act in the State Gazette.This Act was adopted by the 39 National Assembly on 26 November 2003 and the Official Seal of the National Assembly has been affixed thereto.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code (SG, No. 30/2006, effective 12.07.2006) 47. Everywhere in the Energy Act (Promulgated, SG No. 107/2003, amended, SG No. 18/2004, amended and supplemented, SG No. 18/2005, amended, SG No. 95/2005) the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".TRANSITIONAL AND FINAL PROVISIONSto the Energy Act Amendment Act(SG No. 74/2006, effective 8.09.2006, amended, SG No. 49/2007,SG No. 55/2007, effective 6.07.2007) 125. Throughout the Act:1. All phrases "Minister of Energy and Energy Resources" and "Ministry of Energy and Energy Resources" shall be replaced by the phrases "Minister of Economy and Energy" and "Ministry of Economy and Energy", respectively.2. The phrase "act whereby Republic of Bulgaria is recognised as full member of the European Union" shall be replaced by the phrase "Treaty concerning the Accession of the Republic of Bulgaria to the European Union". 126. (Effective 1.07.2007) (1) The public provider shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right.(2) End suppliers shall ensure electricity supply at freely negotiable prices to any consumers connected to the transmission network, when these consumers have obtained the eligible consumer status, but have not selected another provider, until the time when they have exercise this right. 127. (Repealed, SG No. 49/2007). 128. (1) The mandatory purchase under Article 162 of electricity produced using high-efficiency combined heat and electricity generation at preferential prices shall be applied for a term of 8 years:1. starting on the date this Act becomes effective - for all existing electricity producers using high-efficiency combined heat and electricity generation;2. starting on electricity production start, but not later than December 31, 2011 - for all other electricity producers using high-efficiency combined heat and electricity generation;(2) The preferential prices for the purchase of electricity produced using high-efficiency combined heat and electricity generation for the period until December 31, 2019, shall be set forth according to the respective ordinance under Article 36, Paragraph 3.(3) The Minister of Economy and Energy shall, by December 31, 2011, prepare and submit to the Council of Ministers for adoption a draft law introducing market mechanism for promotion of electricity production using a combined method, which may not be applied to electricity producers under Paragraph 1. 129. (1) Licences for the activity of electricity supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public electricity suppliers by July 1, 2008.(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public electricity suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public electricity supply licences held by them, as far as these are not contradictory to the Act.(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public electricity supply licences. 130. (1) Licences for the activity of natural gas supply by end suppliers within the respective areas shall be issued proprio motu by the Commission to existing public natural gas suppliers by July 1, 2008.(2) Until the date the newly-issued licenses under Paragraph 1 become effective, public natural gas suppliers shall perform the activities of end suppliers within the respective areas, arising under this Act and the public natural gas supply licences held by them, as far as these are not contradictory to the Act.(3) All licences under Paragraph 1 shall be issued for the remaining term of validity of existing public natural gas supply licences. 131. Merchants, who, at the date this Act becomes effective, perform the activity of heat share distribution in condominium-project buildings, shall submit an application for registration under Article 139a, Paragraph 3 within three months after this Act becomes effective. 132. The 27 provision, related to the amendment of Article 49, Paragraph 3 and Paragraph 4, shall also apply to any unfinished proceedings existing at the date this Act becomes effective, created under Article 46, Paragraph 2, which have no effective Commission decision on designating a licence holder. 133. (1) The 55 provision, related to the amendment of Article 102, shall apply to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.(2) The effective 55 shall restrict, respectively, the public provider's exclusive right on the import and export of electricity under Article 93, Paragraph 2.(3) The provision in 55 shall apply on the date this Act becomes effective to electricity producers, having:1. a licence under Article 39, Paragraph 3 to build new electricity generation energy works;2. a permit for expansion under Article 35, Paragraph 1, Item 1 of the repealed Energy and Energy Efficiency Act (prom., SG, No. 64/1999; amended, No. 1/2000, No. 108/2001, No. 63/2002, No. 9/2003; repealed, No. 107/2003 and No. 18/2004) 134. The provision in 105, related to creation of Article 176a shall become effective to any transactions with resident persons in a European Union member country, on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. 135. Until the provision of 12, Item 6 on the repealing of Article 21, Paragraph 1, Item 17 becomes effective, the Commission shall determine the availability, based on which any producer may execute transactions with eligible consumers, electricity merchants, and other producers according to the rules under Article 91, Paragraph 2, or take part in an organised market. 136. Until the provision of 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 3 becomes effective, only one public electricity supply licence shall be issued. 137. Until the provision of 24, Item 2, "a" on the repealing of Article 43, Paragraph 2, Item 2 on the self-contained area under Article 43, Paragraph 5 becomes effective, only one public natural gas supply licence shall be issued. 138. Until the provision of 50, Item 1, "a" - in the part concerning repealing of Article 97, Paragraph 1, Item 4 - becomes effective, electricity transactions shall be executed at Commission-regulated prices between the public provider and all transmission network connected consumers, who have not selected another supplier.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140. Any statutory acts related to the application of the Energy Act shall be adopted or brought in accordance with this Act within 6 months after this Act becomes effective. 141. This Act shall become effective on the date of its promulgation in the State Gazette, except the provisions in:1. 3, Item 2, "f", related to Article 4, Paragraph 2, Item 18b and Item 18c, 12, Item 8, related to Article 21, Paragraph 1, Item 19a and Item 19b, 23, Item 2; 26, 28, 103, related to Article 172a and Article 172c, 104, Item 2, 106, Item 1, 107, Item 1, 113, 121, 122, 124, Item 9, becoming effective on the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union;2. (Amended, SG No. 55/2007) 12, Item 2, Item 6, and Item 7, 16, Item 1, Item 4, Item 5, and Item 6, 22, Item 1, "a" and "b", 24, Item 2, Item 3, and Item 5, 44, Item 2 and Item 5, 46, 48, 50, Item 1, "a" and "c", 51, 53, 56, 74, 97, Item 1, and Item 2, 100, Item 1, 103, related to the creation of Article 172b, 104, Item 1 and Item 3, 106, Item 2, 107, Item 2, 108, 110, 111, 112, 123, Item 13, and 126, becoming effective July 1, 2007;3. 16, Item 4 and Item 7, 22, Item 1, "c", 23, Item 1, 24, Item 1, 25, Item 1, 35, 39, 40, 41, 44, Item 4, 50, Item 2, 52, 54, 57, 59, Item 1, 61, 62, 64, 65, 66, 71, 72, 76, Item 1, and 123, Item 25, becoming effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. For more information visit www.solicitorbulgaria.com id: 328 Fri, 01 Aug 2008 08:01:41 -0700 http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENERGY_ACT1.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 329 Chapter OneGENERAL PROVISIONSArticle 1. (Supplemented, SG No. 74/2006, amended, SG No. 49/2007) This Act regulates the social relations associated with the activities of generation, import and export, transmission, transit transmission, distribution of electricity, heat and natural gas, oil and oil product transmission through pipelines, trade in electricity, heat and natural gas, as well as the powers of state bodies in formulating energy policy, regulation and control.Article 2. (1) The principal purposes of this Act are to create conditions for:1. high-quality and secure supply of electricity, heat and natural gas to the general public;2. energy development and the energy security of the country through efficient use of energy and energy resources;3. creation and development of a competitive and financially stable energy market;4. energy deliveries at minimum costs;5. (repealed, SG No. 49/2007); 6. promotion of the combined generation of electricity and heat.7. (new, SG No. 74/2006) development of electricity, natural gas, oil or oil product transmission infrastructures on the territory of the country, and through it.(2) (Amended and supplemented, SG No. 74/2006) The generation, import, export, transmission, transit transmission, distribution and trade in electricity, heat, natural gas, oil and oil products shall be carried out under the guaranteed protection of the life and health of citizens, the property, the environment, the interests of consumers, and the national interests.Chapter TwoENERGY POLICYSection IState Governance of the Energy SectorArticle 3. (1) The Council of Ministers shall define the state policy in the energy sector.(2) The Council of Ministers shall adopt the Energy Strategy of the Republic of Bulgaria on a motion by the Minister of Economy and Energy that shall state basic objectives, stages, means and methods for the development of the energy sector.Article 4. (1) (Amended, SG No. 74/2006) The national energy policy shall be implemented by the Minister of Economy and Energy.(2) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall perform the following functions:1. elaborate the Energy Strategy of the Republic of Bulgaria and lay the said energy before the Council of Ministers for adoption;2. adopt the short-term, medium-term and long-term overall national forecast energy balances in accordance with the strategy as adopted;3. (supplemented, SG No. 74/2006) lay a list of energy works of strategic national importance, including ones extracting local hard fuel, before the Council of Ministers for endorsement;4. (supplemented, SG No. 74/2006) define, by an order, the mandatory parameters of the level of reliability of electricity supply, as well as minimum safety standards for natural gas supply;5. approve an inventory of the required new electricity generating capacities solely in cases where the security of electricity supply cannot be guaranteed through the effective licensing system under this Act, and promulgate the said inventory in the State Gazette;6. lay before the Council of Ministers for endorsement an inventory of new self-contained areas for natural gas distribution and for modification of existing self-contained areas for natural gas distribution for which no licence has been issued, and promulgate the said inventory in the State Gazette;7. approve restructuring programmes and strategies for the energy sector;8. determine an overall annual quota for mandatory acquisition of electricity from producers utilizing primary local energy sources (of fuel), of up to 15 per cent of the combined primary energy required for the generation of electricity that is consumed in the country during each calendar year, for reasons of security of supply;9. (repealed, SG No. 49/2007); 10. (supplemented, SG No. 74/2006, repealed, SG No. 49/2007); 11. (amended, SG No. 74/2006) based on adopted criteria, prepare analysis of the national potential for high efficiency combined production and evaluates the progress made on increasing the share of high efficiency combined production in the gross consumption of electric power every 4 years and publish it on Ministry of Economy and Energy web site;12. make proposals for establishment and maintenance of national energy reserves and wartime energy reserves;13. approve standard levels for the stocks of fuels necessary for secure energy supply;14. (effective until 31.12.2005) lay before the Council of Ministers a proposal for grant of state aids to certain entities and/or activities in the energy sector;15. exercises control in the cases provided for by this Act;16. issue permits for prospecting and exploration of energy resources and organize procedures for the award of concessions for extraction of energy resources and for construction of hydro power works;17. publish an annual bulletin on the status and development of the energy sector;18. formulate and implement a state policy related to the activities comprehended in the transmission of oil and petroleum products through pipelines within and through the national territory;18a. (new, SG No. 74/2006) represent the government in its relationships with other countries, as well as with commercial companies in all matters, related to the application of the Agreement to the Energy Charter and the implementation of transnational electricity, natural gas and oil transmission infrastructure building projects;18b. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) provide competent authorities in the European communities with all information under the law of the European communities;18c. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) according to its authority, send requests and notices to the competent authorities of the European communities for granting temporary relief from the application of provisions in the law of the European communities and transitional periods in the field of energy in all cases under the law of the European communities.19. issue the statutory instruments of secondary legislation provided for in this Act according to the competence vested therein;20. represent the Republic of Bulgaria in international organizations on energy matters;21. exercise other powers as well, conferred thereon by other statutory instruments.(3) The Energy Strategy adopted by the Council of Ministers under Item 1 of Article 4 (2) herein shall be promulgated in the State Gazette.Article 5. (1) The list of energy works of strategic national importance, referred to in Item 3 of Article 4 (2) herein, shall be prepared on an annual basis by the Ministry of Economy and Energy and shall be laid by the Minister of Economy and Energy before the Council of Ministers for endorsement.(2) Any persons performing activities under this Act by means of works included in the list referred to in Paragraph (1) shall enjoy protection which includes:1. (supplemented, SG No. 74/2006) organization and control of physical protection (security) of works, implemented by the authorities of the Ministry of Interior or by persons conducting activities under the Private Security Business Act ;2. information security, implemented through administrative, organizational and technical measures.(3) The protection covered under Paragraph (2) shall be for the account of the persons performing the activities under this Act by means of works included in the list referred to in Paragraph (1).(4) (New, SG No. 74/2006) Any persons carrying out activities under this act through sites, included in the list under Paragraph 1, shall carry out activities and work during military and non-military crises, as assigned to them by the Minister of Economy and Energy.Article 6. (1) Municipality mayors shall require from energy companies operating on the territory of the municipalities thereof to submit forecasts of the development of demand for electricity, heat and natural gas, programmes and plans for electricity, heat and natural-gas supply.(2) Acting on a proposal by the energy companies, municipality mayors shall mandatorily project, in the master plans and detailed plans, spatial renewal works required for implementation of the programmes and plans referred to in Paragraph (1).(3) (Amended, SG No. 74/2006) Municipality mayors shall ensure the construction, operation, maintenance and development of the outdoor lighting networks and facilities within the territory of the municipality in respect of corporeal immovables constituting municipal property.Article 7. (1) (Amended and supplemented, SG No. 74/2006) Upon conduct of the state policy in the energy sector, the Minister of Economy and Energy may be assisted by industrial branch chambers and organizations of energy and energy resource extraction sector workers.(2) (Supplemented, SG No. 74/2006) Employers in the energy sector may establish and participate in industrial branch chambers and organizations of energy and energy resource extraction sector workers.(3) (Supplemented, SG No. 74/2006) The industrial branch chambers and organizations of energy and energy resource extraction sector workers shall be registered under the terms and according to the procedure established by the Not-for-Profit Legal Entities Act .(4) (Supplemented, SG No. 74/2006) The industrial branch chambers and organizations of energy and energy resource extraction sector workers shall:1. have as an objective to represent and protect the common interests of the members thereof;2. may negotiate with trade unions on issues of common interest and be parties in signing an industry-wide collective agreement;3. (supplemented, SG No. 74/2006) elaborate rules for good manufacturing practices, models of systems for risk analysis of energy generation and/or energy resource extraction, as well as other professional criteria;4. participate in the elaboration of strategies, analyses, programmes and opinions on the development of the sector and facilitate the implementation thereof;5. (supplemented, SG No. 74/2006) create data bases on professionals in the sector available to assist energy producers and energy resource extractors, as well as the state bodies;6. (supplemented, SG No. 74/2006) elaborate a Code of Ethics regulating professional ethics in the sector and prevention of unfair competition between energy producers and energy resource extractors;7. (supplemented, SG No. 74/2006) notify the competent authorities of violations committed in the production of and trade in energy and/or energy resource and natural gas extraction;8. give opinions on any amendments to statutory instruments for the respective industrial branch;9. organize and deliver vocational training;10. perform other functions as well assigned thereto by a law.(5) (Supplemented, SG No. 74/2006) The state bodies and the management bodies of the industrial branch chambers and organizations of energy sector workers shall collaborate and inform each other of violations detected in the production of and/or trade in energy and/or energy resource and natural gas extraction.(6) (Supplemented, SG No. 74/2006) The state bodies, institutions and central-government departments, the bodies of local self-government and local administration work shall assist and provide the industrial branch chambers and organizations of energy and energy resource extraction sector workers with information the said chambers and organizations need to perform the functions thereof provided for under this Act.Section IIEnergy Forecasting and PlanningArticle 8. (1) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall elaborate the Energy Strategy of the Republic of Bulgaria.(2) (Amended, SG No. 74/2006) On the basis of the Energy Strategy of the Republic of Bulgaria, the Ministry of Economy and Energy shall prepare programmes and strategies for restructuring of the energy sector that shall be approved by the Minister of Economy and Energy. Commercial corporations in the energy sector shall be privatized in accordance with the programmes and strategies for restructuring of the energy sector, as approved by the Minister of Economy and Energy.(3) There shall be short-term, medium-term and long-term overall national forecast energy balances. The said balances shall be prepared on the basis of:1. (amended, SG No. 74/2006) forecasts, studies and plans of enterprises engaged in the activities comprehended in extraction, processing, conversion, transmission and distribution of energy resources and energy;2. information from the overall indicative energy balances;3. information provided by the National Statistical Institute.(4) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall determine the need of construction of new generating capacities and shall approve the inventory referred to in Item 5 of Article 4 (2) herein on the basis of:1. the overall forecast energy balances;2. the mandatory parameters of the level of reliability of electricity supply;3. (amended, SG No. 74/2006) the development plan at minimum public expenses for new generation capacity, prepared by the electric power grid operator.(5) (Amended and supplemented, SG No. 74/2006) The Minister of Economy and Energy shall implement an energy policy targeting national energy development with efficient utilization of energy and energy resources and meeting the demand of the public for electricity, heat and natural gas, oil products, and solid fuels on the basis of the overall forecast energy balances and in accordance with the Energy Strategy as adopted by the Council of Ministers.(6) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall perform oversight on the security of supply and shall publish all measures planned and taken, the results from the oversight, as well as the energy policy guidelines in the bulletin under Article 4, Paragraph 2, Item 17, as well as on Ministry of Economy and Energy's web site.Article 9. (1) (Supplemented, SG No. 74/2006) Companies engaged in activities comprehended in energy resource extraction, processing and trade in fuels, conversion, transmission, distribution and trade in energy and natural gas shall:1. (supplemented, SG No. 74/2006) conduct studies and analyses, elaborate short-term, medium term and long-term forecasts of the energy resource extraction, processing and trade in fuels and energy, and adopt the relevant plans ensuring the said activities;2. (amended, SG No. 74/2006) prepare, at least once every two years, and submit to the Minister of Economy and Energy plans for rehabilitation, for measures to improve the efficiency of existing generating capacities and networks, and for the construction of new capacities and networks at minimum costs. The said plans shall be accompanied by a feasibility study, a financial analysis and an environmental impact analysis, and alternatives for energy saving.(2) (Supplemented, SG No. 74/2006) The forecasts referred to in Paragraph (1), including the respective reporting information and the preliminary studies and a list of required new generating capacities and networks, and natural gas storage facilities, shall be submitted as follows:1. (amended, SG No. 74/2006) to the Minister of Economy and Energy;2. (supplemented, SG No. 18/2005) to the State Energy and Water Regulatory Commission;3. to the mayors of the municipalities concerned for fulfilment of the obligations under Paragraph (6);4. (supplemented, SG No. 74/2006) to the transmission companies and the electric power grid operator;5. to the relevant distribution companies.(3) (Amended and supplemented, SG No. 74/2006) The content, structure, terms and procedure for submission of the information covered under Paragraphs (1) and (2) shall be established in an ordinance of the Minister of Economy and Energy.(4) (New, SG No. 74/2006) The content, structure, and procedure to present all information under Article 4, Paragraph 2, Item 18b, as well as under Article 21, Paragraph 1, Item 19a, shall be defined by a Council of Ministers ordinance, after a proposal by the Minister of Economy and Energy, and of the State Energy and Water Regulatory Commission.Chapter ThreeREGULATION OF ENERGY SECTOR ACTIVITIESSection IState Energy and Water Regulatory Commission(Title amended, SG No. 18/2005) Article 10. (1) (Amended, SG No. 18/2005) The State Energy and Water Regulatory Commission, hereinafter referred to as the "Commission", shall regulate energy-sector and water-supply and sewerage activities.(2) The Commission shall be an independent specialized state body, a legal person with a head office in Sofia.Article 11. (1) (Amended, SG No. 18/2005) The Commission shall be a collegial authority and shall consist of thirteen members, including a Chairperson and two Deputy Chairpersons, of whom one shall have experience in the energy sector, and the other shall have experience in water-supply and sewerage.(2) (Amended, SG No. 18/2005) The Chairperson, the Deputy Chairpersons and the members of the Commission shall be elected and removed from office by a decision of the Council of Ministers and shall be appointed by an order of the Prime Minister.(3) The term of office of the members of the Commission shall be five years.Article 12. (1) Eligibility for membership of the Commission shall be limited to capable Bulgarian citizens who have graduated from a higher educational establishment, attaining an educational qualification degree of Master, and at least one of which shall be a qualified lawyer and one economist:1. (supplemented, SG No. 18/2005) with length of employment and/or civil-service seniority of at least ten years, of which at least three years in the energy sector, applicable to five of the members, and in water supply and sewerage, applicable to the remaining five members;2. who has not been sentenced to deprivation of liberty for a premeditated offence at public law.(2) The following shall be ineligible for members of the Commission:1. (supplemented, SG No. 18/2005) sole traders, shareholders, partners, managing directors, managerial agents or members of management or supervisory bodies, as well as liquidators and consultants of commercial corporations engaged in activities subject to licensing under this Act or to regulation under the Water-Supply and Sewerage Services Regulation Act;2. occupants of another salaried position with the exception of academic research or teaching.(3) Members of the Commission shall be removed prior to the expiry of the term of office thereof solely:1. upon resignation in writing;2. upon ascertainment of incompatibility with the qualifications for occupation of the office under this Act;3. upon actual inability to discharge the duties thereof for more than 6 months;4. when sentenced to deprivation of liberty for a premeditated offence at public law by an effective sentence.(4) In the cases referred to in Paragraph (3), the Council of Ministers shall elect a new member to serve the remainder of the original term.(5) The remuneration of the members of the Commission shall be fixed as follows:1. (amended, SG No. 18/2005) for the Chairperson: 93 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute;2. (amended, SG No. 18/2005) for the Deputy Chairpersons: 90 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute;3. (amended, SG No. 18/2005) for the rest of the members of the Commission: 85 per cent of three average monthly wages of persons hired under an employment or under a civil-service relationship in the Electricity, Gas and Water Supply Sector as reported by the National Statistical Institute.Article 13. (1) (Amended, SG No. 18/2005) The Commission shall be a standing body and shall meet if not fewer than seven of the members thereof are present, and shall exercise the powers thereof as follows:1. under this Act: in the presence of not fewer than five of the members with experience in the sphere of the energy sector;2. under the Water-Supply and Sewerage Services Regulation Act : in the presence of not fewer than five of the members with experience in the sphere of water supply and sewerage.(2) (Amended, SG No. 18/2005) The Commission shall rule by reasoned decisions, which shall be individual or general administrative acts and shall be adopted by a majority of not fewer than seven votes, of which five shall belong to members of the Commission with experience in the relevant sphere in respect of which the decision is adopted.(3) Commission meetings shall be open to the public when considering applications or requests related to:1. the issuance, modification, supplementation, withdrawal and termination of a licence;2. (amended, SG No. 18/2005) endorsement of prices proposed by the energy companies and by the water and sewerage utilities.(4) In certain cases, the Commission may decide that the meetings referred to in Paragraph (3) be held behind closed doors, attendance thereat being limited to members of the Commission and the parties to the relevant proceeding.(5) (Amended, SG No. 18/2005, supplemented, SG No. 74/2006) The decisions of the Commission under Paragraphs (3) and (4) shall be made in a meeting behind closed doors and shall be announced according to a procedure established in the Rules referred to in Article 16 (2) herein.(6) In performance of the powers thereof, the Commission shall apply the rules of procedure provided for in this Act, and in cases unregulated thereby, the rules of the Administrative Procedure Code .(7) Any decisions of the Commission, including a tacit refusal, shall be appealable before the Supreme Administrative Court. An appeal shall not stay the execution of a decision.(8) The general administrative acts of the Commission that establish rules under this Act shall be promulgated in the State Gazette.Article 14. (1) (Supplemented, SG No. 18/2005) The Commission shall conduct a procedure for public discussions with interested parties when drafting general administrative acts provided for in this Act and in the Water-Supply and Sewerage Services Regulation Act , as well as on other matters of public relevance for development of the energy sector and of the water and sewerage sector.(2) (Supplemented, SG No. 18/2005, amended, SG No. 74/2006) Interested parties under Paragraph (1) shall be the state bodies, the industrial branch organizations, the energy companies, the water and sewerage utilities, the eligible consumers, directly related to the draft prepared, as well as consumer organizations.(3) The Commission shall discuss with the interested parties the basic principles set in the draft and shall allow not less than 14 days for preparation of opinions on the said draft.(4) The Commission shall consider all opinions submitted by interested parties and shall reason its own opinion, posting the reasoning on the Internet site thereof.Article 15. (1) The Commission shall make public the policies pursued and the practice established in the implementation of its acts and reasoning for revision of the said acts in the bulletin published by the Commission or in another appropriate manner.(2) The bulletin of the Commission shall be published once every six months and shall be posted on the Internet site of the Commission.Article 16. (1) In its activities, the Commission shall be assisted by an administration.(2) The activities of the Commission, the structure and organization of the administration thereof shall be determined in Rules of Organization adopted by the Council of Ministers.(3) The ineligibilities referred to in Items 1 and 2 of Article 12 (2) shall apply to the employees of the specialized administration.Article 17. The members of the Commission, as well as the employees of the administration thereof, shall be obligated to comply with the professional ethics rules adopted by the Commission.Article 18. (Amended, SG No. 74/2006) (1) The Commission's Chairperson, its members and administrative officials shall not disclose any classified information they have created and stored, and which has become known to them in the course of their duties under this Act and under the Water-Supply and Sewerage Services Regulation Act , contained in list of facts, data, and subjects, constituting an official secret.(2) The Commission, after coordination with the State Commission on Information Security, issues a decision to endorse, amend and supplement the list under Paragraph 1.(3) The list under Paragraph 1 may include information, declared to be commercial secret by the applicants and licensees, only if its publication would not lead to unfair competition between companies or threaten commercial interests of third parties. This category of information the Commission shall include in the list after coordination with the Protection of Competition Commission.(4) Any information constituting an official secret may be disclosed only to judicial authorities or other public authorities according to the procedure established by the law.Article 19. (1) State bodies, energy companies and public officials shall assist the Commission in the performance of the functions thereof.(2) In the performance of the functions thereof, the Commission may collaborate with persons representing and protecting consumer interests.Article 20. The Chairperson of the Commission shall perform the following functions:1. organize and direct the activities of the Commission and of the administration thereof according to this Act and the decisions of the Commission;2. represent the Commission in dealing with third parties;3. appoint and dismisses the employees of the administration;4. submit annually a report on the performance of the Commission to the Council of Ministers;5. organize the preparation of the budget and lay it before the Commission for consideration and adoption;6. be responsible for the implementation, balancing off and reporting of the budget of the Commission;7. lay the annual report and the periodic financial statements before the Commission for adoption.Section IIPowers of the CommissionArticle 21. (1) (Previous Article 21, SG No. 18/2005) For regulation of the activities comprehended in electricity generation, transmission and distribution, natural gas transmission and distribution, trade in electricity and natural gas, heat generation and transmission, the Commission shall exercise the following powers:1. issue, modify, supplement, suspend, terminate and withdraw licences in the cases provided for in this Act;2. adopt and publish guidelines for the activities thereof;3. draft the statutory instruments of secondary legislation provided for in this Act;4. approve the general conditions of the contracts provided for in this Act;5. exercise control in the cases provided for in this Act;6. perform price regulation in the cases provided for in this Act;7. (amended, SG No. 74/2006) adopt the rules for trade in electricity and natural gas (Market Rules) and the technical rules for the networks (Grid Code), proposed by energy companies, and control compliance with the said rules;7a. (new, SG No. 74/2006, effective 1.07.2007) adopts rules on electricity and natural gas supply from end suppliers as part of the electricity and natural gas trade rules under Item 7;8. adopt and control the implementation of a methodology for setting of prices for balancing electricity as part of the rules for trade in electricity under Item 7;9. set the rules for access to the electricity and natural gas transmission networks, respectively to the electricity and natural gas distribution networks (Rules on Network Access);10. acting on a proposal by the relevant transmission or distribution company, decide on the classification of the electric power lines, heating mains, natural gas pipelines and the facilities appurtenant thereto within the transmission or distribution networks and issue mandatory directions for their purchase and/or provision of access thereto;11. conduct the tendering procedures under Article 46 herein;12. develop and control compliance with the conditions and rules for supply of electricity, heat and natural gas to consumers, including the quality of service standards;13. (amended, SG No. 74/2006) review energy companies' requests for the reimbursement of any non-recoverable costs or any costs resulting from public obligations imposed on them under Articles 34 and 35, endorse the reasonable size and the terms of such reimbursement;14. issue certificates to electricity producers on the origin of the electricity commodity that is generated from renewable energy sources and upon combined generation of electricity and heat;15. (repealed, SG No. 74/2006) ;16. (amended and supplemented, SG No. 74/2006) set, according to a methodology or instructions adopted by the Commission, the permissible allowances for technological losses of electricity in the process of its generation, transmission and distribution, in the process of generation and transmission of heat, and in the process of natural gas transmission, distribution and storage;17. (repealed, SG No. 74/2006, effective 1.07.2007) ;17a. (new, SG No. 74/2006, effective 1.07.2007) set the electric power availability for generation, according to which each producer shall make agreements with end suppliers and/or the public provider with regard to the implementation of principles under Article 24, Paragraph 1;18. grant consent to the division by the formation of new companies, division by acquisition, merger by acquisition, or merger by the formation of a new company in respect of any energy companies which are holders of licences under this Act;19. approve the transactions in property used in the performance of licensed activities (Capital Improvements and Lending Operations) in the cases provided for in this Act, as well as in other transactions that will or may affect the security of supply as a result of indebtedness of the energy company;19a. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) provide the competent authorities of the European Communities all information under the law of the European Communities;19b. (new, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) according to its authority, send requests and notices to the competent authorities of the European communities for granting temporary relief from the application of provisions in the law of the European communities and transitional periods in the field of energy in all cases under the law of the European communities;19c. (new, SG No. 74/2006) publish an annual report on its activity, including results from the control to avoid restriction and violation of energy market competition and efficient functioning.20. adopt the draft annual budget and the financial report of the Commission, as submitted by the Chairperson, and the report referred to in Item 4 of Article 20 herein;21. exercise other powers provided for by a law.(2) (New, SG No. 18/2005) The powers of the Commission to regulate activities in the sphere of water supply and sewerage shall be determined in the Water-Supply and Sewerage Services Regulation Act.Article 22. (1) (Amended, SG No. 18/2005) The Commission shall consider complaints:1. by consumers against licensees or by licensees against other licensees, related to performance of the licensed activity;2. by consumers against water and sewerage utilities, or by water and sewerage utilities against water and sewerage utilities, related to the subject matter regulated under the Water-Supply and Sewerage Services Regulation Act.(2) Upon receipt of a complaint, the Chairperson of the Commission shall order an inquiry according to the procedure established by Chapter Eight herein.(3) The Commission may facilitate an amicable settlement of the dispute within two months after receipt of a complaint under Paragraph (1). The Commission may extend this period by an additional two months if the subject of dispute requires collection of additional data and information by the Commission.(4) Where the dispute has been settled amicably by means of reaching a written agreement between the parties and any of the parties has failed to comply with the obligations thereof under the said agreement, the other party may refer the dispute subject of the agreement to a court of law for settlement.(5) The procedure for the submission of complaints, the consideration thereof and the procedure for amicable settlement of disputes shall be regulated in the ordinance referred to in Article 60 herein.Article 23. (1) In exercising the regulatory powers thereof, the Commission shall be guided by the following general principles:1. prevention and preclusion of limitation or distortion of competition on the energy market;2. balancing the interests of energy companies and consumers;3. ensuring non-discrimination between the various categories of energy companies and between groups of consumers;4. providing incentives for efficient operation of regulated energy companies;5. providing incentives for development of a competitive market for energy sector activities, where conditions so permit.(2) In implementation of the principle under Item 1 of Paragraph (1), the Commission may notify the Commission for the Protection of Competition for initiation of proceedings according to the procedure established by the Protection of Competition Act.Article 24. (1) (Amended, SG No. 74/2006) Implementing the power thereof referred to in Paragraph 1, Item 7a, 17a of Article 21 (1) and 135 herein, the Commission shall adhere to the following principles:1. (amended and supplemented, SG No. 74/2006) fair allocation of the economic consequences of market liberalisation between all parties to transactions in electricity and natural gas;2. (supplemented, SG No. 74/2006) ensuring equal terms for conclusion of transactions at freely negotiated prices, compared to the transactions concluded with the public provider or the public suppliers of electricity and natural gas;3. (supplemented, SG No. 74/2006) ensuring a balanced adjustment of end-user prices, taking into account the public service obligations, public obligations, and non-recoverable costs of the public provider or the public suppliers.4. (new, SG No. 74/2006) ensuring all measures required to supply consumers with electricity and natural gas of certain quality at fully comparable, transparent, and objectively set prices, applied on equal-treatment conditions.(2) The eligibility requirements for the persons entitled to conclude transactions under Article 100 (1) herein, as well as the conditions for granting network access, shall be established by rules adopted by the Commission.Article 25. (1) The Commission shall keep public registers of:1. any licences as issued, recording therein all licensees, licences issued and other particulars;2. any certificates of origin as issued, recording therein the holder and the generating capacity, the quantities of electricity for which the certificate was issued, and the period of generation;3. (repealed, SG No. 74/2006);4. (repealed, SG No. 74/2006);5. any permits as issued by the Commission under this Act.(2) (Amended, SG No. 74/2006) The particulars recordable under Items 1 and 5 of Paragraph (1), the procedure for recording in the registers and for obtaining information shall be determined in the ordinance referred to in Article 60 herein. The particulars recordable under Items 2, of Paragraph (1), the procedure for recording in the register and for obtaining information shall be determined by the ordinance referred to in Article 159 (3) herein.(3) Any decisions of the Commission to issue, modify, supplement, withdraw and terminate licences, as well as any decisions to endorse prices, shall be published in the bulletin of the Commission.Section IIIFinancing of the Commission. FeesArticle 26. (1) (Supplemented, SG No. 18/2005) The activities of the Commission and of the administration thereof shall be financed from the revenue specified under Article 27 (1) herein and in the Water-Supply and Sewerage Services Regulation Act .(2) The Commission shall be a first-level spending unit.Article 27. (1) The revenues on the budget of the Commission shall be raised from:1. (amended, SG No. 18/2005) the fees collected by the Commission under Article 28 herein and under Items 1 and 3 of Article 8 (1) of the Water-Supply and Sewerage Services Regulation Act , and any interest thereon;2. (supplemented, SG No. 18/2005) twenty per cent of the fines and pecuniary penalties provided for in this Act and in the Water-Supply and Sewerage Services Regulation Act;3. donations from persons not subject to licensing under this Act or from persons connected therewith within the meaning given by the Commerce Act.(2) (Supplemented, SG No. 18/2005) No donation may be accepted from any persons subject to licensing under this Act or subject to regulation under the Water-Supply and Sewerage Services Regulation Act from any persons connected therewith within the meaning given by the Commerce Act.(3) The resources referred to in Paragraph (1) shall be expended on:1. (supplemented, SG No. 18/2005) financing the activities of the Commission and of the administration thereof, including the conduct of studies, analyses and expert assessments associated with the regulatory activities under this Act and under the Water-Supply and Sewerage Services Regulation Act ;2. capital expenditure on development of facilities;3. upgrading the qualifications of the employees in the administration;4. incentive pay according to a procedure established in the Rules of Organization.(4) The resources referred to in Item 4 of Paragraph (3) shall be fixed at up to 25 per cent of the annual wage bill and shall be incorporated into the budget of the Commission for the respective year.(5) If the annual revenues from fees under this Act exceed or are insufficient to cover the necessary expenditures on the budget of the Commission for the succeeding calendar year, the Chairperson of the Commission may propose a review of the amount of the fees.Article 28. (1) (Amended, SG No. 18/2005) For exercise of the regulatory powers thereof under this Act and under the Water-Supply and Sewerage Services Regulation Act, the Commission shall charge fees for consideration of applications, for issuance of certificates, for sale of tender documents, licensing fees, and experts registration fees.(2) The amount of the fees covered under Paragraph (1), the procedure and time limits for payment thereof shall be established by a rate schedule approved by the Council of Ministers on a motion by the Commission.(3) (New, SG No. 74/2006) Any fees collected under the procedure of this Act and the Water-Supply and Sewerage Service Regulation Act, shall be public state receivables.Article 29. (1) The fee for consideration of an application shall be paid upon submission of the application.(2) Any persons who have obtained a licence shall pay licensing fees for each licence issued, as well as for any modification of the licence in the cases specified in the rate schedule.(3) There shall be the following licensing fees:1. initial: for issuance or modification of a licence, covering the expenses on preparation and expenses on the regulatory activity under the licence until the end of the current year;2. annual: covering the expenses on the regulatory activity under the licence for the respective year;(4) Annual fees for the term of validity of the licence, as well as for the term of any extension thereof, shall be paid by the licensee for every year succeeding the year of its issuance.(5) Licensing fees shall be fixed depending on the type of licensed activity performed and shall be differentiated on the basis of criteria determined by the rate schedule referred to in Article 28 (2) herein.Section IVPrice RegulationArticle 30. (1) The following prices shall be subject to regulation by the Commission:1. at which producers sell electricity to the public provider and/or to public suppliers;1a. (new, SG No. 74/2006, effective 1.07.2007) at which producers, within the availability set by the Commission under Article 21, Paragraph 1, Item 17a, sell electricity to the end supplier or the public provider;2. (supplemented, SG No. 74/2006) at which producers sell heat to the heat transmission company and to directly connected consumers;3. at which the heat transmission company sells heat to consumers;4. (amended, SG No. 74/2006) at which the public provider sells electricity to public suppliers, to consumers connected to the transmission network, and to the distribution company, in order to cover the technological costs of transmission;4a. (new, SG No. 74/2006, effective 1.07.2007) at which the public provider sells to end suppliers any electricity purchased under Article 21, Paragraph 1, Item 17a;5. at which the public provider sells natural gas to public suppliers of natural gas and to consumers connected to the natural gas transmission network;5a. (new, SG No. 74/2006, effective 1.07.2007) at which the public provider sells any natural gas to end suppliers of natural gas;6. at which public providers sell electricity and natural gas to consumers connected to the respective distribution networks or to public suppliers;6a. (new, SG No. 74/2006, effective 1.07.2007) at which end suppliers sell electricity and natural gas to home consumers and companies with less than 50 employees and less than 19.5 mil. BGN annual turnover;7. for transmission of electricity and natural gas to consumers through the respective transmission and/or distribution networks, except for the prices of transit transmission;8. for connection to the networks;9. for storage of natural gas.10. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) for access to the electricity transmission and electricity distribution networks.(2) The prices of electricity referred to in Items 1, 4 and 6 of Paragraph (1) shall be subject to regulation until all consumers acquire the status of eligible consumers.(3) The prices of natural gas referred to in Items 5 and 6 of Paragraph (1) shall be subject to regulation until all consumers acquire the status of eligible consumers.(4) Prices of energy, natural gas and services provided by the energy companies shall not be subject to regulation by the Commission when the latter establishes the existence of competition creating prerequisites for free negotiation of the prices on market terms for the respective energy sector activity.Article 31. (Supplemented, SG No. 74/2006) In exercising its price regulation powers, in addition to the principles under Articles 23 and 24 herein, the Commission shall be guided by the following principles as well:1. prices shall be non-discriminatory, based on objective criteria and determined in a transparent manner;2. prices of energy companies shall cover the economically justified operating costs, including the costs of:(a) management, operation and maintenance of energy works;(b) maintenance of stand-by and regulating capacities required for reliable supply to consumers;(c) delivery and maintenance of the stocks of fuels;(d) repairs;(e) depreciation;(f) storage and processing of spent nuclear fuel and radioactive waste, decommissioning of nuclear facilities, and nuclear safety;3. apart from the costs covered under Item 2, prices shall include non-recoverable costs related to the transition to a competitive energy market, as well as costs resulting from fulfilment of public obligations related to security of supply;4. prices must ensure an economically justified rate of capital return;5. prices for the individual groups of consumers shall conform to the costs of delivery of energy and natural gas to the said consumers;6. avoidance of cross subsidization through the prices:(a) between individual groups of consumers;(b) for integrated energy companies: between individual activities subject to licensing under this Act, and/or between activities subject to licensing under this Act and other activities.7. (new, SG No. 74/2006) fair passing of any renewable energy source and combined electricity and heat generation preferential pricing costs to electricity end consumers;8. (new, SG No. 74/2006) fair passing of any system service, incl. ancillary services, cold reserve, and technology, costs to transmission network, respectively distribution network, users.Article 32. (1) The Commission may regulate prices by setting an upper limit for prices or income, by setting efficiency parameters for energy companies, parameters of comparability between such companies, achievement of basis criteria.(2) The Commission may determine:1. price components reflecting the cost structure;2. time-of-the-day, seasonal and other tariff structures of prices in accordance with costs.(3) (New, SG No. 74/2006) The Commission shall endorse a price of heat for end consumers as a single-component price.Article 33. (Amended, SG No. 74/2006) (1) (Amended, SG No. 49/2007) The Commission shall set preferential prices for sale of electricity generated from co-generation by combined heat and power plants under Article 162 (2) herein.(2) (Repealed, SG No. 49/2007). (3) The preferential price of any electricity produced using a combined method by plants for combined electricity and heat production under Paragraph 1 shall be set based on individual production costs plus surcharge set by the Commission on producer groups and criteria according to the ordinance under Article 35, Paragraph 3.(4) Acting on a proposal by the respective heat transmission company, the Commission shall determine a preferential price for heat for the association referred to in Article 151 (1) herein and for the supplier under Article 149a.Article 34. (1) Energy companies shall have the right to lodge requests for allowance and compensation of non-recoverable costs.(2) Non-recoverable costs shall be the costs resulting from investments made and/or transactions concluded prior to the entry of this Act into force by energy companies, which cannot be recovered as a result of the establishment of a competitive electricity market.(3) Energy companies under Paragraph (1) shall submit applications to the Commission for allowance of costs as non recoverable and establishment of the amount thereof. Any such applications shall be accompanied by evidence of the grounds for incurrence of such non-recoverable costs and the amount thereof.(4) The Commission shall determine the maximum total amount and period of compensation of allowed non-recoverable costs for each individual company.(5) The Commission, guided by the principles under Article 23 herein and taking into account the changes in competitive conditions, shall:1. recalculate annually the maximum total amount of the compensation related to non-recoverable costs;2. determine the recoverable volume for the respective period;3. allocate them among the respective energy companies.(6) The manner of compensation of non-recoverable costs will be determined in the ordinances referred in Article 36 (3) herein.(7) Compensation of non-recoverable costs shall be effected by all consumers in a non-discriminatory and transparent manner.Article 35. (1) Energy companies shall have the right to request compensation of expenses resulting from public obligations imposed thereon, including such related to security of supply, environmental protection, and energy efficiency.(2) The following shall be treated as expenses under Paragraph (1):1. resulting from obligations to purchase electricity from producers, winners of tendering procedures under Article 46 herein;2. resulting from obligations to generate electricity using local primary energy sources under Item 8 of Article 4 (2) herein;3. (amended, SG No. 49/2007) resulting from obligations to purchase electricity at preferential prices under Article 162 and under Article 15 of the Renewable and Alternative Energy Sources and Bio fuels Act herein;4. other additional obligations.(3) Energy companies under Paragraph (1) shall submit periodically to the Commission applications for compensation of such costs. The application shall be accompanied by evidence of the legal grounds and the amount of the said costs.(4) The Commission shall determine the volume of compensation for each individual company and the overall volume for compensation for the respective period.(5) The manner of compensation for costs resulting from public obligations shall be determined in the ordinances referred to in Article 36 (3) herein.(6) Costs resulting from public obligations shall be compensated by all consumers in a non-discriminatory and transparent manner.Article 36. (1) Prices that are subject to regulation shall be formed by the energy companies in compliance with the requirements of this Act and the ordinances referred to in Paragraph (3). The instructions adopted by the Commission shall be mandatory for the energy companies.(2) (Repealed, SG No. 74/2006).(3) The methods of price regulation, the rules for price formation or setting and modification, the procedure for provision of information, for submission of proposals on prices and for endorsement of prices shall be established by ordinances on electricity, heat and natural gas adopted by the Council of Ministers on a motion by the Commission.Article 36a. (New, SG No. 74/2006) (1) The public electricity and natural gas provider, the public electricity or natural gas suppliers, and the end electricity or natural gas suppliers, as well as the heat transmission companies, within one month prior to submitting the request for new price endorsement or current price modification shall publish in the media their proposal for endorsing new or modifying current prices.(2) The Commission shall endorse prices under Paragraph 1 as price limits for each licensee by a decision, which shall be an individual administrative act.(3) Within 7 days after receiving the decision under Paragraph 2, the licensee shall publish in the media the price limits endorsed and the consumer agreement prices.Section VSeparate AccountingArticle 37. (1) Energy companies shall keep separate accounts of:1. each activity subject to licensing under this Act;2. activities subject to licensing under this Act and other activities;3. each branch or company;4. activities in the cases of regulated and freely negotiated prices.(2) The rules for keeping separate accounts by energy companies, including assets for the purposes of pricing by groups of consumers, as well as the form and content of the financial statements for regulatory purposes, shall be established by a decision of the Commission according to a procedure established in the ordinances referred to in Article 36 (3) herein.Article 38. (1) Energy companies shall be obligated to submit the following to the Commission on an annual basis:1. their annual financial statements, including the notes thereto, according to the Accountancy Act, and the annual audit reports;2. reports by types of activity.(2) Energy companies shall be obligated, when so requested by the Commission for the purposes of price regulation, to submit to the Commission the entire accounting documentation and technical and economic information, including contracts concluded.Chapter FourLICENCESSection IIssuance of LicencesArticle 39. (1) The following activities shall be subject to licensing under this Act:1. generation of electricity and/or heat;2. transmission of electricity, heat and natural gas;3. distribution of electricity or natural gas;4. storage of natural gas;5. trade in electricity;6. organizing an electricity market;7. public delivery of electricity or natural gas;8. (repealed, SG No. 74/2006, effective 1.07.2007);9. transit transmission of natural gas.10. (new, SG No. 74/2006, effective 1.07.2007) electricity or natural gas supply from end suppliers;11. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) electric power grid management;12. (new, SG No. 74/2006) pulling power electricity distribution over the railroad transportation distribution networks.(2) A licence shall authorize performance of any of the activities covered under Paragraph (1) subject to the conditions stated therein and shall constitute an integral part of the decision on the issuance thereof.(3) Where a licence is issued for performance of any of the activities covered under Paragraph (1) before construction of the energy work required for implementation of the said activity, the licence shall state the conditions for construction of the said work and a time limit for commencement of the licensed activity.(4) (Amended, SG No. 74/2006) Issuance of a licence shall not be required for:1. electricity generation by person, having a plant with a total installed electric power up to 5 MW;2. heat generation by person, having a plant with a total installed heat generating capacity up to 5 MW;3. heat transmission by person, having a heat transmission network, connecting plants with a total installed power up to 5 MW;4. generation of heat for own consumption only.(5) (New, SG No. 74/2006) When the person, applying for licence for any activity under Paragraph 1, Items 1-3, 5-8, 10, or 11, or having such licence, meets the requirements for a balancing group coordinator, the respective licence shall also contain all rights and obligations, related to the balancing group coordinator activities.Article 40. (1) A licence shall be issued to a legal person registered under the Commerce Act which:1. possesses the technical and financial capabilities, material and human resources and organizational structure required to meet the regulatory requirements for performance of the licensed activity;2. (amended and supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) holds real rights to the energy works whereby the activity is to be performed, if the said facilities are constructed, with the exception of the licensees referred to in Items 5, 6, 7, 8, and 11 of Article 39 (1) herein;3. furnishes evidence that the energy works whereby the licensed activity s to be performed meet the regulatory requirements for safe operation and environmental protection.(2) The terms established by Items 1 to 3 of Paragraph (1) must be fulfilled at the time of commencement of the licensed activity in case of issuance of a licence under Article 39 (3) herein.(3) (New, SG No. 65/2006) A licence referred to in Article 39, Paragraph (1), Item 4 shall be issued in compliance with the provisions of Articles 118a (3) - (6) of the Water Act.(4) (Renumbered from Paragraph 3, SG No. 65/2006) A licence shall not be issued to any person which:1. is subject to instituted bankruptcy proceedings or has been adjudicated bankrupt;2. is placed in liquidation;3. has had a licence for the same activity withdrawn or the issuance of a such licence has been refused thereto, and the period referred to in Article 59 (3) herein or under Article 41 (4) herein has not yet expired.(5) (Renumbered from Paragraph 4, SG No. 65/2006) A licence shall not be issued if there is a risk to the life and health of citizens, to property of third parties and to the interests of consumers, of disturbing the reliable supply of electricity, heat and natural gas.(6) (Renumbered from Paragraph 5, SG No. 65/2006) In cases where one and the same person performs more than one of the activities subject to licensing, separate licences shall be issued for each of the said activities. The Commission shall ensure that there are no conflicts in the regime of performance of the individual licensed activities.(*) (7) (New, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) A licence under Paragraph 1 shall also be issued to a legal person, registered under the law of any member country of the European Union, or any other country, which is party to the European Economic Area Agreement, under the terms of Paragraphs 1-5.----------------------(*) Editor's note: The Energy Act Amendment Act of SG No. 74/2006, in its Article 40, creates a new Paragraph 6, which is not brought in accordance with the order of Paragraphs in this Article. With the amendments of the Water Act Amendment Act of SG No. 65/2006, Paragraph 6 is already created.----------------------Article 41. (1) The procedure for the issuance of a licence shall be initiated acting on a written application accompanied by all documents required for the issuance of a licence.(2) Should the licensed activity be performed at prices subject to regulation under this Act, an application for endorsement of the said prices shall be submitted attached to the application referred to in Paragraph (1).(3) Within three months after submission of any application referred to in Paragraphs (1) and (2), the Commission shall issue a licence or shall refuse to issue a licence by a reasoned decision and shall endorse or determine the relevant prices.(4) In cases of refusal, the applicant may submit a new request for the issuance of a licence not earlier than three months after the decision on a refusal or, respectively, after the entry into effect of the judgment of court whereby any appeal is dismissed as unfounded.Article 42. (1) Licences shall be issued for a term of validity not exceeding 35 years in accordance with the requirements of the ordinance referred to in Article 60 herein.(2) The term of validity of a licence may be extended for a period not exceeding the term referred to in Paragraph, provided that the licensee satisfies the conditions established by the law and fulfils all obligations and requirements under the licence and has submitted a written request for an extension at least one year prior to the expiry of the term of the original licence.(3) In a decision to extend the term of validity under Paragraph (2), the Commission shall also determine the conditions for performance of the activity for the new term of validity of the licence.Article 43. (1) Only a single licence shall be issued within the national territory for:1. transmission of electricity or of natural gas;2. organizing an electricity market;3. public delivery of electricity or of natural gas;4. (new, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) electric power grid management.(2) Only a single licence shall be issued for one self contained area for:1. distribution of electricity or of natural gas;2. (repealed, SG No. 74/2006, effective 1.07.2007);2a. (new, SG No. 74/2006) electricity or natural gas supply by end suppliers;3. transmission of heat.(3) A self-contained area for distribution of electricity shall comprise not fewer than 150,000 consumers connected to the adjoining distribution network and shall be coextensive with at least one administrative region according to the territorial administration of Bulgaria.(4) (New, SG No. 74/2006, effective 1.07.2007) For a self-contained area under Paragraph 3, a single licence on electricity supply from end suppliers shall be issued.(5) (Renumbered from Paragraph 4, SG No. 74/2006) A self-contained areas for distribution of natural gas shall comprise not fewer than 50,000 consumers, which may be connected to the adjoining distribution network, and the boundaries thereof shall be determined by the inventory referred to in Item 6 of Article 4 (2) herein.(6) (New, SG No. 74/2006, effective 1.07.2007) For a self-contained area under Paragraph 5, a single licence on natural gas supply from end suppliers shall be issued.(7) (Renumbered from Paragraph 5, SG No. 74/2006) A self-contained area for transmission of heat shall be designated conforming to the projections of the approved spatial development schemes and plans of the nucleated settlement.(8) (Renumbered from Paragraph 6, amended SG No. 74/2006) The provision made in Paragraph 6 shall not apply, where an interest has been expressed in natural gas supply of a particular area which is not included in the inventory referred to in Item 6 of Article 4 (2) herein. In this case, the area, subject to investment interest, shall be designated as a self-contained area for natural gas distribution. Licences on natural gas distribution, as well as on public supply or natural gas supply from end supplier in this area, shall be issued without a tender for the interested investor under the terms of Section I of this Chapter and according to the procedure in the ordinance under Article 60, after coordinating with the respective municipality.(9) (Renumbered from Paragraph 7, amended, SG No. 74/2006) If there is more than one gas supply request for the area under Paragraph 8 submitted, the Commission shall announce a tender under the terms of Section II of this Chapter and according to procedure in the ordinance under Article 60.(10) (Renumbered from Paragraph 8, amended, SG No. 74/2006) By Commission decision to amend the licence, the area of the municipality, which is outside the list under Article 4, Paragraph 2, may be joined to a self-contained area for natural gas distribution upon declared request by the respective municipality and consent of the titleholder of the natural gas distribution licence for the self-contained area.(11) (New, SG No. 74/2006) Provisions of Paragraphs 8 and 9 shall not apply, when the consent under Paragraph 10 by the titleholder of the natural gas distribution licence for the self-contained area has been obtained.(12) (New, SG No. 74/2006) For the territory of the country, a single pulling power electricity distribution licence shall be issued only for the railroad transportation distribution networks to the National Railroad Infrastructure Company.Article 44. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Any person where to a licence for electricity system management has been issued may not be issued a licence for another activity subject to licensing under this Act, except a licence for organizing an electricity market.(2) Any person where to a licence for natural gas transmission has been issued may not be issued a licence for another activity subject to licensing under this Act, except a licence for storage of natural gas and a licence for transit transmission of natural gas. Any persons where to a licence for transmission of natural gas has been issued may not engage in natural gas trade.(3) (Amended, SG No. 74/2006) Any persons where to licences for distribution of electricity have been issued may not be issued licences for other activities subject to licensing under this Act.(4) (New, SG No. 74/2006) Any persons where to licences for natural gas distribution have been issued may not be issued licences for other activities, subject to licensing under this Act, except licences for public natural gas supply or natural gas supply from an end supplier, if the consumers attached to the gas distribution network in the respective area are less than 100 000.Article 45. A licence shall state:1. the designation of the licensee;2. the activity for which the licence is issued;3. the works whereby the licensed activity is to be performed;4. the territorial scope of the licence for the activities for which it is required;5. the term of validity of the licence;6. the types of insurance, the risks covered, and the amount of insurance cover which the licensee is obligated to maintain as long as it performs the licensed activity;7. requirements for decommissioning of the energy works whereby the activity is to be performed;8. any other special regulatory requirements related to performance of the licensed activity.Section IITendering ProcedureArticle 46. (1) Solely in the cases of a need of a new electricity generating capacity, ascertained and made public according to the procedure established by Item 5 of Article 4 (2), the holder of the licence stating an obligation to construct the said capacity shall be selected by a tendering procedure.(2) The holders of licences for distribution of natural gas for self-contained areas designated by the inventory referred to in Item 6 of Article 4 (2) herein shall be selected by tendering procedures.(3) The winner of a tendering procedure under Paragraph (1) or Paragraph (2) shall be issued a licence under Article 39 (3) herein.(4) (Supplemented, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Where the winner in a tendering procedure is a non-resident person, not registered in a member country of the European Union, or another country party to the European Economic Area Agreement, the licence shall be issued to a corporation registered under the Commerce Act wherein the non-resident person holds at least 67 per cent of the corporate capital. Any such person shall have no right to transfer the participating interest thereof in the licensee corporation to a third party until the date of commencement of the licensed activity.(5) The public provider shall conclude a contract for purchase of electricity with the winner of the tendering procedure under Paragraph (1).Article 47. (1) A tendering procedure shall be announced by the Commission in accordance with the inventory referred to in Item 5 or 6 of Article 4 (2) herein and shall be held under terms and according to a procedure established by the ordinance referred to in Article 60 herein.(2) The tender documents shall be prepared in accordance with the ordinance referred to in Article 60 herein and shall be endorsed by the Commission. The tender documents shall include a draft licence and, in the case under Article 46 (1) herein, also a drafts a contract for purchase of electricity.(3) The tendering procedure shall be announced by a decision of the Commission which shall be promulgated in the State Gazette not later than six months before the time limit for submission of applications for participation in the tendering procedure. The decision of the Commission announcing the tendering procedure shall be appealable solely together with the decision declaring the winner of the tendering procedure.Article 48. Where no application is received by the time limit for submission of applications for participation in the tendering procedure, or where only a single such application is received, the said time limit may be extended by not more than 60 days reckoned from the date of promulgation of the notice of extension of the time limit in the State Gazette. In such a case, the date of conduct of the tendering procedure shall be changed as well.Article 49. (1) The Commission shall adopt a decision appointing a tender board for conduct of the tendering procedure, chaired by a member of the Commission. The said board shall include employees of the administration of the Commission and, depending of the subject of the tendering procedure, also representatives of the municipalities concerned and interested central- government departments and organizations as well.(2) The tender board shall consider and evaluate the bids of the candidates and shall propose to the Commission to make a decision designating the winner of the tendering procedure.(3) (Amended, SG No. 74/2006) Within 14 days after receipt of the proposal of the tender board, the Commission shall rank the candidates, shall adopt a reasoned decision designating the winner of the tendering procedure and shall issue the respective license thereto.(4) (Amended, SG No. 74/2006) The Commission shall notify the candidates on its decision referred to in Paragraph 3.Article 50. (1) The Commission shall cancel the tendering procedure and shall announce a new tendering procedure where:1. only a single candidate has appeared, or2. the proposals of the candidates are not responsive to the tendering procedure requirements.(2) Should after the tendering procedure is re-announced only a single candidate has appeared, the Commission shall declare the said candidate the winner of the tendering procedure, provided that the said candidate is responsive to the tendering procedure requirements.Section IIIModifications, Supplementations, Terminationand Withdrawal of LicencesArticle 51. (1) A licence may be modified and/or supplemented by a decision of the Commission:1. at the request of the licensee;2. on the Commission's own initiative.(2) The Commission shall have the right to initiate a modification and/or supplementation of a licence as issued in the following cases:1. in order to ensure reliability or uninterrupted and high quality supply of electricity, heat and natural gas to consumers;2. upon change in the relevant legislation;3. to safeguard national security and public order in coordination with the relevant competent state bodies;4. in case of risk to the life and health of citizens, of damage to the environment or to the property of third parties, when this does not necessitate withdrawal of the licence, and/or on a motion by specialized state bodies in pursuance of the powers vested therein;5. should corporate transformation of a licensee or a capital improvement transaction is authorized, where this does not lead to termination of the licence.(3) The Commission shall inform the licensee in writing of the initiation of a proceeding for modification and/or supplementation of the licence under Paragraph (2). Within fourteen days, the licensee may submit a written opinion regarding the grounds for the modification and/or supplementation of the licence.(4) The Commission shall modify and/or amend the licence after expiry of the time limit referred to in Paragraph (3).(5) The licensee may request modification and/or supplementation of the licence in respect of the utilized primary energy sources and/or the technology of energy conversion.(6) The holder of a licence under Article 39 (3) herein, issued after a tendering procedure, may request modification and/or supplementation of the said licence before commencement of the licensed activity solely by reason of occurrence of circumstances beyond the control of the holder.Article 52. (1) The Commission shall authorize the corporate transformation of a licensee through merger by acquisition, merger by the formation of a new company, division by the formation of new companies, division by acquisition, and division by the formation of a wholly owned commercial corporation or through change of the legal form of business organization if the person that will perform the licensed activity after the corporate transformation is responsive to the eligibility requirements for issuance of a licence for the activity.(2) In the cases under Paragraph (1), the Commission shall modify or terminate the existing licence and/or shall issue a new licence depending on the particular case within one month after submission of the application. The termination, modification or issuance of a licence shall become effective as from the date of recording of the corporate transformation in the commercial register.(3) (New, SG No. 74/2006, effective as of the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The termination, modification or issuance of a licence in the Republic of Bulgaria upon any transformation of a legal person, having a licence issued under Article 40, Paragraph 6, shall become effective on the date when said transformation of the legal person under the law of country, where it is registered, becomes effective.Article 53. (1) Capital improvement transactions in any construction works in progress or in any property whereby the licensed activity is performed may be effected solely in their entirety, subject to advance authorization by the Commission, including when the licensee is adjudicated bankrupt.(2) In the cases under Paragraph (1), where the licence is issued for generation of electricity and/or heat and the activity is performed by means of generating capacities (units) which can technologically be operated independently of one other, an individual unit may be the subject of a transaction. In such a case, the original licence shall be modified or supplemented.(3) Where termination or modification of a licence under Paragraph (1) or (2) could lead to disturbance of the security of supply of electricity, heat or natural gas, the Commission shall authorize conduct of the capital improvement transaction provided the transferee under the said transaction has submitted an application and is responsive to the conditions for issuance of a licence for the respective activity. The licence issued to the transferee shall become effective as from the date of the transfer transaction.(4) Where termination or modification of a licence under Paragraph (1) or (2) does not lead to disturbance of the security of supply, the Commission may authorize conduct of the capital improvement transaction regardless of whether the transferee has submitted an application for issuance of a licence.(5) The Commission shall also authorize conduct of the capital improvement transaction in the cases of pledge or mortgage on the property whereby the licensed activity is performed.(6) No authorization shall be required in cases of replacement or modernization, or where such disposition does not lead to change of the terms under which the licensed activity is performed.(7) Any transactions concluded in violation of the foregoing paragraphs shall be declared null and void by the court on a petition by the Commission, the prosecutor, or any interested party.(8) The Commission shall consider the requests covered under Paragraphs (1) to (4) within three months after submission of the application, and the requests referred to in Paragraph (5) within one month.Article 54. (1) No authorization under Article 53 herein shall be required upon privatization of a self-contained part of an energy company.(2) The Commission shall issue a licence to the transferee in a privatization transaction referred to in Paragraph (1) if the said transferee has requested issuance of a licence and is responsive to requirements for issuance of such a licence.Article 55. (1) A licence shall be terminated by a decision of the Commission:1. at the request of the licensee, including upon transfer of the property whereby the licensed activity is performed, under the terms established by Article 53 herein;2. in the event of a total loss of the energy work whereby the licensee performs the activity thereof;3. upon corporate transformation of the licensee, where the said transformation leads to dissolution of the legal person which is the holder of the licence;4. entry into effect of a judgment of court adjudicating the licensee bankrupt or of a judgment on cessation of operation owing to the placing of the licensee in liquidation beside the cases under Article 61 herein.(2) (Amended, SG No. 74/2006) The Commission may, upon written notification, terminate the licence, should the licensee fail to exercise the licensed activity for a period exceeding one year.(3) A licence shall be terminated upon expiry of the term of validity thereof, except in the cases under Article 56 herein.(4) The decision to terminate a licence shall be a precondition for consideration by the competent court of a petition for recording of liquidators upon cessation of the operation of the legal person which is the holder of the licence.(5) In cases of termination of the licence under Item 1 of Paragraph (1) and Paragraph (2) under terms specified in the ordinance referred to in Article 60 herein, the Commission shall have the right to order the licensee to transfer to a third party the property whereby the licensed activity is performed in its entirety or to create a right of use of the said property, should the transferee in the said transaction is a licensee or has submitted an application and is responsive to the requirements for issuance of a licence for the respective activity. In case the licensee fails to transfer the ownership or to create a real right of use within one month after termination of the licence, the provisions of Article 56 (4) to (11) shall apply accordingly.Article 56. (1) Not later than one year before expiry of the term of validity of the licence, the licensee shall be obligated:1. to submit an application for extension of the said term, or2. to notify the Commission that it will not perform the licensed activity after expiry of the said term.(2) Where, after expiry of the term of validity of a licence, the energy work whereby the licensed activity was performed is subject to final decommissioning for technical reasons, the Commission shall extend the term of validity of the licence until the final decommissioning of the said energy work.(3) In the case under Item 2 of Paragraph (1), or should the Commission refuse to extend the term of validity of the licence if cessation of the licensed activity could lead to disturbance of the security of supply of electricity, heat or natural gas to consumers, or a risk to national security and public order could arise, the licensee shall be obligated to transfer the ownership thereof to a third party or to create a right of use of the property whereby the licensed activity is performed solely in its entirety, according to the procedure established by Article 53 (1) and (3) herein.(4) Where the licensee fails to fulfil the obligations thereof under Paragraph (3) not later than 60 days prior to expiry of the term of validity of the licence or the Commission refuses to authorize the capital improvement transaction, the Commission shall appoint a special commercial administrator who:1. shall accept, against a checklist, the works whereby the licensed activity was performed, where the said facilities are transferred thereto for management, effective the first day following the expiry of the term of validity of the licence, and2. shall continue performance of the licensed activity for the account of the licensee until transfer of ownership of the energy works and selection of a new licensee.(5) The special commercial administrator shall be selected by mutual consent of the licensee and the Commission not later than 30 days prior to expiry of the term of validity of the licence. Should no agreement be reached, the special commercial administrator shall be designated by the Commission.(6) The special commercial administrator shall have the right to perform solely activities and transactions directly related to the licensed activity and shall have no right to alienate or encumber any corporeal immovables, as well as to perform any activities determined by the Commission by the act of appointment.(7) The name and address of the special commercial administrator as appointed shall be recorded in the commercial register at the request of the Chairperson of the Commission and shall be promulgated in the State Gazette.(8) After recording of the special commercial administrator in the commercial register, the management bodies of the licensee may perform solely activities related to the preparation and conclusion of a capital improvement transaction under Paragraph (3).(9) In cases of appeal against a refusal by the Commission, the licensee shall continue to perform the activity until the final judgment of the court on the appeal.(10) The circumstances under Paragraph (3) shall be ascertained in coordination with the relevant competent state bodies.(11) Eligibility for appointment as a special commercial administrator shall be limited to persons responsive to the following requirements:1. higher education and professional experience in management of energy companies;2. no conviction, after reaching majority, of a premeditated offence at public law, unless rehabilitated;3. no relations with the licensee give grounds for reasonable doubt as to the impartiality of the said persons.Article 57. (1) In cases where a licensee requests termination of the licence prior to expiry of the term of validity thereof and if cessation of the licensed activity could lead to disturbance of the security of supply of electricity, heat or natural gas to consumers, or a risk to national security or public order could arise, the said licence shall be obligated to continue to perform the licensed activity until issuance of a new license to another person according to the procedure established by Article 56 (3) herein.(2) If no new licensee is selected according to the procedure established by Paragraph (1) during the period of the notice whereby the licensee has requested termination of the licence, the procedure established by Article 56 (4), (5), (6), (7), (9) and (11) herein shall apply, mutatis mutandis.Article 58. (1) Upon submission of an application requesting termination of a licence issued after a tendering procedure, the Commission shall evaluate the request in view of the needs of the national overall forecast energy balance and the secure and reliable supply of energy and natural gas to consumers.(2) The holder of a licence selected by tendering procedure may submit a request for termination of the said licence in case that the said holder has transferred the construction work in progress to a third party, under the terms established by Article 53 (1) herein.Article 59. (1) After a written warning fixing a time limit, the Commission shall withdraw the licence:1. where the licensee fails to perform or violates the obligations thereof under Chapters Six and Seven herein;2. where the licensee fails to perform or violates the obligations there under the licence as issued;3. where the licensee fails to perform within the prescribed time limit or breaches any prescriptions of the control authorities of the Commission or coercive administrative measures imposed by the Commission;4. where the licensee has submitted untrue information which has served as grounds for issuance of the licence.(2) The licence shall furthermore be withdrawn where a licence for operation of a nuclear facility, issued under the Safe Use of Nuclear Power Act, has been withdrawn from the licensee by an effective administrative act.(3) (Amended, SG No. 74/2006) The Commission may withdraw a licence for distribution of natural gas, issued after a tendering procedure, if the licensee fails to construct the relevant natural gas distribution network indicated in the tender thereof within the time limit fixed in the licence. In such a case, a new tendering procedure shall be held according to the procedure established by this Act for the area vacated.(4) The decision to withdraw a licence shall fix a time period during which the person may not apply for issuance of a new licence for the same activity. The said time period may not be shorter than two years.(5) Withdrawal of a licence shall not override the enforcement of administrative or criminal liability for a violation committed, if the preconditions for this exist.(6) By a decision to withdraw a licence, the Commission shall appoints a special administrator vested with powers according to Article 56 (4) until the final judgment of the Supreme Administrative Court, in the event of appeal.Article 60. The terms and procedure for the issuance, modification, supplementation, termination and withdrawal of licences, for the issuance of authorizations under this Chapter, for approval of the general conditions of contracts under this Act, for supply of electricity, heat and natural gas to consumers, as well as for amicable settlement of disputes under Article 22 herein, shall be established by an ordinance adopted by the Council of Ministers on a motion by the Commission.Article 61. The relations associated with the insolvency and bankruptcy of an energy company which has obtained a licence for transmission of electricity, heat and natural gas, for distribution of electricity or natural gas, as well as the persons which have obtained licences for public delivery or public supply of electricity or natural gas using works on the list of energy works of strategic national importance, as approved by the Council of Ministers, shall be regulated by a special law.Chapter FiveREAL RIGHTSSection IBuilding Right. CondemnationArticle 62. (Amended, SG No. 74/2006) (1) Where site and/or linear energy works, as well as ground or underground hydro-technological electricity generation facilities or parts thereof are constructed or expanded on a corporeal immovable constituting private state property or private municipal ownership, the competent state or municipal authorities shall create an onerous building right to the land tract without auction or tendering procedure in favour of the person to operate the energy site.(2) The building right value shall be determined by an independent licensed evaluator, selected by the competent state or municipal authority according to the Public Procurement Act procedure. The value determined by the licensed evaluator shall be taken as the lowest market price that may be paid for the right to build on the specific property.(3) Where site and/or energy works, as well as ground and underground hydro-technological electricity generation facilities or parts thereof have to be constructed or expanded on a corporeal immovable constituting private property, the energy company must acquire in advance and onerously a right or ownership or a building right to the land tract required for construction of the work.Article 63. (1) (Amended, SG No. 74/2006) In case of refusal or of impossibility to implement the activities under Article 62 (3) herein for reasons beyond the control of the energy company, the corporeal immovable shall be condemned.(2) Any condemnation referred to in Paragraph (1) shall be effected under the terms and according to the procedure established by the State Property Act.(3) The energy company may use the corporeal immovable solely for the purposes of the condemnation.Section IIServitudesArticle 64. (1) (Amended and supplemented, SG No. 74/2006) Upon expansion of existing overhead and underground electric power lines of ground and underground hydro-technological electricity generation facilities, heating mains, oil and gas pipelines, and oil-product lines and upon construction of new such lines and mains, servitudes shall arise in favour of the energy companies. Servitudes under this Act shall be reflected in the cadastre and shall be recorded under the terms and according to the procedure established by the Cadastre and Property Register Act.(2) There shall be the following servitudes under this Act:1. a rights of passage of persons and machinery in favour of the energy company;2. (amended and supplemented, SG No. 74/2006) a rights of laying overhead and underground electric power lines of ground and underground hydro-technological electricity generation facilities, heating mains, oil and gas pipelines, and oil-product pipelines in favour of the energy company;3. limitation on use of lots adjoining the energy works.(3) Upon exercise of servitudes:1. the energy company shall acquire the right:(a) (amended and supplemented, SG No. 74/2006) to lay overhead and underground electric power lines, heating mains, gas and oil pipelines, and oil product pipelines in favour of the energy company;(b) for representatives of the energy company, to enter into and pass through the servient estates and to perform activities therein in connection with the operation of energy works, including a right of passage of machinery through the servient estates in connection with the construction and maintenance of overhead and underground lines;2. the following shall be impermissible in the servient estates:(a) building development or plantation of perennial plants in the servitude strip, designated in the ordinance referred to in Paragraph (9);(b) laying of line of other physical-infrastructure networks, except in the cases when this is permissible under a statutory instrument, complying with the relevant technical requirements;3. the change in the ownership of the corporeal immovable shall not terminate the effect of the servitudes in respect of the dominant estate and in respect of the servient estate;4. servitudes shall be inseparable rights; they may be exercised entirely in favour of each part of the dominant estate and shall entirely encumber each part of the servient estate, even where the two estates are separated;5. a servitude may be used solely for the needs of the dominant estate;6. the owner of the servient estate shall have no right to relocate the servitude.(4) Servitudes under Paragraph (2) shall arise when:1. there is an effective detailed plan, whereby the location of the respective corporeal immovables is determined, and2. a lump-sum compensation has been paid to the owner of the immovable whereon the servitude has arisen.(5) The holder of the servitude shall pay a lump-sum compensation to the owner of the land tract.(6) (Supplemented, SG No. 74/2006) The amount of compensations under this Chapter shall be determined according to the procedure established by Articles 210 and 211 of the Spatial Development Act or by mutual consent by both parties with an evaluation by a licensed evaluator.(7) The energy company shall exercise the servitude right conforming to the technical requirements established by the ordinance referred to in Paragraph (9).(8) In case the servitude zone falls within a corporeal immovable in respect of which a building right has been created in favour of the energy company, the servitude on the said corporeal immovable shall be stipulated in the act creating a building right.(9) The size, location and special exercise regime of servitudes shall be specific to the different types of energy works and shall be determined according to a procedure and in a manner provided for in an ordinance of the Minister of Economy and Energy, the Minister of Agriculture and Forestry, and the Minister of Regional Development and Public Works.Article 65. (1) The amount of the compensation referred to in Article 64 (5) herein shall be determined applying the following criteria:1. the surface area of others' lots incorporated within the servitude boundaries;2. the types of limitations on use;3. the period of the limitation;4. the assessed fair market value of the corporeal immovable or of the part thereof which falls within the servitude boundaries.(2) Notwithstanding any compensation referred to in Paragraph (1), the energy company shall be obligated to repair all damages caused to the corporeal immovable or to pay a respective pecuniary compensation.Article 66. The type and location of the energy works and of the surface areas of servient estates incorporated within the servitude boundaries under this Act shall determined in master plans and detailed plans.Article 67. (1) Any representatives of the energy companies and any officials who exercise control under this Act may enter into and pass through others' corporeal immovables and perform activities therein in connection with the operation of the energy works or for control over the said facilities.(2) (Amended and supplemented, SG No. 74/2006) Energy companies shall have the right to use gratuitously bridges, roads, streets, sidewalks and other corporeal immovables constituting public property for the laying, connection, passage and maintenance of overhead and underground electric power lines, heating mains, gas pipelines, water mains for power generation purposes, oil and oil product pipelines, while ensuring technical safety and taking measures for prevention of detriment.(3) Energy companies shall use gratuitously parts of buildings for installation of metering devices and other equipment related to delivery of electricity, heat and natural gas.(4) Owners of the corporeal immovables covered under Paragraphs (1) to (3) shall be entitled to compensation for any detriment sustained.Article 68. (1) Where an owner, user or lessee of the corporeal immovable performs unauthorized building development, enclosure, planting or any other violation of the servitude exercise regime, the energy company shall have the right to approach the competent authorities with a request for removal of the illegal construction works for the account of the said owner, user or lessee, unless the said owner, user or lessee removes the said works within a time limit set by the energy company.(2) In the cases under Paragraph (1), the energy company shall not owe any compensation for the damage sustained.Chapter SixPUBLIC OBLIGATIONSArticle 69. Energy companies shall be obligated to perform the operation thereof in the interest of the public and of the individual consumers and in accordance with the requirements established by this Act and the other statutory instruments, ensuring the security of supply, the non-interruption and the quality of electricity, heat and natural gas, the efficient utilization of fuels and energy, the protection of the environment, the life, health and property of citizens.Article 70. (1) The Minister of Economy and Energy may impose additional public service obligations on energy companies.(2) Additional obligations referred to in Paragraph (1) shall be imposed, where related to:1. non-interruption of deliveries of electricity, heat and natural gas, and2. protection of the environment: in consultation with the Minister of Environment and Water.(3) The additional obligations referred to in Paragraph (1) shall be imposed by an order stating:1. the person whereon the obligation is imposed;2. the content of the obligation;3. the time limit and terms under which the obligation must be performed;4. other terms and conditions.(4) Any supplementary costs incurred by the energy companies under Paragraph (3) shall be allowed as expenses under Article 35 herein.Article 71. (Supplemented, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The energy companies managing the electric power grid, carrying out transmission of electricity, heat and natural gas or for distribution of electricity and natural gas, which provide a universal service and which have a dominant position on the market within the meaning given by the Protection of Competition Act, shall be subject to the provisions of the said Act insofar as this does not prevent them, de facto or de jure, from performing the obligations assigned thereto.Chapter SevenSCHEDULED OUTAGE REGIME, TEMPORARY INTERRUPTION OR LIMITATIONArticle 72. (1) A scheduled outage regime for the supply of electricity, heat or natural gas may be introduced whenever the said supply has to be limited or interrupted for a duration exceeding 48 hours within the entire national territory or any part thereof as a result of:1. force majeure;2. occurrence, or for prevention, of breakdowns of facilities for generation and transmission of electricity, heat or natural gas and for distribution of electricity and natural gas;3. a sustained shortage of power generation facilities or energy resources;4. measures ordered by state bodies regarding an alert status or in case of hostilities;5. terrorist acts.(2) The Minister of Economy and Energy or a Deputy Minister empowered thereby shall be the authority competent to make decisions on introduction of a scheduled outage regime within the national territory.(3) The mayors shall designate a scheduled outage regime for heat and natural gas within the territory of the municipality after consultation with the Minister of Economy and Energy, in accordance with the ordinance referred to in Article 74 (1) herein.(4) The introduction of a scheduled outage regime or of the restrictive conditions under Paragraphs (1) to (3) shall be announced by the Minister of Economy and Energy through the mass communication media.Article 73. (1) The operators of the electric power grid, of the heat transmission network, of the natural gas transmission network, or the relevant distribution network operator may order a suspension or limitation of the generation or supply of electricity, heat or natural gas without prior notification of producers and consumers:1. upon occurrence, or for prevention, of breakdowns;2. where human health or life is endangered;3. where the integrity of the electric power grid, the heat transmission system or the natural gas transmission system is endangered;4. in case the system, respectively the network or the consumers, risk sustaining substantial physical damage;5. in case of risk of excessive environmental pollution, on a motion by the competent authorities within the meaning given by Article 10 (1) of the Environmental Protection Act ;6. upon limitation of deliveries of natural gas for reasons beyond the control of the transmission company.(2) The operators covered under Paragraph (1) shall be obligated to notify in advance producers and consumers of the time and duration of the interruption or limitation upon performance of repair works, operating switchovers, commissioning of new facilities and other such schedulable activities.(3) The duration of an interruption or limitation under Paragraph (1) may not exceed 48 hours.Article 74. (1) The procedure for introduction of a scheduled outage regime, temporary interruption or limitation of generation or supply of electricity, heat and natural gas shall be established by an ordinance of the Minister of Economy and Energy.(2) Energy companies shall not be liable to pay compensation for any damages inflicted as a result of a scheduled outage regime, temporary interruption or limitation of generation or supply of electricity, heat or natural gas with the exception of the cases where the breakdowns or sustained shortage has occurred through the fault of the said companies.Chapter EightCONTROL IN THE ENERGY SECTORArticle 75. (1) (Amended, SG No. 74/2006) The Minister of Economy and Energy shall exercise preventive, current and follow-up control over:1. (amended, SG No. 74/2006) the technical condition and the operation of the energy works;2. application of the procedure and technical terms for heat supply, disconnection of heat delivery and application of share allocation of heat;3. fulfilment of the obligation to build and store stocks of fuels required for secure and uninterrupted energy supply;4. the readiness of the energy works to operate in emergency and in wartime;5. (amended, SG No. 74/2006) fulfilment of the obligations under this Act to provide information to the Ministry of Economy and Energy.(2) The Commission shall exercise control over:1. compliance with the terms of the licences as issued;2. application of the prices referred to in Article 30 (1) herein;3. (repealed, SG No. 74/2006);Article 76. (1) The Commission shall control the conformity of the licensed activities performed with the conditions of the licences as issued.(2) The Commission shall exercise preventive, current and follow-up control.(3) The Commission shall exercise preventive control over the procedures for issuance of licences under this Act.(4) The Commission shall exercise current control over the conformity of the performance of the licensed activity with the licence conditions, including:1. compliance with the requirements for security of deliveries of electricity, heat and natural gas and for efficient use of energy and energy resources;2. fulfilment of the obligations to provide access to the networks;3. application of the prices endorsed by the Commission;4. fulfilment or readiness to fulfil additional obligations for cessation of the licensed activity after expiry of the term of validity of the licence or upon termination of the said licence, as well as for decommissioning of energy works;5. fulfilment of the obligations to insure the property whereby the licensed activity is performed or to fulfil the financial security obligations;6. fulfilment of the obligations to provide information to the Commission;7. fulfilment of the obligations to provide information to the relevant system operator;8. checking the justifiability of complaints and alerts against energy companies, including breaches of contracts, non-fulfilment of obligations for connection of producers and consumers to the networks, or interruption of energy or natural gas supply;9. other conditions specified in the licence.(5) The Commission shall exercise follow-up control over the implementation of recommendations and prescriptions issued to licensees.Article 77. (1) In exercise of the control powers thereof, the Minister of Economy and Energy shall:1. conduct inspections through persons authorized thereby;2. notify the specialized control authorities with a view to taking measures within the scope of the competence of the said authorities;3. impose coercive administrative measures and administrative sanctions provided for by this Act.(2) In exercise of the control powers thereof, the Commission shall:1. conduct inspections through persons authorized thereby;2. notify the specialized control authorities with a view to taking measures within the scope of the competence of the said authorities;3. suspend the operation, modify or withdraw a licence as issued;4. impose coercive administrative measures and administrative sanctions provided for by this Act.(3) The Minister of Economy and Energy or the Commission, as the case may be, shall have the right to demand from persons inspected to provide information regarding the operation thereof, the documents required in connection with the exercise of control and, where necessary, to approach the specialized control authorities for assistance.Article 78. (1) The persons who conduct inspections and who draw up statements ascertaining violations committed shall be designated by an order of the Minister of Economy and Energy or by the Chairperson of the Commission depending on the competence vested therein under this Act.(2) The persons referred to in Paragraph (1), hereinafter referred to as the "control authorities," shall have the right:1. to unimpeded access to the persons and works controlled thereby for inspection;2. to demand from the relevant officials to produce the required data, information, explanations, operating and other information, including the performance or the commissioning of performance of expert assessments, measurements and tests in order to clarify the technical conditions and the service conditions of the work, including the licensed competence of the personnel, as well as any other information relevant to ensuring compliance with the conditions of the licence;3. to conduct cross-checks and to demand from third parties to provide information and documents required for conduct of such cross-checks;4. to make proposals for issuance of mandatory prescriptions;5. to make proposals for imposition of coercive administrative measures and administrative sanctions.(3) The person inspected shall be obligated to ensure all conditions required for the normal conduct of the inspection and to cooperate with the control authorities and, to this end:1. provide a place for conduct of the inspection or present himself or herself at the building of the Ministry or of the Commission, as the case may be;2. designate an employee thereof to liaise with and render assistance to the officials who conduct the inspection;3. provide access to official premises;4. produce all accounting, business and other documents required for establishment of facts and circumstances relevant to the scope of the inspection;5. provide written explanations at the request of the control authority.(4) The prescriptions issued by control authorities in exercise of the powers vested therein under this Act shall be mandatory.Article 79. (1) The control authorities shall be obligated to safeguard any official, production and commercial secrets that have come to the knowledge thereof in the course of or in connection with the implementation of control activities.(2) The control authorities shall perform the activity thereof independently or, where necessary, jointly with other specialized control authorities.Article 80. (1) The control authorities shall draft a memorandum on the results of each inspection, attaching thereto the data, documents and explanations collected.(2) Any such memorandum shall be signed by the drafter and the person inspected or, should the latter refuse to sign, by two witnesses of the refusal.(3) On the basis of the results of the inspection, the control authorities may issue mandatory prescriptions to the persons inspected by the memorandum and/or draw up statements ascertaining administrative violations.(4) The persons who are issued mandatory prescriptions shall notify the control authorities of the compliance with the said prescriptions within the time limit appointed thereto.Article 81. The State and municipal bodies and the administrations thereof, as well as any persons obligated under the law, shall be obligated to cooperate with the control authorities bodies in the exercise of the powers vested therein.Chapter NineELECTRICITY INDUSTRYSection IElectric Power GridArticle 82. (1) All electricity works within the national territory shall be connected and shall function with an integral electric power grid with a common mode of operation and uninterrupted process of electricity generation, conversion, transmission, distribution and consumption.(2) The electric power grid shall comprise the electric power plants, the transmission network, the individual distribution networks, and the electric wiring systems of consumers.(3) (Supplemented, SG No. 74/2006) The parallel operation of Bulgaria's electric power grid with other power grids and pools of grids shall be implemented in accordance with the effective international electricity industry instruments and in compliance with the technical standards and reliable and safe operation requirements.Article 83. (1) The power grid shall be structured and operated according to standards provided for in:1. an ordinance on the structure of electric fixtures and electric power lines, which shall regulate the technical standards for design and construction of electric fixtures and electric power lines;2. an ordinance on the operation of electric power plants and networks, which shall regulate the terms and procedure for organization and operation of: electric power plants and networks, of power plants for generation of electricity and/or heat, of heat transmission networks, of the hydraulic engineering facilities of power plants and the mechanical parts thereof (and the management and operation of electric power plants and networks);3. an ordinance on the operation of power equipment, which shall regulate the rules for maintenance of the serviceability and the rules for safe operation of the electric fixtures and facilities of consumers;4. rules for operation of the electric power grid, which shall regulate the rights and obligations of the transmission company, the electric power grid operator, and the persons connected to the transmission network in connection with a planning of the development of the transmission network, the planning and management of the mode of operation of the electric power grid, the procedures for mandatory data exchange, the procedure for early warning and exchange of information, the development and implementation of a protection plan and a recovery plan for the electric power grid, terms and procedure for conduct of system wide tests and for provision of ancillary services;5. (amended, SG No. 18/2004) rules for management of distribution networks, which regulate the rights and obligations of the distribution company, the distribution network operator and the persons connected to the relevant network in connection with a planning of the development of the network, planning and management of the mode of operation of the distribution network, the procedures for mandatory data exchange, the procedure for early warning and exchange of information, the development and implementation of a local protection plan and for provision of ancillary services;6. rules for electricity metering, regulating the metering principles, the metering methods and sites, the terms and procedure for servicing of the said sites, as well as the building and maintenance of data bases of the readings of commercial metering devices.(2) The ordinances referred to in Items 1 to 3 of Paragraph (1) shall be issued by the Minister of Economy and Energy. The rules referred to in Items 4 to 6 of Paragraph (1) shall be adopted by the Commission on a motion by the energy companies.(3) The technical rules and standard specifications for design, construction and use of facilities and installations for electricity generation, conversion, transmission and distribution shall be established by an ordinance of the Minister of Regional Development and Public Works and the Minister of Economy and Energy.Section IIElectricity GenerationArticle 84. Electricity may be generated by energy companies licensed for generation according to the procedure established by this Act, except in the cases under Item 1 of Article 39 (4) herein.Article 85. (1) (Supplemented, SG No. 74/2006) Electricity producers shall be obligated to maintain stocks of fuels, including local hard fuels, in quantities guaranteeing sustained and reliable generation.(2) (Amended, SG No. 74/2006) The terms and procedure for the building, maintenance of stocks of fuel and control shall be established by an ordinance of the Minister of Economy and Energy.Section IIIElectricity Transmission and Electric Power Grid Management(Title amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning theAccession of the Republic of Bulgaria to the European Union) Article 86. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission of electricity shall be implemented by a transmission company which owns the transmission network and which has been licensed for transmission of electricity.(2) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The licensee may assign, through an agreement, the transmission operation and maintenance only to the electric power grid operator, who has obtained an electric power grid management licence.(3) (Renumbered from Paragraph 2, amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Electricity transmission and transformation shall be a universal service, managed by the electric power grid operator.Article 87. (1) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company shall ensure the expansion, reconstruction, and modernisation of the transmission network, in accordance with the long-term electric power industry development forecasts and plans.(2) (Renumbered from Paragraph 1, amended, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall ensure:1. integrated management of the electric power grid and reliable functioning of the transmission network;2. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) transit transmission of electricity through the transmission network;3. maintenance of the facilities and installations of the transmission network in accordance with technical requirements and with safe operation requirements;4. (repealed, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) ;5. maintenance and development of auxiliary networks.(3) (Renumbered from Paragraph 2, amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For preparation of the national electric energy balance, the electric power grid operator shall:1. elaborate short-term and long-term forecasts of changes in consumption of electricity in Bulgaria;2. organize the conduct of assessments of the feasibility of expansion and modernization of the transmission network with a view to the commissioning of new generating capacities, decommissioning of existing generating capacities, connecting new consumers to the transmission network, the expected increase in the quantity of electricity transmitted, implementation of new technologies ensuring better quality and security of the services provided and efficiency of the operation; the said assessments shall be accompanied by a feasibility study and an environmental impact analysis;3. prepare short-term, medium-term and long-term forecasts and plans for expansion and modernization of the transmission network and for development of auxiliary networks;4. prepare shot-term and long-term plans for development of the electric power grid with a view to ensuring the electric energy balance;5. (amended and supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) on the basis of the assessments, forecasts and plans, prepare a draft national electric energy balance and a list of the sources, including new generating capacities and intersystem electric power lines, required to meet national demand, and submit the said draft to the Minister of Economy and Energy.Section IVElectricity DistributionArticle 88. (1) The distribution of electricity and the operation of distribution networks shall be implemented by distribution companies which own the distribution networks within a self-contained area, licensed for distribution of electricity within the relevant area.(2) (Amended, SG No. 74/2006) Electricity distribution shall be a universal service.Article 89. The distribution company shall ensure for the area serviced by the distribution network:1. distribution of the electricity entering the distribution network;2. non-interruption of electricity supply and high quality of the electricity delivered;3. management of the distribution network;4. maintenance of the distribution network, the facilities and installations and the auxiliary networks in accordance with technical requirements;5. expansion, redevelopment and modernization of the distribution network and auxiliary networks;6. other services.Article 90. The distribution company shall:1. assess the prospects for economic development and changes in electricity consumption within the relevant area;2. prepare short-term and long-term plans for development of the distribution network;3. submit the results of the assessments and the plans as prepared under Items 1 and 2 to the transmission company.Section VCommercial Relationships. Parties to Electricity TransactionsArticle 91. (1) Transactions in electricity may be concluded at prices regulated by the Commission, at prices freely negotiated between the parties, and on an organized electricity market.(2) Transactions in electricity shall be effected in compliance with the provisions of this Act and the electricity trading rules (Market Rules) adopted by the Commission on a motion by the energy companies.(3) (Amended, SG No. 74/2006) The rules referred to in Paragraph (2) shall establish the manner of transaction administration and of organization and operation of the balancing market for electricity, as well as the organisation of the balancing group types and the activities of balancing group coordinators.(4)(New, SG No. 74/2006) The Commission, taking into account all results achieved from the electric power grid and the electricity market operation, as well as all procedures regulated in the electricity trading rules, after proposal by the energy companies, shall amend or repeal, and then accept new electricity trading rules, observing the equal-treatment and all-party interest balance principles.Article 92. (Amended, SG No. 74/2006) Parties to electricity transactions shall be:1. the public provider of electricity;2. (repealed, SG No. 74/2006, effective 1.07.2007);3. the electricity producers;4. (amended, SG No. 74/2006) the consumers, including eligible consumers;5. the transmission company;6. the distribution companies;7. the electricity traders;8. (amended, SG No. 74/2006, on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) the electric power grid operator;9. (new, SG No. 74/2006, effective 1.07.2007) the end supplier.Article 93. (1) (Supplemented, SG No. 74/2006, repealed, SG No. 55/2007, effective 1.07.2007) Article 93a. (New, SG No. 74/2006, effective 1.07.2007) (1) The public provider shall purchase electricity from producers, connected to the transmission network, on long-term availability and electricity purchase agreements, as well as electricity produced from renewable energy sources, from high-efficiency combined electricity and heat generation, and the quantity of electricity, defined under Article 4, Paragraph 2, Item 8.(2) The public provider may purchase electricity, defined within the availability under Article 21, Paragraph 1, Item 17a, in order to provide electricity to end suppliers.Article 94. (Repealed, SG No. 55/2007, effective 1.07.2007). Article 94a. (New, SG No. 74/2006) (1) The end supplier shall ensure provision of electricity at a certain quality and reliability level to home consumers and companies having less than 50 employees and annual turnover of less than 19.5 mil. BGN, according to the rules under Article 21, Paragraph 1, Item 7a.(2) Electricity supply under Paragraph 1 shall be an universal service under this Act, provided on the basis of equal-treatment.(3) The end supplier shall purchase electricity produced using renewable energy sources and using high-efficiency combined electricity and heat generation from producers, connected to the distribution network.Article 95. Eligible consumers shall be electricity consumers responsive to the eligibility requirements established in the rules referred to in Article 24 (2) herein, which shall have the right to choose the person wherefrom they purchase electricity.Article 96. (Amended, SG No. 74/2006, effective 1.07.2007) Electricity traders shall be persons licensed for the operation thereof, responsive to the requirements for financial security of the electricity transactions concluded thereby as established in the rules under Article 24 (2) herein.Article 96a. (New, SG No. 74/2006) Balancing group coordinator shall be a person, having licence issued for any activity under Article 39, Paragraph 1, Item 1, 2, 3, 5, 6, 7, 8, 10 or 11, meeting financial guarantee requirements for any transactions executed by this person, the requirements set forth in the rules under Article 91, Paragraph 1, and registered by the electric power grid operator.Section VITransactions at Regulated PricesArticle 97. (1) Transactions in electricity at prices regulated Commission shall be concluded between:1. (repealed, SG No. 74/2006, effective 1.07.2007);2. (repealed, SG No. 74/2006, effective 1.07.2007);3. (repealed, SG No. 74/2006, effective 1.07.2007);4. (repealed, SG No. 74/2006, effective 1.07.2007);5. (amended, SG No. 18/2004, repealed, SG No. 74/2006, effective 1.07.2007);6. (repealed, SG No. 74/2006, effective 1.07.2007) ;7. (amended, SG No. 74/2006) the producers and the transmission company, the public provider and the distribution companies, respectively, for the electricity needed to compensate the technological losses of transmission or distribution, respectively.8. (new, SG No. 74/2006, effective 1.07.2007) the producers and the end suppliers, or the public provider for the electricity defined by the Commission within the availability under Article 21, Paragraph 1, Item 17a;9. (new, SG No. 74/2006, effective 1.07.2007) the public provider and the end suppliers for the electricity defined by the Commission within the availability under Article 21, Paragraph 1, Item 17a;10. (new, SG No. 74/2006, effective 1.07.2007) end suppliers, home consumers, and the companies having less than 50 employees and less than 19.5 mil. BGN annual turnover, who have not exercised their right to select their electricity provider.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union, repealed, SG No. 55/2007, effective 1.07.2007) (3) (Repealed, SG No. 55/2007, effective 1.07.2007). (4) (New, SG No. 74/2006) The electric power grid operator shall execute transactions with the neighbouring system operators to mutually compensate the transboundary electricity streams.Article 98. (Repealed, SG No. 55/2007, effective 1.07.2007). Article 98a. (New, SG No. 74/2006, effective 1.07.2007) (1) The end supplier shall sell electricity under publicly known general conditions.(2) These general conditions shall include:1. information, provided by the supplier;2. the agreement term;3. the supply termination or suspension terms;4. the energy company liability upon failure to meet the general terms.(3) The end electricity supplier shall publish its general conditions in at least one national and one local daily publication.(4) The general conditions become effective for all consumers, purchasing electricity from the end supplier, without the need of express written acceptance.(5) Within 30 days after the general conditions become effective, consumers, who do not agree with them, shall have the right to submit to their respective end electricity supplier a request proposing special conditions. The special conditions, accepted by the end electricity supplier, which differ from the published general conditions, shall be reflected in written annexes.Article 98b. (New, SG No. 74/2006, effective 1.07.2007) (1) (Amended, SG No.55/2007, effective 1.07.2007) The end electricity supplier consumers shall use the distribution networks that they are connected to, under publicly known general conditions.(2) These general conditions shall include:1. information, supplied by the distribution company;2. the supply termination or suspension terms;3. the supply quality and reliability conditions;4. the energy company's liability upon any unregulated suspension or low-quality supply.(3) The distribution company shall publish its general conditions in at least one national and one local daily publication.(4) The general conditions become effective for all consumers, purchasing electricity from the end supplier, without the need of express written acceptance.Article 98c. (New, SG No. 55/2007, effective 1.07.2007) (1) The relationships between the end supplier and the distribution company in connection with the electricity supply for the consumers connected to the distribution networks shall be regulated by the rules for trade in electricity.(2) The relationships under Articles 98a and 98b between the home consumers and the companies with less than 50 employees and an annual turnover of less than 19.5 mil. BGN, on the one hand, and the end supplier and the distribution company, on the other hand, shall be regulated by a general contract in accordance with the rules for trade in electricity.Article 99. (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) For the purposes of balancing electricity production and demand, the electric power grid operator shall organize a balancing market for electricity in accordance with the rules referred to in Article 91 (2) herein.(2) The electric power grid operator shall be party to all balancing transactions in electricity.(3) The electric power grid operator shall execute balancing transactions in electricity with domestic or foreign suppliers to balance the electric power grid.(4) The electric power grid operator shall execute transactions with balancing group coordinators to settle their imbalances.(5) The electric power grid operator shall settle all transactions and mutual obligations between the balancing energy market participants in accordance with the rules under Article 91, Paragraph 2.Section VIITransactions at Freely Negotiated PricesArticle 100. (1) Electricity producers, electricity traders and eligible consumers may conclude between them transactions in electricity at freely negotiated prices.(2) (Repealed, SG No. 74/2006, effective 1.07.2007) .(3) (Repealed, SG No. 74/2006, effective 1.07.2007) .(4) (New, SG No. 74/2006, effective 1.07.2007) The public electricity provider shall sell any electricity purchased under Article 93a at freely negotiated prices. In this case, the public provider shall have the right to claim reimbursement for its costs before the Commission under Article 34 and Article 35.Article 101. (1) For an identical period of time fixed in the rules referred to in Article 91 (2) herein, eligible consumers may conclude transactions at freely negotiated prices and/or prices regulated by the Commission in the cases provided for in the said rules.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company shall receive validated data on the metered quantities of electricity by the commercial metering device owners under the procedures and within the timeframes regulated in the rules under Article 83, Paragraph 1, Item 6 and Article 91, Paragraph 2.Article 102. (Amended, SG No. 74/2006) Electricity producers, traders, the public provider, the public suppliers, the end suppliers, and the eligible consumers may conclude electricity transactions with resident persons of a European Union member country, or persons registered in a country, with which the Republic of Bulgaria has an agreement under an international act for mutual application of the respective European Communities law, when:1. electricity producers, traders, the public provider, the public suppliers, the end suppliers and the eligible consumers are granted the right to free trade in electricity according to the legislation of the other State, and2. on conditions of reciprocity, the legislation of the other State provide for an opportunity for free trade in electricity for eligible consumers of the said State.3. provided that all home consumers and companies having less than 50 employees and less than 19.5 mil. BGN annual turnover have been provided with the electricity they need at certain quality indicators and transparent and reasonable prices.Article 103. (1) Transactions in the organized electricity market shall be concluded according to the electricity trading rules referred to in Article 91 (2) herein.(2) An electricity market shall be organized by a person licensed under Item 6 of Article 39 (1) herein, which shall:1. organize the solicitation of offers for sale and purchase of electricity;2. match the offers for sale and purchase for the relevant period until the demand is met;3. inform the market participants and the electric power grid operator of the transactions on the organized market and take into consideration the limitations and changes dictated by limitations of the transmission capacity or by emergency situations in the networks;4. set a price of the electricity traded for each period.(3) (Repealed, SG No. 74/2006, effective 1.07.2007).Section VIIITransmission, Access, Ancillary Services and Cold Reserve Transactions(Title amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Article 104. (Amended, SG No. 74/2006, effective 1.07.2007) (1) Users of the relevant network, excluding the end supplier's consumers, shall execute a transaction governing their relationships, concerning their network usage and the transmission of any quantities of electricity fed to the network or consumed by the network, with the transmission and/or distribution company.(2) Users of the relevant network, excluding the end supplier's consumers, shall execute a transaction governing their relationships, concerning network access, with the electric power grid operator and/or the distribution company.(3) (Amended, SG No. 55/2007) The terms, the procedure, and the ratio for the payment of all prices under Paragraph 1 and Paragraph 2 by users of relevant networks shall be set forth in the rules for trade in electricity.Article 105. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For the purpose of guaranteeing the reliable operation of the electric power grid, the electric power grid operator shall conclude ancillary-services and cold-reserve transactions under the terms and according to the procedure established by Article 83, Paragraph 1, Item 4 and Article 91, Paragraph 2 herein with suppliers within or outside the country.(2) The cold reserve referred to in Paragraph (1) shall be procured through availability purchase transactions in quantities determined on the basis of the level of reliability of electricity supply under Item 4 of Article 4 (2) herein.(3) The terms and procedure for purchase of the quantities of cold reserve referred to in Paragraph (2) shall be established by the rules referred to in Item 4 of Article 83 (1) herein.(4) (New, SG No. 74/2006) The net electricity from an activated cold reserve shall be paid on terms, procedure, and price, set forth in the rules under Article 91, Paragraph 2.Article 106. For the purpose of guaranteeing the reliable operation of the distribution networks, the distribution companies shall conclude ancillary-services transactions under the terms and according to the procedure established by Item 4 of Article 83 (1) herein.Article 107. (Amended, SG No. 74/2006, SG No. 59/2007) The public provider, the electricity system operator, the public suppliers, the suppliers of last resort, the transmission company and the distribution companies shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure for the receivables thereof for electricity provided or transmitted, as well as for the services rendered thereby under this Act, regardless of the amount of the said receivables.Section IXOperational ManagementArticle 108. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The centralized operational planning, coordination, and management of the electric power grid shall be performed by the electric power grid operator and by the operators of each of the distribution networks.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall be a separate legal person, having obtained an electric power grid management licence.(3) The operational management and the ensuring of the reliable functioning of the distribution networks shall be performed by the operators of the respective networks.(4) The operators of the distribution networks shall be specialized units of the distribution companies.Article 109. (1) The electric power grid operator shall be obligated to ensure:1. secure, safe and efficient functioning of the electric power grid;2. maintenance of the balance between electricity generation and consumption;3. implementation of the joint operation of the national electric power grid with the electric power grids of other countries in accordance with international treaties;4. non-discriminatory access to electricity transmission in compliance with quality requirements;5. secure and efficient functioning of the auxiliary networks.(2) (Supplemented, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The directives of the electric power grid operator, related to the fulfilment of the obligations assigned thereto by this Act, shall be mandatory for the operators of the distribution networks and the electricity producers and the electricity consumers connected to the transmission network, and for the other companies of the vertically integrated company in the cases when the electric power grid operator is part of a vertically integrated company.(3) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall set forth a coordinated schedule for planned downtimes of the generation capacities and the transmission network components based on maximum reliability criterion.Article 109a. (New, SG No. 74/2006) (1) When the electric power grid operator is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the vertically integrated company's other activities.(2) In order to ensure the electric power grid operator's independence under Paragraph 1, any persons responsible for the management, including operational management of the electric power grid:1. may not take part in the management of the other companies in the vertically integrated company, performing electricity generation, distribution, public delivery, public supply and trade;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The electric power grid operator shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation, and shall designate an employee, responsible for the control over this programme's implementation.(4) The electric power grid operator shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 110. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) For the purposes of metering the quantities of electricity, the transmission company shall ensure:1. technical and metrological support, development and modernization of the commercial metering devices for the quantity of electricity entering and leaving the transmission system;2. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) maintenance of data bases of the readings of the quantity of electricity referred to in Item 1, taken by commercial metering devices.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Owners of commercial metering devices for quantities of electricity shall make available the readings of the said devices to the electric power grid operator, needed by the latter to carry out its activities under Article 111.(3) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The parties to electricity transactions shall have the right to receive information from the electric power grid operator's data base regarding the quantities of electricity traded by the said parties under the transactions.Article 111. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall administrate electricity transactions, executed on regulated and freely negotiated prices, and shall organise a balancing market for electricity according to the rules referred to in Article 91, Paragraph 2, and to this end shall:1. (amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) keep registers of the persons concluding transactions on the market for electricity;2. keep registers of the contracts concluded between the persons referred to in Item 1;3. receive, arrange on priority lists according to price and technological criteria, and activate proposals and orders for purchase and/or sale of balancing electricity;4. apply a method for computation and fix balancing electricity prices for each settlement period;5. prepare advance and final notices of the amounts due for balancing electricity from the participants for each settlement period;6. control the financial security of balancing transactions in electricity and issue mandatory instructions to market participants in connection with this;7. have the right, upon occurrence of circumstances endangering the secure operation of the electric power grid or of parts thereof, to suspend the performance of transactions or to change the quantities of electricity contracted there under, under terms and in a manner described in the rules referred to in Article 91 (2) herein;8. provide information regarding forecast consumption of electricity, transmission system limitations, references about balancing electricity prices in prior periods, and other information as may be required by the participants.(2) The costs incurred in connection with the performance of the functions covered under Paragraph (1) shall be allowed as economically justified costs under Item 2 of Article 31 herein.Article 112. (1) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall regulate the distribution of the electric load of the electric power grid among the electric power plants under technical and economic criteria.(2) (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) In the process of distribution of the electric load, the electric power grid operator shall ensure compliance with the contracts as concluded which provide for mandatory purchase of part or all of the electricity generated under this Act.(3) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) When dividing the throughput of any network components, the electric power grid operator shall observe technical and economic rules to ensure equal access and following its network safety and public availability of information obligations.(4) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator shall have the right to sanction any violators of any network-user negotiated technical requirements for the reliable operation of the electric power grid.Article 113. (1) Distribution network operators shall be obligated to ensure:1. reliable, safe and efficient functioning of the relevant distribution network;2. reliable and efficient functioning of the auxiliary networks;3. non-discriminatory access to electricity transmission in compliance with quality requirements;4. non-discriminatory treatment of the producers and of the consumers connected to the network.(2) (Supplemented, SG No. 74/2006) The directives of the distribution network operator, related to the fulfilment of the obligations assigned thereto by this Act, shall be mandatory for the operational personnel on duty at energy works and the electricity producers directly connected to the relevant distribution network and for the other companies in the vertically integrated company, in the cases when the distribution company is part of a vertically integrated company.Article 113a. (New, SG No. 74/2006) (1) When the distribution company is part of a vertically integrated company, its activities shall be independent in terms of legal organisational form and decision making from the other activities, which are not related to distribution.(2) In order to ensure the distribution company's independence under Paragraph 1, any persons responsible for the management, including operational management of the distribution networks:1. may not take part in the management of the other companies in the vertically integrated company, performing electricity generation, transmission, public delivery, public supply and trade;2. shall take independent decisions in the course of their duties under this Act;3. shall not allow discriminatory actions in the course of their duties under this Act;(3) The distribution company shall prepare a programme, setting forth measures to achieve the goal under Paragraph 1 and Paragraph 2, containing specific obligations for the employees for its implementation. The distribution company shall designate an employee, responsible for the control over this programme's implementation.(4) The distribution company shall prepare an annual report on all measures under Paragraph 3, which shall be presented to the Commission by the designated employee and shall be published in the bulletin under Article 15, Paragraph 1.Article 114. (Amended, SG No. 74/2006) The electric power grid and the distribution network operators shall be obligated to respect the confidentiality of any information, constituting commercial secret, obtained in the course of or in connection with the fulfilment of the obligations thereof. The operators shall provide information on their activities on equal-treatment basis.Article 115. The terms and procedure for performance of the activity of the electric power grid operator and the distribution network operators, as well as of the operational personnel on duty at electricity works and the electric fixtures of consumers, shall be established by an ordinance of the Minister of Energy and Energy Resources.Section XConnecting Producers and Consumers to Networks.Access to NetworksArticle 116. (1) The transmission company or distribution company, as the case may be, shall be obligated to connect any electricity producer located within the relevant area which:1. has concluded a written contract with the transmission company or distribution company, as the case may be, at a connection price fixed according to the relevant ordinance referred to in Article 36 (3) herein;2. has fulfilled the conditions for connection to the transmission or distribution network, and3. has electric fixtures built within the boundaries of the said producer's own corporeal immovable or of a corporeal immovable where within the said producer enjoys a building right, and the said fixtures conform to technical standards and to safe operation requirements.(2) The transmission company shall be obligated to connect facilities of the distribution companies under the terms established by Paragraph (1).(3) The transmission company or the relevant distribution company shall be obligated to implement the expansion and redevelopment of the transmission network or distribution networks related to connection of electric power plants up to the interconnection point.(4) The transmission company or distribution company, as the case may be, shall own the expansion or redevelopment implemented as referred to in Paragraph (3).(5) In cases where the interconnection point is not located on the property boundaries of the electric fixtures of the producer, the high- voltage or medium-voltage electric power lines connecting the said fixtures shall be built by the transmission company or distribution company, as the case may be, which shall own the said lines.(6) The electricity generated shall be metered by commercial metering devices owned by the transmission company or distribution company, as the case may be, with the requirements that the said devices must satisfy and the location site thereof being established by the rules referred to in Item 6 of Article 83 (1) herein.(7) The terms and procedure for connection to the relevant network, for suspension of the connection or electricity supply, and the property boundaries between the electric facilities shall be established by an ordinance of the Minister of Energy and Energy Resources.Article 117. (1) The transmission company or distribution company, as the case may be, shall be obligated to connect any facility of a electricity consumer located within the relevant area which:1. has electric fixtures built within the boundaries of the said producer's own corporeal immovable or of the corporeal immovable of the said consumer which conform to the technical standards and to safe operation requirements;2. has satisfied the conditions for connection to the transmission network or distribution network, as the case may be, and3. has concluded a written contract with the transmission company or distribution company, as the case may be, at a connection price fixed according to the relevant ordinance referred to in Article 36 (3) herein.(2) The distribution company may connect an electricity consumer located within the area of another distribution company, wherever that is technically and economically advisable and in the interest of consumers.(3) The terms and procedure for connection to the transmission or distribution network and for conclusion of the contracts referred to in Paragraph (1) shall be regulated by the ordinance referred to in Article 116 (7) herein.(4) The refusal of the energy company to perform a connection shall have to be reasoned.(5) (Supplemented, SG No. 74/2006) High-voltage and medium-voltage electric fixtures and/or lines, which are used to supply electricity to a single consumer of electricity for business uses, shall be built for the account of the said consumer and shall be owned thereby.(6) Low-voltage electric equipment, which are located within the corporeal immovables of consumers and are located outside the property boundaries of the facilities, shall be built for the account of the consumers and shall be owned thereby.(7) (Amended, SG No. 74/2006) Electric fixture and equipment owners shall be obligated to provide the transmission company or distribution company, as the case may be, access through their own fixtures and facilities for the purposes of electricity conversion and transmission to other consumers. An access price shall be fixed according to a method approved by the Commission.Article 118. (Amended, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) (1) The electric power grid operator and the distribution company shall provide access on equal-treatment basis to the transmission and distribution networks for the respective network's users.(2) The electric power grid operator or distribution company, as the case may be, may refuse access in case the provision of such access could result in deterioration of technical conditions and security of the networks or to deterioration of the conditions for supply of other consumers and users.Article 119. (1) Producers may supply electricity to branches, enterprises and works thereof located within the national territory:1. through the transmission network and/or the distribution networks (high-voltage, medium-voltage and low-voltage) to the relevant work, concluding to this end a contract for transmission with the transmission company and/or the distribution companies, or2. through direct electric power lines, constructed for the account of the said producers up to the divisions or works thereof.(2) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) Eligible consumers may be supplied through a direct electric power line.(3) (Renumbered from Paragraph 2, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The transmission company and/or the distribution companies may refuse to sign contracts for transmission through the relevant networks in the cases under Item 1 of Paragraph (1) where:1. the transmission capacity of the networks is insufficient, or2. (repealed, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) 3. no technical conditions exist for metering of the quantities of electricity consumed that originate from own generation separately from the quantities of electricity delivered from other sources.(4) (Renumbered from Paragraph 3, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The manner of distribution of the electricity originating from own generation or delivered from other sources shall be established by the rules referred to in Article 91 (2) herein.(5) (New, SG No. 74/2006, effective on the date of entry into the Commercial Registry the decision to transform National Electric Company EAD, but not later than the date of entry into force of the Treaty concerning the Accession of the Republic of Bulgaria to the European Union) The electric power grid operator and the distribution companies may refuse to execute an agreement on access to the relevant networks in the cases under Paragraph 1, Item 1, when the reliable operation of the electric power grid or the security of supply are being compromised.Article 120. (1) The electricity used by consumers shall be metered by means of commercial metering devices owned by the transmission company or by the relevant distribution company, which shall be located next to or on the property boundary of the consumer.(2) The property boundary of electric facilities and the site of commercial metering devices shall be determined according to the requirements established by the ordinance referred to in Article 116 (7) herein and by the rules referred to in Item 6 of Article 83 (1) herein.(3) The transmission company or distribution company, as the case may be, shall determine the type, number and site of the metering devices and equipment and of the appurtenant controls and communication devices.(4) Where endorsed tariffs allow consumers of a particular group to choose the method of metering of the quantity of electricity, the transmission company or distribution company, as the case may be, shall be obligated to install metering devices corresponding to the choice stated by the consumer in writing.(5) The terms and procedure for replacement of a metering devices at the request of a consumer in the cases under Paragraph (4) shall be established by the rules referred to in Item 6 of Article 83 (1) herein.Article 120a. (New, SG No. 74/2006) The electricity consumers shall not pay a fee for the commercial metering devices.Article 121. (1) The transmission company or distribution company, as the case may be, shall specify to consumers mandatory technical requirements for installation of consumer's own stand-by power supply source according to the ordinance referred to in Item 1 of Article 83 (1) herein.(2) Any consumer wishing to install an own stand-by power supply source shall be obligated to notify in writing the transmission company or distribution company, as the case may be, and to provide representatives of the said company with access to the stand-by source for the conduct of inspections.(3) The transmission company or distribution company, as the case may be, shall have the right to suspend the electricity supply of the consumer if the said consumer fails to fulfil the obligations thereof under Paragraphs (1) and (2). For more information visit www.solicitorbulgaria.com id: 329 Fri, 01 Aug 2008 08:08:04 -0700 http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/ENERGY_ACT.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-energy-act-part-1 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 323 Chapter OneGENERAL PROVISIONSArticle 1This Act shall regulate the ownership and use of agricultural land.Article 2Agricultural land, for the purposes of this Act, shall be any land, set aside for farming, which:1. (supplemented, SG No. 98/1997, SG No. 68/1999, amended, SG No. 99/2002) does not fall within the confines of urbanized territories (settlements and other populated areas) determined by a detailed territorial structure design, or by a belt line range;2. is not included as part of the forest reserve;3. is not built-up by: industrial or other economic enterprises, recreation or health establishments, religious denominations or other public organisations; nor is within courtyards, nor under warehouses auxiliary to such buildings as the above;4. (amended, SG No. 28/1992) is not occupied by open mines and quarries, energy, irrigation, transportation facilities or other public utilities, nor is adjacent to such facilities and utilities.Article 3(1) (Amended, SG No. 28/1992) Agricultural land may be individual citizen's, State, municipal, or legal persons' property.(2) Political parties and organisations, movements and coalitions for political purposes may not have ownership of agricultural land.(3) (Amended, SG No. 28/1992, SG No. 45/1995, amended and supplemented, SG No. 98/1997, amended, SG No. 24/2007) Foreign states shall not have a right of ownership over agricultural lands.(4) (Amended, SG No. 28/1992, SG No. 24/2007) Foreign nationals or foreign legal persons may not acquire right of ownership over agricultural land under the conditions of an international treaty, ratified pursuant to the procedure of Art. 22, paragraph 2 of the Constitution of the Republic of Bulgaria, promulgated and entered into force, and the foreigner nationals - also by inheritance by law.(5) (New, SG No. 24/2007) Citizens of the Member States of the European Union and of the states - parties to the European Economic Area Agreement may acquire right of ownership over agricultural lands pursuant to this Act after the expiry of the term defined in the Treaty of Accession of the Republic of Bulgaria to the European Union.(6) (New, SG No. 24/2007) Legal persons from the Member States of the European Union or from the states - parties to the European Economic Area Agreement may acquire ownership over agricultural lands pursuant to the procedure of paragraph 5.(7) (Amended, SG No. 28/1992, renumbered from Paragraph 5, SG No. 24/2007) Foreign legal persons and foreign nationals may acquire usufruct in agricultural land or other limited real rights in land by terms and procedures as provided by law.Article 3a(New, SG No. 24/2007)(1) Citizens of the Member States of the European Union - individually occupied farmers who wish to settle and reside permanently in the Republic of Bulgaria and who are registered in that capacity pursuant to the procedure of the BULSTAT Register Act, may acquire right of ownership over agricultural and forestry lands for usufruct from the date of the entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union.(2) In those cases where before the expiry of the term defined in the Treaty of Accession of the Republic of Bulgaria to the European Union, the persons under paragraph 1 terminate their activity as individually occupied farmers, the provisions of Article 3b shall be applied.Article 3b(New, SG No. 24/2007)(1) Foreign nationals who acquire right of ownership over agricultural lands by inheritance by law but who do not fulfil the conditions provided for in the Treaty of Accession of the Republic of Bulgaria to the European Union, or when something else is not provided for in an international treaty, ratified pursuant to the procedure of Article 22, paragraph 2 of the Constitution of the Republic of Bulgaria, shall be obliged, within a three year term following the revealing of the inheritance, to transfer the ownership to persons who have right to acquire such estates.(2) For persons under paragraph 1, to whom right of ownership over agricultural lands has been restored, the three year term for the transfer of the ownership shall run from the moment of its restoration.(3) If the term under paragraph 1 has not been complied with, the state may buy the agricultural lands at prices, determined by an Ordinance of the Council of Ministers.Article 4(Amended and supplemented, SG No. 28/1992)(1) Proprietors shall be free to determine a manner of using agricultural land according to its purposes. Proprietors shall use land in a manner such as is not detrimental to soils and in compliance with sanitation, fire safety and environmental protection standards.(2) (Amended, SG No. 99/2002) Buildings and installations may be erected on agricultural land such as are related to its use by terms and procedures as provided by the Spatial Development Act. (3) (Amended, 79/1996, SG No. 13/2007) Expropriation of agricultural lands for important government and municipal purposes shall be done pursuant to the Ownership Act and the Agricultural Land Conservation Act. (4) Proprietors and users shall protect archaeological sites, cultural monuments, irrigation, power generation and other facilities and installations, geodetic and frontier signs such as exist on their land, and shall not prevent other proprietors, users and officials from using and maintaining such facilities and installations.(5) (Amended, SG No. 79/1996, supplemented, SG No. 68/1999, amended, SG No. 99/2002) Incorporation of agricultural land within the confines of urbanized territories (settlements and other populated areas) shall be done pursuant to the Agricultural Land Conservation Act and the Territorial and the Spatial Development Act. Article 4a(New, SG No. 13/2007)(1) A citizen or a legal person shall sell agricultural land to a third party only after presentation to the notary of:1. written proofs that he has proposed to the user with whom he has a concluded lease contract or rent contract for a period of five or more years, and he has used the estate under the same conditions, and2. declaration that the user did not accept the proposal under item 1;3. declaration that the user, although not having accepted the proposal under item 1, has unpaid lease or rent instalments.(2) When the declarations under paragraph 1, item 2 and 3 are false or if the third party buys the agricultural land under conditions, stipulated under colour of law, the user can buy the agricultural land under the actually stipulated conditions. The claim shall be brought within two months from the date of the sale.(3) When the claim under paragraph 2 is satisfied but the user does not pay the due amount within one month from the entry into force of the court decision, this decision shall be deemed invalidated by law.(4) Paragraph 1 shall not apply to public sale.(5) When the agricultural land is co-owned, the right of redemption of the users under paragraph 1 shall be applied after the redemption right of the co-owners under Article 33 of the Ownership Act. Article 5(Repealed, SG No. 28/1992, new, SG No. 45/1995, amended, SG No. 98/1997,SG No. 88/1998, supplemented, SG No. 68/1999, SG No. 106/2000)(1) (Redesignated from Article 5, SG No. 99/2002) Proprietors of agricultural land restituted under this Act, shall be exempted from state, state notary fees and local tax and fees in the event of concluding lease contract, rent contracts for a period of time exceeding one year, voluntary partition and rights-transferring transactions in agricultural land for a period of five (5) years.(2) (New, SG No. 99/2002) No state fee is payable for the recordation of decisions of the Municipal Agriculture and Forestry Service that have the force of public notary deeds based on factual possession.(3) (New, SG No. 99/2002) A public notary fee collected for certification of the signatures of parties to contracts for farming land lease and rent, for a period above one year, shall be determined irrespective of the amount under the relevant contracts.Chapter TwoLAND OF INDIVIDUAL PROPRIETORSArticle 6(Repealed, SG No. 28/1992)Article 7(Amended, SG No. 79/1996)(1) Declared partially unconstitutional by Constitutional Court of the Republic of Bulgaria, over the term "reimbursement" - SG No. 103/1996) In the event of disposition, partition, reimbursement and grant of land, agricultural land estates shall not be parcelled out into fragments the proportions whereof are less than the ones prescribed under Article 72 of the Succession Act. (2) (Repealed, SG No. 98/1997).(3) Partition of a farm estate or disposition of real shares of a farm estate shall be executed only if the separate shares thereof are detachable to constitute separate estates of such proportions as specified in paragraph 1 above under a project drawn up or approved by the respective Municipal Agriculture and Forestry Service.(4) (Amended, SG No. 98/1997) In the event of partitions, disposition transactions, alienation, change of function and appraisal of agricultural lands, attached shall be a plot drawn up or endorsed by the Municipal Agriculture and Forestry Service.(5) (Amended, SG No. 98/1997, 36/2004 - effective 31.07.2004) Registration offices and other competent authorities shall be required to notify, within one month, the Municipal Agriculture and Forestry Service of any changes in land ownership and use.(6) (Amended, SG No. 98/1997, repealed, SG No. 99/2002).Article 8(Amended, SG No. 28/1992, SG No. 98/1997)Individuals may associate in co operatives or associations for joint farming of their land. In such cases they shall retain ownership of their land within real boundaries.Article 9(Repealed, SG No. 28/1992, new, SG No. 45/1995, amended, Sg No. 79/1996,SG No. 104/1996, repealed, SG No. 98/1997)Article 9a(New, SG No. 45/1995, Judgment No. 8 of the Constitutional Court of theRepublic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996,SG No. 104/1996, repealed, SG No. 98/1997)Article 10(1) (Amended, SG No. 28/1992, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996, SG No. 98/1997) Proprietors or their inheritors shall be reinstated in possession of the agricultural lands they used to own prior to the institution of labour co-operative farms (TKZS) or state farms (DZS) regardless of whether such lands used to be incorporated therein or in other suchlike agricultural organisations set up on the basis thereof.(2) (Amended, SG No. 28/1992), Proprietors shall be reinstated in their agricultural land as nationalised under the repealed Article 12 of the Citizens' Property Act, subject to reimbursement of moneys received in compensation.(3) (Renumbered from Paragraph 6 and amended, SG No. 28/1992) Proprietors who donated their land to TKZS or the State shall be reinstated.(4) (Renumbered from Paragraph 3, SG No. 28/1992) Proprietors shall be reinstated in their agricultural land where unlawfully dispossessed.(5) (Repealed, New, SG No. 28/1992, supplemented, SG No. 45/1995, SG No. 79/1996, SG No. 98/1997) Proprietors shall be reinstated in afforested or self-afforested agricultural land, inclusive of such lands incorporated into the State forestry reserve for which proprietors have received no compensation, with the exception of forest nurseries and forest shelter belts. Such reinstatement shall be effected following the procedure set forth in Article 14, paragraph 1, subparagraph 1.(6) (New, SG No. 28/1992, amended, SG No. 98/1997) Proprietors shall be reinstated in farm yards managed as agricultural land by labour co-operative farms, state-owned farms or other agricultural organisations based thereon, in the effaced or abandoned settlements.(7) (Repealed, new, SG No. 28/1992, SG No. 48/1993 Judgment No. 12 of the Constitutional Court of the Republic of Bulgaria, SG No. 64/1993, amended, SG No. 45/1995, Judgments No. 7 and 8 of the Constitutional Court of the Republic of Bulgaria, SG No. 59/1995, amended, SG No. 79/1996, Judgment No. 20 of the Constitutional Court of the Republic of Bulgaria, SG No. 103/1996, amended, SG No. 98/1997, SG No. 99/2002) Proprietors shall be reinstated in possession of the agricultural lands they used to own prior to the institution of labour co-operative farms or state farms, regardless of whether such lands used to be incorporated therein or in other suchlike agricultural organisations set up on the basis thereof, and are located within the confines of urbanized territories (settlements) determined by a detailed territorial structure design, or by a circular belt range, except where buildings have been erected thereon by third persons in strict adherence to all regulative requirements, or where the right to build has been ceded and the erection, lawfully afforded as of March 1, 1991, has commenced. Such reinstatement shall be effected following the procedure set forth in Article 14, paragraph 1, subparagraph 1.(8) (Repealed, redesignated from Article 4, amended, SG No. 28/1992, SG No. 79/1996, SG No. 98/1997) Proprietors shall be reinstated in agricultural land up to such proportions as specified by the repealed Article 8, paragraph (1) and Article 10 of the Earned Landed Property Act, inclusive of land alienated under the Earned Landed Property Act. For agricultural land exceeding such proportions, proprietors shall be indemnified following the procedure laid down in Article 35. The limitation on land proportions shall also apply to any instances where agricultural land was confiscated by virtue of a sentence and such sentence has been vacated.(9) (New, SG No. 28/1992) Proprietors shall be reinstated, at their request, in land nationalised as forests and subsequently transformed into agricultural land.(10) (New, SG No. 28/1992, amended, SG No. 45/1995, supplemented, SG No. 98/1997, amended, SG No. 68/1999) Proprietors shall be reinstated in land that is polluted, eroded, salinated, with high acid content or with excess moisture in the surface layer, and the expenses for its ecological reclamation shall be borne by the State. Funds needed to recover such lands productivity as well as to neutralise hazardous pollutants, shall be provided by the budget of the Ministry of Agriculture and Forestry under a program approved by the Council of Ministers on an annual basis. The Council of Ministers shall determine the procedure and manner of the ecological reclamation of such land and the control over polluted agricultural land.(11) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 98/1997) Reinstated in land shall be such persons who have been granted land under the Earned Landed Property Act, including those who have not yet paid a part of the instalments due, with the exception of such persons who have lost their rights over such land.(12) (New, SG No. 79/1996, amended, SG No. 98/1997, SG No. 99/2002) Proprietors shall be reinstated under the procedure laid down in Article 14, paragraph 1, item 1, in possession of lands, both within and outside the confines of urbanized territories (settlements), incorporated into farm yards of labour co-operative farms, state farms, or other suchlike agricultural organisations set up on the basis thereof, which are not built- up and do not represent areas contiguous to buildings.(13) (New, SG No. 98/1997) Proprietors shall be reinstated in possession of such lands, which they used to own prior to the institution of labour co- operative farms or state farms, or other suchlike agricultural organisations set up on the basis thereof, that have been sold or ceded by such organisations, or by other governmental or municipal authorities, respectively, to third parties with the exception of the ones explicitly specified herein. Reference to acquisition by virtue of positive prescription shall be inadmissible.(14) (New, SG No. 98/1997, supplemented, SG No. 88/1998, 99/2002) Subject to restitution shall be also all land taken away from its proprietors under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related (SG No. 219/1944, amended SG No. 261/1944, 9/1945), the Law on Confiscation of Property Acquired by Way of Profiteering or in an Illicit Way (SG No. 78/1946), or pursuant to the Law on Collection of Taxes and Other State Revenue (SG No. 304/1948), the Regulation on Collection of Taxes and Charges (Izvestiya, No. 13/1952), the Decree on Procurement and Prices (SG No. 213/1945), the Decree on Mandatory Re-registration of Agricultural land Property (SG No. 122/1949), as well as under Government Decree No. 982 of 1951 on the Measures Preparatory to the Completion of 1951 Autumn Sowing and Deep Autumn Ploughing (not promulgated), Government Decree No. 5 on Measures Preparatory to the Completion of the Spring Sowing and on the Cares for Growing the Autumn Crops in 1951 (Izvestiya, No. 4 of 1951), Government Decree No. 1559 of 1951 on the Measures Preparatory to the Completion of the Spring Sowing and on the Cares for Growing the Autumn and Spring Crops and Ensuring High Yields in 1952 (not promulgated), and Government Decree No. 48 of 1958 on Establishing the Balance of Arable Land as of January 1, 1958 and Taking Measures to Ensure its Further Enlargement, Utilisation and Protection against Misuse and Wasteful Practices (Izvestiya, No. 28/1952).Article 10a(New, SG No. 28/1992, supplemented, SG No. 45/1995)(1) (Judgment No. 8/19.06.1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995) Reinstatement shall be done within the actual boundaries of land owned wherever existent or if possible to be established from the Cadastre of settlements or from compensation plans.(2) Wherever boundaries of land no longer exist, reinstatement in ownership shall be done within actual boundaries of agricultural land of equivalent area on the territory of the respective settlement or an adjacent territory, and upon proprietor's consent, on another territory, following land reallocation and consolidation of real estates on it.(3) (Amended, SG No. 24/2007) Foreign nationals who are reinstated in property pursuant to this Article shall within three years transfer the said property to persons who have right to acquire agricultural lands.(4) (New, SG No. 24/2007) Paragraph 3 shall not apply to citizens of the Member States of the European Union and of the states - parties to the European Economic Area Agreement, as well as to citizens of other states by virtue of a treaty under Article 3, paragraph 4.Article 10b(New, SG No. 28/2992, amended, SG No. 45/1995)(1) (Judgment No. 8/19.06.1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended SG No. 79/1996, SG No. 98/1997, SG No. 88/1998, amended and supplemented, SG No. 68/1999, SG No. 99/2002) Proprietors or their inheritors who used to be in possession of agricultural land prior to the institution of labour co- operative farms or state farms, regardless of whether such land was incorporated therein, or in other suchlike agricultural organisations set up on the basis thereof, located either within or outside the confines of urbanized territories (settlements), and which are either built-up or such projects have been undertaken thereupon which render reinstatement in ownership inadmissible, shall have the right to indemnification, at their request, with land of equal worth from the municipal landed reserve, and/or with registered compensation bonds. Based on a substantiated proposal by the Municipal Agriculture and Forestry Service or any person concerned, the municipal council shall, within one month of its receipt, define the type, size and location of the lands to be granted in compensation from the municipal landed reserve, inclusive of instances pursuant of Article 10b, Article 1, item 2 and 3, paragraph 2 and 4 but not less than 50 per cent of the available municipal landed reserve. Should the municipal council not make a decision within the prescribed time or refuse a request for granting up to 50 percent of the available municipal landed reserve, the land for compensation shall be defined by ruling of the district governor upon request by the Municipal Agriculture and Forestry Service or any person concerned. Where the proposal is for land constituting less than 50 per cent of the available municipal landed reserve, the land for compensation shall be defined by ruling of the district governor up to the size of land requested.(2) (Repealed, SG No. 28/2002).(3) (New, SG No. 79/1996, amended, SG No. 98/1997, supplemented, SG No. 88/1998) Proprietors of land confiscated by virtue of a sentence which has been vacated, and ownership thereupon may not be reinstated for circumstances cited under paragraph 1, shall be indemnified under the terms and procedures of paragraph 1 above.(4) (Repealed, SG No. 98/1997).(5) (New, SG No. 45/1995, renumbered from paragraph 4, SG No. 79/1996) Land ownership wherever cannot be restituted as a result of the circumstances described in the above paragraphs shall be the property of the State.Article 10c(New, SG No. 74/1991, redesignated from Article 10a, amended,SG No. 28/1992, SG No. 45/1995, SG No. 79/1996)(1) Bulgarian nationals or their heirs whose agricultural lands have served as a government debt redemption pursuant to the Agreement on the Settlement of Open Financial Issues and Economic Co-operation Development between the People's Republic of Bulgaria and the Kingdom of Greece (SG, No. 87 of 1964) shall be indemnified as follows:1. (amended, SG No. 68/1999) persons who emigrated in the period between 1913 and 1928 who have not registered their bonds for redemption by the State: with registered compensation bonds;2. (amended, SG No. 98/1997) Bulgarian nationals who emigrated in the period from 1913 to 1928 and who have not obtained bonds and have not been otherwise indemnified - with registered compensation bonds and/or with land from the State and municipal landed reserve;3. (amended, SG No. 98/1997) those who emigrated in from 1928 to 1944 - with registered compensation bonds and/or with land from the State and municipal landed reserve.(2) (Amended, SG No. 98/1997, SG No. 68/1999) Bulgarian nationals or their heirs, from whom the State of Romania, under the Organisation of New Dobrudja Act of 1 April 1914, confiscated one third of their own agricultural land, shall be indemnified as follows:1. the one third for which the right to compensation was not claimed under the Act on Settlement of Ownership of Real Estates in South Dobroudja (promulgated SG No. 157/1942, repealed Izv., No. 16/1951): with land from the State and/or municipal landed reserve for adding to the owner's other property up to 100 decares, and registered compensation bonds for the shortage to the full amount of the confiscated one third;2. the granted right to moneys in compensation under Chapter III of the Act on Settlement of Ownership of Real Estates in South Dobroudja: with registered compensation bonds.(3) (Amended, SG No. 68/1999) Persons under paragraphs 1 and 4 shall file petitions with the Ministry of Agriculture and Forestry, and persons under paragraph 2, with the Municipal Agriculture and Forestry Services having jurisdiction over the location of the restituted property.(4) (New, SG No. 88/1998) Bulgarian nationals whose estates have not been substituted with land from the State landed reserve under the provisions of Chapter Seven of the Act on the Amendment of the Act on Regulation of Real Estates in South Dobrudja (repealed, SG No. 57/1948), shall be compensated according to the provisions of paragraph 2.(5) (New, SG No. 68/1999) Indemnification with land shall be done: under paragraph 2, subparagraph 1, and under paragraph 4, in the location of the restituted property, and in case of shortage or lack of land from the State landed reserve or the municipal landed reserve in the village land, with registered compensation bonds.Article 11(1) (Amended, SG No. 18/1992, 46/1992) Persons under Article 10 above shall file petitions for reinstatement in agricultural land within seventeen months from the date that this Act comes into force.(2) (Amended, SG No. 28/1992, 45/1995, amended and supplemented, SG No. 13/2007) Persons who failed to file petitions within the period under paragraph 1, can establish by claim against the respective Municipal Agriculture and Forestry Service their right to reinstate their ownership of agricultural lands only with written proofs. Written declarations and/or witness testimonies shall not constitute grounds for proving the right of ownership. The municipality at the location of the estate shall be called in the court case. On the basis of the rendered decision the Municipal Agriculture and Forestry Service shall set out the lands for restitution of ownership by complying with the requirements of this Act.(3) (New, SG No. 45/1995, repealed, SG No. 98/1997).(4) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 98/1997, supplemented, SG No. 99/2002) Where a court ruling is presented to the respective Municipal Agriculture and Forestry Service following the promulgation in the official State Gazette of an announcement that the land reallocation plan had been drafted, the owner shall be indemnified under the terms and procedures specified in Article 10b, if he/she may not be afforded land under Article 19 by of compensation.Article 12(1) Petitions under the preceding Article shall be referred to the respective Municipal Agriculture and Forestry Service. Petitions shall contain description of the estate concerned together with evidence of ownership.(2) (Repealed, renumbered from Paragraph 3, SG No. 28/1992, supplemented, SG No. 45/1995, amended, SG No. 98/1997) Ownership shall be proven by: act of notary, deeds of partition, TKZS protocols, land registers, applications for TKZS membership, rent ledgers protocols and decisions for vesting in landed property, including under the Earned Landed Property Act of 1946 and the Regulation for its application, and other evidence in writing.(3) (New, SG No. 28/1992, repealed, SG No. 13/2007). (4) (New, SG No. 28/1992, repealed, SG No. 13/2007). (5) (New, SG No. 45/1995, repealed, SG No. 13/2007). (6) (New, SG No. 45/1995, amended, SG No. 79/1996, SG No. 87/1997, SG No. 98/1997) In the event that the land claimed should exceed the amount of land available in the area at the time of the establishment of the labour co- operative farms, the state farms and other suchlike agricultural organisations, the Minister of Agriculture and Forestry shall be empowered to discontinue the land-division for the purpose of precisely specifying the amount of land due to each claimant, as well as to order a Municipal Agriculture and Forestry Service to rescind earlier enacted decisions. In such cases persons found to have filed false petitions and declarations shall be held materially liable for damages inflicted as well.(7) (New, SG No. 98/1997) Positive prescription in favour of a agricultural land holder, whose possession thereto is based on a contract in writing, a deed of voluntary partition or other legal instrument in writing, shall not be suspended with the incorporation of such land in labour co- operative farms, state farms and other suchlike agricultural organisations. This shall not constitute a ground for rescinding any court rulings that have entered into force.Article 13(1) Municipal Agriculture and Forestry Services shall post petitions filed with the information presented at municipalities or other appropriate places.(2) (Repealed, SG No. 28/1992).(3) (Repealed, SG No. 28/1992).Article 14(1) (Amended, SG No. 28/1992, SG No. 45/1995) A Municipal Agriculture and Forestry Service shall hand down rulings on:1. (supplemented, SG No. 98/1997, amended and supplemented, SG No. 68/1999) restitution of ownership rights over land within existing old actual boundaries or such that are possible to restore. A board's ruling shall provide a description of the size and category of the property, its location (boundaries, neighbours) and any applicable limitations on the property with a quotation of the reasons for such limitations. A plan of the property shall be annexed to such ruling. A ruling having entered into force accompanied by a plan, except in the cases under Article 10, paragraph 7, shall certify the ownership right and shall be valid as a ascertaining notarial title deed for the property. Where a ruling restitutes ownership right over agricultural land to a deceased owner, the ruling shall be issued for all his/her heirs together. The shares of the heirs shall be defined as per the Succession Act, without being specified in the ruling.2. (amended, SG No. 79/1996, amended and supplemented, SG No. 98/1997, amended, SG No. 106/2000) restitution of ownership rights over agricultural lands within new real confines by means of a land reallocation plan. A ruling shall indicate the size and categories of the agricultural lands, and the precise locality on the territory within which they used to be. A land reallocation plan shall be drawn up on the basis of a Municipal Agriculture and Forestry Service's resolutions and following a survey, an inquiry and designing. A land reallocation plan shall be drawn up after an inquiry shall have been conducted with the participation of no less than half the owners or their inheritors. Such inquiry shall be conducted in the order and manner prescribed in the Rules on the implementation of this Act. Any need to rework a land reallocation plan shall be prescribed by an executive order of the Minister of Agriculture and Forestry.3. (new, SG No. 98/1997, amended, SG No. 88/1998, SG No. 68/1999) acknowledgement of ownership right under the provisions of 4 through 4l; the ruling shall set forth the size and the locality where the agricultural land was found.(2) (Amended, SG No. 16/2003 - effective 26.10.2002) The Municipal Agriculture and Forestry Service's rulings shall be notified to the persons concerned in correspondence with the Code of Civil Procedure. (3) (Amended, SG Nos. 62/1997, 98/1997, 59/1998, 16/2003 - effective 26.10.2002, SG No. 30/11.04.2006, effective 1.03.2007) The Municipal Agriculture and Forestry Service's rulings shall be appealable to the District Court within fourteen (14) days of notification. Appeals shall be lodged with the respective Municipal Agriculture and Forestry Service. The Court shall rule at the substance of the matter. Cases shall be heard in the same settlement in whose territory the property is located. The regional court judgment shall be subject to cassation appeal before the administrative court according to the procedure established by the Administrative Procedure Code , which shall be examined by the court sitting in a panel of three judges.(4) (New, SG No 28/1992) Where disputes arise on material rights every person concerned shall establish his rights by court action.(5) In legal proceedings at the District Court all forms of evidence under the Code of Civil Procedure shall be valid as well.(6) (New, SG No. 45/1995) The Municipal Agriculture and Forestry Service may correct at its own initiative or at the request of interested persons any obvious factual errors made in the ruling under this Article.(7) (Amended, SG Nos. 79/1996, 87/1997, 98/1997) Upon detection of infractions of this Act and the Rules on the implementation thereof, as well as of any new circumstances and/or new written evidence of substantial significance for handing down a ruling under paragraph 1, a Municipal Agriculture and Forestry Service shall, at the request of the Minister of Agriculture and Forestry or at the request of the concerned persons, render a ruling amending the previous one within one (1) year following the emergence of such new circumstances, or of new written evidence, but certainly no later than two (2) years of the land reallocation plan's entry into effect or of the handing down of the Municipal Agriculture and Forestry Service's decision under Article 14, paragraph 1, subparagraph 1. This procedure shall not apply where a court ruling has entered into force in respect of the same lands.(7a) (New, SG 79/1996) Interested persons shall have the right to require, under the conditions and following the procedure laid down in paragraph 7 above, that a Municipal Agriculture and Forestry Service modify the persons in favour or to the prejudice of whom their ruling has been handed down.(8) (Amended, SG Nos. 79/1996, 98/1997) Any rulings under paragraphs 6 and 7 shall be made known following the procedure described in paragraph 2 and may be appealed in the manner and within the terms laid down in paragraph 3. Where the rulings are handed down following the promulgation in the official State Gazette of the announcement that the land reallocation plan has been drawn up, the owners shall be indemnified under the terms and procedures specified in Article 10b.(9) (Amended, SG Nos. 79/1996, 87/1997, 16/2003) A Municipal Agriculture and Forestry Service shall be represented before the court by the chief, deputy chief, or by a duly authorised person having a degree in law, or by the Ministry of Agriculture and Forestry.Article 15(1) (Amended, SG No. 28/1992) Municipal Councils shall, within six months of the date this Act comes into force, provide Municipal Agriculture and Forestry Services with information on changes in the area of agricultural land within the respective territory.(2) (New, SG No. 98/1997) Where a Municipal Agriculture and Forestry Service has ascertained a decrease in the proportion of agricultural land within a respective territory, lessened respectively shall be also the plots of land subject to restitution with the exception of such plots of land that are to be restituted within their either currently existing or previous actual confines restorable on the same terrain. Lessened appropriately shall also be the plots of land the title whereto is subject to restitution in execution of a court ruling on restitution of title by way of a land reallocation plan.(3) (Former paragraph 2, amended, SG No. 79/1996, renumbered and amended, SG No. 98/1997) Proprietors, at their request, shall be indemnified for the differential between the land under rightful claim and land received in restitution with equivalent lands from the municipal landed fund and/or registered compensation bonds. Lands shall be appraised under such terms and procedures as prescribed by the Council of Ministers in consideration of the current market prices in the respective area.(4) (Former paragraph 3, amended, SG No. 79/1996, renumbered and amended, SG No. 98/1997) Owners shall be indemnified under the procedure specified in paragraph 3 also where the court ruling by virtue whereof their right to restitution of ownership of agricultural land has been acknowledged has been presented to the Municipal Agriculture and Forestry Service following the promulgation of an announcement in the official State Gazette that a land reallocation plan has been drawn up.(5) (Former paragraph 4, renumbered, SG No. 98/1997) Legal persons who have worked out or keep and maintain cadastral topographic and geodetic information on the territories of settlements, shall submit it to the state authorities within 10 days from request. Information shall be submitted free of charge, with the exception of the expenses incurred for producing copies of the documentation.Article 16Municipal Agriculture and Forestry Services shall keep registers of petitions filed pursuant to Article 11 above, and rulings become effective under Article 14 above.Article 17(Amended, SG No. 28/1992, SG No. 45/1995)(1) (Amended and supplemented, SG No. 98/1997, SG No. 68/1999) Ownership of agricultural land within new actual boundaries shall be restored using plots of land of similar proportion and quality, appropriately lessened in the cases under Article 15, paragraph 3, and where possible in the same localities where petitioners' estates owned by them even prior to the establishment of labour co-operative farms, state-owned farms, or other agricultural organisations based thereon had been located. New actual boundaries shall be established by way of a land reallocation plan. Restitution of title shall be made by a ruling of the Municipal Agriculture and Forestry Service rendered on the basis of a valid land reallocation plan. Said ruling shall include a description of the agricultural land's proportions and category, its location, confines, neighbours, as well as any limitations on the property and the reasons for such limitations. A plan of the property shall be also annexed to the ruling. A ruling having entered into force with a plan annexed to it, shall certify the ownership right and shall be valid as an ascertaining notarial title deed for the property. Where a ruling restitutes ownership right over agricultural land to a deceased owner, the ruling shall be issued for all his/her heirs together, except in the cases under paragraph 2. The shares of the heirs shall be defined as per the Succession Act, without being specified in the ruling.(2) (Repealed, SG No. 99/2002).(3) (Repealed, SG No. 98/1997).(4) (Amended, SG Nos. 79/1996, 98/1997) Separate land reallocation plans shall be adopted in respect of territories occupied by perennial crops, rice fields and canal equipment, which shall be part and parcel of the land reallocation plan for the entire territory.(5) (Supplemented, SG No. 98/1997) By way of a land reallocation plan, any particular owner's plots of land within a locality shall be restored in one and the same area. All other requirements to which a land reallocation plan and the manner of its elaboration, as well as any technical activities relating to its drawing up and to the survey of estates under Article 14, paragraph 1, subparagraph 1 should conform, shall be set forth in the Rules on the implementation of this Act.(6) Restitution of property shall take place after harvesting of the crop unless the proprietor pays compensation.(7) (Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 79/1996) Prior to entry into force of the land reallocation plan petitioners who have been issued a ruling under Article 14, paragraph 1, item 2, or where partitions have been effected under the procedure laid down in paragraph 2, may be put in possession of agricultural lands in such proportions as shall not exceed the ones specified in the ruling.(8) (Amended, SG Nos. 87/1997, 98/1997, 88/1998, 68/1999, 99/2002) A land reallocation plan already in force and an approved chart of existing or restorable real agricultural land boundaries may be reworked in the event of a manifest factual error, following an order of the Minister of Agriculture and Forestry or of an official duly authorised by the Minister. The order shall be promulgated in the State Gazette and shall be notified by the Municipal Agriculture and Forestry Service in the municipality. In redressing such error affected individuals shall be indemnified according to Article 10b, Paragraph 1.(9) (New, SG No. 79/1996, repealed, SG No. 98/1997).Article 18(New, SG No. 45/1995, amended, SG No. 87/1997, 99/2002)(1) Proprietors of farmland located within consolidated plots of perennial plants, rice fields and irrigation facilities shall be under the obligation to manage them by executing all applicable agro technical and agrochemical operations.(2) Proprietors under Paragraph 1 may not destroy perennial plants, rice fields and irrigation facilities located in their own consolidated plots of land prior to the expiry of the period of depreciation, except in compliance to a permission of the Minister of Agriculture and Forestry or any members of the staff duly authorized by him.(3) Perennial plants shall be subject to destruction following the procedures under Paragraph 2 within a period of one year after delivery of said permission.Article 19(1) (Amended, SG No. 98/1997, supplemented, SG No. 99/2002, redesignated from Article 19 and amended, SG No. 13/2007) The municipality shall run and manage the agricultural land that has remained after the rights of the proprietors have been reinstated. Following the entry into force of the land allocation plan and of the approved map of existing and old actual boundaries which can be restored, such land shall become municipal property.(2) (New, SG No. 13/2007) The defining of the estates under paragraph 1 shall be done by a commission, appointed by the director of the district directorate "Agriculture and Forestry", which comprises representatives of the Municipal Agriculture and Forestry Service, of the Agency on Geodesy, Maps and Cadastre, of the municipality, of the state forestry and/or state wild animals stations.(3) (New, SG No. 13/2007) The terms and the procedure for defining the estates under paragraph 1 shall be set out in the Rules on the implementation of this Act. The protocol decision of the commission under paragraph 2 shall be mentioned as well in the municipality property acts as a ground for their drafting(4) (New, SG No. 13/2007) The municipalities shall be obliged to grant the lands under paragraph 1 for a term of 5 years if one of the following conditions exist:1. establishment of the boundaries of the agricultural lands regarding which there is a decision of the Municipal Agriculture and Forestry Service for recognition of the right of reinstatement of ownership in existing or old actual boundaries which can be restored;2. execution of court decisions for recognised right of ownership;3. compensation of the owners;4. execution of projects for consolidation of agricultural lands in the settlements on the territory of the municipality;5. execution of sites from the technical infrastructure, as well as of other projects about which the law allows compulsory expropriation.(5) (New, SG No. 13/2007) In the instances under paragraph 4, item 1-3 and following the same sequence, the granting of the lands shall be done by a reasoned request of the Municipal Agriculture and Forestry Service with an order of the municipal mayor, without the need of a decision by the municipal council.(6) (New, SG No. 13/2007) When there is an approved cadastral map about the settlement, the establishment of the boundaries of the agricultural lands shall be done according to the Cadastre and Property Register Act. (7) (New, SG No. 13/2007) In order to compensate the owners, upon a reasoned proposal of the Municipal Agriculture and Forestry Service, at least 50 percent of the lands under paragraph 1 shall be envisaged, but not more than the necessary ones, under terms and procedure set out in the Rules on the implementation of the Act. (8) (New, SG No. 13/2007) Regarding the lands under paragraph 1, the municipalities shall not be able to conclude for a term of 5 years:1. (amended, SG No. 59/2007) preliminary contracts, as well as to issue certificates in relation to a factual check under the procedure of Article 587 of the Code of Civil Procedure; 2. rental and lease contracts for a term not longer than three, respectively 4 years.(9) (New, SG No. 13/2007) Right-transferring transactions with the lands under paragraph 1 shall be done on the basis of a land management plan, adopted by the municipal council and approved by the Minister of Agriculture and Forestry. The terms and procedure for drafting, publication, adoption and approval of the land management plan shall be set out in the Rules on the implementation of the Act. (10) (New, SG No. 13/2007) Apart from the instances under paragraphs 4 and 9, the lands under paragraph 1 shall not be subject to right-transferring transactions for a term of 5 years.Article 19a(New, SG No. 45/1995)(1) (Amended, SG No. 98/1997, 99/2002) Terms and procedures of compensation shall be prescribed by the Rules on the implementation of this Act.(2) (Repealed, SG No. 98/1997).(3) (Repealed, SG No. 98/1997).(4) (New, SG No. 99/2002) Within proprietor compensation proceedings the Municipal Agriculture and Forestry Service shall deliver a decision with regard to:1. Determination of the right to compensation following the procedures under Article 10b, 10c, and Article 35, also specifying the amount of compensation,2. Determination of the amount of compensation in land and/or registered compensation bonds in accordance with the Paragraph 5 index,3. Compensation of proprietors by offering registered compensation bonds,4. Compensation of proprietors by offering farmland.(5) (New, SG No. 99/2002) The Municipal Agriculture and Forestry Service shall pass a memorandum to determine an index representing the relation of the value of land offered in compensation to the value of compensation in land due on the territory of the relevant municipality that will be used to reduce the value of compensation in land for all rights' claimants.(6) (New, SG No. 99/2002) Where, in the process of determining compensations in land, estates are formed that are smaller than 3 decares as regards cornfields, 2 decares as regards meadows, and 1 decare as regards perennial plants, compensation shall be effected through granting such estates to several co-proprietors, each co proprietor being entitled to a fractional interest in correspondence to the value of his compensation.(7) (New, SG No. 99/2002) Decisions of Municipal Agriculture and Forestry Services under Paragraph 4, items 1 and 4 may be amended on the grounds and following the procedures under Article 14, Paragraph 7 - within a period of one year following their entry into force, but not later than two years following the entry into force of the compensation plan, as well as following the terms and conditions laid out in Article 14, Paragraph 6.(8) (New, SG No. 99/2002) Judicial expert examinations to be filed upon appeal of Municipal Agriculture and Forestry Services decisions on fixing amounts of compensation under Paragraph 4, item 1, shall be entrusted to experts from a list approved by the Minister of Agriculture and Forestry and by the Minister of Finance.(9) (New, SG No. 99/2002) The Municipal Agriculture and Forestry Service shall issue a decision for the determination of compensation under Paragraph 4, item 3, where under conditions laid out in Article 35, Paragraph 1 acts of the court or of real estate property bodies underlying said decision, have been delivered or submitted after fixing the index under Paragraph 5.(10) (New, SG No. 99/2002) Provisions of Article 17, Paragraph 1, sentences 4 - 8 shall apply mutatis mutandis to decisions of the Municipal Agriculture and Forestry Service.Article 20(1) (Amended, SG Nos. 45/1995, 79/1996) Landless persons and small proprietors shall be granted land by respective Municipal Agriculture and Forestry Services from the national and municipal land reserves by way of transferring the property rights or leasing out by such terms and under such procedure as shall be prescribed in an ordinance enacted by the Council of Ministers.(2) (New, SG No. 79/1996, amended, SG No. 87/1997, 99/2002) The size and locality of lands to be granted shall be specified by the Minister of Agriculture and Forestry on a motion by the Municipal Agriculture and Forestry Service as regards lands belonging to the State landed reserve, and by the municipal council where lands constituting municipal landed funds are concerned, in proportion to the factual availability of landed funds in the respective territory. Same authorities shall specify what part thereof shall be transferred in possession or leased out. Agricultural estates granted by virtue of a land provision plan to individuals with little or without any real property may not be smaller in size than 3 decares as regards cornfields, 2 decares as regards meadows, and 1 decare as regards perennial plantations. Real estate below these sizes may be granted to individuals eligible for obtaining land provisions upon their written consent.(3) (New, SG No. 79/1996, amended, SG No. 99/2002) Land shall be granted within the territory of the settlement where a person takes up his permanent abode, or where his agricultural lands have been reinstated, as well as within neighbouring territories. Provision of land may be operated from other landed funds of the municipality upon the written consent of the individuals with little or without any real property where no land or a shortage of land exists.(4) Persons thus vested with landed property may not transfer said property before the expiry of 10 years of the date of acquisition unless the transfer is made to the State or the local Municipality.Article 21(1) (Amended, SG No. 28/1992) Among persons eligible to be thus vested with property, preference shall be given, as follows:1. persons who are engaged in farming in a local settlements;2. (amended, SG No. 99/2002) persons, residing permanently in a local settlement, who have relinquished land to the State land reserve in another settlement;3. graduates in farming and young couples who undertake to engage in farming;4. persons dispossessed of agricultural land for state or public policy needs.(2) (Amended, SG No. 99/2002) Among applicants of the same category, preference shall be given, in the ranking order set out below, to individuals who:1. Have been registered with the Municipal Social Assistance Service and/or Labour Office and do not own any land or own less in comparison to others,2. Do not own any land or own less in comparison to others.(3) A Municipal Agriculture and Forestry Service's rulings on petitions shall be notified to persons concerned pursuant to the Code of Civil Procedure and may be appealed against pursuant to Article 14 above.Article 22Persons outside categories under the preceding article shall be vested with property rights in land subject to a ruling of the Municipal Agriculture and Forestry Service on results of auction held according to rules set by the Council of Ministers.Article 23(1) (Amended, SG No. 79, SG No. 104/1996, redesignated from Article 23, SG No. 13/2007) Where land is granted, ownership shall be acquired upon the entry into force of the decision of the Municipal Agriculture and Forestry Service. The decision shall be entered into the registers of the Registry Service. A lawful mortgage shall be established on the estate until the payment of the sums due for the grant of the land.(2) (New, SG No. 13/2007) The Municipal Agriculture and Forestry Service shall issue a decision for repeal of the grant of land for the benefit of the state land fund or of the municipal land fund in case of non-fulfilment of the obligations defined in the Ordinance under Article 20, paragraph 1, by the persons to whom the land has been granted or in case of falsely declared data, used for the issue of the decision.(3) (New, SG No. 13/2007) The repeal decision for the grant of land shall be issued within three months from the establishment of the infringement.(4) (New, SG No. 13/2007) The repeal decision for the grant of land shall be communicated to the interested persons according to the procedure of the Code of Civil Procedure and shall be subject to appeal according to the procedure of Article 14, paragraph 3. The decision which has entered into force shall be entered into the Registry Service.Article 23a(New, SG No. 13/2007)The decisions of the Municipal Agriculture and Forestry Services under Article 21, paragraph 3 and under Article 23 shall be subject to amendments on the grounds of and according to the procedure of Article 14, paragraph 7 within two years from their entry into force, but not later than three years from the entry into force of the land granting plan, as well as under the terms and procedure of Article 14, paragraph 6.Chapter ThreeLAND HELD BY THE STATE, MUNICIPALITIES, AND LEGAL PERSONS(Retitled, SG No. 98/1997)Article 24(1) (Amended, SG Nos. 28/1992, 45/1995, 79/1996, 87/1997, 68/1999, 99/2002) The State shall retain its ownership of agricultural lands according to the status quo at the time of entry of this Act into force, with the exception of the lands subject to restitution. The Minister of Agriculture and Forestry shall exercise the owner's rights in respect of lands included in the State landed fund, by letting or leasing them out, by establishing limited real rights thereon, by executing sales and exchanges for farmland belonging to individuals and legal entities of an equivalent valuation determined in accordance with Regulations provided for under Article 36, Paragraph 2.(2) (Amended, SG Nos. 79/1996, 87/1997) The property rights of the State over agricultural lands allotted to research, research and manufacture, and academic institutions, inclusive of the Ministry of Transportation, to the penitentiaries, to seed production and pedigree animal farms, fruit tree nurseries, pepper nurseries, forest nurseries and hunting estates, as well as to the Ministry of Regional Development and Urban Planning inasmuch as are necessary for their activities, shall be retained in such proportions as correspond to such institutions' basic nature of business and as determined by the Ministry of Agriculture and Forestry following consultations with all administrations concerned.(3) (Amended, SG No. 99/2002) The State's ownership of agricultural land allotted to the Ministry of Defence, the Ministry of the Interior and other departments directly pertaining to the national defence and security, shall be retained on territories and in size determined by the Council of Ministers on a motion by the Minister of Defence, or by the Minister of the Interior, respectively, or by the head of the respective department. Where compelling circumstances related to national defence and security are no longer found the above farmland shall be made part of the State landed reserve by virtue of a Decision of the Council of Ministers.(4) (Amended, SG No. 133/1998) Proprietors shall not be reinstated in ownership of agricultural lands which have been included in parks of national significance and natural reserves, exclusively state owned, as identified under the provisions of the Protected Areas Act, or of land where immovable archaeological sites are located on or below its surface.(5) (New, SG No. 45/1995) The lands under paragraphs 2, 3 and 4 shall be the property of the State. These may only be used for the purposes for which they had been granted. The users of such lands shall not be entitled to permit other persons to use such lands.(6) Proprietors under paragraphs (2), (3) and (4) above shall be granted compensation pursuant to Article 10b, paragraph (1).(7) (New, SG No. 88/1998, amended, SG No. 99/2002) Land in the State landed reserve shall not be acquired by prescription. Seizure thereof from individuals who are in possession in the absence of a legally valid title or use these not in accordance with their intended purpose shall be operated following the terms and conditions of Article 34, irrespective of the manner in which the State has acquired them.(8) (New, SG No. 13/2007) In the instances of paragraph 3, when the need relating to the defence and security of the country stops to exist, upon a request by the former proprietor or his heirs, the district governor shall repeal the expropriation if the persons have not been compensated. The district governor shall transmit the request to the Minister of Agriculture and Forestry for an opinion.(9) (New, SG No. 13/2007) The request under paragraph 8 shall be deposited within 6 months from the date of the publication of the decision of the Council of Ministers under paragraph 3 in the State Gazette.(10) (New, SG No. 13/2007) The terms and procedure for the repeal of the expropriation shall be determined by an Ordinance of the Council of Ministers.(11) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall define plots and pastures from the state land fund which can be granted for common use by agricultural farmers for breeding of animals in accordance with the terms for maintenance of the land in good agricultural and ecological condition, pursuant to the procedure of Article 48 of the Referral to the People Act. The list shall be sent annually to the mayors of the municipalities at the location of the state plots and pastures and shall be published on the Internet site of the Ministry of Agriculture and Forestry.(12) (New, SG No. 13/2007) The state shall be represented before the court by the Minister of Agriculture and Forestry regarding cases relating to lands from the state land fund.(13) (New, SG No. 13/2007) The appraisal of limited real rights and easements on lands from the state land fund shall be determined pursuant to the Ordinance under Article 36, paragraph2. The value determined by the evaluators under Article19a, paragraph 8 shall be the lowest price according to which limited real rights and easements can be established.Article 24a(New, SG No. 99/2002)(1) The lease or rent of estates belonging to the State landed reserve shall be operated on the occasion of an auction or competition in accordance with the terms, conditions, and prices determined within the Rules and Regulations for the implementation of this act. On the basis of the outcome of said auction or competition a contract for lease or rent shall be signed. The duration of a lease contract may not exceed 10 years.(2) Farmlands belonging to the State landed reserve may be leased or rented without auction or competition:1. Where perennial plantations are grown on these,2. Where no use has been made thereof during two or more annual farming cycles,3. To users under Article 24, Paragraph 2 where these have formed commercial companies, and4. Upon privatisation of commercial companies under item 3 - for the period of excess of the duty to keep preceding activities, as provided for in a privatisation contract, over the duration of the contract for lease or rent.(3) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall determine, upon a proposal by the district directorates "Agriculture and Forestry", small size estates from the state land fund which can be rented for use for a year without tender or competition.Article 24b(New, SG No. 13/2007)(1) The Minister of Agriculture and Forestry shall grant for free estates from the state land fund to the organisations and services under Article 24, paragraph 2 and 3, which are necessary for their activities.(2) The lands under paragraph1 shall be used only for the purposes for which they have been granted. Their users shall not have the right to grant them for use by third parties.Article 24c(New, SG No. 13/2007)The prior consent of the Minister of Agriculture and Forestry shall be required for the assignment of the drafting of a detailed regulation plan which involves lands from the state land fund.Article 24d(New, SG No. 13/2007)(1) The exchange of agricultural lands from the state land fund with agricultural lands of citizens, legal persons or municipalities shall be done upon a written proposal by the interested persons. The proposal shall not be binding upon the Minister of Agriculture and Forestry regarding the exchange.(2) When with the proposed exchange of agricultural lands a consolidation of land estates is achieved, no restrictions regarding the size of the agricultural lands - subject of the exchange, shall be applied.(3) The Minister of Agriculture and Forestry shall decide with a prior written statement on the proposal for exchange within one month. When the statement is favourable, it shall include as well the terms for the execution of the exchange.(4) The exchange of agricultural lands under paragraph 1 shall not be done when the lands - property of citizens, legal persons or municipalities, are encumbered with mortgages or other charges, are rented or leased, are located in sanitary-protective areas, there is no direct access to them, as well as in other cases, provided for in the Rules on the implementation of this Act, or the exchange is not in the interest of the state.(5) For the preparation of the exchange a file shall be prepared, containing documents certifying the right of ownership over the estates subject to the exchange, their appraisals, the compliance with the legal conditions and with the terms under paragraph 3.(6) For the execution of the exchange the Minister of Agriculture and Forestry shall issue an order. Within one month from the announcement of the order the interested person shall pay the due taxes, charges, expenses and other payments.(7) On the basis of the order a written contract shall be concluded within one month from the payment of the amounts under paragraph 6. The contract shall be entered in the Registry Agency at the location of the estates at the expense of the applicant. A notarial form shall not be required.(8) When the applicant does not pay the due amounts within the term under paragraph 6 or does not appear to conclude the contract within the term under paragraph 7, it shall be considered that he renounces to conclude the transaction.(9) The exchange of agricultural lands from the municipality land fund with agricultural lands of citizens, legal persons and the state shall be done by decision of the municipal council after presentation of a reasoned statement to the Municipal Agriculture and Forestry Service.(10) The consolidated agricultural lands, acquired through exchange of agricultural lands from the state land fund or from the municipality land fund, shall not be partitioned through right-transferring transactions during a period of 10 years as from the execution of the exchange.Article 25(1) (Supplemented, SG No. 13/2007) Agricultural land, which is not owned by citizens, legal persons or the State, shall be municipal property. The property of the municipalities over the plots and the pastures shall be public and shall not be proclaimed as private municipal property pursuant to the Act on the Municipal Property. The municipal council can determine a charge for use of the municipal plots and pastures, the revenues from which shall be used for their maintenance.(2) (Supplemented, SG No. 45/1995, amended, SG No. 98/1997) Municipalities shall be reinstated in ownership of agricultural land of which they were dispossessed to benefit state-owned farms, labour co-operative farms, agricultural and industrial complexes, agricultural companies, as well as state-owned forest lands, where such land was included in the State forestry fund, except in the instances of forest nurseries and protective forest belts.Article 26(Amended, SG Nos. 28/1992, 45/1995, 87/1997) The Ministry of Agriculture and Forestry and the Municipal Agriculture and Forestry Services may grant usufruct in state and municipal land to individuals where such land is in low-productivity or depopulated areas as determined by the Council of Ministers. Users, who have cultivated such land for a period over 10 years, may be granted ownership subject to a resolution of the Municipal Council and by order of the Minister of Agriculture and Forestry, when ownership of land from the State Land Reserve shall be granted.Article 27(1) (Amended, SG Nos. 28/1992, 45/1995, 79/1996) Proprietors of land incorporated in labour co-operative farms and state farms, members of labour co-operative farms or of other agricultural organisations set up on the basis thereof, as well as all persons in legal labour relations with them, shall be entitled to a share of such entities' property. Shares shall be assessed on the basis of a person's contribution to the acquisition thereof: contributed land, perennials, length of service and moneys paid up for the acquisition of machinery and equipment not cleared by subsequent payment. The distribution of shares shall be effected under the terms and procedures laid down in the Rules on the implementation of this Act, in equal proportions of contributed land and length of service and following the reimbursement of moneys provided for the acquisition of machinery and equipment not cleared by payment. Where a rightful claimant has not made contributions of land and fixed assets, his years of service shall be taken into account, provided they are not less than five (5).(2) Members of co-operative farms shall have the right to withdraw their shares at termination of membership.(3) Persons, and their inheritors, who have terminated their membership before this Act comes into force shall also be entitled to shares.(4) (Repealed, SG No. 98/1997).(5) (New, SG No. 45/1995, amended, SG No. 98/1997) In the event that several persons under paragraph 1 have requested to be granted a certain chattel related to agricultural production in exchange of shares in the organisation under 12 of the Transitional and Concluding Provisions, priority shall have those who manufacture agricultural produce or provide manufacturing services related thereto; and if several persons should satisfy this requirement, priority shall have those whose shares cover a larger portion of the requested chattel's value.(6) (New, SG No. 45/1995, amended, SG No. 79/1996, amended and supplemented, SG No. 98/1997, supplemented, SG No. 13/2007) Persons who have acquired ownership over buildings and facilities from the property of the organisations under 12 of the Transitional and Concluding Provisions, shall be entitled to utilise, as of the day of the acquisition of the buildings and against payment, the non-built part of land surrounding such buildings within such size as set by the law for a period of one (1) year following the entry into force of the land allocation plan. The rental amount shall be determined by the respective District Governor. The said persons shall have the right to acquire the property over that land and over the built-up portion of it by way of:1. (amended, SG No. 98/1997) a three-year instalment plan involving payment by equal annual instalments of the outstanding amount increased by 20 per cent of the annual inflation rate;2. (repealed, SG No. 98/1997).3. submitting of an equal amount of land to the State landed fund. If the person in question is a legal person, such submission of land may be effected by its members following the appropriate procedure.(7) (Amended, SG No. 98/1997) Persons having a share in a co-operative under Article 27, upon leaving such co-operative shall have the right to receive a portion of the property of the organisations under 12 of the Transitional and Concluding Provisions in proportions corresponding to their shares.Article 28(1) (Amended, SG No. 28/1992) Labour co-operative farms shall be reinstated in ownership of agricultural land, fixed and financial assets, etc. as dispossessed of them or of state-owned farms based on them to benefit other entities.(2) Where such property is an indivisible part of existing assets and the project has not changed its purposes since its foundation, it shall be restituted to the proprietor who will reimburse the difference in value.(3) Where a labour co-operative farm's property was ceded to a state owned farm, a tractor depot and to other state-owned organisations, and has been subsequently incorporated into corporate property, the labour co- operative farm's equity share, or that of its legal successors, shall be determined in proportion to the property transferred by the labour co- operative farm to a state-owned farm and to other state-owned organisations.(4) (Repealed, SG No. 28/1992).(5) (Repealed, SG No. 28/1992).Article 29(1) (Amended, SG No. 28/1992, SG No. 99/2002) The Bulgarian Orthodox Church and the other religious denominations, co-operatives and other organisations, shall, at their request, be reinstated in ownership of agricultural land, as dispossessed, unless such land has since been lawfully built up for purposes other than farming, or granted to individuals. In such cases the above organisations shall be compensated with land equal in quality and area from the State or Municipal Land Reserves. In the absence of such land proprietors shall be compensated with registered compensation bonds.(2) Subject to consent of the organisations under paragraph (1) above, reinstatement in ownership may be done elsewhere in the country.Article 30(1) (Amended, SG Nos. 87/1997, 98/1997, 68/1999) Any property of the expunged organisations under 12 of the Transitional and Concluding Provisions, which the persons specified in Article 27, paragraph 1 do not wish to receive as a share, and which cannot be sold out, shall be ceded gratis free to the municipality in whose territory it is located. In the presence of state property, municipalities shall be obligated to render the same to the Ministry of Agriculture and Forestry.(2) (New, SG No. 68/1999) Following the expiry of a 5-year period starting from transferring the property under paragraph 1, sentence 1, such property shall pass into ownership of the municipality.(3) (New, SG No. 68/1999) The documents of the expunged organisations under 12 shall be submitted according to an inventory, by the persons under 29 of the Transitional and Concluding Provisions of the Act on the Amendment of the Ownership and Use of Agricultural land Act (promulgated, SG 45/1995, amended, 46/1995, 59/1995: Ruling No. 8/1995 of the Constitutional Court, amended, 79/1996, 15/1997: Ruling No. 3/1997 of the Constitutional Court, amended, 98/1997) to the Mayor in the municipality where the organisation had its registered seat.Chapter FourLANDED PROPERTY AUTHORITIES(Title amended, SG No. 28/1992)Article 31(Amended, SG No. 28/1992)(1) (Amended, SG Nos. 28/1992, 87/1997, 98/1997, 99/2002) Land property authorities shall be the Ministry of Agriculture and Forestry and all Regional Agriculture and Forestry Directorates and the Municipal Agriculture and Forestry Services.(2) (New, SG No. 98/1997, amended, SG No. 68/1999) On a motion of the Minister of Agriculture and Forestry in agreement and co-ordination with the Finance Minister, the Council of Ministers shall adopt a tariff of state fees to be charged, for keeping and updating land reallocation plans and for any other administrative services provided by land property authorities. Revenues from such fees shall be deposited into the budget of the Ministry of Agriculture and Forestry.Article 32(Repealed, SG No. 28/1992)Article 33(Amended, SG Nos. 28/1992, 45/1995)(1) (Judgment No. 7 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30. 06. 1995, amended, 79/1996, 87/1997, 99/2002) Municipal Agriculture and Forestry Services shall be bodies of the Ministry of Agriculture and Forestry. They shall be established, re-established and disbanded by the Minister of Agriculture and Forestry upon a proposal of the Regional Agriculture and Forestry Directorates. The Minister shall appoint and members of their staff.(2) (Amended, SG No. 79/1996, 34/2000, 99/2002, 36/2004) Municipal Agriculture and Forestry Services shall restore property over land and forests under the provisions of this Act, shall implement government agricultural policy on their territory, and shall conduct other activities under the Application Regulations to this Act and the Organisation Rules of the Ministry of Agriculture and Forestry. Municipal Agriculture and Forestry Services shall keep and update land reallocation plans and other materials or data obtained in the course of implementing this Act, and shall issue land plans while transacting and partitioning agricultural land until cadastral maps and cadastral registers are adopted for their territory according to the provisions of the Cadastre and Property Register Act. (3) (New, SG No. 79/1996, amended, SG No. 87/1997, 106/2000) Performance of activities related to maintenance and update of land reallocation plans and of other materials and data obtained in result of the enforcement of this Act, shall be assigned by the Minister of Agriculture and Forestry, or by persons duly authorised by the Minister, on a motion by the Municipal Agriculture and Forestry Service to contractors within one (1) month following the entry into force of land reallocation plans.(4) (New, SG No. 79/1996, amended, SG No. 87/1997) The powers of the Minister of Agriculture and Forestry relative to the implementation of this Act may also be exercised by persons authorised by him in writing.(5) (Amended, SG No. 87/1997, 99/2002) The Minister of Agriculture and Forestry shall determine the number of staff of Municipal Agriculture and Forestry Services.(6) (New, SG No. 13/2007) The decisions of the Municipal Agriculture and Forestry Services in relation to the restitution of ownership and the compensation of the owners pursuant to this Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts, as well as in relation to the granting of land to citizens, shall be signed by the director of the service and by the officials determined by an order of the director of the District Directorate "Agriculture and Forestry".Article 34(New, SG No. 98/1997)(1) (Supplemented, SG No. 13/2007) At the request of the owners or legal users, farm estates the right of ownership whereto has been restituted shall be seized from the persons using them without legal grounds and shall be rendered to their lawful proprietors by an n order of the mayor of the municipality at the location of the estates.(2) Both a mayor's ruling as well as his refusal to issue such ruling shall be appealable under the terms and procedures presented in the Administrative Procedure Code. No appeal shall suspend the execution of the ruling unless the court has ruled otherwise.(3) A mayor's ruling shall be carried out through administrative channels and with the assistance of the national police authorities.(4) (New, SG No. 13/2007) The lands under Article 19 shall be seized from the persons using them without legal grounds pursuant to the procedure of Article 65 of the Municipal Property Act. (5) (Renumbered from Paragraph 4, SG No. 13/2007) No persons thus removed from the utilisation of the estate shall have any right to indemnification.Article 34a(New, SG No. 98/1997, repealed, SG No. 68/1999)Article 34b(New, SG No. 98/1997, repealed, SG No. 68/1999)Article 34c(New, SG No. 68/1999, amended, SG No. 99/2002)In the cases under Article 17, paragraph 8 and under 31, 32 and 34 of the Transitional and Concluding Provisions of the Act on the Amendment of the Ownership and Use of Agricultural land Act (promulgated, SG 98/1997, amended, 36 and 88/1998), starting from the date of promulgation in the State Gazette of the ruling for the reworking of the plan under Article 17, paragraph 8, all rulings of the Municipal Agriculture and Forestry Service and the public deeds based on factual possession for the property affected by the reworking, issued on the basis of these rulings, shall be considered null and void by rights.Chapter Five(New, SG No. 98/1997)INDEMNIFICATIONArticle 35(1) (Amended, SG No. 16/2003) Where restitution of property cannot be effected in any other way stipulated statutorily, agricultural land owners that are subject to restitution under this Act, shall be indemnified with registered compensation bonds.(2) (Repealed, SG No. 47/2002)(3) (Amended, SG Nos. 47/2002, 99/2002, 16/2003) Registered compensation bonds shall be registered and have no cash value. The terms of their emission, the transactions and payments through them shall be regulated by a separate act. They can only be used for purchasing by auction of agricultural land from the State landed fund, for participation of their holders in the privatisation, as well as for acquisition of title to, and use of, land under Article 27, paragraph 6. Only holders of registered compensation bonds shall have the right to participate in auctions for agricultural land from the State landed fund.(4) (Amended, SG No. 68/1999) Registered compensation bonds shall be transferable without limitations.(5) Registered compensation bonds shall be inheritable.(6) Registered compensation bonds may not be put up as collateral security, nor can be used as a means of payment, except from the instances specified in paragraph 3.(7) Registered compensation bonds shall have a par value of one thousand (1,000) units each. For the purpose of establishing the amount of indemnification payable to entitled persons by way of registered compensation bonds, as well as of any payments thereby in the instances specified in paragraph 3, each nominal value unit shall be equal to one (1) Bulgarian Lev.Article 36(1) Municipal Agriculture and Forestry Services shall determine the pecuniary indemnification amount due and the number of registered compensation bonds owing to entitled persons under Article 35, paragraph 1.(2) (Amended, SG No. 99/2002, SG No. 17/2006) The indemnification amount under paragraph 1, including the one concerning farmlands within the confines of urbanized territories (settlements and populated areas) shall be determined pursuant to the terms and conditions of a Council of Ministers Ordinance.(3) (New, SG No. 13/2007) The appraisal of the municipal lands, upon which a right of use has been established on the basis of the acts referred to in 4 of the Transitional and Concluding Provisions, shall be determined by a decision of the municipal council pursuant to the procedure of the on Municipal Property Act. The price determined by the municipal council shall not be higher than the appraisal determined pursuant to the procedure under paragraph 2.Article 37(Amended, SG No.47/2002, 99/2002)Terms, deadlines and procedure of indemnification with registered compensation bonds shall be prescribed by the Rules for Implementation of this act.Article 37a(New, SG No.47/2002)Land commissions shall be obliged to keep a register of the certification documents, sent to the bodies under the Transactions in Compensation Instruments Act, as well as of the certification documents received and delivered to owners of compensatory documents.Chapter Five A(New, SG No. 99/2002)Use of FarmlandArticle 37b(Amended, SG No. 13/2007) Each proprietor shall file with the Municipal Agriculture and Forestry Service at the estate location a declaration form indicating the type of business structure and the intended durable use of the lands. A declaration filed by one of the co-owners can be used by all the other co-owners. Users of farmland shall submit a copy of all lease, rent or joint farming contracts to the Municipal Agriculture and Forestry Service. The Municipal Agriculture and Forestry Service shall keep a register of farmland proprietors and users and shall make information concerning them available in view of promoting the use of larger and the establishment of consolidated plots of land.Article 37c(1) (Amended, SG No. 13/2007) Consolidated plots for the use of farmland shall be established upon written agreement between proprietors and/or users. The conclusion of the agreement shall be conducted by a commission per each settlement at the territory of the municipality, appointed by an order of the municipal mayor. The commission shall be comprised by: the mayor of the settlement or the deputy mayor, representatives of the respective Municipal Agriculture and Forestry Service and representatives of the municipality. All users in the respective settlements shall submit to the commission the contracts concluded with the co-owners and registered in the Municipal Agriculture and Forestry Service, a list of the leased or rented agricultural lands by plots and lots.(2) (New, SG No. 13/2007) The agreement shall contain the data under paragraph 1, shall be signed by the users and the chairman of the commission, and shall be submitted to the Municipal Agriculture and Forestry Service and the respective municipality. The agreement shall be concluded and updated each year by 30th March.(3) (New, SG No. 13/2007) When the users cannot reach an agreement, the commission shall draft a project for allocation of the use of the lands by plots by 10th April of the respective year according to the following manner:1. the right to use the respective plot shall be granted to the user with the biggest share of leased/rented agricultural land in the plot;2. the part of the plot regarding which there are no concluded contracts and there are no declarations submitted by their owners under Article 37b, shall be granted to the user with the biggest share of leased/rented agricultural land in the respective plot;(4) (New, SG No. 13/2007) The commission shall draft a report to the municipal mayor, which shall contain the allocation of the plots for use, data about the lands under paragraph 3, item 2, about their proprietors and the rent payment due, on the basis of which the mayor shall issue an order.(5) (New, SG No. 13/2007) The order under paragraph 4 shall be published in the mayoralty and in the building of the Municipal Agriculture and Forestry Service, and shall be published on the Internet site of the municipality and the respective district directorate "Agriculture and Forestry" by 15th April. The order shall be appealed according to the procedure of the Administrative Procedure Code. (6) (New, SG No. 13/2007) The appeal of the order under paragraph 4 shall not stop its execution.(7) (New, SG No. 13/2007) The user of agricultural lands who wants to benefit from the order in its part regarding the plot under paragraph 3, item 2, shall pay in beforehand into a special non-budget account of the municipality a sum in the amount of the average annual rental payment for the region for the previous year. The sums shall be deposits and shall be paid by the municipality to the entitled persons on the basis of the order of the mayor under paragraph 4 within three years.(8) (New, SG No. 13/2007) A livery to use the respective plot or parts thereof shall be done by an order of the mayor of the respective municipality after the gathering of the harvest and payment of the sums under paragraph 7.(9) (Renumbered from Paragraph 2, SG No. 13/2007) The plots shall be designated in an extract from the map of the settlement and shall be publicized at the Mayoralty and the Municipal Agriculture and Forestry Service.Article 37dThe terms and conditions for designation of consolidated plots intended for farmland use, as well as those for entering, amending, and terminating agreements shall be laid out in the Rules for Implementation of this act.Article 37e(1) The State shall promote sales and exchanges of neighbouring estates in view of their consolidation, all costs related to technical activities on the occasion of sales or exchanges being covered by it.(2) Individuals may not dispose of farmland acquired under Paragraph 1 from the State or municipal landed reserves for a period of 10 years.Article 37f(New, SG No. 13/2007)(1) Upon a written agreement of the proprietors of agricultural lands with notarial certified signatures, the land division plan which entered into force and the approved map of the existing or restorable old actual boundaries of agricultural lands, as well as the map of the restituted property can be amended in order to create consolidated land estates.(2) When there is a change in the boundaries of the agricultural lands Ц state or municipal property, the agreement under paragraph 1 about the state or municipal estates shall be concluded by the Minister of Agriculture and Forestry or by a person authorised by him, respectively the municipal mayor, in a written form.(3) The agreement on creation of consolidated land estates shall be entered into the Registry Agency.(4) On the basis of the approved project for amendment of the plans and the maps and the entered agreement, the Municipal Agriculture and Forestry Service shall issue decisions and plans about the consolidated land estates. The decision shall describe the size and the category of the estate, its location (boundaries, neighbours) and the limitations on the ownership by stating the grounds for that. The proprietors shall be informed about the decision according to the procedure of the Code of Civil Procedure. The decision shall not be subject to an appeal. The ownership over the consolidated land estates shall be acquired from the date of the decision of the Municipal Agriculture and Forestry Service. The decision, accompanied by a plan, shall certify the right of ownership and shall have the value of a notary deed.(5) The mortgages imposed on the land estates before their consolidation shall be transferred in full to the newly established land estates.(6) The expenses for creation of consolidated land estates by agreement of their proprietors shall be borne by them apart from those cases where the consolidation resulted as a consequence of technical infrastructure projects which concern the intended use of the land estates or parts thereof.(7) The terms and procedure for amendments to the map of the restituted property by agreement of the owners shall be determined in the Rules on the implementation of this Act. (8) For settlements with approved cadastral map the amendments shall be reflected according to the procedure of the Cadastre and Property Register Act. Article 37g(New, SG No. 13/2007)The Minister of Agriculture and Forestry shall issue an ordinance on the terms and procedure for application of the plans for consolidation of the agricultural lands.Chapter Six(New, SG No. 98/1997)ADMINISTRATIVE AND PENAL PROVISIONSArticle 38(1) (Amended, SG No. 68/1999) Any person who destroys, damages, removes or relocates a permanent landmark designating the supporting net or the boundaries of farm estates, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from two hundred and fifty (250) up to five hundred (500).(2) (Amended, SG No. 68/1999) Any person who destroys a field road traced under a land reallocation plan, or presents an obstacle to its tracing under a land reallocation plan, shall be penalised by a fine of BGL from five hundred (500) up to one thousand (1,000).(3) (Amended, SG No. 68/1999) Where a violation under paragraphs 1 and 2 has been committed on the orders of a legal entity's official, the executive manager thereof shall be penalised by a fine in the amount of BGL from one thousand (1,000) up to two thousand (2,000), and the legal entity shall be penalised by a property sanction in the amount of BGL from two thousand (2,000) up to five thousand (5,000).Article 38a(New, SG No. 99/2002)An individual or a legal entity which fails to perform its duty within the time-limit of Article 18, Paragraph 3 shall be sanctioned by a fine or penalty of BGN 500 to 1,000.Article 39(1) (Amended, SG No. 68/1999) Any official who has failed to discharge his obligations under Article 7, paragraph 5, Article 15, paragraph 5, and Article 34, paragraph 1, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from five hundred (500) up to two thousand (2,000).(2) (Amended, SG No. 68/1999) Any official who has caused or allowed the approval of a land reallocation plan, or of other technical activities relating to the implementation of this Act, in violation of the requirements for their elaboration, shall be penalised by a fine of Bulgarian Leva (BGL) from one hundred and fifty (150) up to two thousand (2,000).Article 40(1) (Amended, SG No. 68/1999) Any person who utilises without any legal ground a agricultural land estate the title whereto has been restituted, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from two thousand (2,000) up to ten thousand (10,000).(2) (Amended, SG No. 68/1999) Any person who fails to obey an order for seizing such estate as provided for in Article 34, shall be penalised by a fine in the amount of Bulgarian Leva (BGL) from five hundred (500) up to two thousand (2,000).Article 41(1) (Amended, SG No. 68/1999) Violations under the preceding articles shall be ascertained by way of statements drawn up by an official designated by the district governor having jurisdiction over the location of the property.(2) (Amended, SG No. 68/1999) Penal decrees shall be issued by the district governor having jurisdiction over the location of the property, or by a person duly authorised by the district governor.(3) (Amended, SG No. 68/1999) Penalties shall be deposited into the budget of the Ministry of Agriculture and Forestry.(4) Ascertainment of violations, as well as issuance, appeal and execution of penal decrees shall be effected under the terms and procedures prescribed in the Administrative Violations and Sanctions Act. ADDITIONAL PROVISIONS(New, SG No. 79/1996) 1. (Repealed, SG No. 13/2007). 2. (Repealed, SG No. 98/1997). 2a. (Repealed, SG No. 98/1997). 2b. (New, SG No. 13/2007) "Small size estates" in the meaning of Article 24a, paragraph 3 shall be estates with surface up to 10 decares.TRANSITIONAL AND CONCLUDING PROVISIONS 3. (New, SG No. 28/1992)(1) Disputes on the use of land of the State and Municipal Land Reserves, or on boundaries between the settlement territories, shall be settled according to the general legal procedure.(2) (New, SG No. 45/1995) Until the dispute over boundaries between settlement territories is resolved land reallocation shall be made on the basis of the settlement territory confines established by the Integrated Cadastre of the Republic of Bulgaria Act.(3) (New, SG No. 45/1995) In the event that settlement territory confines are amended by a court decision that has entered into force, the agricultural land reduction made by the Municipal Agriculture and Forestry Service under Article 15, paragraph 2 in the respective settlement territory shall remain into force.(4) (New, SG No. 45/1995) Court rulings on amending confines of settlement territories for which land reallocation plans have already come into effect, shall not be reflected in the restituted rights of proprietors. 4. (1) (Amended, SG Nos. 28/1992, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30. 06. 1995; amended, SG No. 98/1997) Usufruct of agricultural land granted to individuals under any acts issued by the once Presidium of the National Assembly, State Council and the Council of Ministers, shall be hereby discontinued.(2) (New, SG No. 68/1999) Populated areas shall be created under the provisions of Chapter III, Section II of the Territorial Administration of the Republic of Bulgaria Act on the lands under paragraph 1, where at least two thirds of the property situated on them, have been built up.(3) (New, SG No. 68/1999, 99/2002) Lands under paragraph 2 situated in the immediate vicinity of the confines of urbanized territories, may be incorporated into them.(4) (New, SG No. 68/1999, 106/2000) The mayors of municipalities shall propose to the municipal councils not later than 1 March 2001 belt line ranges of lands under paragraphs 2 and 3.(5) (New, SG No. 68/1999, 99/2002) No fees as per Article 30 of the Agricultural Land Conservation Act shall be charged for incorporation of lands under paragraphs 2 and 3 into the confines of urbanized territories. 4a. (New, SG Nos. 28/1992, amended, SG No. 105/1992, 83/1993, 80/1994, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 98/1997)(1) Individuals, enjoying usufruct of land under 4, shall, in the event of strict adherence to all requirements of any state authorities' acts stated in such usufruct, acquire title to the usufructed land provided they had erected a building thereupon by March 1, 1991, and provided also they pay for such land to its owner via the municipality at prices set by the Council of Ministers pursuant to Article 36, paragraph 2, within three (3) months of the entry of such appraisal into force.(2) Where a building's total floorage exceeds thirty-five (35) square metres, or is more than a single storey high, an individual coming into possession under this Act shall also pay in favour of the state a graduated fee in accordance with the building's floorage, and in such an amount as prescribed by the Council of Ministers. Such fee shall not be paid provided that as of January 1, 1992 the erected building served as the only residence of its owner's family, comprising of the spouses and their under aged children.(3) In the event that the land-owner is not paid the value of his land under the terms and procedure set forth in paragraph 1 above, he shall acquire a good title to the building erected thereon, provided he pays for it to the land-usufructuary who erected the building, or to his inheritors, respectively, at prices set by the Council of Ministers.(4) (Amended, SG No. 99/2002) In the event that neither the value of the land, nor that of the building have been paid, both the building and the regulated landed estate determined within a plant of newly-formed estates under par. 4k attached to it shall be offered for public sale following the terms and procedures laid down in the Code of Civil Procedure. (5) Where an usufructuary, by virtue of any of the acts specified in 4, has been granted usufruct of municipal or state owned land the title whereto is not restorable to citizens, such usufructuary shall acquire ownership provided he pays via the municipality the value of the land at prices set by the Council of Ministers under the terms of paragraph 1, pursuant to Article 36, paragraph 2, within three (3) months of the entry of the appraisal into force.(6) In order to attain the hold of title in adherence to the requirements presented in 4a, 4b, 4e and 4h hereof, usufructuaries shall be required to make a statement of their intention to the respective municipality up to January 31, 1998. 4b. (New, SG Nos. 28/1992, amended, SG No. 105/1992, 83/1993. 80/1994, 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30.06.1995, amended, SG No. 98/1997)(1) (Amended, SG No. 123/1997) Individuals shall be reinstated in ownership of agricultural lands clear of erections and granted in usufruct under the acts stated in 4. Where such lands are planted with vineyards or orchards, or where a plot of agricultural land is the only one held by an usufructuary's family residing permanently in the same settlement in whose territory the estate in issue is located, such usufructuary shall acquire title to the land, provided he pays for it to its owner via the municipality at prices set by the Council of Ministers pursuant to Article 36, paragraph 2, within three (3) months of the entry of such appraisal into force. No usufructuary shall be allowed to acquire title to any land lying at less that thirty (30) kilometres away from cities with a population exceeding three hundred thousand (300,000) inhabitants, irrespective of the municipality which it is situated in, or falling within 10 kilometres from the littoral strip.(2) Where an usufructuary acquires title to land pursuant to paragraph 1 above, or to 4a, instead of paying for the land he may offer to the land-owner to exchange it for a plot of land of his own, provided the land- owner is willing to accept the offer. 4c. (Amended, SG No. 98/1997) Persons who have effected ameliorations on landed estates subject to restitution shall enjoy the rights stipulated for in Article 72 of the Ownership Act. 4d. (Amended, SG No. 98/1997) Any land estate held and usufructed by any person without good legal grounds shall be subject to seizure. A seizure shall be effected following the procedure laid down in Article 34. 4e. (Amended, SG No. 98/1997) Individuals enjoying usufruct of two or more landed estates shall have the right to acquire title, under the terms of 4a and 4b, to one of them alone by exercising their own choice and making a statement to the respective municipality within the time limit specified in 4a, paragraph 6. 4f. (Amended, SG No. 98/1997, repealed, SG No. 68/1999) 4g. (New, SG No. 28/1992, amended, SG No. 45/1995, Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/30 06.1995; amended, SG No. 98/1997) Funds under 4a, 4b and 4h shall be raised in an extra-budgetary account with the municipalities and shall, along with the interest accrued, be used to indemnify former land-owners and usufructuaries. The amounts shall be paid within one month of their being deposited, under terms and procedures defined in the Rules on the implementation of this Act. 4h. (New, SG No. 98/1997)(1) Individuals whose usufruct of a property is transformed into a good title thereto pursuant to д 4a, paragraph 1, shall acquire title to plots of land up to six hundred (600) sq. m., and those under 4a, paragraph 1 to plots of land up to one thousand (1,000) sq. m.(2) (Amended, SG No. 68/1999) The differential between six hundred (600) sq. m. and one thousand (1,000) sq. m. and the actually usufructed plot of land shall be restituted to the land owners for the purpose of setting up new pieces of property with proportions of no less than two hundred and fifty (250) sq. m. under terms and procedures prescribed in the Rules on the implementation of this Act. Plots of land which cannot be used to establish a new piece of real estate shall be paid for by the usufructuaries to the proprietors at market prices, within three months of entry into force of the valuation. 4i. (New, SG No. 98/1997)(1) Land-owners or their inheritors shall have the right to file a claim for restitution of title to the land where it was granted in usufruct under 4 and the subsequent, or has been transferred not by its owner, if the granting of such usufruct or the acquisition of the property has been effected in violation of any statutory and regulative instruments, as well as through a misuse of high official or communist party standing, or through an abuse of power.(2) The rights under paragraph 1 shall be also enjoyed by the land- owners or their inheritors in any instances specified in Article 10, paragraph 7.(3) In the event that a building has been erected on a plot of land in the instances under paragraphs 1 and 2, or some other ameliorations have been carried out, the relations between the land-owner and the usufructuary shall be settled in correspondence with Articles 73 and 74 of the Ownership Act. 4k. (New, SG No. 98/1997, amended, SG No. 68/1999)(1) (Amended, SG No. 99/2002) A support plan and a plan of newly formed estates shall be designed for the lands granted in usufruct to individuals on the basis of the enactments specified in 4.(2) (Amended, SG No. 99/2002) The support plant under paragraph 1 shall contain information both on the landed property granted in usufruct, and on the landed property which existed before the establishment of labour co- operative farms and state-owned farms.(3) For the purpose of ascertaining the boundaries of landed property existing prior to the establishment of the labour co operative farms and state-owned farms, all information sources may be used: aerial photographs, photo diagrams, photo plans, cadastral plans, reallocation plans and other graphic materials and data. Where information from these sources on the boundaries of landed property is lacking, data shall be collected through inquiries, under terms and procedures provided for in the Rules on the implementation of this Act.(4) (Amended, SG No. 99/2002) The contents of plans under Paragraph 1 and the terms and procedures for their design, adoption, and notification to the interested shall be stipulated in the Rules for Implementation of this Act.(5) (Amended, SG No. 99/2002) Plans under Paragraph 1 shall be developed by individuals who have acquired competency under the Cadastre and Property Register Act. (6) (Amended, SG No. 99/2002, No. 30/2006, effective 1.03.2007) The plan of newly-formed estates shall be approved by the district governor. The ruling thereon shall be published in the State Gazette and announced in the media, including two national dailies, and posted at suitable locations of public access inside municipal HQ and Mayoralty buildings. Complaints against the approved plan of newly-formed estates may be filed with the administrative court within 14 days of the publication of said ruling in the State Gazette.(7) Restitution, or acquisition, respectively, of ownership right on newly-formed landed property shall be executed by ruling of the mayor of the municipality, which shall be notified under the provisions of the Code of Civil Procedure. The ruling shall set forth the location, confines, neighbours, as well as any limitations on the property and the reasons for such limitations. A plan of the property shall be annexed to the ruling.(8) A plan of newly-formed estates which has already entered into force may be changed:1. (amended, SG No. 99/2002) when the support plan on the basis of which it has been worked out, contains significant inadequacies or errors; where a material right is contested, the parties concerned shall assert their rights through the court;2. when the plan contains an obvious factual error;3. when the plan has been worked out in gross violation of the law, unless a court ruling has entered into force, or the plan has been annexed;4. upon request of the court in relation to lawsuits for partition of property;5. with the consent of all owners directly concerned.(9) (Amended, SG No. 99/2002) Financing of the plans under paragraph 1 shall be done from the State budget, according to an yearly programme formulated by the district governor in conjunction with the mayor of the municipality.(10) (Amended, SG No. 99/2002) In respect of the plots of land under 4, the district governor shall order that a support plan and a plan of newly-formed estates as of 30 September the previous year, be designed.(11) (New, SG No. 99/2002) Where the Ruling for approval of plans of newly-formed estates under Paragraph 6 enters into force, once the cadastral map and registers for the respective territory have been approved and the introduction of an estate register has been announced, newly-formed estates shall be made part of the cadastre, and the Ruling under Paragraph 7 shall be entered in the estate register following the terms and conditions of the Cadastre and Property Register Act. 4l. (New, SG No. 98/1997, amended, SG No. 68/1999) Valuations of land, buildings and ameliorations under 4a, 4b, 4c and 4h shall be carried out by ruling of the mayor of the respective municipality, or of an official duly authorised by the mayor, within three months of entry into force of the plan of newly-formed estates, under terms and procedures set forth in the Rules on the implementation of this Act. 5. Leases shall be honoured where land under lease is to remain as possession of or in use by the lessor. Should the opposite be the case, the lease shall be terminated as the rightful proprietor comes into possession, but in no case earlier than the crop has been gathered. 6. (Repealed, SG No. 99/2002). 7. (1) (Repealed, SG No. 57/1995).(2) Annuity receipts from agricultural land shall be deducted from the sum dutiable to income tax.(3) Natural persons shall be exempt from tax on buildings erected on agricultural land for a period of five years from the date of their entering into possession.(4) Young families shall be exempt from income tax on farming receipts from vegetable and animal products for a period of eight years since the entering in force of this Act. 8. (New, SG No. 28/1992) The inheritors of persons reinstated in ownership of agricultural land under this Act shall be exempt from inheritance tax. 9. (New, SG No. 28/1992) Farm land subject to reinstated ownership under Article 10 of this Act and considered as forests in the sense of the Forestry Act, shall be subject to the provisions of the Forestry Act and the Hunting Estates Act. 10. (New, SG No. 28/1992, amended, SG Nos. 45/1995, 79/1996) Agricultural lands the ownership wherein has been reinstated under the provisions of this Act, and which are construed as forests in the accepted meaning of the Forestry Act may, at their proprietors' request, be commuted for other agricultural land from the landed reserve of the respective settlement or within the territory of an adjacent settlement, and by the proprietors' consent - within a different territory just as well. 11. (New, SG No. 28/1992, amended, SG No. 45/1995)(1) All transactions concluded in violation of the Decision of the National Assembly on Temporary Halting of Disposal with Property (SG No. 1/1992) shall be null and void.(2) All auctions of property of organisations under 12, held in violation of the terms and procedures specified for them, as well as any deals made on the basis of such auctions shall be null and void. Such property shall be confiscated under Article 16 of the Ownership Act by ruling of the district governor.(3) Subject to annulment shall be deals with property of organisations under 12 made by liquidation councils at obviously unfavourable terms. Annulment claims may be filed within one year of the entry into force of this Act by any of the persons under Article 27, paragraph 1 or on their behalf by a co operative or company of which they are members of shareholders. 12. (New, SG No. 28/1992) Terminates all existing TKZS and farm co operatives established under 7 of the Transitional and Concluding Provisions of the Co-operatives Act. Terminates all existing organisations and companies registered under Decree No. 922 on Land Use and Farming (promulg. SG, No. 39/1989, amend. No. 10/1990, repeal. No. 63/1991) and Decree No. 56 on Economic Activity with property and share in equity of farming teams, farm co-operatives, TKZS, tractor depot, APK and agricultural institutes. Terminates the existence of co-operatives registered under the Co-operatives Act, when the provisions under Article 33, paragraph (3) of that Act have not been observed and contribution of agricultural land has been envisaged in their By laws. 13. (New, SG No. 28/1992, amended, SG Nos. 48/1993).(1) The liquidation of the organisations under 12 shall be carried out by Liquidation Councils, composed of a chairman and up to two members.(2) (Amended, SG No. 87/1997) The members of the Liquidation Councils shall be dismissed and appointed by the Minister of Agriculture and Forestry upon a proposal by the regional agricultural offices in consultation with the respective mayors of communities. The Minister of Agriculture and Forestry shall also make changes or shall fill in vacancies in the respective Liquidation Council on his own initiative through a procedure to be determined by the Council of Ministers.(3) The Liquidation Councils shall terminate their activities with the deletion of the organisations under 12 from the register of the respective district court.(4) (Amended, SG 87/1997) The regional agricultural offices shall, in consultation with the respective mayors of communities, forward to the Minister of Agriculture and Forestry within one month of the entry into force of this Act a reasoned proposal on changes or filling in of vacancies in the respective Liquidation Councils.(5) The Liquidation Council shall:1. organise and manage the activities of the organisation under 12 until its deletion from the register of the respective district court and shall have the rights and obligations of the Managing Board, while the Chairman of the Liquidation Council shall execute the rights and obligations of the organisation's head;2. determine the shares under Article 27, paragraph (1) and grant ownership or co-ownership of property based on such shares;3. distribute the in-kind property among the persons possessing the right to a share in accordance with the shares owned by them;4. undertake other actions pertaining to liquidation under the Rules on the implementation of this Act.(6) The Liquidation Councils shall file with the respective district courts applications for deletion of the organisations under 12 immediately after the ending of the liquidation activities.(7) (Amended, SG No. 45/1995) The Minister of Agriculture and Forestry shall carry out the guidance and supervision of the activities of the Liquidation Councils. The Minister of Agriculture and Forestry, or a person duly authorised by the Minister, may revoke acts of the liquidation councils, including after termination of the latter within one year of the entry into force of this Act. He shall determine the final deadline for their work in accordance with the liquidation activities performed.(8) (Amended, SG No. 45/1995) The members of the Liquidation Councils shall be liable jointly and severally for the damages they have caused to the organisations under 12 and to the persons possessing a share in the property. Persons eligible to receive shares may empower co-operatives or companies of which they are members to file claims under this paragraph on their behalf. Such claims shall be exempt of state fees.(9) (Amended, SG. No. 45/1995) Within one (1) year of the entry into force of this Act the Ministry of Finance shall organise and carry out financial control of the organisations under 12 of the Transitional and Concluding Provisions, including after such organisations are terminated. The funds necessary for exercising financial control shall be allocated from the State budget. The audit statements and penal statements shall also be sent to the Ministry of Agriculture and Forestry. Within the legal process in respect to claims under paragraph 8 the factual findings in audit statements shall be considered true until proved false. 14. (New, SG No. 28/1992, amended, SG No. 48/1993)(1) The obligations of the organisations under 12 to the banks with state participation, as existent by December 31, 1992, shall be converted to state debt under terms and procedures to be determined by the Council of Ministers.(2) The State shall assume the rights of the organisations under 12 for all their claims towards third parties natural or legal persons which have arisen by December 31, 1992.(3) Movable and immovable property of liquidated labour co operative farms necessary for their activities may not be subject to execution. 15. (New, SG No. 28/1992, repealed, SG No. 88/1998). 16. (Amended, SG Nos. 79/1996, 104/1996, 98/1997).(1) (Amended, SG No. 104/1996, 98/1997) Court proceedings under this Act shall be free with the exception of the ones under Article 14, paragraph 4.(2) (New, SG No. 98/1997) Conduct of technical activities relating to the execution of court rulings whereby the right to reinstatement in agricultural land under Article 11, paragraph 2 has been adjudged, shall be paid for by the land-owners.(3) (Former paragraph 2, renumbered and amended, SG Nos. 98/1997, 68/1999) Revenues from activities related to the keeping and updating of land reallocation plans shall be paid into the budget of the Ministry of Agriculture and Forestry. 17. Financing required for the enforcement of this Act shall be provided from the State budget, as requested by the Council of Ministers. 18. (New, SG No. 48/1993, repealed, SG No. 99/2002). 19. This Act is hereby assigned for enforcement to the Council of Ministers which shall issue Rules on the implementation thereof.This Act was submitted to a vote and duly adopted by the Grand National Assembly on March 20, 1992 and the State Seal was affixed hereto.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 28/20.03.1992TRANSITIONAL AND CONCLUDING PROVISIONS 40. The sentence "No charges shall be payable for court proceedings pursuant to this Act" shall be added to the end of Article 7 of the Property Reinstatement of Nationalised Immovables Act. 41. Within one (1) month of the date of entry of this Act into force, the Council of Ministers shall revoke land expropriations for State purposes, when expropriated land has not been used for such purposes or they have dropped off.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 45/16.05.1995Judgment No. 8 of the Constitutional Court of the Republic of Bulgaria -SG No. 59/1995, amended SG Nos. 79/1996, Judgment No. 3 of theConstitutional Court of the Republic of Bulgaria - SG No. 15/1995amended, SG No. 98 ?TRANSITIONAL AND CONCLUDING PROVISIONS 28. (1) (Third sentence - Declared unconstitutional by Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended, SG No. 79/1996, Fifth sentence - Declared unconstitutional by Constitutional Court of the Republic of Bulgaria - SG No. 15/1997) With the entry into force of this Act liquidation councils shall be terminated and the organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act shall be deleted from the registers of district courts. The members of liquidation councils shall not receive compensation under Article 220, 222 and 224 of the Labour Code. Disputes arising out of dismissals of members of liquidation councils shall not be examined by the courts. Pending cases and pending execution proceedings where to organisations under 12 of the Ownership and Use of Agricultural land Act are defendants or debtors shall be discontinued, while those to which they are plaintiffs or claimants may be continued by the persons under 29, paragraph 1.(2) (Amended, SG No. 79/1996) Property of organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act shall be the joint property of persons under Article 27, paragraph 1, commensurate with their rights, with the exception of perennials following the restitution of ownership over the land whereupon they have been planted. The shares of persons who are not to receive perennials shall be equalised by supplement of other property in compensation. The General Meeting of persons under Article 27, paragraph 1 shall be empowered to adopt changes to the assessment of property of organisations under 12 of the same Act. Each person under Article 27, paragraph 1 shall enjoy the rights under Article 28 commensurate with his share in the property of an organisation under 12. A person may delegate such rights as well as authorise a co-operative or a company of which he is a member or a shareholder to exercise such rights at his expense and account, inclusive of the right to file claims in connection therewith.(3) (Amended, SG No. 79/1996) Persons who have effected ameliorations of real estates belonging to organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, shall have the right to request that the owner repays to them the cost of such ameliorations under the provisos of Articles 72 and 74 of the Property Act or Article 59 of the Obligations and Contracts Act. (4) The documents of the organisations under 12 of the Transitional and Concluding Provisions shall be handed over as per document lists to the mayors of the municipalities where such organisations have their principal offices and shall be kept by them. Mayors shall provide information to interested parties on the grounds of such documents. They shall present all documents of organisations under 12 to the persons under 29, paragraph 1 upon their request.(5) Banks, other legal persons and sole traders may deduct from their taxable profits any amounts due to them by organisations under 12 of the Transitional and Concluding Provisions for three years after the deletion of such organisations from the registers.(6) (New, SG No. 79/1996) No Value Added Tax shall be due for mechanised farming services provided but not paid for, and for seeds, fertilisers and preparations (chemicals) sold to organisations deleted from court registers under paragraph 1 hereinabove. The liabilities of such organisations to the State and municipal budget shall be written off as uncollectable. 29. (1) (Amended, SG Nos. 79/1996, 98/1997) The General Meeting of persons under Article 27, paragraph 1 may appoint physical or legal persons to distribute the property of the organisations under 12 of the Transitional and Concluding Provisions, including their moneys in banks. They shall provide information on the state property to the government authorities. Where a person or a group of persons under Article 27, paragraph 1 are not willing to receive a certain chattel of property belonging to an organisation under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, the General Meeting of the persons under Article 27, paragraph 1 may authorise in writing persons to have such chattel sold. Sale of motor vehicles and immovable property (real estate) shall be made by an agreement in writing and shall require a notary certification of the parties' hands. The price fetched shall be allotted to the persons under Article 27, paragraph 1 commensurate with their rights. Prescription time for acquisition of shares under Article 27, paragraph 1 shall be five (5) years effective as of the date of termination of an organisation under 12. Following the expiry of such term all remaining property shall be apportioned to all remaining persons under Article 27, paragraph 1 commensurate with their rights.(2) (Amended, SG No. 79/1996) Persons under paragraph 1 may receive from debtors to organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act in exchange of their debt shares or stakes in their capital, or chattels which they shall apportion to the persons under Article 27, paragraph 1.(3) (New, SG No. 79/1996) Persons under paragraph 1 shall have the right to transfer to persons under Article 27, paragraph 1, and by their consent to other persons as well, collections of organisations deleted under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, inclusive of their rights under Article 28 of the same Act. Such transfer shall be effected in exchange of their share in the property of the deleted organisations by way of an agreement in writing.(4) A General Meeting shall be held in the settlement where an organisation under 12 of the Transitional and Concluding Provisions used to have its principal office. The General Meeting shall be called by at least 50 persons eligible to receive shares, or by the mayor of the settlement where the organisation under 12 of the Transitional and Concluding Provisions had its principal office, by announcement published in the local or national media. In the event that more than half of the persons eligible to attend the meeting should fail to appear on the announced date and time, the General Meeting shall be postponed for the next day and may sit on that day with the same agenda and adopt decisions irrespective of the number of persons attending it. Decisions shall be adopted by open ballot and simple majority of those in attendance. Each person shall have the right to one vote. Heirs of a person eligible to receive shares shall have the right to one vote in the General Meeting and shall be counted as one when the quorum is established. The minutes of the meeting shall be certified by the mayor of the settlement.(5) Whenever many persons are eligible to attend a General Meeting or the operation of the organisation under 12 has covered several settlements, a meeting of authorised representatives may be called which shall be governed by the preceding paragraphs. The number of authorised representatives may not be smaller than 100. The number of persons represented by one representative shall be determined by the mayor of the settlement where the organisation under 12 had its principal office, or by the General Meeting.(6) (New, SG No. 79/1996) The persons under paragraph 1 shall be jointly liable materially for damages they have inflicted to persons entitled to a share of the property of organisations under 12 of the Transitional and Concluding Provisions of the Ownership and Use of Agricultural land Act, inclusive of the damages inflicted to the state property husbanded by them.(7) (New, SG No. 79/1996) The persons under paragraph 1 shall report to the General Meeting on the husbandry and manage, and allocation of property. The General Meeting shall adopt the statement on the closure of their activities and may decide that a financial audit be carried out, where the expenditures for such audit shall be borne by the persons under Article 27, paragraph 1.(8) (New, SG No. 98/1997, amended, SG No. 124/1997) The General Meeting of the persons under Article 27, paragraph 1 shall set a time limit for the appointed persons to allocate the property of the organisations whose existence has been terminated under 12 of the Transitional and Concluding Provisions, which shall be not later than 31 December 1997. Such term shall not apply to property and chattels where over litigation is pending in court. The authorised representatives shall represent the General Meeting in court until pending lawsuits are finally decided or settled, where after they shall allocate such property within two (2) months.(9) (New, SG No. 98/1997) Null and void shall be announced such auctions and decisions about distribution of the property of the organisations whose existence has been terminated under 12 of the Transitional and Concluding Provisions made by the persons appointed or authorised under paragraph 1, which are in violation of the terms and procedures for holding such auctions provided for in the Act, the Rules on its implementation and the resolutions of the General Meeting of rightful claimants. Null and void shall also be announced the transactions based on these auctions and decisions. Such property shall be confiscated under the provisions of Article 80 of the State Property Act by ruling of the district governor. 30. (1) The rulings of Municipal Agriculture and Forestry Services on restitution of ownership issued prior to the entry into force of this Act shall remain in force on the terms described in Article 14.(2) (Repealed, SG No. 79/1996)(3) The transactions announced null and void under the former '11 of the Transitional and Concluding Provisions, shall be valid if the parties to such transactions have not returned items they have received under those transactions prior to the entry into force of this Act.(4) Land reallocation plans which have not come into effect on the day of entry into force of this Act shall be prepared under the requirements of this Act. 31. Everywhere in the Act "Ministry of Agriculture" and "Minister ofAgriculture" shall be replaced with "Ministry of Agriculture and Food Industry" and "Minister of Agriculture and Food Industry", respectively. 32. The persons under Article 10c, paragraph 2 shall specify in express petitions their choice of manner of compensation within one year of entry into force of this Act. 33. All cases under Article 11, paragraph 1 pending at the time of the entry into force of this Act, shall be examined in the manner applicable prior to the adoption of this Act. 34. For rulings of Municipal Agriculture and Forestry Services, the terms under Article 14, paragraph 7 shall commence as of the entry into force of this Act. 35. In 6, paragraph 4 of the Transitional and Concluding Provisions of the Transformation and Privatisation of State and Municipal Enterprises Act, "within four months following the entry into force of this Act" shall be replaced with "until December 31, 1996".AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 79/17.09.1996, amended SG No. 98/1997TRANSITIONAL AND CONCLUDING PROVISIONS 24. Such projects of land reallocation plans whereof no announcement of their elaboration has been promulgated in the official State Gazette as of the date of entry of this Act into force, shall be drawn up pursuant to the requirements thereof. 25. In respect of land reallocation plans that have entered into force, the time limit under Article 17, paragraph 8 of the Ownership and Use of Agricultural land Act shall be effective as of the entry into force of this Act. 26. (Repealed, SG No. 98/1997). 27. Persons under Article 10b, paragraphs 1, 2 and 3, Article 10c, Article 15 paragraph 2 of the Ownership and Use of Agricultural land Act shall, within one (1) year following the entry into force of this Act, specify in additional applications the mode of indemnification.AN AMENDMENT ENACTMENT TO THE OWNERSHIP AND USE OF AGRICULTURALLAND ACTPromulgated State Gazette No. 62/05.08.1997TRANSITIONAL PROVISION 2. Pendent court proceedings instituted under appeals to the Supreme Court of Administrative Appeal for judicial re-examination of regional courts' rulings under Article 14, paragraph 3 hereof, shall be terminated and send to the respective District Courts in accordance with the jurisdiction thereof.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 98/28.10.1997Amended SG No. 36 ?106/2000TRANSITIONAL AND CONCLUDING PROVISIONS 30. (Amended, SG No. 36/1998, 68/1999) Persons under Article 10c, paragraph 1, items 2 and 3 and paragraphs 2 and 4 may file applications with the Ministry of Agriculture and Forestry following the entry into force of this Act, by 31 October, 1999. 31. Persons who have failed, within the time limit under Article 14, paragraph 3, to appeal against land reallocation plans and rulings of the Municipal Agriculture and Forestry Service under Article 14, paragraph 1, items 1 and 2, which have already become effective, may make an appeal within one month of the entry into force of this Act. 32. Where the time periods under article 14, paragraph 7 have expired, the Municipal Agriculture and Forestry Service shall rule amendment to its ruling already made, within one month of the entry into force of this Act. 33. (Repealed SG No. 106/2000). 34. Persons concerned are entitled, within three months of the entry into force of this Act to request that the Municipal Agriculture and Forestry Service rescind its rulings which disallowed them reinstatement of ownership over agricultural land, on the grounds of the repealed, amended respectively, provisions of this Act. 35. A claim under 4 shall be made within one year of the entry into force of this Act, and legal proceedings shall be exempt of stamp duty. 36. Usufructuaries who have filed applications for valuation to the municipal councils having jurisdiction over the property prior to 30 September 1995 under 4a and 4b, shall retain their rights to have such valuation made by virtue of this Act. 37. The Minister of Agriculture and Forestry shall announce in the official State Gazette the territories in which proceedings shall be suspended on the reinstatement in ownership of lands which are under the jurisdiction both of the Union Republic of Yugoslavia and the Republic of Macedonia until this issue has been resolved on governmental level with the Union Republic of Yugoslavia and the Republic of Macedonia. 38. The decree under Article 37 shall be drafted jointly by the Minister of Agriculture and Forestry and the Minister of Finance and shall be adopted by the Council of Ministers by 31 December 1997. 39. Projects of land reallocation plans for which no announcement has been made in the official State Gazette as of the date of entry into force of this Act, shall be made in accordance with its requirements.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 88/31.07.1998ADDITIONAL PROVISIONS 11. (1) In cities with regional partitioning, mayoral competencies relevant to enforcement of the Act and the enforcement rules thereof may also be exercised by officials empowered by the Mayor.(2) The functions of the municipal technical service, entrusted with the enforcement of the law and the enforcement rules thereof, may be assigned to the regional technical services, pursuant of a Municipal Council resolution.TRANSITIONAL AND CONCLUDING PROVISIONS 12. (1) When the disposition of the property of organisations under 12 of the Transitional and Concluding Provisions has not been completed, the Regional Governor shall convene a General Meeting of the persons envisioned in Article 27, paragraph 1 within two months of the enactment of the current Act.(2) The General Meeting shall be announced by means of a notice in the local and national media and it shall be displayed in a visible location in the Town Hall of the respective settlement.(3) If on the date and hour set for the General Meeting of the persons under Article 27, paragraph 1, the persons holding altogether over 50 per cent of the shares fail to appear, the General Meeting shall be postponed by an hour and may adopt decisions in the presence of persons holding no less than 30 per cent of the shares. Decisions shall be adopted by open vote and on an ordinary majority of represented shares. Each person shall be entitled to a number of votes proportionate to participation expressed as a percentage rate of shares held compared to the total property of the organisation under 12 of the Transitional and Concluding Provisions. The heirs of a person entitled to shares shall be eligible to as many votes as their Grantor held shares. The General Meeting shall be attended by the Regional Governor or an official empowered by him. In the event that a General Meeting is unfeasible, a new General Meeting shall be convened within one month, under the conditions of paragraph 1.(4) At the General Meeting, the persons under 29, paragraph 1 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No. 45/1995, amended Nos. 46/1995, 59/1995 Resolution No. 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No. 3 of the Constitutional Court of 1997, 98/1997) shall report on performance.(5) The convened General Meeting may extend the operation of the persons under 29, paragraph 1 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No 45/1995, amended Nos 46/1995, 59/1995 - Resolution No 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No 3 of the Constitutional Court of 1997, 98/1997) or it may designate new persons, through elections, assigning them the competencies under 29, paragraph 1 for a period not exceeding 6 months of the date of the Meeting, and similarly representation in pending lawsuits pursuant of 29, paragraph 8 of the Transitional and Concluding Provisions of the Amendment Act to the Ownership and Use of Agricultural land Act (Promulgated SG, No 45/1995, amended Nos. 46/1995, 59/1995 - Resolution No. 8 of the Constitutional Court of 1995, 79/1996, 15/1997 - Resolution No. 3 of the Constitutional Court of 1997, 98/1997).(6) The Regional Governor or the official empowered by him shall monitor the legitimacy of the Meeting; by verifying the minutes of the latter and by monitoring compliance with the deadline on the final disposition of property.(7) Persons under paragraph 5 shall be subject to joint liability.LEV RE-DENOMINATION ACT Promulgated, SG No. 20/5.03.1999, amended, SG No. 65/20.07.1999(effective 5.07.1999)TRANSITIONAL AND FINAL PROVISIONS....................................................................... 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force........................................................................ 5. This Act shall enter into force on the 5th day of July 1999.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 68/30.07.1999, effective 30.07.1999TRANSITIONAL AND CONCLUDING PROVISIONS 21. Notarial title deeds based on rulings of the Municipal Agriculture and Forestry Services, which have entered into force, shall be issued under the current procedure, in case applications for the issuance of such rulings have been filed with the respective Municipal Agriculture and Forestry Service, or draft notarial title deeds have been submitted to the notaries, prior to this Act's entry into force. 22. In relation to proposals by a Municipal Agriculture and Forestry Service, for which the municipal council has made no ruling, the one-month period under Article 10b, paragraph 1 shall be considered to start from the date of this Act's entry into force. 23. The provisions of Article 14, paragraph 1, subparagraph 1, sentence four, and of Article 17, paragraph 1, sentence six, shall also apply to rulings of Municipal Agriculture and Forestry Services which have already entered into force, with plans annexed thereto, on the basis of which no notarial title deeds have been issued prior to this Act's entry into force, except in the cases under 21. 24. Pendent administrative penal proceedings shall be completed by the bodies, and under the terms and procedures, provided for in this Act. 25. (1) Contracts for designing the plans under 4k, paragraph 1, concluded prior to this Act's entry into force, shall be completed by the party which contracted with the supplier.(2) Plans of newly-formed landed property the designing of which was contracted prior to this Act's entry into force, shall be made under the provisions stipulated therein.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACTPromulgated State Gazette No. 106/22.12.2000TRANSITIONAL AND CONCLUDING PROVISIONS 6. Within three months following the entry into force of this Act, the persons under Article 10c, paragraph 2 may file petitions to the Municipal Agriculture and Forestry Services having jurisdiction over the restituted property, and the persons under Article 10c, paragraph 4 may file petitions to the Ministry of Agriculture and Forestry.TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Transactions with compensatory Instruments(SG No. 47/2002, effective 11.06.2002) 5. Only the persons who made a request prior to the entry into force of this Act shall be authorised to receive a compensation under Article 31, paragraph 3 of the Water Act and under Article 35, paragraph 2 of the Act on Ownership and Use of Agricultural Lands.AMENDMENT ACT TO THE OWNERSHIP AND USE OF AGRICULTURAL LAND ACT(Promulgated State Gazette No. 99/22.10.2002amended, SG No. 38/2004, SG No. 87/2005,effective 26.10.2005)TRANSITIONAL AND CONCLUDING PROVISIONS 30. (1) Interested individuals and entities may, within six months of the entry into force of this act, request the Municipal Agriculture and Forestry Service, to repeal decisions for refusal to restitute property of farmland confiscated by virtue of convictions under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related.(2) Individuals who have not submitted a statement for restitution of confiscated farmland by virtue of convictions under the Ordinance-Act on Prosecution by a Popular Court of Those Guilty of Involving Bulgaria in the World War against the Allied Nations and of the Felonies thereto Related to the Municipal Agriculture and Forestry Service, shall be entitled to do so within six months of the entry into force of this act. 31. Individuals under Article 10c, Paragraph 1, item 2 and 3 may submit a request to the Ministry of Agriculture and Forestry within six months of the entry into force of this act. 32. (1) Land boards under Chapter Four shall be transformed into Municipal Agriculture and Forestry Services attached to Regional Agriculture and Forestry Directorates as of the date of entry into force of this act.(2) The Municipal Agriculture and Forestry Services shall succeed into operations, possessions, rights, and obligations of land boards. 33. (1) The time limit under Article 5, Paragraph 1 starts running at the date of entry into force of decisions for restitution of property titles of the Municipal Services.(2) The time limit under Article 5, Paragraph 1 with regard to decisions found of land boards for restitution of property titles that have entered into force, starts running from the entry into force of this act. 34. (1) With regard to decisions found the one-year time limit under Article 19a, Paragraph 7 starts running from the entry into force of this act.(2) The list under Article 19a, Paragraph 8 shall be published in the State Gazette within one month of the entry into force of this act. 35. (1) (Amended, SG No. 38/2004, SG No. 87/2005, SG No. 13/2007) Amounts chargeable for use of adjacent and built-up lands under Article 27, Paragraph 6, shall not be payable in cases where entitled individuals submit a request to the Minister of Agriculture and Forestry for acquisition of title of property over them within five years following this Act's entry into force.(2) (Amended, SG No. 38/2004, SG No. 87/2005) Upon expiry of the above four year term land title under Paragraph 1 shall be acquired as under the terms and conditions of the State Property Act. Land use charges shall then be payable.(3) (New, SG No. 13/2007) The Minister of Agriculture and Forestry shall make a proposal to the district governor for issue of acts of state property according to data, submitted by the district directorates "Agriculture and Forestry" within one month from the filing of the request under paragraph 1.(4) (New, SG No. 13/2007) The district governor at the location of the estate shall issue an act of state property for the lands from the former farm yards of the organisations under 12 of the transitional and concluding provisions and under 29 of the transitional and concluding provisions of the Act on Amendment and Supplement to the Act on Ownership and Use of Agricultural Lands (promulgated SG, No. 45/1995; amended No.46/1995, No.59/1995 - Decision No.8/1995 of the Constitutional Court; amended No.79/1996, No.15/1997 - Decision No.3/1997 of the Constitutional Court; amended No.98/1997, No.124/1997), upon which there are buildings and/or facilities from their property without taking into consideration whether these have been legally built, as well as regarding the non-occupied with buildings and facilities or adjacent to them surfaces but unfit for agricultural use and lands which are not subject to restitution, within one month from the filing of the proposal under paragraph 3. 36. Statements under Article 37b, Paragraph 1 shall be filed within six months of the entry into force of this act. Upon a modification in the business structure and the mode of durable intended use of land proprietors shall file a new statement within one month of said occurrence. 37. The words "land board" and "land boards" shall be replaced with "Municipal Agriculture and Forestry Service" and, correspondingly, with "Municipal Agriculture and Forestry Services", everywhere inside this act.TRANSITIONAL AND CONCLUDING PROVISIONSTo the Law for Amendment of the Cadastre and Property Register Act (SG No 36/2004) 62. Within three months' time from the promulgation of this law in the State Gazette, the entries under the name system shall be performed by the registry offices reporting to the Registry Agency.TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Veterinary Medical Activity (SG No. 87/2005, effective 1.05.2006) 23. Within three months from the entry into force of the Act the Council of Ministers shall submit to the National Assembly a draft law on protection of the animals. 24. Within six months from the entry into force of the Act the Council of Ministers shall submit to the National Assembly a draft law on national guild organisation of the veterinary doctors in practice and the procedure for exercising veterinary medical practice. 25. The secondary legislation acts issued prior to the entry into force of this Act shall be applied as far as they do not run counter to it and until their explicit repeal. 26. (1) The Minister of Agriculture and Forestry shall issue the ordinances on the implementation of this Act within one year of its entry into force.(2) Within six months of the promulgation of this Act in the "State Gazette" the Council of Ministers shall adopt the ordinance under Article 109 and shall approve the tariff under Article14, paragraph 2.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code (SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117. Everywhere in the Agricultural Land Ownership and Use Act (Promulgated State Gazette No. 17/1991, Corrected, SG No. 20/1991, amended and supplemented, SG No. 74/1991, amended, SG No. 18/1992, amended and supplemented, SG No. 28/1992, amended, SG No. 46/1992, 105/1992, amended and supplemented, SG No. 48/1993, Judgment No. 12/1993 of the Constitutional Court of the Republic of Bulgaria - SG No. 64/1993, amended, SG No. 83/1993, SG No. 80/1994, amended and supplemented, SG No. 45/1995, amended, SG No. 57/1995, Judgment No. 7 and 8/1995 of the Constitutional Court of the Republic of Bulgaria - SG No. 59/1995, amended and supplemented, SG No. 79/1996, Judgment No. 20/1996 of the Constitutional Court of the Republic of Bulgaria - SG No. 103/1996, amended, SG No. 104/1996, Judgment No. 3/1997 of the Constitutional Court of the Republic of Bulgaria - SG No. 15/1997, supplemented, SG No. 62/1997, amended and supplemented, SG No. 87/1997, SG No. 98/1997, SG No. 123/1997, supplemented SG No. 124/1997, amended, SG No. 36/1998, 59/1998, amended and supplemented, SG No. 88/1998, amended, SG No. 133/1998, amended and supplemented, SG No. 68/1999, amended, SG No. 34/2000, amended and supplemented, SG No. 106/2000, amended, SG No. 28/2002, amended and supplemented, SG No. 47/2002, 99/2002, amended, SG No. 16/2003, SG No. 36/2004, SG No. 38/2004, SG No. 87/2005, SG No. 17/2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. the words "the Administrative Procedure Act" shall be replaced by "the Administrative Procedure Code".TRANSITIONAL AND CONCLUDING PROVISIONSto the Act on Amendment and Supplement tothe Act on Ownership and Use of Agricultural Lands(SG No. 13/2007) 22. The claims under Article 11, paragraph 2 shall be submitted within three months of the entry into force of this Act. 23. The term under Article 19, paragraphs 4, 8 and 10 shall run as from the entry into force of this Act. 24. When the coefficient under Article 19a, paragraph 5 is determined towards the day of the entry into force of this Act, the plans for compensation shall be prepared according to the procedure into force until now. 25. (1) For those decisions for compensation which have entered into force, the one year term under Article 19a, paragraph 7 shall run from the entry into force of this Act.(2) The land procedures which have not been terminated shall be finalised according to the procedure into force until now.(3) For those decisions for granting of land which have entered into force, the two year term under Article 23a shall run from the entry into force of this Act. 26. (1) This act shall be implemented also to the status quo agricultural lands which remained after the restitution of the rights of the owners which the municipality runs and manages or which it has acquired after the expiry of the ten year term from the entry into force of the land allocation plan and the approved map of the existing and restorable old actual boundaries.(2) The pending proceedings under Article 35 of the Municipal Property Act shall be finalised pursuant to the procedure into force until now.(3) The lease and rent contracts for the lands under paragraph 1 with a term more than three, respectively four years, shall be deemed concluded without a specific term from the day of the occurrence of one of the following conditions under Article 19, paragraph 4, items 1-3. The contracts shall be terminated under the conditions of 5 of the transitional and concluding provisions. 27. The persons under Article 10c, paragraph 1, item 2 and 3 can submit an application at the Ministry of Agriculture and Forestry within one year from the entry into force of this Act. 28. Until the approval of the cadastral map and the cadastral registers, the amendment and the maintenance of the entered into force plans of the newly established estates under 4k of the transitional and concluding provisions shall be done by the municipal administration. 29. When in cases of established right of use over lands - municipal property, on the basis of the acts under 4 of the transitional and concluding provisions, the value of the land is not paid, within one year from the entry into force of this Act the users can ask for determination of an appraisal pursuant to Article 36, paragraph 3 and pay the price of the land within three months from the entry into force of the appraisal. 30. The pending proceedings under Article 11, paragraph 2 shall be terminated pursuant to the terms and procedure of this Act. For more information visit www.solicitorbulgaria.com id: 323 Fri, 01 Aug 2008 07:22:47 -0700 http://solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act http://solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Agricultural_Land_Ownership_and_Use_Act.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-agricultural-land-ownership-and-use-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 324 Part OneGENERAL PROVISIONSArticle 1. This Act governs the organization, funding, production, administration and use of the cadastre and the property register.Article 2. (1) The term cadastre shall denote the aggregation of basic data regarding the location, boundaries and sizes of immovable properties within the territory of the Republic of Bulgaria, such data being collected, presented, updated and stored according to procedures established by force of this Act.(2) The cadastre shall also comprise:1. Data about the right of ownership over immovable properties;2. Data about other real rights over immovable properties;3. Data about the state borders, the boundaries of administrative territorial units, the boundaries of lands adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use;4. additional data in cases as per Article 34.(3) The data as per Paragraphs (1) and (2) shall be entered into a cadastral map and shall be recorded in cadastral registers.(4) A map on which additional data as per Paragraph (2), item 4, are also entered shall be referred to as a specialized map.(5) Data as per Paragraphs (1) and (2) shall be considered as evidence of the circumstances referred to, until proven otherwise.Article 3. (1) The property register shall be comprised of the accounts of all immovable properties.(2) Subject to recordation in the property register shall be any title deeds or other documents whereby the right of ownership is attested to or transferred, or any other real rights over immovable properties, any mortgages and foreclosures in respect thereof are established, transferred, modified or terminated, as well as any other actions, circumstances and legal facts subject to recordation therein as prescribed by force of this Act.(3) (New, SG 36/2004) Any and all recordations in the accounts of immovable properties located within the territory of the respective court district shall be made subject to a ruling by the recordation judge.Article 4. (Effective 25.04.2000) (1) The cadastre shall be created, maintained and stored by the Geodesy, Cartography, and Cadastre Agency under the Ministry of Regional Development and Public Works.(2) The Minister of Regional Development and Public Works shall supervise and control the overall activity related to the cadastre.Article 5. (1) (Amended, SG No. 36/2004) The property register shall be kept and stored by the Recordation Agency under the Minister of Justice.(2) (Amended, SG No. 36/2004) The Minister of Justice shall supervise and control the entire activity related to the property register.(3) The Minister of Justice shall issue an ordinance regarding the keeping and storage of the property register.Article 6. (1) The cadastre and the property register shall be mutually interconnected through the identifier of immovable properties.(2) Basic data about immovable properties in the property register shall be supplied from the cadastre. Data regarding the right of ownership and other real rights over immovable properties in the cadastre shall be supplied from the property register.(3) The mutual interconnection as per Paragraph (1) and the exchange of data between the cadastre and the property register shall be implemented subject to terms, conditions and procedure as prescribed by an ordinance issued by the Minister of Regional Development and Public Works and the Minister of Justice.Article 7. (1) A computerized information systems shall be established for the needs of the cadastre and the property register, which shall be mutually interlinked.(2) The information systems as per Paragraph (1) shall also provide links with the Unified Classifier of Administrative-Territorial Units UCATU), with BULSTAT (the Unified State Register of Commercial Entities in the Republic of Bulgaria), with ESGRAON (the Unified System for Civil Registration and the Provision of Administrative Services to the Population), and the state and municipal property registers of.(3) The terms, conditions and procedure for the establishment, maintenance and use of the information systems, as well as for direct access to the data therein, shall be prescribed by an ordinance adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works and the Minister of Justice.Article 8. (1) The cadastre and the property register shall constitute public information.(2) (Amended, SG No. 36/2004) Fees shall be charged for recordation in the cadastre, for announcement of procedures as per Art 35b (3) and Article 49a, (1) and (4), and for responding to queries, issuing document transcripts and other services as per Article 52 (5), Article 55 and 56; the amounts of such fees shall be determined by a tariff approved by the Council of Ministers.(3) (Amended, SG No. 36/2004) Fees shall be charged for recordation in the property register and for responding to queries, issuing document transcripts and other services as per Article 92; the amounts of such fees shall be determined by a tariff approved by the Council of Ministers.(4) Government institutions, agencies and municipalities shall pay for the services as per Paragraph (2) only the actual costs of the production of copies of the documentation.(5) The Geodesy, Cartography, and Cadastre Agency shall pay for data supplied in cases as per Article 51 (1), (2) and (3), only the actual costs of the production of copies of the documentation.Article 9. (Amended, SG No. 36/2004) (1) Activities pertinent to the production, maintenance and storage of the cadastre shall be funded by subsidies from the budget of the Ministry of Regional Development and Public Works, by proceeds from fees as per this Act, by other proceeds, as well as by funds allocated under national and regional programs for development of the technical infrastructure, under international programs, projects and agreements.(2) The property register shall be funded by a subsidy from the budget of the Ministry of Justice, by proceeds from fees as per this Act, by other proceeds, as well as by funds allocated under national and regional programs, under international programs, projects and agreements.Part TwoTHE CADASTREChapter OneTHE GEODESY, CARTOGRAPHY, AND CADASTRE AGENCY(Title amended, SG No. 29/2006) Article 10. (Effective 25.04.2000) (1) The Geodesy, Cartography, and Cadastre Agency shall be an executive agency constituting a legal entity with its registered office in Sofia and with local Geodesy, Cartography, and Cadastre Offices based in the administrative centres of all districts of the country.(2) The Geodesy, Cartography, and Cadastre Offices shall be territorial units of the Geodesy, Cartography, and Cadastre Agency.(3) (New, SG No. 36/2004) For the purposes of providing administrative services, the Geodesy, Cartography, and Cadastre Offices may have structural units based at the seats of the district courts.Article 11. (Effective 25.04.2000) (1) The Geodesy, Cartography, and Cadastre Agency shall be managed by an Executive Director, and the district Geodesy, Cartography and Cadastre Office, by a head of office.(2) The Executive Director of the Geodesy, Cartography, and Cadastre Agency may delegate to the heads of the Geodesy, Cartography, and Cadastre Offices his/her own functions, rights and obligations except for those as per Chapter Two, Article 35 (1), Article 47 (2) and Article 49 (1).(3) (New, SG No. 36/2004) The Executive Director may be a person who:1. has a Master's degree in geodesy;2. has at least 5 years length of service in a profession corresponding to his/her academic specialization;3. has not been convicted and sentenced to imprisonment for premeditated indictable offences, unless rehabilitated since the passing of the sentence.(4) (New, SG No. 36/2004, amended, SG No. 29/2006) The funds raised from 75 percent deductions on the fees collected as per this Act and the Geodesy and Cartography Act , as well as from additional budget revenue collected from fines and material sanctions imposed by force of penal orders issued pursuant to this Act, shall be allocated for the creation of cadastre and geodesic surveys, for the acquisition and development of premises, facilities and equipment, for the provision of training and incentives to the employees of the Agency subject to the terms, conditions and procedure prescribed by an ordinance of the Minister of Regional Development and Public Works.Article 12. (Effective 25.04.2000) The Geodesy, Cartography, and Cadastre Agency shall:1. perform any and all functions pertinent to the cadastre pursuant to this Act;2. (new, SG No. 29/2006) perform any and all functions and tasks assigned thereto by the Geodesy and Cartography Act; 3. (renumbered from Item 2, SG No. 29/2006, amended, SG No. 57/2007) keep a geodetic/survey, cartographic and cadastral archive (to be referred to as Geokartfond), that shall collect, store and make available to users geodetic, cartographic, cadastral and other materials and data, subject to the terms and procedure as per the National Archives Stock Act ;4. (renumbered from Item 3, SG No. 29/2006) coordinate the performance of functions pertinent to the cadastre with the other geodetic/survey and cartographic activities of the State;5. (amended, SG No. 36/2004, renumbered from Item 4, SG No. 29/2006) develop a recordation format in respect of the digital data cards and the relevant registers the said format shall be subject to approval by the Council of Ministers;6. (renumbered from Item 5, SG No. 29/2006) in conjunction with the competent state metrology agency, organize metrological control of the existing geodetic measurement equipment;7. (renumbered from Item 6, SG No. 29/2006) ensure that employees are properly trained and qualified at all times;8. (renumbered from Item 7, amended, SG No. 29/2006) keep a register of the persons competent to perform functions pertinent to the cadastre, geodesy, and cartography;9. (renumbered from Item 8, SG No. 29/2006) coordinate the international exchange of information involving cadastral information.10. (new, SG No. 36/2004, renumbered from Item 9, supplemented, SG No. 29/2006) administer the proceeds from fees, fines and material sanctions collected as per this Act and the Geodesy and Cartography Act.Article 13. (Amended, SG No. 29/2006) The Geodesy, Cartography, and Cadastre Offices shall perform any and all functions pertinent to the geodesy, cartography, and cadastre within their assigned districts of the territory of the country, shall store the original materials and data from geodetic surveys, and shall perform any other functions, as prescribed by the respective rules of organization.Article 14. (Effective 25.04.2000)(effective 25.04.2000) In performing his/her official duties, the officer of the Geodesy, Cartography, and Cadastre Agency must carry on his/her person and present on demand proper identification.Article 15. (Effective 25.04.2000) The activity, structure, operational organization and staff of the Geodesy, Cartography, and Cadastre Agency and the Geodesy, Cartography, and Cadastre Offices shall be prescribed by rules of organization, adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works.Chapter TwoPERSONNEL PROFESSIONALLY COMPETENT TO PERFORM FUNCTIONS PERTINENTTO THE GEODESY, CARTOGRAPHY, CADASTRE(Title amended, SG No. 29/2006) Article 16. (1) (Effective 25.04.2000) (Supplemented, SG No. 29/2006) Functions pertinent to cadastre may be also performed by persons or entities who have acquired proper professional competence in cadastre subject to the terms, conditions, and procedure as per this Act.(2) The Geodesy, Cartography, and Cadastre Agency shall assign to professionally competent bodies as per Paragraph (1) the performance of functions pertinent to creating the cadastral map and cadastral registers as per Chapter Five.(3) (Supplemented, SG No. 36/2004, amended, SG No. 29/2006) A property owner or another interested party can also assign to a professionally competent body as per Paragraph (1) to produce sketches of landed estates and buildings, floor plans of separate properties within buildings, blueprints for partition or merging of immovable properties, combined plans attesting to a full or partial correspondence of the boundaries of a landed property, a cadastral map and cadastral registers as per Article 35a.Article 17. (1) (Amended, SG No. 29/2006) A professionally competent body in geodesy, cartography, or cadastre may be:1. (Supplemented, SG No. 29/2006) a natural person of Bulgarian citizenship, -holding an academic degree of Master-Engineer in geodesy, who has at least two years length of service in the field of the cadastre, geodesy or cartography, respectively, and has not been convicted of premeditated indictable offences, unless rehabilitated since the passing of the sentence;2. (Amended, SG No. 29/2006) a Bulgarian legal entity whose subject of activity is the production of cadastre, respectively, geodesic and cartography activities, with professionally competent to perform geodesy, cartography, and cadastre activities person or persons in its permanent specialized staff.(2) (New, SG No. 36/2004) Any professionally competent natural person may be a member of the permanent specialized personnel of no more than one legal entity.Article 18. (Effective 25.04.2000) (1) (Amended, SG No. 29/2006) An applicant for a position shall submit an application for entry into the respective register under Article 12, Item 8 to the Geodesy, Cartography, and Cadastre Agency.(2) (Amended, SG No. 29/2006, effective after the Chamber of Geodesy Engineers is established) A committee, appointed by the Executive Director of the Geodesy, Cartography, and Cadastre Agency shall check, within 30 days following receipt of the application, whether the statutory requirements as per Article 17 for entering the applicant into the respective register are met. A representative from the Chamber of Geodesy Engineers shall be included in the committee. The applicant shall then be entered in the register by an administrative order issued by the Executive Director.(3) When the said statutory requirements are not met, the Geodesy, Cartography, and Cadastre Agency shall deny registration. The applicant shall be notified in writing of such denial, and within two weeks following receipt of such notification may appeal against it before the Minister of Regional Development and Public Works.(4) (Amended, SG No. 30/2006) The decision whereby an appeal as per Paragraph (3) is rejected shall be subject to appeal before the Supreme Administrative Court within two weeks following notification of the applicant thereof, subject to the terms and procedure as per the Administrative Procedure Code. Article 19. (Effective 25.04.2000) (1) (Amended, SG No. 29/2006) Professional competence to perform functions pertinent to the cadastre, geodesy or cartography shall be acquired from the moment of entry of the applicant into the respective register as per Article 12, item 8.(2) (Amended, SG No. 29/2006) The register of the bodies professionally competent to perform functions pertinent to the cadastre, geodesy and cartography shall constitute public information.Article 20. (Effective 25.04.2000) (1) A professionally competent body shall be obliged:1. (amended, SG No. 29/2006) to fulfil the duties assigned to him/her/it pertinent to the cadastre and respectively to the geodesy or cartography in compliance with the applicable legislation and bylaws;2. (amended, SG No. 45/2002) To protect any classified information constituting an official secret which has become known to him/her/it in connection with the performance of his/her/its assigned duties.3. (new, SG No. 29/2006) provide protection of personal data that were disclosed to him/her/it in relation to implementing the duties assigned.(2) Upon approval of the cadastral map and the cadastral registers, the bodies as per Paragraph (1) shall be allowed use data from these only subject to the procedure prescribed in Chapter Seven.(3) A professionally competent body shall be required to obtain insurance, only for the duration of his/her/its work as per this Act, against liability for damages as may occur due to guilty non-fulfilment of his/her/its obligations as well as the obligations of his/her/its employees. The minimum amount of the insurance premium shall be determined by the Geodesy, Cartography, and Cadastre Agency.Article 21. (Effective 25.04.2000) (1) Such a body's professional competence shall be lost:1. upon written request submitted by the professionally competent body to the Geodesy, Cartography, and Cadastre Agency;2. in the event of death or placement under judicial disability of the professionally competent body (where a natural person);3. upon re-organization or termination of the professionally competent body (where a legal entity) through liquidation;4. when the professionally competent body (where a natural person) has lost his/her Bulgarian citizenship or has been convicted for a premeditated indictable offence and sentenced to imprisonment;5. (supplemented, SG No. 29/2006) when the professionally competent body breaches his/her/its obligations as per Article 20 (1) under this Act or as per Article 25 (1) under the Geodesy and Cartography Act .(2) (New, SG No. 36/2004) In the cases as per Paragraph (1), item 5 the professional competence shall be lost for a period of one to three years.(3) (Previous Paragraph (2), SG No. 36/2004, amended, Sg No. 29/2006, SG No. 36/2004) In the cases as per Paragraph (1), items 1 through 4 inclusive, the Executive Director of the Geodesy, Cartography, and Cadastre Agency shall issue an administrative order on deleting the professionally competent body from the respective register.(4) (Previous Paragraph (3), supplemented, SG No. 36/2004) Breaches of Paragraph (1), item 5 shall be established by force of a statement of fact issued by officials appointed by the Executive Director of the Geodesy, Cartography, and Cadastre Agency, on the basis of which the deletion order shall be issued. The deletion order shall determine the period during which the professionally competent body may not be re-entered into the personnel register.(5) (Previous Paragraph (4), SG No. 36/2004) The order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency in the cases as per Paragraph (1), item 2, where the professionally competent body is placed under judicial disability, as well as items 3 through 5 inclusive, shall be subject to appeal within two weeks following receipt of the notification as per Article 18, Paragraphs (3) and (4).Article 22. (Amended, SG No. 29/2006) The terms and procedure of keeping of the cadastre, geodesy and cartography register shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Article 22a. (New, SG. 29/2006) The Geodesy, Cartography and Cadastre Agency and its local offices in implementing their cadastre-related functions are considered professionally competent to implement cadastre activities under this Act.Chapter ThreeCONTENT OF THE CADASTREArticle 23. Immovable properties subject to entry into the cadastre shall include:1. any landed property;2. any building, including a rough structure, as yet unfinished;3. any self-contained property within a building.Article 24. (1) The basic cadastral unit of the shall be a landed property.(2) A landed property shall be any part of the surface of the earth, including one permanently submerged under water, defined by boundaries in accordance with a title of ownership.(3) Landed properties make up the entire territory of the country, as defined by its state borders, without overlapping with one another.(4) The state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use shall also constitute boundaries of landed properties.Article 25. (1) Each landed property shall subsume the permanent use as of the land within the boundaries of which it is located.(2) Changes of the permanent use of the land shall be effected subject to a procedure prescribed by law.(3) A change of the permanent use of part of a landed property shall result in the formation of separate properties.Article 26. (1) Each landed property, building or self-contained property within a building shall be assigned an identifier.(2) Such an identifier shall constitute a unique number by which the immovable property shall be positively identified within the territory of the country. Such an identifier shall contain the UCATU code of the populated area within whose territory the property is located.(3) Such an identifier shall be assigned by the geodesy, cartography and cadastre office.(4) The structure and the content of the identifier, as well as the terms and procedure of its application, shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Article 27. (1) The following shall constitute basic cadastral data:1. for a landed property: its identifier; its boundaries as defined by the geodetic co-ordinates of the points making them up; its surface area; its permanent use and the model and method thereof;; and its address;2. (Amended, SG No. 36/2004) for a building: its identifier; the layout of the building as defined by the geodetic coordinates of the points making them up; its built-up area; the number of floors; its use; and its address;3. for a self-contained property within a building: its identifier; location; and use.(2) Basic cadastral data shall also signify the data regarding the state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent land use.(3) For immovable properties pertinent to the national defence and security, the cadastre shall contain only identifiers and data about the boundaries of the relevant landed properties.Article 28. (1) The cadastral map and the cadastral registers shall be produced in graphic and text format on conventional data carriers, and in digital format on magnetic, optical or other data carriers.(2) Cadastral maps and cadastral registers shall be subject to adoption, notification of the interested parties, and approval pursuant to the procedure as prescribed by this Act.(3) The approved cadastral map and cadastral registers shall be entered into the information database by the geodesy, cartography and cadastre office.(4) Basic cadastral data shall be duly dated upon being entered into the information database.Article 29. (1) The cadastral map shall contain:1. the state borders, the boundaries of administrative territorial units, the boundaries of territories adjacent and belonging to populated areas, and the boundaries of lands of identical permanent use;2. all landed properties with their boundaries and identifiers;3. all buildings with their identifiers;4. all names of localities, streets, watercourses and water surfaces, and any other sites, locations and facilities as prescribed by the ordinance as per Article 31;5. the geodetic base points.(2) Attached to the cadastral map shall be floor plans of self-contained properties and premises within buildings.Article 30. (1) Cadastral registers shall be kept of:1. all immovable properties subject to entry into the cadastre;2. the geodetic base points;3. the geodetic base stations;4. all identifiers and any changes thereto.(2) The cadastral register of immovable properties subject to entry therein shall contain:1. the basic data about the property as per Article 27 (1), except the data regarding the boundaries of a landed property or the outlines of a building;2. the data as per Article 61 (1), items 1 through 11 inclusive, regarding the owner of the immovable property and the title deed from which the ownership rights arise;3. the data as per Article 62 (1), items 1 through 4 inclusive, regarding any other real rights over the immovable property;4. the number of the property account as per the property register.Article 31. The content, as well as the terms and procedure of the production and maintenance of a cadastral map and cadastral registers shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works. The ordinance shall also prescribe the permanent land use classifier of landed properties.Chapter FourSPECIALIZED MAPS, REGISTERS AND INFORMATION SYSTEMS. ADDITIONALCADASTRAL DATAArticle 32. (1) Government institutions, agencies, municipalities and other legal entities, in accordance with the scope and nature of their functions, shall:1. organize the collection, regular updating and provision upon request of specialized data regarding:a) immovable properties, other than basic cadastral data;b) building sites, amenities and other facilities in landed properties, including above-ground and underground linear utilities and facilities, other than buildings and self-contained properties therein;c) perennial plantations;d) water courses and water surfaces;e) mineral deposits in the earth's womb;f) the relief of the earth's surface.2. produce specialized maps, registers and information systems on the basis of data as per item1.(2) In case where any specialized maps, registers or information systems contain basic cadastral data, then the government institutions, agencies, municipalities and other legal entities shall be required to use the relevant data from the cadastre.(3) The content of specialized maps and registers, and the terms and procedure of production and maintenance thereof, shall be prescribed by ordinances issued jointly by the head of the relevant government institution or agency and the Minister of Regional Development and Public Works.Article 33. (1) Specialized information systems using cadastral data shall be required to maintain a link with the cadastral information system.(2) (Amended, SG No. 36/2004) The terms and the procedure of data exchange between the information systems shall be prescribed by an ordinance adopted by the Council of Ministers subject to a proposal by the Minister of Regional Development and Public Works.Article 34. (1) Data as per Article 31 (1) item1 shall be included in the cadastre as additional cadastral data; shall be kept up-to-date, stored and provided on request by the Geodesy, Cartography, and Cadastre Agency subject to terms and procedures established on a contractual basis.(2) (Supplemented, SG No. 36/2004) Additional cadastral data collected by geodetic, photogrammetric and other surveys shall be accepted for entry subject to the provisions of Article 45.Chapter FivePRODUCTION OF A CADASTRAL MAP AND CADASTRAL REGISTERSArticle 35. (1) Proceedings pertinent to the production of a cadastral map and cadastral registers shall be initiated by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency.(2) The administrative order as per Paragraph (1) shall contain the name and boundaries of the area for which a cadastral map and cadastral registers will be produced; the professionally competent person or entity to whom/which the production of the cadastral map and cadastral registers has been assigned, and the time frame and schedule for completion of the assignment. The said administrative order shall also indicate the time limit for demarcation of the boundaries of landed properties, which shall be no less than 30 days from the date of promulgation of the administrative order.(3) The administrative order as per Paragraph (1) shall be promulgated in State Gazette, publicized in the mass media, including two central daily newspapers, and shall be displayed prominently in public places within the buildings of the Geodesy, Cartography and Cadastre Office, the municipality, and the mayor's office.Article 35a. (New, SG No. 36/2004) A cadastral map and cadastral registers may also be produced in respect of an individual property or group of properties on request by the owner or an investor and at their expense. .Article 35b. (New, SG No. 36/2004) (1) The proceedings as per Article 35a shall be initiated by an administrative order of:1. the head of the service on geodesy, cartography and cadastre within whose jurisdiction the properties are located;2. the Executive Director of the Geodesy, Cartography, and Cadastre Agency, in cases where when the request was filed in respect of immovable properties located in a region for which an administrative order has been issued pursuant to Article 35 (1).(2) The administrative order as per Paragraph (1) shall state the location and the boundaries of the properties, the professionally competent body to which the duty is to be assigned and the time limit of marking the boundaries. In cases as per Paragraph (1) item 1, production shall be assigned to a professionally competent body appointed by the owner or the investor, and in cases as per item 2, to the body appointed by virtue of the administrative order as per Article 35 (2).(3) Any interested parties shall be notified of the administrative order as per Paragraph (1) subject to the provisions of the Code of Civil Procedure. Article 36. The District Governor and the mayor of the municipality are required by law to:1. ensure the demarcation of boundaries of state and municipal properties within the time limit prescribed by the administrative order as per Article 35 (1);2. (Amended, SG No. 36/2004) supply to the Geodesy, Cartography, and Cadastre Agency data regarding the immovable properties drawn from the relevant registers.Article 37. (1) (Amended, SG No. 105/2005) Upon request by the Geodesy, Cartography, and Cadastre Agency, the National Revenue Agency- - shall be required to supply to the Geodesy, Cartography, and Cadastre Offices the available data about the immovable properties and their owners.(2) The terms and conditions, the procedure and the concrete data to be supplied shall be prescribed by an ordinance jointly issued by the Minister of Regional Development and Public Works and the Minister of Finance.Article 38. (1) The owner, respectively the person vested in another real right, -shall be required by law to:1. ensure free access to the property for the performance of cadastre-related work;2. demarcate, at their own expense, using the prescribed permanent monuments, the property boundaries in accordance with the title deed or document attesting to the right of ownership or other real right, and protect the monuments from damage or destruction;3.present on demand for inspection by the officer of the geodesy, cartography and cadastre office, or to the person appointed by the administrative order as per Article 35 (2) the title deed certifying their rights over the property, as well as supply to the said officer any other data pursuant to the ordinance as per Article 31;4. protect from damage the geodetic monuments placed within the property.(2) (Supplemented, SG No. 36/2004) In case of destruction of the geodetic monuments as per Paragraph (1), item 4, the owner, respectively the person vested in another real right, - must immediately notify the geodesy, cartography and cadastre office. Should the need arise,, due to construction or assembly work, to remove a geodetic sign or marking, the person shall be required to notify the service on geodesy, cartography and cadastre 7 days before the work commences. The sign or marking shall be restored at the expense of the person subject to a procedure prescribed by the ordinance as per Article 31.Article 39. (1) (Supplemented, SG No. 36/2004) For purposes of placement of geodetic monuments and/or performance of land surveys, the officer of the geodesy, cartography and cadastre office, respectively the person as per Article 35 (2), or Article 35b (2) shall be entitled to:1. pass through the immovable property to the survey station, respectively the geodetic monument, following due notification of owner.2. perform surveys;3. place temporary geodetic signs and marking in landed properties or on buildings;4. following notification of the owner of the immovable property, to place permanent geodetic monuments in the landed property or on buildings.(2) For purposes of performing geodetic survey on an immovable property pertinent to the national defence and security, as well as of placement of geodetic monuments within it, permission by the head of the relevant institution or government agency, or by an official duly authorized by the latter, shall be required.(3) (Supplemented, SG No. 36/2004) The person as per Article 35 (2), respectively Article 35b (2) shall be required by law to produce proof of authority to perform functions as per Paragraph (1), as well as to demand of owners to present title deeds and/or supply data as per Article 37 (1), item 3.Article 40. Any expenses pertinent to the remedy of errors or omissions in the cadastre made as a result of non-fulfilment of obligations as per Article 35 and Article 37 (1), items1, 2 and 3, shall be covered by the liable persons.Article 41. (1) (Amended, SG No. 36/2004) A cadastral map and cadastral registers shall be produced by pooling together data which:1. are contained in maps, plans, registers and other documentation approved pursuant to the Uniform Cadastre of the People's Republic of Bulgaria Act (repealed), the Territorial and Urban Development Act (repealed), the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts; are by nature basic cadastre data and conform, in terms of content and accuracy, with the requirements prescribed by the ordinance as per Article 31;2. have been gathered through geodetic, photogrammetric and other measurements and calculations.(2) (Amended, SG No. 36/2004) Data regarding the owners and holders of other real rights, as well as the title deeds from which their rights arise, shall be gathered from:1. the registers to the maps and plans;2. the title deeds presented as per Article 38 (1), item 3;3. the registers of the municipal and regional administration;4. (Repealed, SG No.. 105/2005)(3) Data regarding the right of ownership and other real rights shall be clarified on the basis of preliminary property accounts presented by the recordation service as per the provisions of Article 71c (3).(4) (Amended, SG No. 36/2004) No data regarding the owners and other holders of real rights, or regarding the title deeds from which their rights arise, shall be entered in the cadastral register of immovable properties, if such data have not been established pursuant to the provisions of Paragraph 2.Article 41a. (New, SG No.. 36/2004) In the cases as per Article 36 item 1 and Article 38 (1), item 2, boundaries shall be marked only within the territories specified by the administrative order on initiating proceedings, where the cadastral map and the cadastral registers are to be produced by means of geodetic, photogrammetric and other measurements.Article 42. (1) For the production and maintenance of a cadastral map of the Republic of Bulgaria, a three-dimensional network of geodetic base points shall be maintained as a uniform reference base for geodetic surveys.(2) Geodetic coordinates for cadastral purposes shall be defined by means of a uniform coordinate reference system.Article 43. (1) Boundaries subject to the cadastre shall be determined as follows:1. the state border, by force of international treaties;2. boundaries of administrative territorial units, pursuant to the provisions of, and subject to the procedure as prescribed by the Territorial Administration of the Republic of Bulgaria Act; 3. (amended, SG No. 36/2004) boundaries of territories adjacent and belonging to populated areas, whether in creating new settlements or making changes to existing ones, by a commission appointed by the District Governor, said commission being chaired by a representative of the district administration, and having as its members representatives of the respective municipal administrations, of the mayor's offices and the geodesy, cartography and cadastre office;4. boundaries of lands of identical permanent use, subject to terms, conditions and procedures prescribed by law or another statutory act, or by a valid territorial development plan;5. boundaries of landed properties:a) from the actual situation as demarcated in situ, in accordance with the title deeds as per Article 37 (1), it.3;b) from the working documents as produced in the course of defining the boundaries;c) from the image on a valid cadastral map.d) (New, SG No. 36/2004) from plans and maps as specified in Article 41 (1), item 1.(2) The Geodesy, Cartography, and Cadastre Agency shall not be held liable for any discrepancies in mapping out the boundaries of landed properties in the cadastral map within the standard deviation as prescribed by the ordinance as per Article 31.(3) Any disputes regarding boundaries of landed properties and/or territorial units shall be resolved by a court of law.(4) The boundaries of landed properties and the boundaries of territories adjacent and belonging to populated areas shall be demarcated in situ subject to the procedure prescribed by the ordinance as per Article 31.Article 44. (1) (Amended, SG No. 36/2004) Self-contained properties within buildings shall be identified on the strength of the building documentation, title deeds, or on the basis of a description made in situ.(2) (Repealed, SG No. 36/2004)Article 45. The cadastral map and cadastral registers of an area produced by the body appointed by force of the administrative order as per Article 34 (2), shall be subject to approval by the geodesy, cartography and cadastre office.Article 46. (1) Any and all interested parties shall be duly notified of the approved cadastral map and cadastral registers of immovable properties pursuant to the provisions of Article 35 (3).(2) Within 30 days from the date of promulgation in State Gazette, owners may file objections in writing with the service on geodesy, cartography and cadastre in respect of the cadastral map and the cadastral register of immovable properties.(3) (New, SG No. 36/2004) Written objections in respect of parts of the cadastral map and/or the cadastral registers produced pursuant to the procedure as per Article 41 (1), item 1, may be filed only regarding non-conformity with the data contained in the plans and maps used in their production.Article 47. (1) Objections shall be considered by a commission chaired by the head of the geodesy, cartography and cadastre office, and comprised of one representative of the geodesy, cartography and cadastre office, representatives of the municipal and district administration, and representatives of any institutions or government agencies concerned.(2) The Executive Director of the Geodesy, Cartography, and Cadastre Agency shall issue an administrative order nominating all members of the commissions to be set up for every municipality.(3) The chairperson shall organize the proceedings of the commission.Article 48. (1) The commission shall pass a well-grounded ruling on each objection within 30 days from the expiry of the time limit as per Article 46 (2).(2) Amendments to the cadastral map and the cadastral register of immovable properties in accordance with the rulings as per Paragraph (1) shall be made within 60-days from the date of such a ruling by the body appointed by force of the administrative order as per Article 35 (2).(3) The performance of duties as per Paragraph (2) shall be subject to approval pursuant to the provisions of Article 45.Article 49. (1) The approved cadastral map and cadastral registers of the area shall be subject to approval by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency; such an approval shall be communicated to the interested parties pursuant to the provision of Article 35 (3).(2) (Supplemented, SG No. 36/2004, amended, SG No. 30/2006, effective 1.03.2007, in respect of the replacement of the word "district" by "administrative") The order as per Paragraph (1) shall be subject to appeal pursuant to the Administrative Procedure Code before the administrative court within whose jurisdiction the property is located, within 30 days from the date of promulgation thereof in State Gazette.(3) Within seven days from the expiry of the time limit as per Paragraph (2), the Geodesy, Cartography, and Cadastre Agency shall notify the Minister of Justice that a cadastral map and cadastral registers for the respective territory have been approved, and shall submit to the recordation office:1. a sketch -abstract of the cadastral map and, for a self-contained property within a building, also a floor plan, together with hard copy transcripts from the cadastral register of immovable properties in respect of each immovable property, to be filed in the property account;2. the cadastral register of immovable properties, on a magnetic, optical or other technical carrier;3. information about any appeals as may have been filed pursuant to Paragraph (2).(4) (New, SG No. 36/2004) The administrative order as per Paragraph (1) shall be subject to appeal by the owners and/or holders of other real rights over the immovable properties and/or the neighbouring ones, located within the range of the cadastral map.(5) (New, SG No. 36/2004) The administrative order on the approval of the cadastral map and the cadastral registers shall enter into force following expiry of the time limit as per Paragraph (2) for properties in respect of which no appeals have been filed.(6) (New, SG No. 36/2004) Paragraph (3) shall also apply in cases as per Article 35a.Article 49a. (New, SG No. 36/2004) (1) The cadastral map and cadastral registers produced pursuant to the provisions of Article 35a shall be subject to approval by the geodesy, cartography and cadastre office; any and all interested parties shall be notified of such approval pursuant to the provisions of the Code of Civil Procedure. They may then file written objections with the service on geodesy, cartography and cadastre within 14 days from receipt of the notification.(2) The commission as per Article 47 (1) shall announce its decision within 14 days from the expiry of the time limit for filing objections. Any amendments to the cadastral map and the cadastral registers in accordance with decisions of the commission shall be made by the body as per Article 35b (2) within 14 days from the date of such a decision.(3) The adopted cadastral maps and cadastral registers as per Paragraph (1) shall be subject to approval by an administrative order of the head of the geodesy, cartography and cadastral office or, respectively, of the Executive Director of the Geodesy, Cartography, and Cadastre Agency.(4) (Amended, SG No. 30/2006, effective 1.03.2007) Any interested parties shall be notified of such an administrative order subject to the provisions of the Code of Civil Procedure ; it shall be subject to appeal within 7 days before the administrative court within whose jurisdiction the property is located.(5) In the cases as per Paragraphs 1 through 4 the provisions of Article 46 (3) and Article 49 (4) and (5) respectively shall apply.Article 49b. (New, SG No. 36/2004) Following approval of the cadastral map and the cadastral registers for the respective territory, a sketch-abstract of the cadastral map issued by the Geodesy, Cartography, and Cadastre Agency shall be required for purposes of issuance of title deeds whereby the right of ownership is attested to or transferred, or another real right over an immovable property is established, transferred, amended or terminated.Article 50. for the terms, conditions and procedure of oversight and approval of the cadastral map and cadastral registers shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.Chapter SixCONTINUOUS UPDATING OF THE CADASTRAL MAP AND CADASTRAL REGISTERSArticle 51. (1) The cadastral map and the cadastral registers shall be continuously updated on the basis of data received pursuant to the provisions of Article 52 and Article 86 (1), as well as from geodetic surveys.(2) Geodetic surveys shall be performed in cases of changes in the boundaries of landed properties and of the layouts of buildings, in cases of creation of new cadastral items, as well as in upon remedy of errors and omissions therein.(3) Displacements of earth masses (landslides) as a result of natural disasters shall not change the boundaries of landed properties as identified in the cadastre.Article 52. (1) A transcript of any title deed, court ruling or administrative whereby rights of ownership are attested to or transferred, or other real rights over an immovable property are established, transferred, amended or terminated; or of any title deed, ruling or act whereby immovable properties are divided, partitioned or merged, shall be submitted by the respective court or State Property and Municipal Property office to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located, within 7 days from the date of entry into force of the respective deed, ruling or administrative act.(2) The Farm Lands Commission under the Ministry of Agriculture and Forests shall send to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located, a copy of the decision whereby a change of the use of farm land is allowed, within 7 days from the date of payment of the fee as per Article 30 of the Agricultural Land Conservation Act.(3) The National Forestry Board shall send to the service on geodesy, cartography and cadastre within whose jurisdiction the property is located a copy of all title deeds or other relevant documents in respects of forests and lands not included in the forest domain, within 7 days from the date of payment of the fee as per Article 30 of the Farm Land Protection Act.(4) The owner- or, respectively, the investor shall supply - to the service on geodesy, cartography and cadastre data about all structures, whether newly-constructed, additional stories, extensions, below-ground structures, rebuilt or demolished structures, as well as all relevant data as per Article 34, pursuant to the provisions and procedure prescribed by the ordinance as per Article 31.(5) An occupancy permit in respect of a building or other structure shall not be issued unless the owner or, respectively, the investor has submitted a certificate from the service on geodesy, cartography and cadastre that the obligation as per Paragraph 4 has been fulfilled.(6) (Repealed, SG No. 36/2004)Article 53. (1) The approved cadastral map and cadastral registers may be altered in cases where:1. they contain errors or omissions;2. they have been approved in contravention of the law;3.additional cadastral data are must be recorded pursuant to the provisions of Article 34 (1).(2) Any omissions or errors in basic data in the cadastral map and cadastral registers shall be remedied by the Geodesy, Cartography, and Cadastre Agency upon request by the interested party. Should such omissions or errors be related to any litigation in respect of material rights, these shall be remedied after the case has been resolved by a court of law.(3) Errors and/or remissions as per Paragraph (1), item 1, shall be established in situ by the geodesy, cartography and cadastre office, by force of a statement of fact, to be signed jointly by the issuing body, the applicant and the owners directly concerned.Article 54. (1) (Amended, SG No. 29/2006) Amendments to the cadastral map under Article 53 shall be subject to approval by an administrative order of the Executive Director of the Geodesy, Cartography, and Cadastre Agency, or any head of service on geodesy, cartography and cadastre empowered by the latter. Said administrative order shall be communicated to the interested parties pursuant to the provisions of the Code of Civil Procedure. (2) (Supplemented, SG No. 36/2004, amended, SG No. 30/2006, effective 1.03.2007, in respect of the replacement of the word "district" by "administrative") The administrative order as per Paragraph (1) shall be subject to appeal pursuant to the procedure as per the Administrative Procedure Code , before the administrative court within whose jurisdiction the property is located.(3) The Geodesy, Cartography, and Cadastre Agency shall submit without delay to the recordation office a sketch-abstract and a transcript of the approved cadastral register of real properties for each individual property in case of:1. partition or merging of immovable property at the request of the owner;2. partition of immovable properties resulting from changes in the boundaries of administrative territorial units, territories adjacent and belonging to populated areas, or lands of identical permanent use;3. Partition of real property in case of change of the permanent land use of part(s) thereof;4. Remedy of errors or omissions.(4) In cases of legal partition of property the court shall allocate the newly defined shares after they have been assigned cadastral identifiers pursuant to the provisions of this Act.(5) In cases of voluntary partition of property, the provisions of Paragraph (4) shall apply. Such voluntary subdivision shall not be valid if the shares of the parties thereto have not been assigned cadastral identifiers.Chapter SevenPROVISION OF CADASTRAL DATA ON REQUESTArticle 55. (1) The Geodesy, Cartography, and Cadastre Agency shall, upon request, issue transcripts from, or supply information based upon, the cadastral map and the cadastral registers.(2) The information supplied may be written or verbal.(3) Written information may be supplied in the following formats:1. sketch-abstracts of the cadastral map supported with transcripts of the cadastral registers and, in case of a self-contained property within a building, also a floor plan of that property;2. sketch-abstracts as per item 1 containing additional cadastral data, as well;3. other transcripts of the cadastre.(4) Verbal information may also be supplied by telephone, tealeaf or by other technical means. Information obtained by direct access to the information system shall have the validity of verbal information.(5) Information excerpts containing additional cadastral data as per Article 34 (1) must also include information about their current validity.Article 56. (1) Upon request by the owner, the boundaries of the landed property shall be demarcated in situ by the service on geodesy, cartography and cadastre with permanent monuments, on the basis of the cadastral data.(2) In cases both of legal and voluntary partition, or else in cases of sale of part(s) of an immovable property, merging of neighbouring properties, as well as in case of partition of an immovable property upon request by the owner, or as a result of change of its permanent use, the service on geodesy, cartography and cadastre shall assign identifiers and issue sketch-abstracts of the cadastral register, and in case of a self-contained property within a building, also a floor plan of that property. Where such a sketch-abstract is produced by a professionally competent body, it shall be duly certified by the geodesy, cartography and cadastre office.Article 57. (1) By virtue of the provision of information and other services by the Geodesy, Cartography, and Cadastre Offices the service recipient shall be entitled to one single use, for purposes of one procedure only, of the data received.(2) Cadastral data and separate materials may be reproduced, for purposes of further use, subject to prior permission by the Geodesy, Cartography, and Cadastre Agency.(3) Pursuant to the provisions of Paragraph (2), any processing of cadastral maps, registers and data in digital format shall likewise be deemed to constitute reproduction.Article 58. (1) (Amended, SG 29/2006) The terms, conditions and procedure of the provision of cadastral, geodetic and cartographic materials and data shall be prescribed by an ordinance issued by the Minister of Regional Development and Public Works.(2) The terms, conditions and procedure of obtaining cadastral data by direct access to the information system shall be prescribed by the ordinance as per Article 7 (3).(3) (Amended, SG No. 29/2006) The Geodesy, Cartography, and Cadastre Agency shall be required to provide cadastral, geodetic and cartographic materials and data to institutions and government agencies and to municipalities subject to a contract entered into pursuant to the provisions of Article 8 (4).Part ThreeTHE PROPERTY REGISTERChapter Seven ATHE RECORDATION AGENCY(New, SG No. 36/2004, effective 31.07.2004)Article 58a. (1) A Recordation Agency shall be established as an executive agency subordinated to the Minister of Justice, which shall constitute a legal entity based in Sofia and with recordation offices based at the seats of the district courts.(2) The said recordation offices shall be territorial units of the Recordation Agency.(3) The funds raised from 25 percent deductions on the fees collected under this Act, as well as from additional budget revenue collected from fines and material sanctions imposed by force of penal orders issued pursuant to this Act, shall be allocated solely for the acquisition and development of premises, facilities and equipment, for the provision of training and incentives to the employees of the Agency subject to the terms, conditions and procedure prescribed by an ordinance of the Minister of Regional Development and Public Works. The funds allocated for material incentives of the employees may not exceed 25 percent of the annual payroll.Article 58b. (1) The Recordation Agency shall:1. organize any activities pertinent to the creation and maintenance of the property register;2. provide for the interconnectivity between the property register and other registers;3. provide for the development and the technical improvement of the property register;4. establish and maintain a central archive in electronic format of the accounts of immovable properties and the title deeds and other documentation recorded, together with the relevant supporting documents;5. ensure that employees are properly trained and qualified at all times;6. administer proceeds from fees and fines collected as per this Act;7. perform other functions as prescribed by the rules of organization.(2) The recordation office within the jurisdiction of the respective district court shall:1. make entries, notes and deletions as ruled by the recordation judge ;2. prepare and submit to the Recordation Agency the information as per Paragraphs (1) through (4);3. provide information on request, issue abstracts and transcripts of its records as well as certificates of recordations;4. perform other functions pertinent to the keeping of the property register as prescribed by the ordinance as per Article 5 (3).Article 58c. (1) The Recordation Agency shall be headed by an Executive Director.(2) (Repealed, SG No. 39/2005).Article 58d. The activity, structure, operational organization and staff of the Recordation Agency shall be prescribed by a rules of organization adopted by the Council of Minister subject to a proposal by the Minister of Justice.Chapter EightTHE IMMOVABLE PROPERTY ACCOUNT. THE ACCOUNT FILEArticle 59. (1) The account assigned to each immovable property shall comprise of the following five sections:1. section "A", regarding the property;2. Section "B", regarding the owner, for purposes of recognition and/or transfer of the right of ownership;3. Section "C", for purposes of establishing and/or transferring other real rights and in respect of the legal facts and circumstances subject to recordation, except those as per items 4 and 5;4. Section "D", regarding mortgages;5. Section "E", regarding attachments and foreclosures.(2) The title deed or other legal document subject to recordation shall be entered into the account section to which it pertains.(3) The Minister of Justice shall approve the standard form of an immovable property account.Article 60. The following data shall be recorded in section "A" of the account:1. the identifier;2. the type of property, whether landed property, building, or self-contained property within a building;3. the address;4. the boundaries of the landed property (the identifiers of the neighbouring landed properties or, respectively, the neighbouring self-contained properties within the same building);5. area in square meters or in decares (1 dca = 0.1 ha);6. function (use) of the property;7. number of floors of the building;8. the circumstance as per Article 67 (2) of the Succession Act. Article 61. (1) The following data shall be recorded in section "B" of the account:1. where the owner is a natural person, his/her name, the unified civil code (UCC) or another personal identification number, and address;2. where the owner is a legal entity, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of the said legal entity;3. where a government body is assigned with the management of state-owned property, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of the said government body;4. where an organization or another legal entity funded from the municipal budget is assigned with the management and husbanding, without compensation, of municipal property, the name, form of organization, registered address and BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number of said organization or legal entity;5. where an immovable property is owned by a municipality, the name and UCATU (Unified Classifier of Administrative Territorial units) code;6. for local legal entities registered in a court register and for foreign legal entities having a registered branch in the Republic of Bulgaria, the court of registration, the type of register and the volume and account numbers;7. for local and foreign legal entities without court registration, the BULSTAT (Unified State Register of the Commercial Entities in the Republic of Bulgaria) code or another identification number-;8. the type of ownership: whether private or public;9. in case of co-ownership, the ideal shares, as well as the personal data of the co-owners, or in case of joint matrimonial ownership, the personal data of the spouses;10. the title deed or other legal document(s) from which the ownership rights arise;11. the number and date of the title deed or other document as per Article 112 of the Ownership Act subject to recordation, as well as the date of recordation;12. any claims as per Article 114 of the Ownership Act;13. the circumstance (if any) that the title deed or other document as per item 11 is conditional or limited by a term of validity.(2) The following shall be noted in section "B":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 62. (1) The following data shall be recorded in section "C" of the account:1. the type of ownership right;2. the person vested in the right;3. the length of the term, should the right be for a term of years;4. the document as per Article 112 of the Ownership Act subject to recordation;5. any claims as per Article 114 of the Ownership Act; 6. any contracts subject to recordation;a) the type of contract;b) the date of entry into the contract, parties to and subject of the contract;c) the circumstance (if any) that the contract is conditional or limited by a term of validity.(2) The following shall be noted in section "C":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 63. (1) The following data shall be recorded in section "D" of the account:1. the type of mortgage, whether statutory, contractual, or instituted as a collateral to court proceedings;2. the type, number, date and issuing authority of the title deed or other document on the grounds of which the recordation was effected;3. the amount due for which the mortgage was established as security: principal, interest, expenses;4. the due date;5. the mortgagee with the respective personal data thereof, as prescribed in Article 61 (1);6. the mortgager, with the respective personal data thereof, or data about the person, where other than the owner, for whose debt the mortgage was established, as prescribed by Article 61 (1);7. changes in the receivable;8. any deletion of the mortgage and the grounds therefore;9. the circumstance (if any) that the contract is conditional;10. any renewal of the mortgage.(2) The following shall be noted in section "D"::1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 64. (1) The following data shall be recorded in section "E" of the account:1. the type of foreclosure, whether general or of a separate property;2. the number and date of issuance of the ruling imposing the foreclosure and the issuing authority;3. the number and date of recordation of the foreclosure;4. the amount secured;5. deletion (if any) of the foreclosure and the grounds therefore.(2) The following shall be noted in section "E":1. the application for recordation;2. any denial of recordation by the recordation judge;3. any appeal against a denial as per item 2.Article 65. (1) An account shall be kept for any immovable property assigned an identifier.(2) Each account shall have a separate, unique number.Article 66. (1) In case of partition of an immovable property, separate accounts shall be opened for each newly established property, and the account number and the cadastre identifier of the partitioned property shall be recorded therein.(2) The account numbers and cadastre identifiers of the newly established properties shall be recorded in the account of the partitioned property, and the latter shall be closed.(3) Any and all real rights, mortgages and other encumbrances over the partitioned property shall be recorded in the newly opened accounts.Article 67. (1) In the account of a property formed as a result of merging of properties, the account numbers and cadastre identifiers of the properties forming it, as well as the real rights and other encumbrances over each of the properties, shall be recorded.(2) In the accounts of the merged properties, the account number and the cadastre identifier of the newly established property shall be recorded, and they shall be closed.Article 68. (1) An account shall be recorded on paper and on another data carrier. In the event of inconsistency between the two records, the one kept on paper shall take legal precedence.(2) An account that has been lost or destroyed shall be recovered pursuant to the terms and procedure prescribed by the ordinance as per Article 5 (3).Article 69. (1) The following documents shall be stored in an account file :1. the title deeds or other documents providing the grounds for recordation;2. the sketch of the property or the floor plan of the self-contained property within a building;3. the documents as per Article 72.(2) The account file shall bear the account number.Chapter NineCREATION OF THE PROPERTY REGISTERArticle 70. (1) Proceedings for the creation of a property register for each court district shall be initiated by an administrative order of the Minister of Justice in accordance with the program as per Article 94 (2).(2) The administrative order as per Paragraph (1) shall state the court district and the schedule of compilation of the property accounts, itemized by areas as per Article 35 (2), and shall appoint the recordation judge.(3) The said administrative order shall be promulgated in State Gazette.Article 71. (1) The recordation office shall prepare preliminary accounts and account files thereto in respect of immovable properties on the basis of the data contained in the recordation books as well as these as per Article 41 (1) and (2) and the title deeds and other documents received from the Service on geodesy, cartography and cadastre.(2) (Supplemented, SG No. 36/2004) For any transaction involving immovable property where no preliminary account has been prepared, simultaneously with the recordation of such data the recordation judge shall open a preliminary account in respect of that property and shall enter its number in every deed or other document subject to recordation. In the cases as per Article 35a, the preliminary account shall be transformed into the account of the immovable property.(3) The recordation office shall submit in digital format to the service on geodesy, cartography and cadastre the preliminary property accounts for purposes of more accurate definition of the cadastral map and the data about ownership and other real rights in the cadastral register of immovable properties, as well as for purposes of assigning identifiers.Article 72. (1) The recordation judge shall transform the preliminary accounts into permanent immovable property accounts pursuant to this Act, following introduction of the cadastral map and cadastral register of immovable property approved as per Article 49.(2) The recordation judge shall not transform the preliminary account of an immovable property in respect of which a claim has been filed pursuant to the provisions of Article 49 (2), or in cases where the holder of the real right is not identified pursuant to the provisions of Article 41. In such cases, the respective circumstance shall be noted and the property identifier shall be entered into the preliminary account.(3) As of the moment when the circumstance as per Paragraph (2) shall cease to apply, the respective preliminary account shall be transformed into a permanent immovable property account.Article 73. (1) Following completion of the property accounts for the entire court district, the Minister of Justice shall issue an administrative order announcing the establishment of the property register for the respective court district. The said administrative order shall be promulgated in State Gazette.(2) An administrative order as per Paragraph (1) shall also be issued when there are accounts as per Article 72 (2) in the court district .Article 74. (1) (Amended, SG No. 36/2004) Until an administrative order as per Article 73 (1) is promulgated, recordation shall be carried out in accordance with the procedure as established heretofore and the property accounts prepared as per Article 71 shall be automatically updated by entry of the respective data electronically. The number of the property account shall also be entered in the deed or other document subject to recordation.(2) Within six months from the date of promulgation of the administrative order as per Paragraph (1), any interested party may request that any deeds and other documents recorded in accordance with the procedure established heretofore but not reflected in the property account, be duly recorded therein. Deeds and other documents that have not been entered in the property account pursuant to the provision of the previous sentence, shall have no validity with regard to third persons, except as of the date of recordation thereof pursuant to the provisions of Article 76 and full.Article 75. The procedure of creating the property register shall be prescribed by the ordinance as per Article 5 (3).Chapter TenRECORDATIONS IN THE PROPERTY REGISTERArticle 76. (1) A recordation in the property register may be effected:1. on request by an interested party or its authorized representative;2. on request by a notary public in cases as provided by law;3. ex officio, in cases as provided by law.(2) Accounts may be opened and closed ex officio in the cases as per Article 54 (3).Article 77. (1) The application for recordation shall be submitted in Bulgarian, and shall include:1. the name, address and other personal data of the applicant as listed in Article 61 (1);2. the legal fact subject to recordation;3. a description of the immovable property;4. the identifier of the immovable property as per the cadastre;5. the account number;6. any other circumstances, as provided by law;7. the signature of the applicant.(2) The following shall be enclosed in support of the application:1. a sketch-abstract of the cadastral map with a transcript from the cadastral registers, and for self-contained property within a building, also a floor plan thereof; in case where the deed or other document subject to recordation indicates the formation of new properties, a plan-abstract of the cadastral map and cadastral register of the immovable properties as amended subject to the procedure as per Article 54 (1) shall also be enclosed;2. the relevant documentary evidence in support of the legal fact being recorded;3. power of attorney, in case where the application is submitted by proxy.Article 78. (1) (Supplemented, SG No. 36/2004) The application for recordation shall be submitted to the recordation judge care of the recording office.(2) The application shall be marked (stamped) with the year, month, date and exact time of its submission, and shall be issued with an incoming number. .(3) Following completion of all actions as per Paragraph (2), a note shall be made in the relevant section of the property account to the effect that an application for recordation has been submitted.(4) The application may be withdrawn by a new application.Article 79. The application for recordation must not be conditional, limited by a term or by any reservations. In cases where the same applicant has submitted more than one application, he/she may request that one recordation should not be effected without the other.Article 80. The title deed or other document shall be recorded subject to the condition that the grantor has been recorded in the property register as the right-holder, except in case of acquisition of title by prescription.Article 81. Recordations in the same section of a property account shall follow the sequence of submission of the applications.Article 82. (1) The recordation judge shall rule that a recordation be effected, only after he/she has become satisfied that all the relevant provisions of the law, including the form of the title deed or other document whereby the real right is recognized, established, transferred, modified or terminated, - have been complied with.(2) (Repealed, SG No. 36/2004)(3) The ruling of the recordation judge shall be subject to execution without delay.Article 83. The recordation judge shall deny recordation in case where the relevant provisions of the law have not been complied with.Article 84. (1) In any instance of recordation, the date (day, month and year) on which it is effected shall be noted in the property account. The recordation shall be certified with the signature of the recordation judge.(2) On a recorded title deed or other document, the incoming number, the date of recordation and the account number shall be noted.(3) A note shall be made in the account of any ruling whereby recordation was denied, as well as the appeal filed against it, in keeping with the sequence as per Article 81.(4) If no appeal has been filed against the ruling whereby recordation is denied, the note made as per Paragraph (3) shall be deleted ex officio.Article 85. A recordation shall be considered null and void without a ruling by the recordation judge, or in case where the recordation is not certified pursuant to the provision of Article 84 (1).Article 86. (1) (Amended, SG No. 36/2004) The recordation office shall immediately notify the respective service on geodesy, cartography and cadastre of any newly opened accounts and any recordation effected therein.(2) The standard forms of documents whereby the information as per Paragraph (1) is to be communicated, shall be subject to approval by the Minister of Justice and the Minister of Regional Development and Public Works.Article 87. (Amended, SG No. 59/2007) Unless otherwise provided herein, the provisions of chapter Forty Nine "General Rules" of the Code of Civil Procedure shall apply accordingly.Chapter ElevenCONTESTATION OF A RECORDATION. CORRECTION AND DELETION OF RECORDATIONSArticle 88. (Amended, SG No. 59/2007) Any recordation in the property register may be contested subject to the provisions of Article 537 (2) and (3) of the Code of Civil Procedure. Article 89. (Amended, SG No. 59/2007) A manifest factual error in the recordation in the property register shall be remedied pursuant to the provision of Article 247 of the Code of Civil Procedure , by a ruling of the recordation judge.Article 90. (1) A recordation in the property register shall be deleted in case where the inadmissibility or nullity of the recordation, and/or the falsity of the recorded circumstance have been established by an action-bringing procedure.(2) Deletion shall be effected upon request by the interested party, a prosecutor, or ex officio, by a ruling of the recordation judge.(3) The party requesting deletion or the interested party shall be notified of the ruling whereby a deletion is effected or denied pursuant to the provisions of the Code of Civil Procedure ; the said ruling shall be subject to appeal by a separate motion of appeal filed with the district court. The decision of the district court shall be final and shall not be subject to appeal.Article 91. (1) Deletion of a recordation shall be effected by underlining the text subject to deletion and entering a note beside it to the effect that the underlined text, with its beginning and end duly and properly marked, has been deleted.(2) In case of inconsistency between the underlined text and the text specified in the note, the text specified in the note shall be considered as representing the deleted text.Chapter TwelvePUBLIC ACCESS TO THE PROPERTY REGISTERArticle 92. Information from the property register shall be provided and transcripts shall be issued from accounts in respect of individual properties only.Article 93. (1) Anyone may receive, on request, verbal information about recordations in an immovable property account, a transcript or an excerpt there from, or a certificate of a circumstance, whether recorded or unrecorded therein.(2) The standard form of the said certificate shall be subject to approval by the Minister of Justice.Part FourTHE LONG-TERM AND ANNUAL CADASTRE AND PROPERTY REGISTER PROGRAMS(Title amended, SG No. 36/2004)Article 94. (1) Activities related to the production and storage of the cadastral map, the cadastral registers, the property register and the information systems shall be financed with funds from sources as per Article 9.(2) The Council of Ministers, subject to a proposal by the Minister of Regional Development and Public Works and the Minister of Justice, shall adopt a long-term as well as an annual program of activities pertinent to creation and keeping of the cadastre and the property register.(3) (Amended, SG No. 36/2004) The funds necessary for the production, maintenance, updating and storage of the cadastral map, the cadastral registers and the property register, as well as of the information systems, shall be allocated on the basis of the annual program from the approved budgets of the Ministry of Regional Development and Public Works and the Ministry of Justice .Article 95. (Repealed, SG No. 36/2004)Part FiveADMINISTRATIVE PENALTY PROVISIONSArticle 96. (1) A fine in the amount of BGN 10 to 400 shall be imposed on any natural person who:1. has committed an act in violation of Article 39 (2);2. has destroyed or displaced a geodetic or any other permanent monument demarcating the boundary of a landed property or territory adjacent and belonging to a populated area;3. has failed to fulfil his/her obligations as per Article 38 (1), item 4, and Article 52 (4).(2) A fine in the amount of BGN 400 to 1,000 shall be imposed on any official who:1. has failed to fulfil a duty assigned to him/her pursuant to this Act;2. has produced, ordered the production of, or approved development plans and building papers without ensuring conformity thereof with the basic data in the cadastral map and the cadastral registers;3. has issued an occupancy permit in respect of a building in violation of Article 52 (5);4. has committed acts in violation of 6 (2).(3) In case where a legal entity or sole trader has violated Paragraph (1), a material sanction in the amount of BGN 1,000 to 5,000 shall be imposed.Article 97. (1) Any natural person who, in violation of Article 57 uses cadastral data drawn from the cadastral map and the cadastral registers approved subject to the provisions of this Act, shall be liable to a fine in the amount of BGN 50 to 1,000.(2) In case where a legal entity or sole trader has violated Paragraph (1), a material sanction in the amount of BGN 2,000 to 5,000 shall be imposed.Article 98. (1) (Supplemented, SG No. 36/2004) A punishable offence shall be established by a statement of fact issued by an official appointed by the Minister of Regional Development and Public Works, respectively by the Minister of Justice.(2) (Amended, SG No. 36/2004) A penal order shall be issued by the Minister of Regional Development and Public Works, respectively by the Minister of Justice, or by officials duly authorized by them.(3) (Supplemented, SG No. 36/2004) Proceeds from the above fines shall be remitted as income to the Ministry of Regional Development and Public Works, respectively to the Ministry of Justice.(4) The establishment of violations, the issuance, appeal and execution of penal orders shall be carried out pursuant to the provisions and procedure as established by the Administrative Violations and Sanctions Act. SUPPLEMENTARY PROVISIONS 1. For the purposes of this Act:1. "Self-contained property within a building" shall be an entire floor or part thereof, in compliance with Chapter Four of the Ownership Act ;2. "Rough structure" shall be one in which only the outer (surrounding) walls and roof are completed, either without finishing jobs or with ones at different stages of completion;3. "Permanent use of land" shall be its permanent status as prescribed by law;4. "Floor plan of a self-contained property within a building" shall be a depiction in graphic form of self-contained properties within a building showing their positions vis-a-vis one another and their respective identifiers;5. "Area" shall be the area defined on the basis of geodetic coordinates of the points determining the boundaries of landed properties or, respectively, the outlines of buildings;6. "Digital format" of a cadastral map, respectively of the recordation books, shall be a digital record of their full content in a certain format on a magnetic, optical or other data carrier which, when processed by computer, will allow reproduction on a screen or conventional data carrier;7. "Conventional carrier" shall be paper, polyester foil or other material with similar properties;8. "Geodetic base points" shall be the stations of the state geodetic control network and of the local survey control network;9. "Manifest factual error" shall be any inconsistency between the permanent objects of topography, whether natural or man-made, existing on the ground and surveyed pursuant to the provisions of this Act, and the corresponding data on the map or the plan;10. (Supplemented, SG No. 36/2004) "Address of an immovable property" shall be the description of its whereabouts comprising obligatorily the names of the district, of the municipality and the populated area or settlement unit, and including (as appropriate) the name of the street, respectively square or boulevard, housing estate, ward/subdivision, street and entrance number, floor, self-contained property within a building, and for immovable properties in farm lands, forests and lands of the forest domain, respectively the name of the locality.11. (New, SG No. 36/2004) "Combined sketch attesting to full or partial identity of the boundaries of a landed property" is a sketch showing the combined data from previous cadastral, zoning or urban development plans, as well as maps and plans pursuant to the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts .12. (New, SG No. 36/2004) "Group of properties" is an agglomeration of no more than 50 neighbouring landed properties;13. (New, SG No. 36/2004) "Interested parties as per Article 54 (1)" are the owners and the holders of other real rights in respect of immovable properties, whose rights are affected by the change.14. (New, SG No. 29/2006) "Professional competence in geodesy" is recognized by means of possession of a mandatory volume of professional competencies based on a specific education and experience, which gives the right for the creation and maintenance of a unified geodesic foundation, geodetic measurements and processing thereof in order to design the national topographical maps as well as to implement specialized activities in the field of geodesy;15. (New, SG No. 29/2006) "Professional competence in cartography" is recognized by means of possession of a mandatory volume of professional competencies based on a specific education and experience, which gives the right for the creation, editing and design of the national topographical maps, specialized scientific maps and school maps atlases, globes, and relief maps; 2. Geographic sites and entities shall be designated in the cadastre by their established official names.TRANSITIONAL AND FINAL PROVISIONS 3. Cadastres produced on behalf of government institutions and agencies prior to the date of entry in force of this Act in the sense as per Article 3 (4) of the Unified Cadastre of the Republic of Bulgaria Act, shall be considered specialized maps, registers and information systems as per Chapter Four. 4. (Amended, SG No. 36/2004) (1) Prior to the approval of a cadastral map and cadastral registers:1. the sketches of immovable properties shall be issued pursuant to the procedure established heretofore;2. cadastral plans and registers (occupancy lists) thereto, approved pursuant to the provisions of the now repealed Unified Cadastre of the People's Republic of Bulgaria Act and the Territorial and Urban Development Act shall be maintained by the respective municipal administration, whereby l any changes as may occur in the immovable properties subject thereto shall be duly recorded therein, pursuant to the procedure as prescribed by the ordinance as per Article 31; such changes shall be approved by an administrative order of the mayor of the municipality, and for cities with territorial subdivision, by the mayor of the respective borough;3. the plans, maps and registers approved pursuant to the provisions of the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts shall be maintained by the municipal offices of agriculture and forestry pursuant to the terms and procedure as prescribed by an ordinance of the Minister of Agriculture and Forests;4. the data as per Article 52 (4) shall be submitted to the municipal administration which shall then issue the certificate as per Paragraph (5) thereof.(2) For area where proceedings have been initiated and are underway for the production of a cadastral map and cadastral registers, the bodies as per Paragraph (1), items 2 and 3, shall submit to the Geodesy, Cartography, and Cadastre Agency all data regarding the changes in the plans and maps maintained by them within 7 days from the date of recordation thereof.(3) Following approval of the cadastral map and cadastral registers, the activities of the municipal office of agriculture and forestry with regard to maintaining the map of restored ownership and the issuance of sketch-abstracts there from in respect of the relevant territory shall be terminated.(4) Following approval of the cadastral map and cadastral registers, the functions of the municipal administration with regard to maintaining the cadastral plans and the issuance of sketch abstracts there from for the respective territory shall be terminated. 5. (1) For the purposes of this Act, a property lot, in respect of which a lot zoning scheme has been applied, shall be considered landed property.(2) The lot zoning scheme shall apply to these shares for which indemnity has been duly paid in respect of any immovable properties attached to the lot and owned by other natural persons or legal entities, or where the shares of the co-owners within a common lot formed by town planning are equalized. 6. (1) (Amended, SG No. 36/2004) Prior to the issuance of the administrative order as per Article 35 (1), the Geodesy, Cartography, and Cadastre Agency shall define the areas in respect of which the cadastral map and cadastral registers shall be created using data from the maps and plans as per Article 41 (1), item 1, respectively the areas in respect of which data are to be collected through geodetic, photogrammetric and other measurements and calculations. To that end, the Geodesy, Cartography, and Cadastre Agency shall:1. assess the maps, plans, registers and the other relevant documentation approved pursuant to the provisions of the now repealed Unified Cadastre of the People's Republic of Bulgaria Act and the Territorial and Urban Development Act, the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts in terms of their compliance with the requirements of content and accuracy as prescribed by the ordinance as per Article 31;2. transform into digital format the graphic plans which meet the requirements as per item 1;3. pool together the data of maps and plans in digital format which meet the requirements as per item 1.(2) For the purposes of producing a cadastral map and cadastral registers, the bodies responsible for the development, approval, maintenance and storage of maps, plans, registers and other documentation as per Paragraph (1) shall submit to the Geodesy, Cartography, and Cadastre Agency, within two weeks from the date of receipt of a formal request to that effect, the required copies thereof, as well as of any acts by force of which they have been repealed, amended or modified subject to the provisions of Article 8 (5). The maps, plans and registers shall also be submitted on a magnetic, optical or other data carrier.(3) Municipalities and other legal entities storing cadastral plans in their possession shall hand over to the Geodesy, Cartography, and Cadastre Agency, without compensation, the originals and the relevant documentation within two weeks from the date of receipt of a formal request to that effect.(4) (Amended, SG 99/2002) The authorities of central and local government and the municipal offices of agriculture and forestry shall submit to the Service on geodesy, cartography and cadastre copies of all title deeds and other documents whereby an ownership right or other real right is recognized, established or restored, as well as of copies of effective title deeds or other documents whereby the rights of owners as per the Agricultural Land Ownership and Use Act are restored, within 30 days from the date of receipt of a formal request to that effect or following the promulgation in State Gazette of the order as per Article 35 (1). The said deeds and other documents, as well as the respective registers, shall also be submitted on a magnetic, optical or other data carrier. The Geodesy, Cartography, and Cadastre Agency shall reimburse them only for the actual costs incurred in the production of the copies.(5) Upon initiation of a procedure for the development of the cadastral map and cadastral registers, the title deeds and other documents as per Paragraph (4) shall be submitted in batches for the individual areas as per Article 35 (2).(6) The bodies as per Paragraphs (2) and (4) shall be required to ascertain the veracity of the data submitted.(7) (Repealed, SG No. 36/2004)(8) When, in the process of production of a cadastral map and cadastral registers, a manifest factual error is established in the data as per Paragraph (2) relevant to the implementation of the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts , it shall be remedied pursuant to the provisions of this Act.(9) The owners affected as a result of the remedy of a manifest factual error as per Paragraph (4) shall be indemnified pursuant to the provisions of Article 10b of the Ownership and Use of Farm Lands Act or, respectively, of Article 6 and 8 of the Transitional and Final Provisions of the Restoration of Ownership over Forests and Land in the Forestry Domain Act . 7. The Council of Ministers, the district governors and the mayors of municipalities shall, within six months from the date of promulgation of this Act in State Gazette, provide buildings and other facilities and equipment for the needs and use of the Geodesy, Cartography, and Cadastre Agency and its territorial units. 8. The Unified Cadastre of the People's Republic of Bulgaria Act (Promulgated SG 35/1979; amended SG 102/1981, SG 45/1984, and SG 104/1996), shall hereby be repealed. 9. The following amendments and supplements shall hereby be made to the Territorial and Urban Development Act (Promulgated SG 29/1973; corrected SG 32/1973; amended and supplemented: SG 87/1974, SG 3 and SG 102/1977, SG 36/1979; SG 3/1980, SG 45/1984, SG 19/1985, SG 36/1986, SG 14/1988, SG 31/1990; corrected: SG 32/1990; amended: SG 15/1991; SG 63/1995, SG 104/1996, SG 41 and SG 79/1998; amended: SG 124 and SG 133/1998, SG 26 and SG 86/1999, SG 14/2000),:1. Article 21 shall be amended as follows:"Article 21. (1) Zoning plans and town-planning schemes shall be used in the zoning of streets, roads and property lots -in respect of sites constituting public state and municipal property; in respect of sites constituting private property, if the latter have not been zoned; and shall prescribe the specific land use of each property, as well as construction in properties zoned for development."(2) Detailed urban development plans, besides their full format in the sense as per Paragraph (1), may also be one of the following:"1. zoning plan inclusive of an urban development scheme;"2. zoning plan not inclusive of an urban development scheme;"3. zoning plan in respect of streets and property lots only, where these are public state and municipal property;4. block development plan and elevation."(3) Subject to the development objectives and assignments, and pursuant to the Rules and Regulations on the implementation of this Act, only one of the plans as per Paragraph (2) may be produced and implemented."(4) For restructuring and renovation of housing estates; of industrial, resort, tourist or other populated areas and settlement units, an urban development and zoning plan shall be produced and implemented."(5) Where standard deviations from regulations and statutes are regulated, or in cases where terrace-type structures are developed in more than two adjacent lots (landed properties subject to a zoning plan), then block development plans and elevations shall be produced and approved."2. In Article 21a, the following amendments shall be made:a) in Paragraph (1), sentence 1, after the words "for unzoned areas", a comma shall be inserted and the following text shall be added:- "as well as for areas where an earlier zoning plan has not been implemented";b) in Paragraph (2), at the end of sentence 3, a comma shall be inserted and the following text shall be added: "that shall be duly recorded in the cadastre and the property register, pursuant to the provisions and procedure as per the Cadastre and Property Register Act";.3. A new Article 21b shall be inserted, as follows:"Article 21b. Plans as per Arts. 21 and 21a shall be produced on the basis of data from the cadastre."4. In Chapter Two, "Territorial Development Plans", section three, "General and Detailed Urban Development Plans", the title of item 3, indent (c) shall be amended as follows:"c) Detailed Urban Development Plans".5. Article 27 shall be amended as follows:"Article 27. (1) By virtue of the plans as per Article 21 (2), items 1 and 2, hitherto unzoned landed properties in the possession of natural persons or legal entities shall be zoned for residential and summer house development."(2) The provisions of the plan shall be economically feasible and shall allow the rational management and development of zoned property lots and neighbourhoods."6. Article 28 shall be amended as follows:"Article 28. (1) Pursuant to the provisions of Article 27, the following may be zoned:"1. existing unzoned landed properties, for the formation of a larger number of individual zoned landed properties, on request by the owners, duly signed and notarised;"2. undersized unzoned landed properties, for purposes of bringing them up to size by the addition of portions of neighbouring properties;"3. neighbouring unzoned landed properties, for the establishment of zoned landed properties in co-ownership."(2) In cases as per Paragraph (1), items 2 and 3, notarised contracts shall be entered into and duly recorded."7. Article 29 shall be amended as follows:"Article 29. Owners who have requested zoning of hitherto unzoned landed properties pursuant to the provisions of Article 27, shall submit to the relevant service on geodesy, cartography and cadastre a sketch-abstract of the approved and effective detailed development plan, for purposes of the issuance of a sketch-abstract as per Article 54 (3) of the Cadastre and Property Register Act. The sketch-abstract issued by the service on geodesy, cartography and cadastre shall serve as the basis for the issuance of a title deed."8. Arts. 30 and 31 shall be repealed.9. A new Paragraph (4) shall be inserted in Article 32, as follows:"(4) Upon expiry of the time limit as per Article 182a (1), any omissions or errors in the cadastral map and the cadastral registers shall be remedied pursuant to the provisions of Article 53 of the Cadastre and Property Register Act."10. In Article 46 (1), a second sentence shall be inserted, as follows: "The placement and protection of boundary monuments shall be carried out in compliance with the Cadastre and Property Register Act."11. In Article 52 (2), the first sentence shall be amended as follows:"In cases as per Paragraph (1), the ownership and the boundaries of landed properties shall be retained in accordance with the data in the cadastre and the property register."12. Article 59 shall be amended as follows:"Article 59. (1) Real shares of landed properties within the limits of populated areas may be acquired by legal transactions or by prescription only if these meet the requirements regarding minimum area and frontage, as prescribed by the Rules and Regulations on the Implementation of this Act."(2) The provision of Paragraph (1) shall not apply in cases where the share of the landed property is annexed to a neighbouring property pursuant to the provisions of Article 28, and the remaining share either meets the requirements regarding minimum area and frontage, or is also annexed to a neighbouring property."13. Article 60 shall be repealed.14. Article 61 shall be amended, as follows:"Article 61. Partition of landed property located within the development boundaries of a populated area may be effected only if the shares resulting from such partition meet the requirements regarding minimum area and frontage, as prescribed by the Rules and Regulations on the Implementation of this Act. The blueprints for partition of the property shall be produced on the basis of a cadastral sketch-abstract issued by the relevant cadastre office."15. A new Article 62a shall be inserted, as follows:"Article 62a. In case of partition or merging of landed properties, buildings and self-contained properties within a building, the newly established immovable properties must be assigned an identifier by the cadastre."16. In Article 112, Paragraph (3) shall be amended as follows:"(3) Evaluations shall be done by a commission appointed by the mayor of the municipality, in accordance with market prices."17. Article s182a, 182b, 182c and 182d shall be inserted, as follows:"Article 182a. (1) If prior to the entry into force of the Cadastre and Property Register Act the indemnity due for immovable properties in the possession of other natural persons or legal entities added to the property lot pursuant to a valid lot zoning scheme has been paid or, respectively, when the real shares of a common property lot formed as a result of zoning are equalized, the lot zoning scheme shall be considered duly implemented in respect of these property lots and their boundaries shall be construed as boundaries of zoned landed properties."(2) In cases where, prior to the entry into force of the Cadastre and Property Register Act, the provisions as per Paragraph (1) are not fulfilled, the alienation effect of the lot zoning schemes in respect of the relevant properties shall be suspended."(3) The municipalities shall ensure the implementation of the provisions of Paragraphs (1) and (2) by duly recording any changes as may have occurred in the plans, whether ex officio or through professionally competent bodies - appointed for the purpose ."Article 182b. (1) Within the time limit as per Article 182a (1), real shares of zoned lots shall not be subject to acquisition by legal transactions or by prescription."(2) The provision of Paragraph (1) shall not apply in cases where the real shares and the remaining shares of the zoned lot meet the minimum dimension requirements as prescribed by the Rules and Regulations on the Implementation of this Act, or else, where one real share meets the minimum dimension requirements, while, the remaining share(s) is/are annexed to neighbouring lot(s)."Article 182c. Within the time limit set as per Article 182a (1), the ownership of a zoned lot shall not be transferable, and no real rights may be established in respect thereof, in cases where no indemnity has been provided for shares of the property transferred to other entities."Article 182d. Pending administrative or court proceedings pertinent to alienation of immovable properties subject to lot zoning schemes approved prior to the date of entry into force of the Cadastre and Property Register Act, shall be decided subject to the terms and procedure established heretofore." 10. The following amendments and supplements shall hereby be made to Article 33 (2) of the Agricultural Land Ownership and Use Act (Promulgated SG 17/1991; corrected SG 20/1991; amended: SG 74/1991, SG 18, SG 28, SG 46 and SG 105/1992, SG 48/1993, SG 64/1993 -(Resolution No. 12/1993 of the Constitutional Court), SG 83/1993, SG 80/1994, SG 45 and SG 57/1995, SG 59/1995 -(Resolutions No. No. 7 and 8/1995 of the Constitutional Court); amended SG 79/1996, SG 103/1996- (Resolution No. 20/1996 of the Constitutional Court); amended: SG 104/1996, SG 62, SG 87, SG 98 and SG 123/1997, SG 59, SG 88, SG 133/1998, SG 68/1999):"(2) The land commissions shall restore land ownership pursuant to the provisions of this Act, and shall perform other activities as defined by the Rules and Regulations on the Implementation of this Act. The land commissions shall maintain and update the land allocation plans and any other materials and data generated through the implementation of this Act, and shall issue sketch-abstracts for purposes of transactions of disposal involving, and partition of, farm lands until these are submitted to the Geodesy, Cartography, and Cadastre Agency, pursuant to the provisions of 6 (2) of the Cadastre and Property Register Act." 11. The following amendments and supplements shall hereby be made to the Obligations and Contracts Act (Promulgated SG 275/1950; corrected Izvestiya SG 2/1950; amended: SG 69/1951, SG 92/1952, SG85/1963, SG 27/1973, SG 16/1977, SG 28/1982, SG 30/1990; SG 12 and SG 56/1993, SG 83 and SG 104/1996, SG 83 and 103/1999):1. In Article 166 (1) after the words "by recordation", the text - "in the property register" shall be inserted.2. In Article 169 Paragraph (1) shall be repealed.3. In Article 171 the text "in respect of the mortgage, shall be noted in the contract or in the mortgage application", shall be replaced by the text: "shall be done in writing, with notarisation of the signatures, and shall be recorded in the property register".4. In Article 175 (2), sentence 2, after the words "to the recordation", the text- "in the property register" shall be inserted.5. In Article 179 (2), the second sentence shall be amended as follows:"It shall be effected by making a note in the mortgaged property account."6. In Article 237 at the end of Paragraph (1), the text "in the property register" shall be added. 12. The following amendments and supplements shall hereby be made to the Ownership Act (Promulgated Izvestiya SG 92/1951; amended: SG 12/1958, SG 90/1960; SG 99/1963, SG 26 and SG 27/1973, SG 54 and SG 87/1974, SG 55/1978, SG 36/1979, SG 19/1985, SG 14 and SG 91/1988, SG 38/1989, SG 31/1990, SG 77/1991, SG 33/1996, SG 100/1997 and SG 90/1999):1. In Article 100: a) the existing text shall become Paragraph (1), and at the end thereof, the words "in the property register" shall be added;b) a new Paragraph (2) shall be inserted, as follows:"The statement relinquishing the right of ownership as per Paragraph (1) may be withdrawn prior to recordation thereof in the property register."2. In Article 112: "a) at the end of indent (a), a coma shall be placed and the following text shall be added: "as well as deeds and other documents whereby such rights are recognized";b) a new indent (i) shall be inserted as follows:"i) Transcripts of the wills made in respect of immovable property and rights over immovable property." 13. In Article 67 (2) of the Succession Act (Promulgated SG No. 22/1949, corrected: SG 41/1949; amended: SG 275/1950, SG 41/1985 SG 60/1992 and SG 21/1996 (Resolution No. 4/1996 of the Constitutional Court); amended: SG 104/1996, SG 117/1997, SG 96/1999), the words "by recordation pursuant to the provisions of the Privileges and Mortgages Act" shall be replaced by "by recordation in the accounts of immovable properties of the legator pursuant to the provisions of the Cadastre and Property Register Act". 14. Article 158 (2) of Judicial System Act (Promulgated SG 59/1994; Resolution No. 8/1994 of the Constitutional Court of the R.B. - SG 78/1994; Resolution No. 9/1994 of the Constitutional Court of the R.B. - SG 87/1994; Resolution No. 17/1995 of the Constitutional Court of the R.B. - SG 93/1995; supplemented: SG 64/1996; Resolution No. 19/1996 of the Constitutional Court of the R.B. - SG 96/1996; amended: SG 104 and SG 110/1996, SG 58, SG 122 and SG 124/1997, SG 11 and SG 133/1998; Resolution No. 1/1999 of the Constitutional Court of the R.B. - SG 6/1999) shall be amended as follows:"(2) The recordation judge shall effect the recordations in the property register and shall perform the duties of a notary public pertinent to notations and deletion thereof, the issuance of transcripts from recordation books and any other duties as provided by law." 15. The following amendments and supplements shall be made to Article 18 of the Local Taxes and Fees Act (Promulgated SG 117/1997; amended and supplemented: SG 71/1998, SG 83, SG 105 and SG 153/1998, SG 103/1999):1. In Paragraph (1) the words "of the municipality" shall be deleted;2. In Paragraph (2) the words "cadastral and other" in parentheses shall be deleted;3. A new Paragraph (3) shall be inserted, was follows:"(3) Data from the cadastre as per Paragraph (2) shall be provided pursuant to the provisions and procedure of the Cadastre and Property Register Act." 16. (Amended, SG No. 36/2004) For purposes of creation of the property register, the Minister of Justice shall:1. ensure the introduction of the software necessary for making recordations by the nominal system and for entering data in the preliminary accounts;2. ensure the transformation into digital format on a magnetic, optical or other data carrier of the data currently available in the recordation books and their registration in the preliminary accounts. 17. Prior to the entry into force of this Act, the Council of Ministers shall submit proposals for relevant amendments and supplements to acts whereby the establishment of cadastres on behalf of government institutions and agencies is provided for . 18. Prior to the entry into force of this Act, the Council of Ministers shall approve the programs as per Article 94 (2). 19. This Act shall enter into force as of January 1st, 2001, except for Article 4 and Arts. 10 through 22, which shall enter into force on the day of promulgation thereof in State Gazette.TRANSITIONAL AND FINAL PROVISIONSto the Act on Amending and Supplementing the Cadastre and Property Register Act(SG No. 36/2004) 39. Proceedings that had been underway but not completed towards the date of entry into force of this Act, pertinent to the production of a cadastral map and cadastral registers in respect of one property or a group of properties, shall be concluded pursuant to the provisions of Article 49a. 40. (1) Proceedings that had been underway but not completed towards December 31, 2000, pertinent to the approval of cadastral plans pursuant to the now repealed Unified Cadastre of the People's Republic of Bulgaria Act, shall be concluded pursuant to the provisions of this Act.(2) The date of submission of a cadastral plan for consideration and approval by the competent agency shall be constued as commencement of the proceedings pertinent to approval thereof.(3) Cadastral plans assigned for development prior to December 31, 2000, shall be completed pursuant to the legislative provisions and requirements for development thereof, in effect towards the moment of entry into force of the procurement contract. Such plans shall be adopted, communicated to the interested parties and approved subject to the provisions this Act.(4) Cadastral plans which have not been approved pursuant to the established procedure, but conform in terms of content and accuracy to the requirements prescribed by the ordinance as per Article 31, shall be approved subject to the provisions of this Act.(5) Approved cadastral plans shall be maintained subject to the provisions of 4 (1), item 2. 41. Pending the approval of a cadastral map and cadastral registers for the respective area, the approved cadastral maps and cadastral registers as per Article 35b shall be maintained subject to the provisions of the ordinance as per Article 31. 42. Pending the approval of a cadastral map and cadastral registers for the respective area, any buildings and facilities built on farm land and in forest territories shall be indicated in the maps and plans approved subject to the procedure as per the Agricultural Land Ownership and Use Act and the Act Restoring Ownership of Forests and Forest Stock Land Tracts . Such indication shall be effected upon payment by the investors of a fee pursuant to the tariff as per Article 31 (2) of the Ownership and Use of Farm Lands Act . The Ministry of Agriculture and Forests shall administer proceeds from such fees. 43. Ongoing proceedings as per the now repealed Paragraph (6) of 6 of the Transitional and Final Provisions of the Spatial Development Act pertinent to the completion or correction of cadastral plans, initiated prior to the entry into force of this Act, shall be concluded subject to the procedure as established heretofore. 44. Within one month from the date of entry into force of this Act, the Council of Ministers shall adopt Rules of Organization of the Recordation Agency. 45. (1) Within three months from the date of entry into force of this Act, the Council of Ministers shall allocate a suitable building for the Recordation Agency.(2) The Council of Ministers, subject to a proposal by the Minister of Justice, shall provide for the needs and use of the recordation offices under the Recordation Agency premises within the buildings provided for the needs of the district courts. 46. The Minister of Justice shall approve the structure and the staff of the Recordation Agency. 47. (Effective 31.07.2004) (1) Employment relations with the recordation officers at the district courts shall be governed by the provisions of Article 123 of the Labour Code. (2) Employment relations with employees of the court administration performing the duties of recordation officer shall be governed by the provisions of Article 111 of the Labour Code until the appointment of a tenured official at the recordation office. 48. The part of the archive of the district courts containing the archive materials of the recordation offices shall be handed over to the Recordation Agency. 49. Within three months from the entry into force of this Act the Minister of Regional Development and Public Works shall approve standard forms of the combined sketch attesting to full or partial identity of the boundaries of a landed property as per Article 16 (3), and of the sketch as per 4 (1), item 1.TRANSITIONAL AND FINAL PROVISIONSunder the Geodesy and Cartography Act(SG No. 29/2006)........................................................................ 7. In the Cadastre and Property Register Act (promulgated in SG No 34/2000, amended SG No. 45 and 99/2002, SG No. 36/2004, SG No. 39 and 105/2005) the following amendments and supplements shall be made:........................................................................17. Everywhere in the Act the words "Cadastre Agency", "cadastre service", "the cadastre service", "cadastre offices" and "the cadastre offices" shall be replaced respectively with "Geodesy, cartography, and cadastre agency", "service on geodesy, cartography and cadastre", "the service on geodesy, cartography and cadastre", "geodesy, cartography and cadastre offices" and "the geodesy, cartography and cadastre services". For more information visit www.solicitorbulgaria.com id: 324 Fri, 01 Aug 2008 07:28:07 -0700 http://solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act http://solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CADASTRE_AND_PROPERTY_REGISTER_ACT.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-cadastre-and-property-register-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 325 Article 1(Amended, SG No. 31/1990)This Act regulates ownership, other real rights and their acquisition, loss and protection, as well as possession and recording.Article 2(1) (Amended, SG No. 31/1990) Ownership may belong to the state, municipalities, cooperatives and other juristic persons and citizens.(2) (Amended, SG No. 33/1996) All kinds of ownership shall enjoy equal opportunities for development and protection.Article 3(Repealed, SG No. 31/1990)Chapter OneSTATE AND MUNICIPAL OWNERSHIP(Previous Heading of Chapter One, Amended SG No. 31/1990)Articles 4-5(Repealed SG No. 31/1990)Article 6(Amended SG No. 31/1990; SG No. 77/1991; SG No. 33/1996)State and municipal ownership shall be public and private.Article 7(Amended SG No. 31/1990; SG No. 33/1996)The status of all state and municipally-owned objects shall be determined by way of separate acts.Article 8(Repealed SG No. 33/1996)Articles 9-10(Repealed SG No. 91/1988)Article 11(Amended SG No. 99/1963; Repealed SG No. 91/1988)Article 12(Repealed SG No. 31/1990)Articles 13-17(Repealed SG No. 33/1996)Article 18(Amended, SG No. 33/1996, No. 32/2005) Contracts, whereby acquisition or disposal of properties in private state or municipal ownership is conducted, shall be executed in writing upon the order of the registrations judge, having competence over the location of the property. The notarial form shall not be required"Article 19(Supplemented, SG No. 31/1990)The right of ownership of state and municipal immovable properties may also be established with a document issued on the basis of the registers kept for these properties.Article 20(Repealed SG No. 33/1996)Article 20a(Amendment enacted Izvestya No. 12/1958; amended No. 90 /1960; SG No.36/1979; SG No. 91/1988; repealed SG No. 31/1990)Article 21(Repealed SG No. 33/1996)Articles 22-24(Repealed SG No. 31/1990)Article 25(Repealed SG No. 33/1996)Articles 26-27(Repealed SG No. 31/1990)Chapter TwoPRIVATE OWNERSHIP(Heading amended SG No. 31/1990)Article 28(Amended SG No. 31/1990; SG No. 31/1990; SG No. 33/1996)(1) Property of natural and legal persons may be all belongings with the exception of those which under the Constitution of the Republic of Bulgaria are exclusive state property or, under this Act, are public, state or municipal possessions.(2) The right of natural and legal persons to own realties and belongings, related to such activities for which state monopoly has been established, may be prohibited by a specific act.Article 29(Supplemented, SG No. 26/1973, amended, SG No. 31/1990,SG No. 33/1996, SG No. 59/2000, amended SG No. 24/2007) Non-resident natural and juristic persons may acquire the right of ownership in land under the terms of an international agreement ratified under the terms of Article 22 (2) of the Constitution of the Republic of Bulgaria which has been promulgated and entered into force, and non-resident natural persons - also in cases of legal succession.Citizens of EU Member States or of Member States under the European Economic Space Agreement may acquire the right of ownership in land in accordance with the requirements laid down in law in compliance with the Treaty concerning the Accession of the Republic of Bulgaria to the European Union.Juristic persons from EU Member States or from Member States under the European Economic Space Agreement may acquire the right of ownership in land under the terms of Paragraph 2.Non-resident natural and juristic persons may acquire the right of ownership in premises and limited real rights in a real estate in the country unless provided otherwise by law.A foreign country or intergovernmental organization may acquire the right of ownership in land, premises and limited real rights in a real estate in the country pursuant to an international agreement, law or act of the Council of Ministers.A foreign country may not acquire the right of ownership in a real estate in the country by inheritance.Article 29a(New, SG No. 24/2007)The persons under Article 29 (2), who do not reside permanently in the Republic of Bulgaria, may acquire land for a second residential property after expiry of the time limit stipulated under the Treaty concerning the Accession of the Republic of Bulgaria to the European Union. Chapter ThreeJOINT OWNERSHIPArticle 30(1) (Amended SG No. 31/1990) The right of ownership may belong jointly to two or more persons - the state, municipalities and other juristic and natural persons.(2) The shares of the persons shall be deemed equal until proven otherwise.(3) Each joint owner shall participate in the benefits and burdens of the common property in proportion with his share.Article 31(1) Each joint owner may use the common property in accordance with its purpose and in such manner as not to interfere with the other owners' use according to their rights.(2) When the common property is used personally only by some of the joint owners, they shall owe compensation to the remaining joint owners for the benefits of which the latter are deprived from the date of written request.Article 32(1) The common property shall be used and managed in accordance with the decision of the joint owners owning more than half of the common property.(2) If a majority cannot be formed or if the majority's decision is harmful to the common property the regional court, at the request of any of the joint owners, shall settle the issue and take the required measures and, if necessary, appoint an administrator of the common property.Article 33(1) A joint owner may sell his share of the immovable property to a third party only after presenting proof in writing to the notary public that he has made an offer to the other joint owners to purchase the said share under the same conditions and declaring in writing that none of the said joint owners has accepted the offer.(2) If the declaration under the previous paragraph proves to be false or if the third party purchases the joint owner's share under conditions agreed to fictitiously to the detriment of the other joint owners, the interested joint owners may purchase the said share under the actually agreed upon conditions. The action must be brought within two months of the sale.(3) Where a joint owner has not paid the due sale price within one month of the entry into force of the decision, the said decision shall become null and void ex lege.Article 34(1) Each joint owner may, despite an agreement to the contrary, ask for a partition of the common property, except where the law provides otherwise or if this is incompatible with the nature and purpose of the property.(2) The provisions for the partition of an inheritance shall apply mutatis mutandis to the partition of an immovable property.(3) There shall be no limitation period for the action for partition.Article 35(1) (Amended SG No. 33/1996) The voluntary partition of movables exceeding in value 50 000 leva, as well as of immovable properties, shall be done in writing with notarially certified signatures.(2) When incapacitated or absent persons are taking part in the partition, the authorization of the regional court must be obtained.(3) (Amended Izvestya No. 12/1958; SG No. 87/1974; SG No. 91/1988; repealed SG No. 31/1990)Article 36(Amended Izvestya No. 12/1958; SG No. 87/1974; SG No. 31/1990)The joint ownership of the state or a municipality may be terminated, other than through a partition, through the sale of the share of the state or the municipality, through the transfer of the ownership of another equivalent property or through the buying out of their share under conditions and through a procedure to be determined by the Council of Ministers.Chapter FourCONDOMINIUM OWNERSHIPArticle 37(Amended SG No. 31/1990)Floors or parts of floors, together with belonging to them premises in the attic or basement, may be owned by individual owners - the state, municipalities and other juristic or natural persons.Article 38(1) In buildings in which floors or parts of floors are owned by different owners, common for all owners are the land on which the building is constructed, the courtyard, the foundations, the external walls, the internal dividing walls between separate parts, the internal supporting walls, columns, cross beams, floor slabs, trimmer joists, staircases, landings, roofs, walls between attic and basement premises of the individual owners, chimneys, external entrance doors to the building, and the doors to the common parts of the attic and basement, the main lines for all manner of installations and their central outfits, elevators, drain-pipes, the janitor's apartment and everything else which by its nature or purpose serves for common use.(2) It may be agreed upon that the parts of the building which serve only some of the individually owned floors or parts of floors are common only to the persons whose premises they serve.(3) Common parts may not be partitioned.Article 39(1) The owners may partition the common building by floors or parts thereof.(2) In the same manner the common building may be partitioned through the court, if the individual floors or parts of floors may be used separately without significant adjustments and without inconveniences greater than the ordinary.Article 40(1) The shares of the individual owners in the common parts shall be proportional to the ratio between the value of the individual premises which they own, calculated at the time of establishing the condominium ownership. Later changes in individual premises shall not affect the size of the shares.(2) When adding new floors to a condominium ownership the owners of the additional floors or parts thereof shall acquire, for consideration, ownership of all common parts of the building, including the land. The shares of all owners in the common parts shall be determined in accordance with the ratio between the values of the individual premises at the time of finishing the construction.(3) When an owner of a floor or part thereof transfers a separate part of its property to another person, the shares of the transferee and the transferor in the common parts of the building shall be determined by the ratio between the transferred and preserved part at the time of the transfer. The same rule shall apply for a partition.Article 41Each joint owner, in proportion to its share in the common parts, must participate in the expenditures necessary for their maintenance and restoration, as well as in the useful expenditures for which there is a decision of the general meeting.Article 42The management of the common parts of the building in a condominium ownership and the supervision for the performance of occupants' obligations belongs to the general meeting of owners and the elected by it manager or managing council.Article 43(1) The general meeting may adopt decisions if three quarters of the owners are present, either personally or through representatives.(2) Tenants shall also take part in general meetings and shall have the right to vote when decisions are adopted on issues concerning their property interests or condominium regulations. In such cases the general meeting shall adopt decisions if more than half the people who have the right to take part in the meeting are present.(3) If during the first convening the necessary number of persons have not appeared the meeting shall be postponed by one hour, shall have the same agenda and shall be deemed quorate regardless of the number of people present.Article 44(1) The general meeting shall adopt decisions with a majority of more than half the owners present.(2) In the case of paragraph 2 of the previous Article the general meeting shall adopt decisions with the votes of more than half those present.Article 45(1) (Amended SG No. 33/1996) The owner of a floor or a part thereof shall be evicted from the building by a decision of the general meeting where he:a) uses or permits his premises to be used in a way which creates a fire hazard or a threat of considerable damages, andb) (Amended SG No. 33/1996) systematically violates the regulations or the decisions of the general meeting or the rules of decency and good manners.(2) The general meeting may adopt an eviction decision only after the owner has been warned in writing by the manager that it will be evicted from the property and if after such notice it does not discontinue the violation.Article 46(1) The owner may request that the regional court rescind the general meeting's eviction decision through a procedure to be established by the regulation under Article 49.(2) (Amended, SG No. 59/2007) On the basis of an effective resolution of the general meeting under Article 45, the manager or the chairman of the managing council shall have the option to move for the issuance of an enforcement order according to the procedure established by Article 410 (1) of the Code of Civil Procedure. Article 47(1) The manager or chairman of the managing council shall represent the owners in the performance of any acts, including in a court of law, which are related to the ordinary management of the condominium ownership. For acts which are beyond such ordinary management the manager or chairman of the managing council shall represent the owners only when authorized by the general meeting.(2) The manager or the chairman of the managing council shall represent in a court of law the owners jointly for actions brought against them in connection with the common parts.(3) Each owner may personally take part in the trial in which the manager is representing the owners.Article 48(Repealed SG No. 55/1978)Article 49(1) The rules for management, for the maintenance of order and the supervision of the use of the building, as well as the rules concerning the manner of rescinding general meeting decisions and the procedure through which they will not be carried out, shall be set forth in a special regulation introduced by the Minister of Justice and approved by the Council of Ministers.(2) (Amended, SG No. 33/1996, 90/1999) For violations of the regulation the general meeting may give the manager or the chairman of the managing council the right to impose fines from 1 to 60 BGL in favour of the condominium.Chapter FiveRESTRICTIONS ON OWNERSHIPArticle 50An owner of an immovable property shall not perform such acts in its property which create obstacles, greater than the usual, for the use of an adjacent property.Article 51When, for the performance of some work in a property, it is necessary to enter another property the owner of the latter property must provide access.Article 52(Amended SG No. 54/1974; 36/1979, 33/1996)Trees may not be planted near a neighbour's property at a distance less than 3 metres for high trees, 1,5 metres for trees of medium height and 1 metre for low trees. A neighbour shall ask for a permission from the Mayor of the respective municipality, precinct or mayorship to cut off tree branches which extend over his/her property, as well the roots which cross into his/her property. Under the same procedure an owner may require that trees which have been planted closer than the above mentioned distances be moved.Article 53The restrictions on ownership related to urbanization and health care purposes shall be set forth in separate laws.Article 54Obligations related to the ownership or running of the property may be assigned by a decision of the Council of Ministers.Chapter SixREAL RIGHTS OVER ANOTHER'S PROPERTYArticle 55Real rights over another's property, to the extent that they are provided for by laws, may be acquired or created through legal transaction, prescription or other methods provided for by law.Section IRight of UseArticle 56(1) The right of use includes the right to use the property in accordance with its purpose and the right to the benefits thereof without causing any essential changes to it.(2) The user cannot transfer his right.Article 57(1) The user must pay the expenses related to the use, including taxes and other charges, maintain the property in the state in which it was received, and return the property to the owner after the termination of the right of use.(2) An inventory must be taken when handing over the property. In the absence of such inventory it shall be deemed, until proven otherwise, that the property was handed over in a good condition.(3) The user shall not be held liable for the wear and tear of the property which are due to normal use.(4) The user must insure the property in favour of the owner and pay the insurance premiums unless otherwise decreed or agreed.Article 58The user shall inform the owner of any trespass on the ownership.Article 59(1) The right of use shall be terminated with the death of the user if a shorter period is not agreed upon.(2) The right of use created in favour of a legal entity shall be terminated with its winding up if it is not created for a shorter period.(3) The right to use shall be terminated with the perishing of the property or if it is not exercised for five years.Article 60Contracts concluded by the user for leasing fields shall remain in force until the end of the current agricultural year if the right of use is terminated earlier.Article 61The owner may request from the court that the right of use be terminated if the user, despite being warned, continues to use the property in a way which threatens it with destruction or significant damage, constitutes a fundamental breach of obligations or fundamentally alters the property.Article 62(Amended SG No. 31/1990; SG No. 33/1996)Concerning the right of use of a state or municipal property, the provisions of this section shall apply unless otherwise provided in an act of legislation or in a specific act for the creation of such right.Section IIOwnership of a buildingArticle 63(1) The owner may cede to another person the right to construct a building on its land, whereby the other person becomes owner of the building.(2) The owner of the land may also transfer independently from the land the ownership of an already existing building.(3) Ownership of a building independently from the underlying land may also be created through voluntary partition.Article 64The owner of a building may use the land to the extent that is necessary for the use of the building according to its purpose, unless the act with which the right is ceded contains another provision.Article 65When the right of use of a building is created with a fixed time period, after the expiration of said period the ownership of the building shall pass gratuitously to the owner of the land.Article 66(1) The owner of the building may sell it to a third party, the provisions of Article 33 applying mutatis mutandis.(2) (New, SG No. 33/1996) The right to erect a building shall not lapse if the building or a portion thereof is lost, unless otherwise provided in the in the act for the creation of such right.(3) (New, SG No. 33/1996) The subject of the right of construction may as well be such construction which lies under the surface of the ground.(4) (New, SG No. 33/1996) The right to erect an additional storey or the right to add to a building shall be allowed for superstructure or outbuilding, respectively, to an already existing edifice.Article 67(1) The right to construct a building on another's land (Article 63, paragraph 1) shall be extinguished in favour of the owner of the land through limitation if it is not exercised within 5 years.(2) (New, SG No. 87/1974; amended SG No. 91/1988; SG No. 31/1990, repealed, SG No. 33/1996)Chapter SevenPOSSESSIONArticle 68(1) Possession is the exercise of de facto power over a property which the possessor holds, either personally or through another, as his own.(2) Holding means exercising de facto power over a property which the person does not hold as his own.Article 69It shall be deemed that the possessor holds the property as its own until proven that he holds it for another.Article 70(1) The possessor shall be deemed to possess in good faith when he possesses the property on a legal basis fit to make him an owner, without knowing that the transferor is not an owner or that there is a defect in the form prescribed by the law. It is sufficient that the good faith exists at the time of the arising of the legal basis.(2) Good faith shall be presumed until proven otherwise.(3) Where possession has been handed over on the basis of a preliminary contract concluded with the property owner, the possessor shall have the rights under Articles 71 and 72.Article 71A bona fide possessor may use the property and enjoy the benefits derived from it until the bringing of the action for its return.Article 72(1) A bona fide possessor may ask, for the improvements made by him, the sum with which the value of the property has increased as a result of such improvements. Such increase shall be determined as of the date of the judgement rendered by the court.(2) A bona fide possessor may ask that he be reimbursed for the necessary expenditures made for the preservation of the property.(3) He may hold the property until reimbursed for the improvements and the expenses.Article 73(1) A mala fide possessor shall owe the owner the benefits which he has derived or could have derived, as well as compensation for the profits of which he has deprived the owner, deducting the expenditures made for this purpose.(2) The mala fide possessor may ask that he be reimbursed for the necessary expenditures made by him for the preservation of the property.Article 74(1) A mala fide possessor may ask, for the improvements made by him, only the lesser sum of the sum total of all expenditures and the sum with which the value of the property has increased as a result of such improvements.(2) Where the owner has known that improvements are being made on its property and has not objected, the rights of the possessor shall be arranged in accordance with Article 72.Article 75The possession of an immovable property or a real right over such property, including servitus which has continued for more than six months, may be defended against any violation. The action must be brought within six months.Article 76A possessor or a holder whose movable or immovable property has been taken through violent means or through concealment may, within six months, request that it be returned by the person who has taken it. This does not exclude the right of the person which has taken the property to bring an action under the previous Article.Chapter EightACQUIRING AND LOSING THE RIGHT OF OWNERSHIPArticle 77The right of ownership may be acquired through legal transaction, through prescription or through other means provided by the law.Section IAcquiring Movable Property through Possession in Good FaithArticle 78(1) (Amended, SG No. 100/1997) Whoever has acquired for consideration the possession of a movable property or security to the bearer on a legal basis, even if not from the owner, but without knowledge of that fact, shall acquire the ownership. The same rule shall also apply to acquiring other real rights over a movable property.(2) (Amended SG No. 31/1990) The owner of a lost or stolen property may seek such property from a bona fide possessor within three years from the its being stolen or lost. This rule shall not apply when the possessor has acquired the property from a state or municipal enterprise.Section IIAcquiring the Right of Ownership through PrescriptionArticle 79(1) The right of ownership of immovable property through prescription shall be acquired through continuous possession for 10 years.(2) If the possession is in good faith the ownership shall be acquired with continuous possession for 5 years.Article 80(1) A movable property shall be acquired through prescription with continuous possession for 5 years.(2) Whoever acquires the possession of a movable property through a crime cannot acquire the ownership through prescription.Article 81With the closing of the possession for more than six months the prescription period shall be interrupted.Article 82The possessor may incorporate the possession of the transferor with his own possession.Article 83Whoever proves that he has possessed during different times shall be deemed to have possessed in the intervals between them as well, unless proven otherwise.Article 84Concerning prescription, in addition to the above rules the provisions of Articles 113, 115, 116, 117 and 120 of the Obligation and Contract Act shall apply mutatis mutandis.Article 85The provisions for acquiring the right of ownership over immovable property through prescription shall apply as well for acquiring other real rights over such property through prescription.Article 86(Amended SG No. 31/1990; SG No. 33/1996)Property which is public, state or municipally owned may not be acquired through prescription.Section IIIFound PropertyArticle 87Whoever finds an immovable property must return it to the owner or to the person who has lost it, after deducting or receiving payment for a reward and expenditures.Article 88(1) (Amended SG No. 33/1996) Where the owner and the person who has lost the property are not known, the person who has found it must immediately turn it over to the relevant "Municipal Property" office.(2) If the owner or the person who has lost the property asks for it within one year after it is found, the property shall be handed over to him after payment of a reward equal to 10 per cent of the value of the property plus the expenditures for transporting and storing. The reward may be reduced by the court, taking into consideration the property status of the person who has lost the property or when the full amount of the reward is excessively high.Article 89(1) (Amended SG No. 31/1990; SG No. 33/1996) If the owner or the person who has lost the property is not found or does not appear within one year, the property shall pass into ownership of the municipality. In this case the provision of Article 78, paragraph 2 shall not be applied.(2) Properties which spoil rapidly or the safekeeping of which is expensive shall be sold and the sum received shall be disposed of with in accordance with the previous paragraph.Article 90(Repealed SG No. 33/1996)Article 91(1) Properties buried in the ground, walled in or hidden in another manner, the owner of which cannot be found, shall become the ownership of the state.(2) The person who has found them shall have the right to a reward equal to 25 per cent of their value.Section IVAccretionArticle 92The owner of the land is the owner of the buildings and plants on it except where something else has been agreed upon.Article 93The benefits from the property, such as fruits, increase of cattle, rent payments, etc. shall belong to the owner.Section VProcessing and IncorporatingArticle 94(1) A person who has made a new item out of another's material shall become its owner if the value of the processed item exceeds the value of the material and if the person did not know that the material belonged to another.(2) Otherwise, the owner of the material shall become the owner of the property having the right, though, to give it up.Article 95(1) When the property is made of materials which belong to different owners, the owner of the property shall be the person to whom the main material belongs.(2) If none of the materials may be identified as main a joint ownership over the property shall arise.Article 96In the cases under the previous two paragraphs the person who becomes the owner of the new property shall owe compensation for the value of the material or for the processing, as well as for other damages if such exist.Article 97When another's property has been incorporated as a part of a main property in such a way that it may not be separated without causing significant damage to the main property the owner of the latter property shall acquire the ownership over the adjoined part as well.Article 98The incorporation shall follow the main property in the absence of an agreement to the contrary.Section VILosing the Right of OwnershipArticle 99The right of ownership shall be lost if another person acquires it or if the owner renounces it.Article 100(Amended SG No. 34/2000)(1) Renouncing the right of ownership over immovable property shall be effective only if done in writing with notarially certified signatures and if recorded in the property register.(2) The statement of renouncement of the right of ownership under paragraph (2) may be withdrawn prior to the recordation of the renouncement in the property register.Section VIIExpropriation of Property for State and Municipal NeedsArticle 101(Amended SG No. 38/1989; SG No. 33/1996)For such especially important needs of the State and the municipalities, which cannot be otherwise satisfied, properties may be alienated under such terms and in such order as shall be prescribed by the law and following the payment of a tantamount compensation in advance.Articles 102-105(Repealed SG No. 33/1996)Article 106(Repealed SG No. 38/1989)Article 107(Repealed SG No. 33/1996)Chapter NinePROTECTION OF THE RIGHT OF OWNERSHIPArticle 108The owner may request its property from any person which possesses or holds it without grounds to do so.Article 109(1) The owner may request the discontinuing of any act without grounds which creates obstacles for the exercising of his right.(2) (Repealed, SG No. 33/1996)Article 109a(New, SG No. 33/1996)The owner of a real estate is entitled to request fixing of boundaries between his/her estate and the adjacent estates.Chapter TenGENERAL PROVISIONSArticle 110(1) Immovable property is: land, plants, buildings and other structures and, in general, everything which either naturally or through a human act is firmly fixed to the land or to the structure.(2) All other properties, including energy, are movable.Article 111(1) The provisions concerning immovable properties shall also be applied for real rights over immovable property if the law does not decree otherwise.(2) Concerning all other rights the provisions relating to movables shall be applied.(3) The provisions of chapters V-XI shall apply to all types of ownership under Article 2, to the extent that no provision to the contrary exists.Chapter ElevenRECORDINGArticle 112(1) The following shall be recorded:a) (Amended SG No. 87/1974; 33/1996;34/2000) all acts with which the right of ownership is transferred or another real right is created, transferred, altered or terminated for immovable property as well as acts with which such rights are recognized;b) (Amended SG No. 33/1996) contracts with which a decedent's estate which includes immovable property is transferred;c) acts for renouncing real rights over immovable property;d) agreements for the partition of immovable property, as well as court partition protocols concerning such properties;e) applications of the creditors of the decedent or of the devises for separating the immovable properties for a period longer than one year;f) rent contracts for a term exceeding one year;g) settlements on disputes concerning acts which themselves are subject to recording, andh) court judgements which have entered into force, which supplant the acts under (a), as well as judgements with which the existence of acts subject to recording pursuant to the previous points is established.i) (New SG No. 34/2000) transcripts of announced last wills and testaments pertaining to real estate and rights over real property.Article 113Acts under the previous Article, prior to their recording, may be defeated by third parties which have earlier acquired from the same owner and recorded real rights over an immovable property.Article 114(1) The following must be recorded:a) complaints for the avoidance, declaring the invalidity, the repeal or nullification of acts subject to recording.(2) (Amended SG 33/1996) When the recording of the complaint is provided for with an explicit provision of the law, they shall have upon third parties the effect indicated in the relative provision. In the absence of such a provision the recording shall only serve to make public the court dispute concerning properties;b) (Amended SG 33/1996) complaints for a judgement for concluding a final contract with which a real right over immovable property is transferred or created.(3) (Amended SG 33/1996) Acquired real rights and imposed attachments on immovable property after the recording may be defeated by the plaintiff. The state or the municipality, for its claims against the transfer or which have become executable before the date of transfer or creation of the real right, may divert its claim against the property no matter in which hands it is, andc) complaints for other judgements under Article 112 (h). Real rights acquired by third parties after the recording may be defeated by the plaintiff.(4) The courts shall not initiate proceedings on complaints under the previous paragraph until they have been recorded.Article 115(1) Judgements which have entered into force and have been rendered upon complaints pursuant to the previous paragraph, shall be entered upon presentation of a copy of the judgement.(2) In the judgement granted for the plaintiff the court shall give him a six-month period to make such entry. After the expiration of the said period the recording of the complaint shall lose its effect.(3) The court shall not issue a copy of the judgement under Article 19, paragraph 3 of the Obligation and Contract Act until the plaintiff has proven that the expenses for the transfer of the property have been paid, as well as the taxes and other obligations of the transferee to the state.(4) If the complaint has not been recorded the judgement rendered upon it shall not have effect vis a vis third parties except from the day it is recorded.Article 116The details concerning the manner of recording and the fees payable for recording shall be provided for in the Regulation on Recording approved by the Council of Ministers.TRANSITIONAL PROVISIONS 1. This Act shall enter into force one month after publication and shall repeal:1. the Property, Ownership and Servitus Act.2. The Privileges and Mortgages Act.3. The State Properties Act.4. The Condominium Ownership Act.5. The Housing Construction and Management of the Housing Stock Act.6. The Arranging the Ownership and Pledge of Agricultural and Transportation Machinery of a Considerable Value Act.7. The Prescription and Limitation Act.8. The Act against Speculation with Immovable Property.9. Article 974 of the Civil Procedure Act. 2. Article 84 of the Compulsory Military Service Act shall be amended as follows:"When transferring motor vehicles the seller and the buyer must inform in writing not later than ten days the Control on Automobile Transport Department of the Ministry of Internal Affairs." 3. The right of ownership and other real rights acquired prior to the entry into force of this Act shall be preserved. 4. Concerning prescription, which has begun to run under the repealed Prescription and Limitation Act, the provisions of this Act shall apply if for the completion of the prescription period a longer period of time is required than under this Act. 5. The references to various acts in the provisions of the acts repealed in ? 6. (New, SG No. 87/1974) Citizens to whom the surface right has been recognized on regulated state plots, ceded or occupied by them prior to December 15, 1951 and built up prior to September 1, 1956, shall have the right when transferring or alienating the properties to receive the full price for the surface right. 7. (New, SG No. 87/1974) The provision of Article 67, paragraph 2 shall also apply to existing prior to its enactment cases when the property has not been built up and continues to be in the possession of the person to which the surface right was ceded, or by its successors, if it has not been revoked by the executive committee of the municipal council prior to the entry into force of this provision.ACT FOR THE AMENDMENT AND SUPPLEMENTTO THE OWNERSHIP ACTPromulgated State Gazette No 33/19.04.1996, effective 1.06.1996TRANSITIONAL AND CONCLUDING PROVISIONS 27. (1) The persons who have acquired the right of construction on state- and municipally owned land before 13 July 1991, shall have the right to acquire ownership in such land at such prices as shall be set by the Council of Ministers.(2) The persons who have acquired a share of the right of construction on state- and municipally owned land before 13 July 1991, shall have the right to acquire the corresponding share of the ownership in such land at such prices as shall be set by the Council of Ministers. 28. This Act shall enter into force on the 1st day of June 1996.This Act was passed by the 37th National Assembly on the 5th day of April 1996 and the State Seal has been affixed to it.Lev Re-denomination Act Promulgated, State Gazette No. 20/5.03.1999,amended, SG No. 65/20.07.1999 (effective 5.07.1999).TRANSITIONAL AND FINAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. (1) (Amended, SG No. 65/1999) Upon the entry of this Act into force, all figures expressed in old lev terms as indicated in the laws which will have entered into force prior to the 5th day of July 1999 shall be replaced by figures expressed in new lev terms, reduced by a factor of 1,000. The replacement of all figures expressed in old lev terms, reduced by a factor of 1,000, shall furthermore apply to all laws passed prior to the 5th day of July 1999 which have entered or will enter into force after the 5th day of July 1999.(2) The authorities, which have adopted or issued any acts of subordinate legislation which will have entered into force prior to the 5th day of July 1999 and which contain figures expressed in lev terms, shall amend the said acts to bring them in conformity with this Act so that the amendments apply as from the date of entry of this Act into force.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. This Act shall enter into force on the 5th day of July 1999.Act to Supplement the OWNERSHIP ACT(SG No. 46/2006, effective 1.06.2006, amended, SG No. 105/22.12.2006,SG No. 113/2007, effective 31.12.2007) 1. (Amended, SG N0. 105/2006, SG No. 113/2007) The statutory limitation term for acquiring government and municipal real estate properties shall stop to run by 31 December 2008. For more information visit www.solicitorbulgaria.com id: 325 Fri, 01 Aug 2008 07:35:02 -0700 http://solicitorbulgaria.com/index.php/bulgarian-ownership-act http://solicitorbulgaria.com/index.php/bulgarian-ownership-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/OWNERSHIP_ACT.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-ownership-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 326 I. General DispositionsArticle 1. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 87/2002) When using parts of a building to which he has title any inhabitant of a floor or part thereof shall be obligated not to do or allow anything that may place the building at risk of fire or considerable damage.(2) (Amended, SG No. 87/2002) That inhabitant may not, without the agreement of the general meeting, engage in activity that may create for the inhabitants of the other premises larger than usual inconvenience.(3) (Amended, SG No. 87/2002) Upon using own parts of the condominium building an inhabitant shall be obligated to abide by good morals.Article 2. (1) (Amended, SG No. 87/2002) Each holder of title shall be entitled to reconstruct own parts (individual units) of the building without changing or occupying premises, spaces or parts thereof intended for common usage and without endangering the bearing capacity of the building structure and the fire safety and safe use of said building.(2) (Repealed, SG No. 87/2002).(3) (Amended, SG No. 76/1978, SG No. 87/2002) Changes and reconstructions of the buildings or parts thereof shall be made in accordance with the provisions of the Spatial Development Act. Article 3. (1) (Amended, Izvestiya No. 14/1957, renumbered from Article 3; amended, SG No. 87/2002). Each inhabitant shall be entitled to use the common areas of the building according to their purpose, providing that inhabitant does not thereby hinder the other inhabitants in using them or does not encroach upon their title to use their separate premises. He/she shall be obligated to provide access in own premises for investigation, design, measurement or building and erection works related to improvements, repairs or changes of common areas or premises of others in the cases provided by a law.(2) (Amended, SG No. 87/2002) One or more title holders shall be entitled to use common areas of the building on the basis of a decision of the general meeting under conditions and a procedure established by the [relevant] Rules of Internal Organization and Procedure;II. General MeetingArticle 4. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 76/1978, No. 87/2002) The General Meeting of owners shall be entitled to:1. adopt Rules of Internal Organization and Procedure2. elect a management board or a manager for a period of two years;3. elect a supervisory board of no less than three members for a period of three years in the case of condominium with more than 15 housing units, ateliers, garages, shops or other sites to which different owners have title;4. determine monthly cash contributions for covering the costs of management and maintenance of common areas of the building and for other general costs;5. determine the amount of monthly cash contributions for unforeseen costs related to repair of accidents or damages of installations, equipment, systems or other common areas of the building, as well as the manner in which the collected funds shall be kept;6. adopt an annual plan for repairs in the building;7. by end-January each year adopt an annual budget of maintenance fees and costs for the management and maintenance of the common areas and shared use;8. distribute the total costs for lighting, water supply, heating, maintenance, cleaning and other of the common areas and by individual consumers in the case of absence of measurement devices in pursuance to the statutory instruments;9. adopt decisions for rental or gratuitous use of premises, spaces or parts thereof that are common areas of the building;10. determine the manner of storage of collected cash and shall authorize a person or person that shall have the right to operate therewith;11. pass a decision for reconstructions and remodelling in the common areas of the building and. determines the necessary costs therefore;12. authorize the management board or the manager to decide on their own concerning the execution of necessary minor repairs or costs;13. adopt decisions on eviction from building of owner of floor or part of floor in pursuance to Article 45 of the Ownership Act. 14. pass decisions in the cases required by imperative provisions of acting statutory instruments pertaining to heating and water supply, sanitary and hygiene standards and other activities in the condominium;15. resolve all other matters that have not been commissioned for resolution by the management board or the manager.(2) (Amended, SG No. 87/2002) The general meeting shall pass decisions providing at least three-fourths of the title holders are present. The decisions shall be passed with a majority of the votes of title holders attending the meeting.(3) (New, Izvestiya No. 32/1957) In case the necessary number of persons fail to attend at first call, the meeting shall be adjourned for one hour later, with the same agenda, and shall be deemed legal without regard of the number of persons attending.(4) (Renumbered from Paragraph (3), Izvestiya No. 32/1957) The general meeting may not refuse making of costs necessary for the maintenance or restoration of common areas of the building.(5) (Renumbered from Paragraph (4), Izvestiya No. 32/1957; amended, SG No. 87/2002) The Rules of Internal Organization and Procedure shall determine:1. the bodies of condominium management;2. the principles and procedure of budget compilation;3. the conditions and procedure of leasing or permitting gratuitous use of premises, spaces or parts thereof that constitute common areas of the building;4. rules related to the usage and maintenance of the building and the hygiene therein and around it with the provision of safety and peace of the inhabitants thereof;5. sanctions for systematic non-participation in meetings of the general meeting, as well as for other violations of the Rules;6. other requirements related to instructions of the local authorities.Article 5. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 76/1978) In case other inhabitants inhabit the building on individual legal grounds the general meeting, with the participation of title holders and the other inhabitants on individual legal grounds, shall resolve the issues pertaining to property interests of the former and the latter, as well as matters pertaining to the use, hygiene and maintenance of the common areas, preservation of internal order in the building and good coexistence between the inhabitants.(2) (Amended, SG No. 73/1979, repealed, SG No. 87/2002).(3) (Supplemented, Izvestiya No. 32/1957; amended, SG No. 76/1978, No. 87/2002) The general meeting referred to in Paragraph (1) may pass decisions in case of the presence of more than half of the title holders and the other inhabitants on individual legal grounds. The decisions shall be passed with a majority of the votes of those attending the meeting. Article 4 (3) shall also apply to these meetings.(4) (Amended, SG No. 76/1978; repealed, SG No. 87/2002).(5) (Amended, Izvestiya No. 32/1957; SG No. 76/1978; repealed, SG No. 87/2002).Article 6. (1) (Amended and supplemented, Izvestiya No. 16/1952, amended, Izvestiya No. 14/1957; SG No. 76/1978) The general meeting shall be convened by the manager or the management board.(2) (Amended, SG No. 73/1979; No. 87/2002) The general meeting may also be convened at the request of one-fifth of the title holders (Article 4) or the title holders and other inhabitants (Article 5). Should the manager or management board fail to convene the general meeting within seven days following a request to that end, it shall be convened by the persons that have requested the convention thereof.Article 7. (1) (Amended, Izvestiya No. 14/1957; SG No. 76/1978) The general meeting shall be convened by personal invitations, which shall be delivered at least three days before the meeting and, in emergency cases, at least 24 hours prior to said meeting.(2) The absent shall be considered invited when the invitation has been attached to the front door of the dwelling, atelier, garage, etc. within the time-limits referred to in the previous paragraph. The persons who live in another nucleated settlement shall be invited by a person of their own choice living in the condominium or, where such a person has not been named, they shall be invited under the procedure for absent persons.(3) Co-owners shall be invited by delivery of the invitation to one of them who shall be obligated to notify the others. When none of the co-owners inhabits the condominium they shall be obligated to name a person living therein through whom the invitations and notifications shall be delivered. In case they fail to do so they shall be invited under the procedure indicated in the previous paragraph.(4) The invitation shall state the agenda. The agenda shall include any issue the deliberation of which an owner or another inhabitant has requested in writing from the manager or the management board prior to the issuance of the invitation.Article 7a. (New, SG No. 76/1978) (1) The owner of one or more independent units (dwelling, atelier, garage, etc.) shall have one vote in the general meeting. Co-owners shall have one vote together. In the case of marital co-ownership the spouses shall have one vote together. The right to vote shall be exercised by the co-owner, spouse or representative thereof attending the meeting.(2) The other inhabitants in an individual dwelling unit, atelier, garage, etc. shall have one vote.Article 8. (1) (Amended, Izvestiya No. 14/1957; SG No. 87/2002) All repairs, improvements and instances of redesign in the common areas and on the common facilities shall be made only by decision of the general meeting of the condominium.(2) (Amended, SG No. 87/2002) The costs for maintenance or restoration of common areas in the condominium for which there is a decision of the general meeting shall be distributed among the owners in proportion with their share in the common areas of the condominium.(3) Costs that are beneficial but are not necessary shall be made in pursuance to a decision of the general meeting passed with a majority of three-fourths of the members attending the meeting.(4) In case in the course of the year the need arises of making costs that have not been calculated in the budget the general meeting shall enter the necessary supplements therein.Article 8a. (New, Izvestiya No. 14/1957, repealed, SG No. 87/2002).Article 9. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG Nos. 76/1978, 73/1979, 87/2002) The costs for lighting, water, maintenance, cleaning, etc. of the common areas of the condominium shall be distributed according to the number of inhabitants who use them for no less than a month.(2) (Amended, SG No. 87/2002) In the case of availability of measuring and control devices for heating power for the individual consumers, the heating power they have consumed shall be paid in accordance with the readings.(3) (Amended, SG No. 87/2002) In the case of buildings in which there are shops, restaurants, cafes, workshops, offices or other similar establishments, the heating power consumed thereby shall be determined by the readings of the measuring and control devices mounted therein. In the case of lack of such devices, heating power consumption in these sites shall be calculated in proportion to the heated air space or by the power of the heating units in the respective properties in pursuance to acting statutory instruments. The remaining quantity of heating power shall be distributed between the various consumers, calculated per cubic meter heated air space or in accordance with the readings of the measuring and control devices mounted therein.(4) (Amended, SG No. 87/2002) The costs for a janitor (salary, work clothing and rent of occupied premise), as well as for cleaning and maintenance of the areas for common use shall be distributed equally in accordance to the number of inhabitants. These costs shall not be paid by children aged below 3, including the temporarily residing ones that have lived in the buildings no less than one month, and children aged between 3 and 6 years inclusive shall pay 50 per cent of the sum determined for the other inhabitants.(5) (Amended, SG No. 87/2002) Persons practicing a profession or engaged in activity in the condominium that are associated with access of alien persons more frequent than the usual shall participate in the distribution of the costs for lighting, cleaning and maintenance of the common areas, as well as for janitor to a five-fold amount (as for five inhabitants).(6) (New, Izvestiya No. 32/1957) The costs referred to in Littera "a" of Paragraph (1) (for lighting), and in Paragraph (4) (for janitor, cleaning and maintenance of the common areas) shall be paid by the title holders or the lessees of shops, restaurants, production and other premises that are not used for housing needs, in accordance with the value of the premises (Article 40 of the Ownership Act ), and between the owners or lessees of one and the same such premise - in accordance with the area used thereby.(7) (New, SG No. 76/1978, amended, SG No. 87/2002) The costs for using and maintenance of lift installations shall be distributed according to the number of inhabitants without the children aged below three. The general meeting may decide that the distribution of these costs be made in another manner, as well as to waive these some of the inhabitants of the lower floors.(8) (Amended, SG No. 87/2002) Dog owners shall participate additionally in the costs for cleaning the common areas, paying for each dog as much as for one member of the family, but no less than BGN 1.0.(9) (Amended, SG No. 87/2002) The general meeting may pass a decision for remission or temporary assistance from the budget for owners in financial difficulty concerning the whole or part of the sum they have to pay to cover approved costs.(10) (Amended, SG No. 87/2002) By a decision of the general meeting the title holders may participate with materials and/or labour in works on the maintenance and restoration of common areas of the building, the value thereof being deducted from the sum they owe.Article 9a. (New, Izvestiya No. 14/1957) (1) Floors or parts thereof in a separate block of flats with a separate entrance and other separate common areas may form a separate condominium in spite of being attached by common walls or of having a common yard with other floors, parts thereof or other condominiums.(2) (Amended, SG No. 76/1978) A separate condominium in these cases shall be established by a decision of the general meeting of title holders and other inhabitants living in the separate block of flats on independent legal grounds (as the case may be).(3) A decision may be passed in case at least three-fourths of the title holders and lessees are present. The decision shall be passed by a simple majority.Article 9b. (New, Izvestiya No. 14/1957, amended, SG No. 76/1978) In the case of maintenance and restoration of common areas between separate blocks of flats that form separate condominiums (such as common walls, common roof, common yard, etc.), a decision shall be passed by the general meetings of title holders in the separate condominiums (Article 4) that shall also provide for the sums necessary to that end.Article 10. (Amended, SG No. 76/1978) (1) The decisions of the general meeting shall be executed within the time limits determined thereby and, in case such time limits have not been determined, within seven days following the written invitation.(2) In case an obligated person fails to pay within the time limits referred to in the previous paragraph the sum that is that person's share pursuant to the decision or budget adopted by the general meeting, the manager or the chair of the management board may acquire a writ of execution concerning that sum.(3) The writ of execution shall be issued by the regional judge on the basis of a written application, accompanied by a copy of the decision or the budget attested by the manager or the chair of the management board.(4) Appeal of the claim pursuant to the writ of execution may be made by the procedure provided by the Code of Civil Procedure for appeal of writs of execution issued on the basis of non-judicial writs.Article 11. (Amended, Izvestiya No. 14/1957) (1) (Amended, SG No. 87/2002) The general meeting shall pass decisions in the case of disputes related to the use of common areas of the building and the keeping of internal order.(2) (Amended, SG No. 87/2002) For violations of these Regulations, the Rules of Internal Organization and Procedure referred to in Article 4, Item I of Paragraph (1), or of decisions of the general meeting, the general meeting may delegate to the management board or the manager the right to impose on the accountable persons - title holders, lessees or users - a fine in favour of the condominium between BGN 1.0 and not more than BGN 60.(3) (Amended, SG No. 87/2002).(4) (Amended, SG No. 87/2002).Article 12. (1) The decisions of the general meeting shall be liable to anticipatory execution. The writ of execution shall be issued in the name of the manager or the chair of the management board by the regional judge on the basis of a written application accompanied by a copy of the minutes of the general meeting.(2) The decisions of the general meeting for eviction of title holder from inhabiting the property shall not be liable to anticipatory execution. Issuance of a writ of execution concerning these decisions shall be preceded by submission of the forewarning addressed to the title holder in pursuance to Article 45 (2) of the Ownership Act. Article 13. (1) A repeal of the decision of the general meeting may be request by anyone who has taken part in the meeting and whose disagreement has been recorded in the minutes, or by anyone who has not taken part in the meeting but is entitled to participate, as well as by anyone that bases his/her claim on irregularities involving the convention of the general meeting or the agenda.(2) (Amended, SG No. 76/1978) The application shall be filed with the regional court within seven days following the day of decision-making and, for the persons who have not received an invitation for the meeting, following the day of reception of the summons for voluntary execution or of being notified.(3) The court may decree suspension of the execution of the general meeting decision.Article 14. (1) As regards the application for repeal of a decision of the general meeting the manager or the chair of the management board shall represent the other title holders on the case. All documents shall be handed to the said person who shall be obligated to duly notify the other title holders of reception thereof. The general meeting may also appoint another title holder to conduct the case. Each title holder shall also be entitled to participate in the case.Article 15. (1) (New, SG No. 76/1978) The court shall repeal decisions of the general meeting in the case where they are illegal.(2) (Amended, Izvestiya No. 14/1957, renumbered from Paragraph (1), SG No. 76/1978) Upon passing a judgement on the case the court shall be obligated to coordinate the common interests of the inhabitants with their individual rights and interests.(3) (Amended, Izvestiya No. 14/1957, renumbered from Paragraph (2), SG No. 76/1978) When the court repeals the decision of the general meeting it shall also be entitled to prescribe the measures it deems necessary and to permit the applicant to carry them out in the name of all title holders.(4) (Renumbered from Paragraph (3), SG No. 76/1978) By a judgement of the court the lessee of premises in a condominium that does not comply with the ordinances on the procedure and management of the condominium may be evicted from the leased premises at the request of the manager of the management board in pursuance to Article 235 of the Obligations and Contracts Act. III. ManagementArticle 16. (Repealed, Izvestiya No. 14/1957).Article 17. (1) The election of a new manager or management board shall occur within two weeks following the expiry of the term of office or the date of substitution thereof.(2) (Amended, SG No. 87/2002) In case the necessary majority is not achieved upon voting, the vote shall be repeated. In this case the person (persons) who has (have) received the largest number of votes shall be considered elected.(3) (Repealed, Izvestiya No. 14/1957; amended, SG Nos. 76/1978, 73/1979, renumbered from Paragraph (4), amended, SG No. 87/2002) In case the general meeting for election of a new management board or a new manager is not convened within the time limit referred to in Paragraph (1), it shall be convened by the management board or the manager upon the request of one-fifth of the title holders or of the title holders and the lessees. Should these fail to convene the meeting within seven days following the request, said meeting shall be convened by the persons who have requested its convention.Article 18. The positions of manager or member, or chair of the management board, as well as all other positions established by the decision of the general meeting shall be gratuitous in case they are practised by the title holders or lessees, or by members of the families thereof, except in cases where all title holders and lessees agree that it should be paid.Article 19. No title holder may refuse to execute the office of manager or member of the management board, except in the case of illness, prolonged absence or if said person has been in the management directly prior to that for a period of at least two years.Article 20. The management board or the manager shall bring into execution the decisions of the general meeting and shall supervise abidance by the inhabitants of the provisions of the laws and the present Regulations and the Rules of Internal Organization and Procedure. They shall execute the budget adopted by the general meeting beyond which they shall be unable to make any expenses whatsoever.Article 21. (1) The manager or the management board shall be obligated to account for their management before the general meeting called for the election of new manager or management board.(2) (Repealed, SG No. 76/1978).Article 22. (1) The manager or management board shall, by a motivated memorandum, impose the fines provided pursuant to the Rules of Internal Organization and Procedure pursuant to Article 11 (2).(2) The fine shall be collected under the procedure referred to in Article 10.(3) The memorandum whereby the fine is imposed may be appealed within seven days of notification before the regional judge. The appeal shall not terminate its enforcement except in the cases where the judge decrees otherwise.(4) The judgement of the regional judge shall not be liable to appeal.Article 23. (Amended, SG No. 87/2002) The manager or the chair of the management board may take measures for preservation of internal order both as regards the inhabitants and as regards alien persons. In this respect the police authorities shall be obligated to extend the cooperation necessary.Article 24. (1) With the exception of the cases referred to in Article 22, the acts of the management board, its chair or the manager may be appealed before the general meeting within one week of notification.(2) Appeals shall be submitted through the chair of the management board or through the manager. These shall not suspend the execution of the appealed act.Article 24a. (New, SG No. 87/2002) (1) The supervisory board shall control the execution of the budget and the decisions of the general meeting for the correct expenditure of the funds for maintenance and restoration of common areas.(2) The supervisory board shall have the right to conduct checks of the collected cash and to notify the general meeting in case it establishes violations.(3) Where a supervisory board has not been elected the general meeting shall appoint the persons among the title holders who shall conduct a check of the cash collected and shall notify the general meeting of the result thereof.IV. Condominium Management(New Section, SG No. 76/1978)Articles 25-26. (New, SG No. 76/1978; amended, SG No. 73/1979; repealed, SG No. 21/1991).Article 27. (Renumbered from Article 25, SG No. 76/1978; repealed, SG No. 87/2002).SUPPLEMENTARY PROVISIONS(New, SG No. 87/2002) 1. (Amended, SG No. 87/2002) For the purposes of these Regulations "necessary costs" shall refer to the costs that are exigent in relation to providing the technical fitness of the building and the facilities and installations therein with a view to protecting the health and safety of the inhabitants and citizens. 2. (Amended, SG No. 87/2002) Throughout these Regulations the articles shall be designated with "Article" and in Arabic numerical, the paragraphs - with Arabic numerical in their sequence, in brackets and the items - with Arabic numerical.TRANSITIONAL AND FINAL PROVISIONS(New, SG No. 87/2002) 3. (New, SG No. 87/2002) The present Regulations have been issued in pursuance to Article 49 of the Ownership Act. 4. (New, SG No. 87/2002) Instruction on the application of the Regulation shall be issued by the Minister of Justice. 5. (New, SG No. 87/2002) Within three months following the entry into force of the amendments and supplements to the Regulations the Minister of Justice and the Minister of Regional Development and Public Works shall table for consideration by the Council of Ministers a draft decree on the amendment and supplementation of the Sample Rules on the Internal Order and Procedure in housing buildings, approved under Council of Ministers Decree No. 44 of 1978 (promulgated, SG No. 76/1978; amended, SG No. 73/1979).DECREE No. 44of the Council of Ministers, dated September 6, 1979,to Amend and Supplement the Regulations on the Applicationof the Lease Relations Act and other StatutoryInstruments of the Council of Ministers(SG No. 73/1979).................................. 46. Throughout the Regulations the words "people's court" or "people's judge" shall be substituted for "regional court" or "regional judge"... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For more information visit www.solicitorbulgaria.com id: 326 Fri, 01 Aug 2008 07:38:12 -0700 http://solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision http://solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/Regulations_on_Condominium_Management_Order_and_Supervision.jpg EUR http://solicitorbulgaria.com/index.php/bulgarian-regulations-on-condominium-management-order-and-supervision legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 318 Chapter OneGENERAL PROVISIONSSubject MatterArticle 1. This Act regulates the legal status of notaries and of the Notary Chamber of Bulgaria, the organization of notarial practice, and notarial fees.NotaryArticle 2. (1) (Amended, SG No. 18/2003) "Notary" means a person entrusted by the State with the performance of the notarial acts as provided for in the laws.(2) Solely persons who have been entered in the Register of the Notary Chamber of Bulgaria may practise as notaries.(3) Notaries shall perform personally any notarial and other acts as provided for by the law.Area of PracticeArticle 3. A notary's area of practice shall be coextensive with the geographical jurisdiction of the competent regional court.Notary Chamber of BulgariaArticle 4. (1) There shall be established a Notary Chamber of Bulgaria. All notaries shall be members of the Notary Chamber of Bulgaria by right.(2) The Notary Chamber of Bulgaria shall be a legal person with registered office in Sofia.(3) (New, SG No. 18/2003) Notary associations shall be established in the geographical jurisdiction of each appellate court to assist the operation of the Notary Chamber of Bulgaria and the practice of the notaries. A separate notary association shall be established for the City of Sofia.(4) (New, SG No. 18/2003) The status and the functions of the notary associations shall be determined in the Statute of the Notary Chamber of Bulgaria.Register of the Notary Chamber of BulgariaArticle 5. A register shall be kept at the Notary Chamber of Bulgaria. The notaries, assistant notaries, and the relevant circumstances thereto appertaining as provided for in the law shall be recorded in the said register.Duty to RecordArticle 6. Any person who, under the law, is obligated to declare any circumstance subject to recording in the register referred to in Article 5 herein, or to submit any documents, must do so within seven days after the occurrence of the circumstance, save as where the law prescribes another time limit.Public Access to Register of Notary Chamber of BulgariaArticle 7. Every person shall have the right to inspect the Register of the Notary Chamber of Bulgaria and to obtain an abstract therefrom.Chapter TwoNOTARYSection IAdmission to Notarial PracticeQualificationsArticle 8. (1) Admission to notarial practice shall be limited to capable natural persons who have not attained the age of sixty years, who hold solely Bulgarian citizenship, and who possess the following qualifications:1. graduation in law from a higher educational establishment;2. (amended, SG No. 18/2003) attainment of licensed competence to practise law under the Judicial System Act; 3. (amended, SG No. 18/2003) completion of three years' length of service;4. no record of sentences imposing a penal sanction of deprivation of liberty for a premeditated criminal offence, irrespective of whether they have been rehabilitated or not;5. no disqualification from notarial practice;6. no disbarment or disqualification from practice of commercial business;7. no status as subject to bankruptcy proceedings or as an undischarged bankrupt, and no conviction for fraudulent bankruptcy;8. recording in the register referred to in Article 5 herein.(2) (Supplemented, SG No. 29/2004, SG No. 43/2005, SG No. 39/2006, amended, SG No. 64/2007) The time served as judge, prosecutor, investigating magistrate, lawyer, arbitrator, junior judge, junior prosecutor, junior investigating magistrate, court assistant at the Supreme Court of Cassation or the Supreme Administrative Court, prosecutor assistant at the Supreme Prosecution Office of Cassation or the Supreme Administrative Prosecution Office, executive judge, public enforcement agent, private enforcement agent, assistant private enforcement agent, notary, recording magistrate, assistant notary, researcher in legal science, court inspector, expert on legislation or in the judicial authorities, legal advisor, legal consultant or expert on legal matters in the state or municipal administration, in the position of investigating magistrate in the system of the Ministry of Interior or investigating magistrate in the system of the Ministry of Defence, shall count towards the length of service for the purposes of Item 3 of Paragraph (3).Incompatibility of DutiesArticle 9. (1) A notary cannot practise as notary and concurrently:1. (Amended, SG No. 69/1999) be a national representative, government minister, mayor, or municipal councillor;2. hold office in a state or municipal body;3. be employed under an employment relationship;4. practice the legal profession;5. engage in commercial business, be a managing director or a member of supervisory, management or controlling bodies of any commercial corporations or cooperatives.(2) Upon discontinuance of any activity covered under Item 1 of Paragraph (1), the notary shall be re-admitted to practice under the terms established by Article 39 herein.Creation of Notary Vacancies. Announcement of Competitive Examination(Title supplemented, SG No. 18/2003)Article 10. (1) (Amended, SG No. 123/1997) There may be not fewer than two notary vacancies in a particular geographical jurisdiction. One notary vacancy shall be created per 10,000 population in each particular geographical jurisdiction.(2) (Amended and supplemented, SG No. 18/2003) Notary vacancies shall filled on the basis of a competitive examination scheduled by an order of the Minister of Justice. The Board of Notaries shall state its opinion within fourteen days. The Minister of Justice may furthermore appoint a competitive examination on a motion by the Board of Notaries.(3) Any order referred to in Paragraph (2) shall be communicated in writing to the Notary Chamber of Bulgaria. Any effective order shall be promulgated in the State Gazette.(4) Should more notaries be necessary than the apportionment under Paragraph (1), the Minister of Justice may, acting on his or her own initiative or on a motion by the Board of Notaries, create additional notary vacancies in the geographical jurisdiction concerned.(5) (New, SG No. 18/2003) A notary recorded in the Register of the Notary Chamber of Bulgaria may transfer to another geographical jurisdiction by permission of the Minister of Justice.Application ProcedureArticle 11. (1) (Amended, SG No. 18/2003) Within one month after promulgation of the order referred to in Article 10 (2) herein, applicants shall submit to the Minister of Justice an application in writing for admission to the competitive examination. Any such application shall state the name, the Standard Public Registry Personal Number, the address and the profession or trade practiced by the applicant, as well as the succession of geographical jurisdictions wherefor the said applicant applies. In a single competitive examination, an applicant may state up to three geographical jurisdictions.(2) (Supplemented, SG No. 41/2006) Documents for paid state tax, certifying birth, graduation in law from a higher educational establishment and attainment of licensed competence to practise law, length of service and place of work, a conviction status certificate, a declaration stating that the applicant does not holding any citizenship other than Bulgarian, a declaration under Items 5, 6 and 7 of Article 8 herein, and a medical certificate shall be attached to any application referred to in Paragraph (1).(3) (Amended, SG No. 18/2003) Should no applicants apply for all vacancies in a particular geographical jurisdiction, the time limit for application shall be extended by one month. In such a case, persons who have attained the age of 60 years shall also be eligible to apply for the geographical jurisdiction concerned.Competitive Examination for Admission to Notarial PracticeArticle 12. (1) (Amended, SG No. 123/1997 and SG No. 18/2003) The terms and procedure for conduct of a competitive examination shall be established by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(2) (Amended, SG No. 123/1997 and SG No. 18/2003) A competitive examination shall be conducted by a commission composed of a chairperson, representing the Ministry of Justice, designated by the Minister of Justice, and four members: a Supreme Court of Cassation judge, designated by the President of the Supreme Court of Cassation, two notaries, designated by the Board of Notaries, and an academic degree holder teaching civil law sciences, designated by the Minister of Justice.(3) (Amended, SG No. 18/2003) The commission referred to in Paragraph (2) shall transmit a memorandum stating the results of the competitive examination to the Minister of Justice, who within fourteen days shall issue an order on recording in the Register of the Notary Chamber of Bulgaria of the applicant who was ranked as best qualified in the relevant geographical jurisdiction.(4) (Amended, SG No. 18/2003) The order referred to in Paragraph (3) shall be communicated to the applicants for the relevant geographical jurisdiction and to the Board of Notaries and shall be appealable according to the procedure established by the Administrative Procedure Code. (5) (New, SG No. 41/2006) The Ministry of Justice shall collect a state tax for the competition the amount of which shall be fixed by a rate schedule approved by the Council of Ministers.Notary's OfficeArticle 13. (1) Upon entry into force of the order on entry in the Register, the applicant for admission to notarial practice shall be obligated to procure a notary's office, which may be shared with other applicants or practising notaries of the same geographical jurisdiction.(2) (Amended, SG No. 18/2003) A notary's office must have two or more functionally connected premises which shall mandatorily accommodate the notary's chambers and the notary's professional records.(3) (Amended, SG No. 18/2003) A notary may have a single notary's office within the area of practice thereof. The notary's office must satisfy conditions which guarantee the safe custody of the records and the proper performance of the professional duties of the notary.Recording in Register of Notary Chamber of BulgariaArticle 14. (1) Recording in the Register of the Notary Chamber of Bulgaria shall be effected by decision of the Board of Notaries.(2) To record a notary in the Register:1. the order of the Minister of Justice on recording must have entered into force;2. the notary must submit a declaration in writing to the effect that the incompatibility of duties covered under Article 9 herein does not apply;3. (Amended, SG No. 18/2003) the address of the notary's office must be stated, and the requirements covered under Article 13 (2) and (3) herein must be complied with;4. (Amended and supplemented, SG No. 123/1997) a documentary proof of a real right held to the notary's office or a recorded lease agreement, a declaration of the origin of the resources invested in procurement of the notary's office, completed in a standard form approved by the Minister of Justice, must be presented;5. a documentary proof of insurance contracted under Article 30 herein must be presented;6. a specimen of the impression of a seal, as approved by the Minister of Justice, must be presented;7. a specimen of the notary's signature must be presented.(3) Conformity with the requirements covered under Items 1, 2, 5 and 7 of Paragraph (2) shall suffice for recording of an assistant notary.(4) (Amended and supplemented, SG No. 123/1997, amended, SG No. 18/2003) Recording in the Register must be requested and the requirements covered under Paragraphs (2) and (3) must be complied with within three months after the entry into force of the order on recording. Should a notary vacancy remain unfilled, the Minister of Justice shall order the recording of the next ranked applicant.(5) (New, SG No. 18/2003) Within one month after receipt of a request for recording in the Register, the Board of Notaries shall conduct an inspection of the notary's office of the applicant as to compliance with the requirements established by Article 13 (2) and (3) herein. A memorandum shall be drafted, stating the findings of any such inspection, and the said memorandum shall be attached to the request as a matter of course.Administration of OathArticle 15. (1) Upon declaration of any decision referred to in Article 14 (1) herein, the applicant shall take the following oath of office before the Board of Notaries, unless previously sworn in: "I do swear that I will accurately observe the Constitution and the laws of the Republic of Bulgaria, that I will honestly, faithfully and impartially perform the duties of my office, that I will be worthy of the confidence and respect requisite to the profession, that I will contribute to the upgrading of the prestige of the profession, and that I will safeguard privileged information, always remembering that I shall be held responsible for all before the law. I have sworn to it!"(2) An Oath Paper shall be signed upon administration of the oath of office.(3) Recording in the Register shall be effected after the Oath Paper is signed.Registrable ParticularsArticle 16. (1) There shall be recorded in the Register:1. the area of practice;2. the name and Standard Public Registry Personal Number of the notary or the assistant notary, as the case may be;3. the address of the notary's office;4. the term of office of the assistant notary, inter alia upon substitution;5. (Supplemented, SG No. 18/2003) the corporate name and registered office of the insurer, as well as the amount of the sum insured;6. (New, SG No. 18/2003) the particulars referred to in Articles 41, 42 and 46 herein.(2) (Supplemented, SG No. 18/2003) The persons recorded in the Register of the Notary Chamber of Bulgaria must declare for recording any alteration in registrable particulars within seven days.Section IINotary's Rights and DutiesIndependenceArticle 17. (1) (Redesignated from Article 17, SG No. 18/2003) A notary shall be independent in the performance of the functions thereof and shall comply solely with the law.(2) (New, SG No. 18/2003) The Minister of Justice and the Board of Notaries shall be notified upon detention of any notary or upon indictment of any notary as accused of a criminal offence at public law.Cooperation and RespectArticle 18. A notary shall be entitled to cooperation and respect in the performance of the functions thereof.Access to DocumentsArticle 19. (Amended, SG No. 18/2003) A notary shall be entitled to gain free access to the judicial and administrative services and may make searches of case and proceeding records, as well as request copies, transcripts and documents and obtain information and certificates on a basis of priority.Seeing Client in PrivateArticle 20. In the performance of the official functions thereof, a notary shall see the person who has sought his or her professional aid in private, save as where the said person wishes that other persons be present as well.Inviolability of Professional RecordsArticle 21. (1) The professional records of any notary shall be inviolable. and no person shall have the right of access thereto without the notary's consent except in the instances provided for by a law.(2) Any person, who has been granted access to the professional records of any notary, must safeguard privileged information on terms established by the notary himself or herself, and must notify the notary of any acts performed which affect the records.Notary's Other ActsArticle 22. Where so directed by the parties, a notary may, in connection with the notarial proceedings, prepare and verify drafts of documents, offer oral or written advice, mediate to clarify the will of the parties, consult records, obtain documents, papers and other such, as well as act as an executor of wills or administrator of estates.Duty to AidArticle 23. A notary shall consider all requests for professional aid wherewith he or she is approached, unless interested in performance of the act requested or unless being in a special relationship with the party which may give rise to reasonable doubt of the notary's impartiality.ImpartialityArticle 24. In the performance of the official functions thereof, a notary may not favour any party more than another.Protection of Parties' Rights and InterestsArticle 25. (1) A notary must protect the rights and interests of the parties, provide guidance to the parties, clarify the will and actual position of the parties, familiarize the parties clearly and unambiguously with the legal consequences, and not admit omissions or unreasonable delay in work which might lead to impairment of the parties' rights.(2) (New, SG No. 19/1.03.2005) Before drafting the relevant act, the notary shell verify whether the injunction has been imposed under the Criminal Assets Forfeiture Act.(3) (Amended, SG No. 123/1997 and SG No. 36/2004, renumbered from Paragraph 2, SG No. 19/2005) Upon executing any recordable acts, if so requested by the parties, the amount due to the seller or exchanger shall be deposited in the bank account of the notary who shall present a document certifying the said deposit at the Recording Office.(4) (New, SG No. 123/1997, amended, SG No. 36/2004, renumbered from Paragraph 3, SG No. 19/2005) A notary shall present any recordable acts to the Recording Office on the day of execution of the said acts. Prior to recording, a notary may not furnish the parties with a transcript of the recordable act.(5) (New, SG No. 18/2003, amended, SG No. 36/2004, renumbered from Paragraph 4, SG No. 19/2005) Any acts recordable in another geographical jurisdiction shall be transmitted to the recording offices through official channels at the directive of the recording magistrate. The costs of any such transmittal shall be for the account of the parties.(6) (New, SG No. 123/1997, renumbered from Paragraph (4), SG No. 18/2003, renumbered from Paragraph 5, amended SG No. 19/2005) In the cases referred to in Paragraph (3), the notary shall pay the amounts due to the seller or to the exchangers after the recording.(7) (New, SG No. 18/2003, renumbered from Paragraph 6, SG No. 19/2005) Upon effecting of any transactions for disposition, the parties shall be obligated to present to the notary a declaration of citizenship and civil status completed in a standard form endorsed by the Minister of Justice.Safeguarding Privileged InformationArticle 26. (1) A notary must safeguard the secrecy of any circumstances which come to his or her knowledge in connection with the practice thereof, and may not use the said knowledge to his, her, or another's advantage.(2) The duties covered under Paragraph (1) shall furthermore extend to the time where the notary does not perform the functions thereof or where the practice thereof is suspended.Continuous PracticeArticle 27. The Minister of Justice shall determine the opening hours of notary's offices and the conditions whereon the said offices may be temporarily closed.Professional RecordsArticle 28. (1) (Amended, SG No. 18/2003) Each notary shall keep self-contained professional records. The terms and procedure for record- keeping shall be established by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(2) (New, SG No. 18/2003) The professional records shall consist of:1. notarial registers and books;2. notarial case files;3. other documents;4. a seal of the notary.(3) (Renumbered from Paragraph (2) and amended, SG No. 18/2003) Any case files and documents belonging to the professional records of a notary may be removed outside the notary's office solely proceeding from a written directive (ruling, directive, warrant) by a judge or a prosecutor. Transcripts shall be delivered, upon signed acknowledgement, to an official expressly indicated by name in the directive.(4) (New, SG No. 18/2003) The originals of the documents kept in the professional records may be removed outside the notary's office in the cases of an express directive under Paragraph (3) by the notary in person, and expert examination of any such originals may be conducted solely in the presence of the said notary.(5) (New, SG No. 18/2003) The seal of a notary may be seized or a notary's office may be sealed solely if the notary has been excluded from practice.Notarial Registers and BooksArticle 28a. (New, SG No. 18/2003) (1) Each notary shall keep:1. a general register;2. an alphabetical index;3. a register to record the delivery for safekeeping, the return and the reading of holographic wills, as well as the acceptance and return of documents and papers delivered for safekeeping;4. a book formed by filing notarial and other recordable acts and documents;5. a book formed by filing notarized wills and acts of revocation of wills;6. a book of notarial invitations, protests, statements of ascertainment, and transcripts of documents of certified contents;7. a delivery book.(2) The general register referred to in Item 1 of Paragraph (1) and the books referred to in Items 6 and 7 of Paragraph (1) shall be preserved for a period of ten years, and shall be subject to destruction upon the lapse of the said period after consultation with the relevant state archive.(3) The alphabetical index referred to in Item 2 of Paragraph (1), the register referred to in Item 3 of Paragraph (1), and the books referred to in Items 4 and 5 of Paragraph (1) shall be preserved for a period of 100 years, and upon the lapse of the said period shall be subject to delivery for permanent safe custody to the relevant state archives.(4) The results of searches in the notarial case files shall be available solely to the parties, to the legal successors thereof, as well as to the legal or authorized representatives thereof. Where the authorized representative is not a lawyer, he or she must be authorized expressly by a notarized power of attorney.Notification of Regional Court PresidentArticle 29. A notary shall forthwith notify the President of the Regional Court of any displacement of the notary's office and of the professional records thereof.InsuranceArticle 30. (1) (Redesignated from Article 30, SG No. 18/2003) Each notary shall contract insurance for the time of practice thereof against loss or injury which may arise from culpable non-fulfilment of the obligations thereof, as well as of the obligations of the assistant notary and the employees of the notary's office. The minimum and maximum amount of the sum insured shall be determined by the Notary Chamber of Bulgaria.(2) (New, SG No. 18/2003) Within seven days after conclusion of the contract referred to in Paragraph (1), the notary shall be obligated to present a copy of the insurance policy to the Notary Chamber of Bulgaria.Social SecurityArticle 31. Each notary shall be subject to compulsory social insurance under the terms and according to the procedure established in respect of practitioners of liberal professions.Notary Chamber of Bulgaria Membership Subscription FeesArticle 32. Each notary shall pay a mandatory membership subscription fee in favour of the Notary Chamber of Bulgaria under terms and according to a procedure established by the Statute of the Chamber and the resolutions of the General Meeting.AccountsArticle 33. Each notary shall keep accounts.Professional Ethics and Qualifications(Title amended, SG No. 18/2003)Article 34. (1) (Supplemented, SG No. 18/2003) A notary shall be obligated to observe professional ethics and to uphold the prestige of the profession according to the Statute of the Notary Chamber of Bulgaria.(2) (Amended, SG No. 18/2003) A notary shall be obligated to initiate into the practice, to train and provide guidance to the assistant notary, as well as the notary's employees.Notaries' AssociationArticle 34a. (New, SG No. 123/1997, amended, SG No. 18/2003) Notaries shall be free to associate and to act jointly under the terms of a civil-law partnership according to the procedure established by Articles 357 to 364 of the Obligations and Contracts Act. In such cases, the notaries shall keep self-contained records.Notary RelocationArticle 34b. (New, SG No. 18/2003) (1) A notary may be relocated owing to important reasons to another area of practice on the basis of a reasoned application by the said notary to the Minister of Justice, provided a vacancy referred to in Article 10 herein is created in the said area.(2) The Minister of Justice shall pronounce within fourteen days after receipt of any application referred to in Paragraph (1). The order shall be communicated to the notary and to the Board of Notaries according to the procedure established by the Code of Civil Procedure. (3) A relocation order shall be appealable by the Board of Notaries according to the procedure established by the Administrative Procedure Code, if the relocation has been effected in breach of the legal requirements. A refusal to grant relocation shall be appealable by the notary according to the procedure established by the Administrative Procedure Code.(4) Articles 13, 14, 16, 36 and 38 herein shall apply upon the relocation of any notary.Section IIIExclusion from, and Re-admission to, Notarial PracticeGrounds for Exclusion from PracticeArticle 35. A notary shall be excluded from practice:1. upon request of the notary, submitted in writing to the Board of Notaries;2. by death or interdiction;3. upon occurrence of a disqualification covered under Article 8 herein or an incompatibility covered under Article 9 herein;4. (New, SG No. 18/2003) upon imposition of any disciplinary sanction under Item 4 of Article 75 (1) herein.Sealing and Inventorying of Professional RecordsArticle 36. (1) Upon occurrence of any grounds covered under Article 35 herein, a notary may not perform any notarial or other acts provided for in the law whatsoever, and the professional records of the said notary shall be sealed.(2) The professional records shall be sealed and unsealed by order of the President of the District Court, and a memorandum with an inventory shall be drafted thereupon.(3) (Amended, SG No. 18/2003) The terms and procedure for sealing, unsealing and delivery of the professional records shall be regulated by an ordinance issued by the Minister of Justice after consultation with the Board of Notaries.(4) Enforcement or process to secure property on premises registered as a notary's office may be proceeded with solely after delivery of the notary's professional records.Striking OffArticle 37. (1) Striking off the Notary Chamber of Bulgaria Register shall be effected as a matter of course by the Board of Notaries, and there shall be noted in the Register:1. (Amended, SG No. 18/2003) the grounds for exclusion from notarial practice;2. the date and the name of the person whereto the records have been delivered.(2) A notary shall be excluded from practice by the striking thereof off the register, except in the cases covered under Item 2 of Article 35 herein.(3) (Amended, SG No. 18/2003) The Board of Notaries shall notify the Minister of Justice within three days after a striking off, and the said Minister may schedule a competitive examination if the prerequisites under Article 10 herein exist.Notarial Acts Affecting Records as DeliveredArticle 38. The notary or the recording magistrate, as the case may be, shall perform notarial acts solely affecting the documents and papers available in the records.Re-admission to PracticeArticle 39. (1) A notary shall be re-admitted to practice upon his or her own request, should the said notary have been excluded from practice on any of the following grounds:1. suspension from practice for a specified period: upon expiration of the said period;2. engagement in incompatible activity covered under Item 1 of Article 9 (1) herein: upon cessation of the said activity.(2) A request for Re-admission to practice shall be submitted to the Board of Notaries within on month after elimination of the grounds for exclusion.(3) Any Re-admission to practice shall be recorded in the Register of the Notary Chamber of Bulgaria according to the procedure established by Article 14 herein.(4) The person, who has taken delivery of the professional records of a suspended notary, shall be obligated to redeliver the said records upon Re- admission of the said notary to practice.Section IVAssistant NotaryCompetenceArticle 40. (1) (Amended, SG No. 18/2003) An assistant notary may perform all acts within the notary's competence, following the notary's directions, with the exception of:1. any acts whereby real rights to corporeal immovables are created, transferred, altered or terminated;2. any acts whereby the right of ownership or limited real rights to corporeal immovables are acknowledged;3. any acts of notarized will and of revocation of a notarized will;4. any acts whereby mortgages are raised or discharged.(2) The assistant notary shall use the professional records and the seal of the notary, adding to his or her own signature the designation "assistant."(3) The notary shall be liable solidarily with the assistant notary for any loss or injury as may arise from culpable non-fulfilment of the obligations of the said assistant notary.(4) Insofar as there are no specific rules, the rules applicable to notaries shall apply to assistant notaries.(5) (New, SG No. 18/2003) The relations between notary and assistant notary shall be regulated by contract.Admission to PracticeArticle 41. (1) (Amended, SG No. 18/2003) A notary may appoint one assistant notary from amongst the persons who satisfy the requirements for admission to notarial practice, regardless of the age and length of service thereof.(2) (Amended, SG No. 18/2003) The Minister of Justice shall issue an order on the recording of the assistant notary in the Register of the Notary Chamber of Bulgaria, acting on a written application by the notary, countersigned by the applicant. The documents listed under Article 11 (2) herein must be attached to any such application. A term of office for the assistant notary may furthermore be specified in any such application.(3) Recording in the Register of the Notary Chamber of Bulgaria shall follow the procedure established by Articles 14, 15 and 16 herein.Exclusion from PracticeArticle 42. (1) An assistant notary shall be excluded from practice:1. upon request of the assistant notary, submitted in writing to the notary;2. by the assistant notary's or the notary's death or interdiction;3. upon occurrence of a hindrance covered under Article 8 herein or an incompatibility covered under Article 9 herein;4. upon written request by the notary to the Board of Notaries;5. upon expiration of the term of office fixed by the notary and by striking of the notary off the Register of the Notary Chamber of Bulgaria.(2) The striking of an assistant notary off the Notary Chamber of Bulgaria Register shall be effected as a matter of course or at the request of the notary, and the grounds under Paragraph (1) shall be recorded in the register.(3) An assistant notary shall be excluded from practice by striking off the register save in the instances covered under Items 2 and 5 of Paragraph (1).Section VProbationary Notary(Repealed, SG No. 18/2003)CompetenceArticle 43. (Repealed, SG No. 18/2003).Admission to PracticeArticle 44. (Repealed, SG No. 18/2003).Exclusion from PracticeArticle 45. (Repealed, SG No. 18/2003).Section VISubstitution for NotarySubstitution for Notary by Assistant Notary. Admission to Substitution(Title supplemented, SG No. 18/2003)Article 46. (1) (Amended, SG No. 18/2003) When a notary is absent or is unable to perform the functions thereof, the said notary may be substituted for by an assistant notary who has the length of service required under Item 3 of Article 8 (2) herein and has taken an examination. In such a case, the assistant notary shall independently perform all acts within the notary's competence, adding to the signature thereof the designation "by substitution."(2) (New, SG No. 18/2003) The notary and the assistant notary applicant shall submit a written application to the Minister of Justice, attaching the documents covered under Article 11 (2) herein. The period of substitution, which may not be longer than two years reckoned from the recording in the Register, shall be specified in the said application.(3) (New, SG No. 18/2003) The assistant notary applying as notary substitute shall take an examination under terms and according to a procedure established by an ordinance of the Minister of Justice after consultation with the Board of Notaries.(4) (New, SG No. 18/2003) The examination referred to in Paragraph (3) shall be conducted by a commission composed of: a representative of the Ministry of Justice, designated by the Minister of Justice, a notary and a notary inspector designated by the Board of Notaries.(5) (New, SG No. 18/2003) The commission referred to in Paragraph (4) shall submit the memorandum stating the results of the competitive examination to the Minister of Justice, who within seven days shall issue an order on recording in the Register of the Notary Chamber of Bulgaria.(6) (New, SG No. 18/2003) The order referred to in Paragraph (5) shall be communicated to the applicant and to the Board of Notaries and shall be appealable according to the procedure established by the Administrative Procedure Code. (7) (Renumbered from Paragraph (2), SG No. 18/2003) Any substitution referred to in Paragraph (1) shall be recorded in the Register of the Notary Chamber of Bulgaria, applying Articles 41 and 42 herein, mutatis mutandis.(8) (New, SG No. 41/2006) The Ministry of Justice shall collect a state tax for the examination, under paragraph 3, the amount of which shall be fixed by a rate schedule approved by the Council of Ministers.Substitution for Notary by Another NotaryArticle 47. (1) A notary may be substituted for by another notary of the same geographical jurisdiction. Relations between any two such notaries shall be regulated by contract.(2) The substituting notary shall use the professional records of the substituted notary, affixing his or her own signature and seal to any certified document and noting the fact of substitution.(3) Should the professional records of the substituted notary be displaced during the time of substitution, Article 29 herein shall apply.(4) (New, SG No. 18/2003) The period of any substitution under Paragraph (1) may not be longer than two years reckoned from the conclusion of the contract.Substitution for Notary by Recording MagistrateArticle 48. (1) (Amended, SG No. 123/1997) Should a notary be absent or be not in a position to perform the functions thereof, and should no substitute be available in the geographical jurisdiction, the said notary shall be obligated to notify the recording magistrate who shall take over the substitution therefor for the duration of any such time in respect of performance of urgent notarial acts. In such a case, Article 47 (2) herein shall apply, mutatis mutandis.(2) Should the notary have failed to provide access to the records required for the substitution therefor, for the purposes of performance of urgent notarial acts the President of the Regional Court, acting at the request of the interested party, shall decree entering of the notary's office, opening of the required records, and performing of the notarial act by the recording magistrate.Section VIINotary's EmployeesSafeguarding Privileged InformationArticle 49. A notary's employees shall be obligated to safeguard privileged information on terms established by the notary himself or herself.Assignment of Service of Communications and Delivery of PapersArticle 50. (Amended, SG No. 59/2007) A notary may assign a specified employee in the notary's office to service communications and deliver papers under the terms and according to the procedure established by Articles 37 to 58 of the Code of Civil Procedure. Chapter ThreeNOTARY CHAMBER OF BULGARIASection IGeneral ProvisionsStatuteArticle 51. The Notary Chamber of Bulgaria shall adopt a Statute regulating the organization and operation thereof.Bodies and RepresentationArticle 52. (1) The bodies of the Notary Chamber of Bulgaria shall be the General Meeting, the Board of Notaries, the Supervisory Board, and the Disciplinary Commission.(2) The Notary Chamber of Bulgaria shall be represented by the Chair of the Board of Notaries or, in the absence of the said Chair, by the deputy chairs in order of seniority.PropertyArticle 53. (1) The property of the Notary Chamber of Bulgaria shall consist of:1. the mandatory entrance and annual membership subscription fees and the additional contributions paid by the members of the Chamber;2. fees for services;3. donations and successions;4. other sources.(2) (Amended, SG No. 123/1997) The Notary Chamber of Bulgaria shall collect fees for entries effected in the Register thereof. The said fees shall be fixed by a rate schedule approved by the Council of Ministers.Section IIGeneral Meeting of Notary Chamber of BulgariaCompositionArticle 54. (1) The General Meeting shall be composed of all members of the Notary Chamber of Bulgaria.(2) There shall be ordinary and extraordinary general meetings.ConvocationArticle 55. (1) An ordinary general meeting shall be called annually on the last Saturday and Sunday of January.(2) The General Meeting shall be called by the Board of Notaries by publication of a notice in the State Gazette not less than two months before the date of the meeting. Any such notice shall state the agenda.(3) Should not less than one tenth of the members of the Chamber demand inclusion of a specified item into the agenda within twenty days after the publication, the Board of Notaries shall be obligated to publish an addendum supplementing the agenda not later than seven days before the date of the meeting.Quorum and ProxiesArticle 56. (1) A general meeting shall be held provided two thirds of the members of the Chamber are present thereat in person or by proxy. Unless a quorum is present, the meeting shall stand adjourned to a time within one hour thereafter, and the transaction of business at the meeting held after that time shall be valid regardless of the number of members present.(2) Voting shall be either in person or by proxy, who may be a notary or an assistant notary. The proxy must hold a power of attorney in writing. One proxy may not represent more than three members of the Chamber. Any such power of attorney shall be presented to the Chair of the Board of Notaries or to the Administrative Secretary of the Chamber before the opening of the meeting.CompetenceArticle 57. The General Meeting shall exercise the following powers:1. adopt the Statute of the Notary Chamber of Bulgaria;2. (Supplemented, SG No. 123/1997) elect and remove the Chair and the members of the Board of Notaries, of the Supervisory Board and of the Disciplinary Commission for a term of thee years, determining the number of members thereof and fixing the compensation of the said members;3. (Amended, SG No. 18/2003) determine the minimum and maximum amount of the sum insured referred to in Article 30 (1) herein;4. resolve on contracting of group insurance;5. create a guaranty find for indemnification upon occurrence of risks uncovered by compulsory insurance or in the event of expired and unrenewed insurance, and resolve on creation of other pecuniary funds;6. determine the amount of the mandatory entrance and annual membership subscription fees;7. resolve on additional pecuniary contributions;8. discuss and approve the budget of the Chamber;9. pass on the bringing of actions by the Notary Chamber of Bulgaria against members of the bodies thereof, or discharge such members from liability;10. (New, SG No. 18/2003) resolve on acquisition and alienation of corporeal immovables and real rights thereto;11. (Renumbered from Item 10, SG No. 18/2003) resolve on any other matters provided by the Statute.Decision-MakingArticle 58. (1) The General Meeting shall pass resolutions by a majority of more than one half of the members present. Any resolution covered under Item 1, 2 and 7 of Article 57 herein shall require the affirmative vote of more than two thirds of the members present.(2) (New, SG No. 18/2003) Where, in an election referred to in Item 2 of Article 57 herein, it is proceeded with a subsequent vote, the nominees who have garnered the most votes shall be considered elected. Should two or more nominees garner an equal number of votes, the nominee who has practised law for a longer period of time, as referred to in Article 8 (2) herein, shall be considered elected.(3) (Renumbered from Paragraph (2), SG No. 18/2003) No resolutions may be passed on any matter which is not included in the agenda, with the exception of removal of members of the Chamber's bodies and election of new members in the place thereof.Extraordinary General MeetingArticle 59. (1) An extraordinary general meeting may be called by the Board of Notaries, the Supervisory Board or the Minister of Justice on an agenda thereby appointed.(2) The Board of Notaries shall be obligated to call an extraordinary general meeting on the written requisition of one tenth of the members of the Chamber, who shall state the agenda in the requisition. Should the Board of Notaries fail to do so within fourteen days after submission of the requisition, the General Meeting shall be called by the requisitionists.(3) Articles 55 and 56 herein shall apply, mutatis mutandis, to the convocation and conduct of an extraordinary general meeting.Appealability of ResolutionsArticle 60. (1) Any resolution passed by the General Meeting shall be appealable before the Supreme Administrative Court within seven days after the date of resolution.(2) Any such appeal may be joined by any member of the Chamber or may be supported thereby, even if the appellant withdraws the said appeal.(3) Any resolution passed by the General Meeting shall furthermore be appealable by the Minister of Justice if affecting an interest of State.Coercive EnforcementArticle 61. (Amended, SG No. 59/2007) In respect of the sums due, the Notary Chamber of Bulgaria shall have the option, acting on a resolution of the General Meeting, to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said sums.Section IIIBoard of NotariesCompositionArticle 62. (1) A Board of Notaries shall be elected to comprise not fewer than five regular and two alternate members, with a Chair and a Deputy Chair elected from amongst the regular members.(2) Should the Board of Notaries be of a larger composition, two Deputy Chairs shall be elected from amongst the regular members.(3) (Supplemented, SG No. 123/1997, amended, SG No. 18/2003) To be eligible for membership of the Board of Notaries, a person must:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office;(4) Members who are unable to participate or who withdraw from the Board of Notaries shall be substituted for by the alternate members in order of seniority of the length of service until elimination of the obstacle or until expiry of the term of office, as the case may be.(5) The alternate members shall substitute for the Chair and the Deputy Chairs solely in the capacity of the latter as members of the Board of Notaries.ConvocationArticle 63. (1) The Board of Notaries shall be called to an ordinary meeting by the Chair at least once monthly.(2) The Chair of the Board of Notaries shall be obligated to call the Board to an extraordinary meeting on the written requisition of one third of the regular members, who shall state the agenda in the requisition. Should the Chair fail to do so within seven days after submission of the requisition, the extraordinary meeting shall be called by the requisitionists.(3) An extraordinary meeting of the Board of Notaries may furthermore be called by the Minister of Justice on an agenda thereby appointed.QuorumArticle 64. The Board of Notaries may take action if two thirds of the members of the Board are present at the meeting.CompetenceArticle 65. (1) (Redesignated from Article 65, SG No. 18/2003) The Board of Notaries shall exercise the following powers:1. direct the operation of the Notary Chamber of Bulgaria;2. call the General Meeting, implement the resolutions thereof, and report thereto;3. elect the Deputy Chairs;4. determine the staff size and select the Administrative Secretary of the Chamber;5. organize the keeping of the Register of the Notary Chamber of Bulgaria, decide on the effecting of entries, notations and deletions in the said register, and perform the mandatory acts when a notary forfeits notary's rights;6. (Amended, SG No. 123/1997) select a notary for member of the competitive examination commission;7. (Repealed, SG No. 18/2003);8. monitor compliance with the obligations of the notaries and the assistant notaries, and take part through its representatives in disciplinary proceedings against such notaries and assistants in the prescribed cases;9. (Amended, SG No. 18/2003) direct and implement the activity for continuing education of notaries and of assistant notaries, as well as employees, and take care of the protection of the professional rights thereof;10. perform all duties which, under the law, the Statute or by resolution of the General Meeting, do not lie within the competence of another body.(2) (New, SG No. 18/2003) The Board of Notaries shall notify the Minister of Justice of the results of the checks referred to in Item 8 of Paragraph (1).Decision-MakingArticle 66. (1) The Board of Notaries shall make decisions by a majority of more than one half of the regular members present, and the alternate members present shall attend in a non-voting capacity. The alternate members shall have voting power when recruited to substitute for regular members of the Board. In a tie vote, the Chair shall have the casting vote.(2) The Board of Notaries may furthermore act without a meeting, if all voting members of the Board consent to the action so taken and sign the said action.Chair of Board of NotariesArticle 67. (1) The Chair of the Board of Notaries shall organize, direct and be responsible for the overall operation of the Board.(2) The Chair of the Board of Notaries shall perform the following functions:1. appoint the Administrative Secretary, the employees and the support staff of the Notary Chamber of Bulgaria;2. (Amended, SG No. 18/2003) manage and steward the property of the Notary Chamber of Bulgaria;3. implement the budget of the Notary Chamber of Bulgaria.Administrative SecretaryArticle 68. (1) The Administrative Secretary shall perform the following functions:1. direct the financial and estate management operations;2. coordinate the operation of the subsidiary bodies;3. organize the meetings of the Board of Notaries, prepare the materials for such meetings, and direct the immediate implementation of the decisions of the Board;4. direct and organize the work of the employees and of the support staff and make technical and administrative arrangements for the overall operation of the Notary Chamber of Bulgaria.(2) The Administrative Secretary may or may not be a member of the Notary Chamber of Bulgaria.Section IVSupervisory BoardCompositionArticle 69. (1) (Amended and supplemented, SG No. 123/1997, redesignated from Article 69 and amended, SG No. 18/2003) The Supervisory Board shall be composed of not fewer than three members.(2) (New, SG No. 18/2003) Eligibility for membership of the Supervisory Board shall be limited to members of the Notary Chamber of Bulgaria who:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office.CompetenceArticle 70. (1) The Supervisory Board shall control the financial and estate-management operation of the Notary Chamber of Bulgaria and shall report to the General Meeting.(2) Upon ascertainment of any violation of the law, of the Statute of the Notary Chamber of Bulgaria, of a resolution of the General Meeting or of a decision of the Board of Notaries, the Supervisory Board shall prepare a report which shall be laid before the Board of Notaries or before the General Meeting, as the case may be.(3) The members of the Supervisory Board may attend the meetings of the Board of Notaries.Section VDisciplinary CommissionCompositionArticle 71. (1) The Disciplinary Commission shall be composed of not fewer than six members.(2) (Amended and supplemented, SG No. 123/1997, amended, SG No. 18/2003) Eligibility for membership of the Disciplinary Commission shall be limited to members of the Notary Chamber of Bulgaria who:1. have at least two years' length of service as a notary;2. have not been elected as member of the said body for more than two consecutive terms of office.CompetenceArticle 72. The Disciplinary Commission shall hear and determine disciplinary actions brought against notaries and assistant notaries according to the procedure provided for in the law.Chapter FourPECUNIARY LIABILITYGroundsArticle 73. (1) (Supplemented, SG No. 123/1997) A notary shall incur pecuniary liability for any loss or injury inflicted by culpable non- fulfilment of the obligations thereof, in accordance with the Obligations and Contracts Act which, however, shall be limited to the extent of the certified proprietary interest.(2) The State shall not be liable for the acts of any notary.Chapter FiveDISCIPLINARY LIABILITYBreaches of DisciplineArticle 74. (1) Any notary and assistant notary shall incur disciplinary liability for culpable non-fulfilment of any obligations under the law and the Statute of the Notary Chamber of Bulgaria.(2) (Repealed, SG No. 18/2003).Disciplinary SanctionsArticle 75. (Amended, SG No. 18/2003) (1) There shall be the following disciplinary sanctions:1. censure;2. a fine of BGN 100 or exceeding this amount but not exceeding BGN 1,000;3. warning of an exclusion from practice;4. suspension for a period of three months or exceeding this period but not exceeding five years.(2) The fine referred to in Item 2 of Paragraph (1) shall be collected in favour of the Notary Chamber of Bulgaria.Extinguishment of Disciplinary LiabilityArticle 76. (1) (Redesignated from Article 76 and amended, SG No. 18/2003) Disciplinary liability shall be extinguished by limitation after a period of six months reckoned from the detection of the breach and not later than two years after the commission of the said breach.(2) (New, SG No. 18/2003) A breach of discipline shall be considered detected as from the point in time whereat the said beach has come to the notice of the authority referred to in Article 77 (1) herein. Should the breach have come to the notice of the authority referred to in Article 77 (1) herein in connection with a complaint or an alert submitted, the said authority shall be obligated to institute disciplinary proceedings within three months should the said authority determine that a breach of discipline has been committed.Institution of Disciplinary ProceedingsArticle 77. (1) (Amended, SG No. 18/2003) Disciplinary proceedings shall be instituted on a motion by the Minister of Justice or as proprio motu by a decision of the Board of Notaries.(2) The body which has initiated the institution of disciplinary proceedings shall notify the notary concerned, who may give explanations within seven days after notification.(3) The Board of Notaries shall transmit the records to the Chair of the Disciplinary Commission upon lapse of the time limit under Paragraph (2).(4) The Chair of the Disciplinary Commission shall appoint a chair and two members of a disciplinary panel, entrusting the said panel with the hearing of the disciplinary action.Hearing of Disciplinary ActionArticle 78. (1) The chair of the panel shall appoint a time for a hearing and shall solicit attendance by the notary concerned, a representative of the Board of Notaries and a representative of the Minister of Justice, where the disciplinary proceedings have been institution on a motion thereby. The notary shall have the right to legal counsel.(2) The hearings of the Disciplinary Commission shall be held in private.(3) All relevant evidence shall be admissible in disciplinary proceedings.Delivery of DeterminationArticle 79. (1) The Disciplinary Commission shall deliver a reasoned determination on the disciplinary action.(2) Any such determination shall be rendered after deliberation in private by a majority of the members of the panel.(3) (New, SG No. 18/2003) A decision to impose a disciplinary sanction referred to in Item 4 of Article 75 (1) herein shall require the affirmative vote of more than two thirds of the members of the Disciplinary Commission. Absent a qualified majority, any such decision shall be made according to the procedure established by Paragraph (2).(4) (Renumbered from Paragraph (3) and amended, SG No. 18/2003) The Disciplinary Commission shall hear and determine the disciplinary action within one month after assignment.(5) (New, SG No. 18/2003) Any decision referred to in Paragraph (2) shall be communicated to the notary concerned, to the Board of Notaries and to the Minister of Justice according to the procedure established by the Code of Civil Procedure. The Minister of Justice shall designate by an order the official who shall certify service or receipt of any such communication.Appeal against, and Entry into Force of, DeterminationArticle 80. (Amended, SG No. 18/2003) (1) The determination of the Disciplinary Commission shall be appealable by the notary concerned, by the Board of Notaries and by the Minister of Justice before the Supreme Court of Cassation within fourteen days after communication.(2) The determination of the Disciplinary Commission shall be appealable by the Minister of Justice even where the disciplinary proceedings have been instituted proprio motu by a decision of the Board of Notaries.(3) The Supreme Board of Cassation shall consider the appeal on the merits in a panel of three judges. The determination shall be subject to cassation appeal before a five-judge panel.Striking Off of Disciplinary SanctionArticle 80a. (New, SG No. 18/2003) A disciplinary sanctions shall be stricken off if the following period has lapsed since the imposition thereof:1. one year: applicable to any sanction referred to in Item 1 of Article 75 (1) herein;2. two years, reckoned from the payment or enforced collection of the fine referred to in Item 2 of Article 75 (1) herein;3. three years, reckoned from the imposition of the sanction referred to in Item 3 of Article 75 (1) herein;4. five years, reckoned from the lapse of the period of the sanction referred to in Item 4 of Article 75 (1) herein.Chapter Five a(New, SG No. 18/2003)CONTROL OVER NOTARIES' PRACTICEForm of ControlArticle 80b. (1) (Supplemented, SG No. 64/2007) The Minister of Justice shall exercise control over the practice of each notary as to implementation of the law and the Statute of the Notary Chamber of Bulgaria. The Minister of Justice shall assign joint inspections to the inspectors of the Inspectorate with the Minister of Justice under the Judiciary System Act and to the inspector notaries public under Article 80c, Paragraph 4.(2) A check of the practice under Paragraph (1) shall be ordered by the Minister of Justice on his own initiative, in connection with an alert or a complaint by an interested party, as well as on a motion by the Board of Notaries. Any such order shall be unappealable.(3) A memorandum shall be drafted on the findings of any checks referred to in Paragraph (2), and a copy of the said memorandum shall be transmitted to the Board of Notaries.Notary Inspector StatusArticle 80c. (1) (Repealed, SG No. 64/2007). (2) Eligibility for nomination as notary inspector shall be limited to members of the Notary Chamber of Bulgaria who have practised law for an aggregate exceeding ten years, of which three years as a notary.(3) The notary inspectors referred to in Paragraph (2) shall be elected by the general meeting of the relevant notary association for a term of three years. Any such resolution shall require the affirmative vote of more than one half of the members present. The total number of notary inspectors may not be smaller than ten.(4) After the election referred to in Paragraph (3), the Board of Notaries shall compile the list of notary inspectors and shall submit the said list to the Minister of Justice.Chapter SixNOTARIAL FUNCTIONS OF NON-NOTARIESCommon RuleArticle 81. A person who is not a notary may perform notarial functions solely insofar as this is provided for by a law.Judicial AuthoritiesArticle 82. (1) Where there is no notary in the geographical jurisdiction, the notarial acts shall be performed by the recording magistrate at the competent regional court.(2) (Amended, SG No. 36/2004) Where there is a notary, the recording magistrate shall perform the notarial acts solely in respect of the documents and papers in the records of the Recording Office, as well as the notarial acts when substituting for a notary.Local Administration AuthoritiesArticle 83. (Amended, SG No. 18/2003) Where there is no notary or regional court in a nucleated settlement, the mayor of the said nucleated settlement, if not an administrative centre of a municipality or, if administrative centre of a municipality, the municipality mayor, the deputy mayor, the municipal secretary, as well as the lieutenant mayor, shall certify the signatures on private documents which are non-recordable deed polls, as well as the authenticity of transcripts and abstracts of documents and papers.Bulgarian Diplomatic Agents and Consular OfficersArticle 84. (Supplemented, SG No. 18/2003) The Bulgarian diplomatic agents and consular officers abroad may certify the date, contents and signatures of non recordable private documents, the authenticity of transcripts and abstracts of documents presented by Bulgarian citizens, and draft notarized wills of Bulgarian citizens. The signatures of foreign citizens shall be certified solely if the document is intended to operate in the Republic of Bulgaria.Chapter SevenNOTARIAL FEESSection IGeneral ProvisionsGrounds and AmountArticle 85. (1) Notarial fees shall be charged for:1. performance of notarial acts;2. performance of other acts by a notary.(2) A notarial fee of an identical amount shall be charged for performance of an identical notarial act by a notary and a public authority.(3) (Amended, SG No. 123/1997) The amounts of notarial fees shall be fixed according to a rate schedule adopted by the Council of Ministers on a motion by the Minister of Justice after consultation with the Notary Chamber of Bulgaria.PaymentArticle 86. Notarial fees shall be credited to the revenue of:1. the notary: in respect of any act whereof the performance is noted in the professional records of the said notary;2. the municipal budget: in respect of any notarial acts performed by local administration authorities;3. the state budget: in respect of any notarial acts performed by any other authorities, including substitution for a notary by a recording magistrate.PayersArticle 87. Notarial fees shall be payable by the person whereof the request for professional aid has been considered by a notary or another authority performing notarial functions. Several payers shall be liable solidarily.Payability of Notarial FeesArticle 88. (1) Notarial fees shall be payable upon performance of the requested act, and fees for verification of circumstances shall be payable upon submission of the request.(2) A notary shall have the right to demand payment of part of the fee due in advance.Collection of Notarial FeesArticle 89. (1) A bill in two or more identical copies, signed by the notary, shall be prepared for collection of the notarial fees, and one of the copies of the said bill shall be delivered to the payer.(2) Any such bill shall itemize the provisions in pursuance whereof the fees are due, the certified proprietary interest or the time expended in the case of a pro rata fee, the amounts of the fees due and the extra expenses, the amount of prepayment and the consequences of non-payment.(3) (Amended, SG No. 59/2007) In respect of any unpaid notarial fees, the notary shall have the option to move for the issuance of an enforcement order under Article 410 (1) of the Code of Civil Procedure regardless of the amount of the said fees.(4) (New, SG No. 18/2003) Should the proprietary interest and the fees charged have been miscalculated, the fees as actually due shall be collected on the basis of a bill signed by the notary and prepared within seven days after detection of the error.Section IITypes of Notarial FeesFlat Notarial FeesArticle 90. Flat notarial fees shall be collected solely for acts expressly listed in the rate schedule and shall not depend on the certified proprietary interest or the time expended.Pro Rata Notarial FeesArticle 91. Pro rata notarial fees shall be collected depending on the certified proprietary interest or time expended and shall have a specified minimum amount.Fees Per Certified Proprietary InterestArticle 92. (1) The percentage rate of the pro rata fee per certified proprietary interest shall vary in inverse proportion to the interest, and the fee may not exceed a specified maximum amount.(2) The rate schedule may provide that the fee under Paragraph (1) be collected in a reduced or increased amount in respect of specified types of certification.Fees Per Time ExpendedArticle 93. (1) Fees per time expended shall be due to the notaries only and shall be payable for:1. oral and written advice;2. mediation to clarify the will of the parties;3. search of records and obtaining of documents, papers and other such.(2) No fees shall be due for oral advice provided in connection with another act wherefor a fee is charged.Fees for Preparation and Verification of DocumentsArticle 94. (1) Fees for preparation and verification of documents shall be due to the notaries only.(2) The fee prescribed for certification shall be charged for preparation of a draft of a notarial act or another document.(3) One half of the fee prescribed for certification shall be charged for verification of a prepared draft of a document without notarization. Should the same document be notarized by the same notary within one month, only the other half of the fee shall be charged.Additional Notarial FeeArticle 95. (1) An additional notarial fee shall be payable for acts performed at the request of the client outside the notary's office beyond the opening hours or during weekends or public holidays.(2) Any fee referred to in Paragraph (1) shall be due in an aggregate amount of one half of the fee for certification.Section IIICertified Proprietary InterestTransactions in Real RightsArticle 96. (1) (Supplemented, SG No. 18/2003) In a transfer and certification of a right of ownership to things, the certified proprietary interest shall be:1. the fair market value of the thing;2. the fair market value of the more expensive thing: in respect of exchange;3. the fair market value of all parts: in respect of a deed of voluntary partition.(2) In a creation or transfer of other real rights, the certified proprietary interest shall be:1. in respect of a building right: 90 per cent of the fair market value of the land lot or the portion thereof, as the case may be, whereon the right is created or transferred;2. in respect of a right of use: the fair market rental charge which could accrue for the entire period of use or, if no such period is specified, for a period of three years.(3) (Repealed, SG No. 117. 1997, new, SG No. 123/1997) Should there be any difference between the appraised value referred to in 2 of the Supplementary Provisions and the certified proprietary interest, the notarial fee shall be charged on the larger of the two.Special CasesArticle 97. (1) The certified proprietary interest shall be:1. in respect of a transaction in a motor vehicle: the insured value thereof;2. in respect of a transaction in a business enterprise: the carrying amount of the enterprise's fixed assets for the last preceding quarter;3. in respect of an incorporation of a commercial corporation: the amount of capital;4. in respect of a sale of a succession: the fair market value of the corporeal immovables comprised in the succession;5. in respect of execution of wills: the fair market value of the devise, bequest, or legacy;6. in respect of administration of an estate: the monthly income from the estate;7. in respect of a transaction whereof the subject is a money claim: the nominal value of the claim, and in respect of a transaction payable in instalments: the aggregate amount of payments for the entire period or, if no such period is specified, for a period of three years.(2) In respect of amendments and supplements to transactions and documents, the certified proprietary interest shall be limited to the changes.(3) In respect of onerous transactions, the certified proprietary interest shall be the contract price if higher than the price as determined according to the procedure established by this Section.SUPPLEMENTARY PROVISIONS 1. Within the meaning given by this Act, "notarial fee" shall be the compensation which is paid to a notary for a service rendered. 2. (Amended, SG No. 118/1997) The fair market value shall be determined according to the price which could be obtained under normal market conditions, taking into consideration the nature of the subject-matter and all factors which influence the value upon sale or lease, as the case may be. Valuation shall be made according to the procedure established by Article 33 of the Local Taxes and Fees Act. TRANSITIONAL PROVISIONS 3. (Amended, SG No. 123/1997 and No. 24/1998) Any persons, who perform notarial functions at the region courts upon the entry of this Act into force, shall continue to perform the said functions according to the theretofore effective procedure but not later than the 1st day of October 1998. 4. (Amended, SG No. 123/1997) The Minister of Justice shall appoint the recording magistrates. 5. (1) The first general meeting of the Notary Chamber of Bulgaria shall be composed of the persons covered under 3 herein, who possess the qualifications covered under Items 1, 2, 4, 5, 6 and 7 of Article 8 herein and who have applied for admission to notarial practice within the time limit and according to the procedure established by 6 herein.(2) The Minister of Justice shall call the General Meeting within three months after the entry of this Act into force, with the following agenda:1. adoption of a Statute of the Notary Chamber of Bulgaria;2. election of the Chamber's bodies;3. determination of the amounts of the sum insured referred to in Article 30 herein;4. determination of the amount of mandatory entrance and annual membership subscription fees;5. adoption of the budget for the period remaining until the end of the current year.(3) The General Meeting may resolve to include other business as well into the agenda.(4) (New, SG No. 123/1997) Proceeding from the results of the first competitive examination, recording in the Register under Article 14 herein and the orders referred to in 6 herein shall be effected by the Ministry of Justice Inspectorate. After the conduct of the first general meeting of the Notary Chamber of Bulgaria and the election of the bodies thereof by the notaries, the said register shall be presented to the Board of Notaries.(5) (New, SG No. 123/1997, amended, SG No. 24/1998) The first General Meeting of the Notary Chamber of Bulgaria after conduct of the competitive examination referred to in Article 12 herein shall be called by the Minister of Justice within one month after the recording of not less than two thirds of the persons who have successfully passed the examination.(6) (New, SG No. 123/1997) The bodies of the Notary Chamber of Bulgaria, elected according to the procedure established by Item 2 of Paragraph (2), shall perform the functions thereof until conduct of a General Meeting according to Paragraph (5). 6. (Amended, SG No. 123/1997 and SG No. 24/1998) The Minister of Justice shall revoke any orders issued for recording in the Register of the Notary Chamber of Bulgaria or any notaries who have not been ranked at the competitive examination referred to in Article 12 herein. 7. (Amended, SG No. 123/1997) (1) (Redesignated from 7, SG No. 24/1998) Upon conduct of the first competitive examination referred to in Article 12 (2) herein, a district judge, designated by the President of the Supreme Court of Cassation, shall be a member of the commission in lieu of a representative of the Notary Chamber of Bulgaria.(2) (New, SG No. 24/1998) The first competitive examination shall be organized and financed by the Ministry of Justice. 8. (Amended, SG No. 123/1997) In the Act, the words "the Minister of Justice" and "the Ministry of Justice" shall be replaced passim, respectively, by "the Minister of Justice and European Legal Integration" and "the Ministry of Justice and European Legal Integration". 9. Any notarial proceedings pending upon the lapse of one year after the entry of this Act into force shall be completed by the recording magistrates 10. Until promulgation of the rate schedule referred to in Article 85 (3) herein, fees for notarial acts shall be charged according to the heretofore effective procedure.FINAL PROVISIONS 11. The Judicial System Act (promulgated in the State Gazette No. 59 of 1994; modified by Constitutional Court Judgment No. 8 of 1994, promulgated in No. 78 of 1994; modified by Constitutional Court Judgment No. 9 of 1994, promulgated in No. 87 of 1994; modified by Constitutional Court Judgment No. 17 of 1995, promulgated in No. 93 of 1995; amended in No. 64 of 1996; modified by Constitutional Court Judgment No. 19 of 1996, promulgated in No. 96 of 1996) shall be amended and supplemented as follows:1. In Item 3 of Article 35 (1), after the words "executive judges" there shall be placed a comma and there shall be inserted the words "recording magistrates".2. In Article 36 (2), the words "the notaries" shall be replaced by "the recording magistrates and the notaries", and the following second sentence shall be added: "Notary inspectors may be other notaries with at least ten years' length of service as notary, designated by the Notary Chamber of Bulgaria".3. In Item 4 of Article 56 (1) and Item 2 of Article 60, the words "the notaries" shall be replaced by "the recording magistrates".4. In Item 5 of Article 63 (1), the word "notaries" shall be replaced by "recording magistrates".5. In Article 109 the word "notary" shall be replaced by "recording magistrate".6. In Article 127 (5), after the word "notary" there shall be placed a comma and there shall be inserted "recording magistrate or assistant notary".7. Chapter Twelve shall be amended to read as follows:Chapter TwelveRECORDING MAGISTRATESArticle 158. (1) There shall be a recording magistrate at the regional courts.(2) A recording magistrate shall perform the notarial acts of recording, notations and expungement, searches of the recording books, as well as other acts as provided for by law.(3) In regional courts where there is no recording magistrate, the functions thereof shall be performed by the regional judge.(4) The Minister of Justice may assign an executive judge of the same court to perform concurrently the functions of a recording magistrate.Article 159. A recording magistrate may perform acts solely within the geographical jurisdiction thereof.Article 160. (1) Eligibility for appointment to the office of recording magistrate shall be limited to the persons who possess the qualifications under Article 126 herein.(2) A recording magistrate shall be appointed by the Minister of Justice on a motion by the president of the relevant regional court.(3) Where there are more than one recording magistrate in any recording office, the Minister of Justice shall appoint one of the said magistrates as head in order of seniority.Article 161. Upon assumption of office, a recording magistrate shall take the oath under Article 109 herein, and the provision of Article 110 herein. shall be complied with.Article 162. The provisions of Article 152, 154, 156 and 157 herein shall furthermore apply to recording magistrates."8. Article 166 shall be amended to read as follows:"Article 166. A judicial candidate, who has served for six months, may be appointed to act as an executive judge for a period of up to one month and, upon request of a notary, to act as a probationary notary until the lapse of the period provided for under Article 164 (1) herein. The written consent of the judicial candidate shall be required for appointment for a period exceeding one month."9. In Article 185, the word "notary" shall be replaced by "recording magistrate".10. In Article 190, Article 191 (2) and Article 195 (2), the words "the notaries" shall be replaced passim by "the recording magistrates".11. In Item 1 of Article 198, the words "the notarial services" shall be replaced by "the recording offices". 12. The Code of Civil Procedure (promulgated in Transactions of the Presidium of the National Assembly No. 12 of 1952; amended and supplemented in No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, Nos. 50 and 90 of 1961; corrected in No. 99 of 1961; amended and supplemented in the State Gazette No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, Nos. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992, Nos. 61 and 93 of 1993, No. 87 of 1995, and Nos. 12, 26, 37 and 44 of 1996) shall be amended and supplemented as follows:1. In Article 302 (1), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 315 (1), the words "the notary" shall be replaced by "the recording magistrate".3. In Article 319 (2), the words "notary" and "the notary" shall be replaced, respectively, by "recording magistrate" and "the recording magistrate".4. In Article 343 (2), the words "the notary" shall be replaced by "the recording magistrate".5. In Article 374, the words "the notary public's office" shall be replaced by "the recording office".6. In Article 392 (2), the words "the notary public's office" shall be replaced by "the recording office".7. Article 465 shall be amended and supplemented as follows:(a) Item (d) shall be amended to read as follows:"(d) notarial invitations, protests, certification of appearance or of non-appearance of persons before the notary for performance of acts therebefore";(b) there shall be inserted the following new Item:"(e) acceptance and return of documents and papers delivered for safekeeping, and";(c) Item (e) shall be redesignated to become Item (f).8. Article 466 (1) shall be amended to read as follows:"Article 466. (1) Notarial acts on transfer of ownership or on creation of a real right to corporeal immovables and certification of a right of ownership to such immovables shall be performed by the notary in the area of practice whereof the property concerned is located. Any recordings, notations and expungement in respect of corporeal immovables shall be effected by the recording magistrate in the geographical jurisdiction whereof he property concerned is located."9. In Article 467 the words "to the notary" shall be deleted.10. In Article 469 (2) the word "transactions" shall be replaced by "notarial acts".11. Article 470 shall be amended to read as follows:"Article 470. No notarial acts may be performed in respect of any transaction, document or other act contrary to the law or to good morals."12. Article 473 (1) shall be replaced by the following:"Article 473. (1) A refusal by a notary or a recording magistrate to perform a notarial act shall be appealable before the competent District Court within seven days after the refusal."13. Article 473a shall be repealed.14. Article 474 shall be amended and supplemented as follows:(a) Paragraphs (1) and (2) shall be replaced by the following:"Article 474. (1) For execution of a notarial act, a draft of the act shall be prepared in two or more identical copies. The shape, kind and size of the paper whereon the draft shall be handwritten or typed shall conform to a standard set by the Minister of Justice.(2) All copies of the draft must be prepared in a clean and legible form, must be handwritten in black or blue ink or must be typed";(b) in Paragraph (5), the words "witnesses personally known to the notary" shall be replaced by "witnesses of established identity".15. Article 480 (f) shall be replaced as follows:"(f) the persons employed in the notary's office and the employees of the recording office. "16. In Article 485, the following Paragraph shall be added:"(3) Should the private document be in a foreign language and be non-recordable, Article 478 herein shall apply, mutatis mutandis."17. In Article 488 (1), the words "the notary public's office" shall be replaced by "the notary".18. There shall be inserted the following two new articles:"Article 488a. In certification of appearance or non-appearance of persons before the notary for performance of acts therebefore, a memorandum of ascertainment shall be drafted. The consent or dissent of the appearing persons to the performance of the required acts shall be certified in the same manner. In drafting any such memorandum of ascertainment, insofar as there are no specific rules, the notary shall be guided by the provisions of Article 476 herein. Any such memorandum of ascertainment shall be drafted in duplicate, which shall be signed by the client and the notary, whereupon one copy shall be filed in a special book and the other copy shall be delivered to the client, certified as a copy.Article 488b. (1) Upon acceptance by the notary of documents and papers for safekeeping, a memorandum of acceptance shall be drafted in duplicate, which shall be signed by the client and the notary, whereupon one copy shall be filed in a special register and the other copy shall be delivered to the client, certified as a copy.(2) For return of any documents and papers delivered for safekeeping, a memorandum of return shall be drafted, which shall be signed by the applicant or by the applicant's heirs or a limited attorney-in-fact, as the case may be, whereupon the said memorandum shall be filed in the register". 13. In Article 24 (2) of the Succession Act (promulgated in the State Gazette No. 22 of 1949; corrected in No. 41 of 1949; amended in No. 275 of 1950, No. 41 of 1985, No. 60 of 1992, modified by Constitutional Court Judgment No. 4 of 1996, promulgated in No. 21 of 1996) there shall be added the following fourth sentence: "In drafting a notarized will, the notary shall be guided by the provisions of Article 474 (1) and (2) of the Code of Civil Procedure" 14. The Stamp Duty Act (promulgated in Transactions of the Presidium of the National Assembly No. 104 of 1951; amended and supplemented in No. 89 of 1959, No. 21 of 1960; State Gazette No. 53 of 1973, No. 87 of 1974, No. 21 of 1975, No. 21 of 1990, No. 55 of 1991, No. 100 of 1992, Nos. 69 and 87 of 1995, Nos. 37 and 100 of 1996) shall be amended and supplemented as follows:1. Article 2 (3) and (4) shall be repealed.2. Item (c) of Article 4 shall be replaced by the following:"(c) for performance of acts and services by executive judges and recording magistrates;"3. Article 4a (2) shall be repealed. 15. In 4 of the Supplementary Provisions of the Housing Associations Act (promulgated in the State Gazette No. 55 of 1978; amended in No. 102 of 1981, No. 45 of 1984, No. 75 of 1988, No. 46 of 1989, No. 21 of 1990, and No. 60 of 1992), the words "as well as for issuing and recording of notarial acts of housing associations and of the members thereof" shall be deleted. 16. In Item 10 of Article 9 (1) of the Value Added Tax Act (promulgated in the State Gazette No. 90 of 1993; amended in No. 57 of 1995, Nos. 16 and 56 of 1996), after the words "The Bar Act" there shall be added "and the Notaries Act." 17. In Article 13 (5) of the Aggregate Income Tax Act (promulgated in the State Gazette No. 132 of 1950; amended in Transactions of the Presidium of the National Assembly No. 104 of 1952, No. 60 of 1953, No. 15 of 1954, No. 64 of 1955, No. 91 of 1957, No. 90 of 1958, No. 91 of 1960, No. 105 of 1962; State Gazette No. 99 of 1963, No. 52 of 1965, Nos. 16 and 52 of 1966, Nos. 15 and 100 of 1967, No. 69 of 1968, No. 60 of 1970, No. 101 of 1972, No. 53 of 1973; corrected in No. 54 of 1973; amended and supplemented in Nos. 36 and 93 of 1979, No. 7 of 1982, No. 44 of 1984, No. 79 of 1985, No. 33 of 1988, No. 4 of 1989, Nos. 10 and 30 of 1990, No. 27 of 1991; corrected in No. 30 of 1991; amended in No. 82 of 1991, Nos. 19 and 62 of 1992, No. 23 of 1993, Nos. 38 and 83 of 1994, Nos. 53 and 59 of 1995, Nos. 28, 33, 58 and 59 of 1996), after the words "of the sole trader" there shall be placed a comma and there shall be inserted "of the notary". 18. The Agricultural Land Ownership and Use Act (promulgated in the State Gazette No. 17 of 1991; corrected in No. 20 of 1991; amended in No. 74 of 1991, Nos. 18, 28, 46 and 105 of 1992, No. 48 of 1993; modified by Constitutional Court Judgment No. 12 of 1993, promulgated in No. 64 of 1993; amended in No. 83 of 1993, No. 80 of 1994, No. 45 of 1995, No. 57 of 1995; modified by Constitutional Court Judgments Nos. 7 and 8 of 1995, promulgated in No. 59 of 1995; amended in No. 79 of 1996) shall be amended as follows:1. In Article 9 (6) and Article 9a (4), the words "The notary" shall be replaced by "The recording magistrate".2. In Article 23, the words "the notary public's office" shall be replaced by "the recording office".3. In 16 (1) of the Transitional and Final Provisions, the words "the stamp duties" shall be replaced by "the notarial fees". 19. The State Property Act (promulgated in the State Gazette No. 44 of 1996) shall be amended as follows:1. In Article 41 (2) and Article 48, the words "the notary" shall be replaced by "the recording magistrate".2. In Article 60, the words "the notarial service" shall be replaced by "the recording office". 20. The Municipal Property Act (promulgated in the State Gazette No. 44 of 1996) shall be amended as follows:1. In Article 32 (2), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 35 (4), the words "the notarial service" shall be replaced by "the recording office". 21. In Article 31 (4) and Item 2 of Article 104 of the Regional and Urban Planning Act (promulgated in the State Gazette No. 29 of 1973; corrected in No. 32 of 1973; amended and supplemented in No. 87 of 1974, Nos. 3 and 102 of 1977, No. 36 of 1979, No. 3 of 1980, No. 45 of 1984, No. 19 of 1985, No. 36 of 1986, No. 14 of 1988, No. 31 of 1990; corrected in No. 32 of 1990; amended in No. 15 of 1991 and No. 63 of 1995), the words "the notary" shall be replaced by "the recording magistrate". 22. In Article 185 (b) of the Obligations and Contracts Act (promulgated in the State Gazette No. 275 of 1950; corrected in Transactions of the Presidium of the National Assembly No. 2 of 1951; amended in No. 69 of 1951, No. 92 of 1952; State Gazette No. 85 of 1963, No. 27 of 1973, No. 16 of 1977, No. 28 of 1982, No. 30 of 1990; Nos. 12 and 56 of 1993, and No. 83 of 1996), the words "the notaries" shall be replaced by "the recording magistrates". 23. The Commerce Act (promulgated in the State Gazette No. 48 of 1991; amended in No. 25 or 1992, Nos. 61 and 103 of 1993, No. 63 of 1994, No. 63 of 1995, Nos. 42, 59, 83 and 86 of 1996) shall be amended as follows:1. In Article 16 (2) the words "the notary public's office" shall be replaced by "the recording office".2. In Article 73 (5) the words "the notary public's office" and "the notary" shall be replaced, respectively, by "the recording office" and "the recording magistrate". 24. In Article 14 (1) of the Uniform Cadastre of the People's Republic of Bulgaria Act (promulgated in the State Gazette No. 35 of 1979; amended in No. 102 of 1981 and No. 45 of 1984), the words "The notarial services" shall be replaced by "The recording offices", and after the words "within one month" there shall be inserted "after the day of recording thereof, respectively". 25. The State Receivables Collection Act (promulgated in the State Gazette No. 26 of 1996) shall be amended as follows:1. In Article 59 (1), the words "the notary" shall be replaced by "the recording magistrate".2. In Article 60, the words "the notary public's office" shall be replaced by "the recording office". 26. In 1 of the Supplementary Provisions of The Bar Act (promulgated in the State Gazette No. 80 of 1991), after the word "notary" there shall be placed a comma and there shall be added "recording magistrate or assistant notary". 27. The Minister of Justice shall be entrusted with the implementation of this Act. 28. This Act shall enter into force one month after the date of promulgation thereof in the State Gazette.Act to Amend and Supplement the Notaries and NotarialPractice ActPromulgated, SG No. 18/25.02.2003................................................................... 46. In the Act, the words "the Minister of Justice and European Legal Integration" and "the Ministry of Justice and European Legal Integration" shall be replaced passim, respectively, by "the Minister of Justice" and "the Ministry of Justice". 46. In the Act, the words "probationary notary", "or probationary notary", "the probationary notary", "the probationary notaries", "and of the probationary notaries" and "and of the probationary notary" shall be deleted.TRANSITIONAL AND FINAL PROVISIONS 48. The bodies of the Notary Chamber of Bulgaria shall perform the activities thereof until the next ordinary elective general meeting. 49. Any probationary notaries serving upon the entry of this Act into force shall complete the probation thereof and shall pass an examination in theory and practice according to the hitherto effective procedure, and shall have the right to enter an examination of theory and practice if they have served for three months. 50. (1) Within six months after the entry of this Act into force, notaries shall be obligated to fulfil the obligations under Article 41 (1) of the Notaries and Notarial Practice Act, terminating the contractual relationships with the assistant notaries on a 30 days' notice.(2) In the cases referred to in Paragraph (1), the notary shall notify the Board of Notaries. Article 42 (2)of the Notaries and Notarial Practice Act shall apply, mutatis mutandis, to the striking off of the assistant notaries. 51. Within six months after the entry of this Act into force, notaries shall be obligated to bring the notary's offices thereof into conformity with the requirements established by Article 13 of the Notaries and Notarial Practice Act.TRANSITIONAL AND FINAL PROVISIONSof the Administrative Procedure Code(SG, No. 30/2006, effective 12.07.2006). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88. Everywhere in the Notaries and Notarial Practice Act (Promulgated, State Gazette No. 104/1996, amended, SG No. 117/1997, SG No. 118/1997, amended and supplemented, SG No. 123/1997, SG No. 24/1998, amended, SG No. 69/1999, amended and supplemented, SG No. 18/2003, supplemented, SG No. 29/2004, amended, SG No. 35/2004, amended and supplemented, SG No. 19/2005, supplemented, SG No. 43/2005) the words "the Supreme Administrative Court Act" shall be replaced by "the Administrative Procedure Code". For more information visit www.solicitorbulgaria.com id: 318 Fri, 01 Aug 2008 06:09:46 -0700 http://solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act http://solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/NOTARIES_AND_NOTARIAL_PRACTICE_ACT.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-notaries-and-notarial-practice-act legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) Section IIICorrection of JudgmentJudgment Non-WithdrawableArticle 246. After publishing the judgment in the matter of the case, the court may not reverse or modify the said judgment of its own motion.Correction of Apparent Error of FactArticle 247. (1) The court, acting on its own initiative or on a petition by the parties, may correct any apparent errors of fact made in the judgment.(2) The court shall send a communication to the parties regarding the correction sought, instructing the parties to present an answer within one week.(3) The court shall summon the parties to a public session where the said court deems this necessary.(4) The judgment of correction shall be served upon the parties and shall be appealable according to the procedure applicable to appellate review of the judgment.Modification of Judgment in Part Concerning CostsArticle 248. (1) Within the time limit for appellate review and, if the judgment is unappealable, within one month after rendition of the said judgment,… For more information visit http://www.solicitorbulgaria.com id: 321 Section IIICorrection of JudgmentJudgment Non-WithdrawableArticle 246. After publishing the judgment in the matter of the case, the court may not reverse or modify the said judgment of its own motion.Correction of Apparent Error of FactArticle 247. (1) The court, acting on its own initiative or on a petition by the parties, may correct any apparent errors of fact made in the judgment.(2) The court shall send a communication to the parties regarding the correction sought, instructing the parties to present an answer within one week.(3) The court shall summon the parties to a public session where the said court deems this necessary.(4) The judgment of correction shall be served upon the parties and shall be appealable according to the procedure applicable to appellate review of the judgment.Modification of Judgment in Part Concerning CostsArticle 248. (1) Within the time limit for appellate review and, if the judgment is unappealable, within one month after rendition of the said judgment, the court, acting on a motion by the parties, may amplify or modify the judgment as rendered in the part thereof concerning the costs.(2) The court shall send a communication to the opposing party regarding the amplification or modification sought, instructing the said party to present an answer within one week.(3) The ruling on the costs shall be rendered in camera and shall be served upon the parties. The said ruling shall be appealable according to the procedure applicable to appellate review of the judgment.Settlement after Conclusion of TrialArticle 249. The court shall invalidate the judgment rendered thereby if, before the entry into effect of the said judgment, the parties declare that they have reached a settlement and move for a dismissal of the case.Amplification of JudgmentArticle 250. (1) A party may move for amplification of the judgment if the court has not pronounced on the entire motion of the said party. A petition for such amplification may be submitted within one month after the service of the judgment or after the entry into effect of the said judgment.(2) The court shall send a communication to the opposing party regarding the amplification sought, instructing the said party to present an answer within one week. The motion shall be examined in public session with the parties being summoned, where the court deems this necessary with a view to clarifying the unresolved part of the dispute.(3) The court shall render an additional judgment which shall be appealable according to the standard procedure.Interpretation of JudgmentArticle 251. (1) Any disputes over interpretation of an effective judgment shall be examined by the court which has rendered the said judgment.(2) An interpretation may not be sought after the judgment has been enforced.(3) The court shall send a communication to the parties regarding the interpretation sought, instructing the said parties of the possibility to present an answer within one week.(4) The court shall summon the parties to a public session, where the said court deems this necessary.(5) The judgment of interpretation shall be appealable according to the procedure applicable to appellate review of the judgment which is interpreted.Section IVRendition of RulingsScope of ApplicationArticle 252. The court shall render a ruling where the court pronounces on any issues whereby the dispute is not resolved on the merits.Rulings WithdrawableArticle 253. Any rulings which do not conclude the case may be modified or vacated by the same court consequent to a change of circumstances, an error or an omission.Ruling: ContentArticle 254. (1) Any ruling whereby the court pronounces on conflicting motions by the parties, as well as any ruling whereby a motion is denied, shall be reasoned. The motions by the parties and the circumstances of the case in connection with the said motions shall be cited in the reasoning, insofar as this is necessary.(2) Where the ruling is rendered in camera, it must contain:1. the date and place of rendition;2. a reference to the court, the names of the judges of the court panel and of the parties;3. the number of the case in the matter of which the ruling is rendered;4. what the court decrees;5. against whom the costs are awarded;6. whether the ruling is appealable, before which court and within what time limit;7. signatures of the judges.Chapter NineteenSETTING TIME LIMIT IN CASE OF UNREASONABLE DELAYPetition to Set Time Limit in Case of Unreasonable DelayArticle 255. (1) Where the court fails to perform a particular procedural step in due time, the party may, during any stage of the proceeding, submit a petition to set an appropriate time limit for performance of the said step.(2) The petition shall be submitted care of the same court to the superior court. The court which examines the case shall forthwith transmit the petition together with the observations thereof to the superior court.Granting of PetitionArticle 256. (1) Where the court performs forthwith all steps stated in the petition and sends a communication to the party regarding this performance, the petition shall be presumed withdrawn.(2) The petition shall be transmitted for examination to the superior court if the party declares within one week after receipt of the communication under Paragraph (1) that it continues to maintain the said petition.Examination and Adjudication of Petition to Set Time LimitArticle 257. (1) A petition to set a time limit shall be examined by a judge of the superior court within one week after receipt of the said petition.(2) If the court finds an unreasonable delay, the court shall set a time limit for performance of the step. Otherwise, the court shall deny the petition. The ruling shall be unappealable.TITLE TWOAPPELLATE REVIEW OF JUDGMENTS AND RULINGS. REVERSAL OF EFFECTIVEJUDGMENTSChapter TwentyINTERMEDIATE APPELLATE REVIEWSubject of Appellate Review and Competent CourtArticle 258. (1) The judgments of regional courts shall be appealable before the district courts, whereas the judgments of district courts acting as courts of first instance shall be appealable before the appellate courts.(2) An appeal may be lodged either against the entire judgment or against separate parts thereof.Time Limit for Intermediate Appellate ReviewArticle 259. (1) The appeal shall be lodged care of the court which has rendered the judgment within two weeks after service of the said judgment upon the party.(2) The time limit for intermediate appellate review shall be interrupted by the submission of an application for legal aid and shall not run while the said application is considered.(3) A new time limit shall begin to run as from the entry into effect of the decision rejecting the application referred to in Paragraph (2), and in case any such application is granted, the new time limit shall begin to run as from the service of the first-instance judgment upon the assigned counsel as appointed.(4) The submission of a subsequent application for legal aid shall not suspend and shall not interrupt the time limit for intermediate appellate review.Intermediate Appellate Review Appeal: ContentArticle 260. The appeal shall contain:1. the name and address of the lodging party;2. an indication of the judgment appealed;3. a specification of the vice of the judgment;4. formulation of the prayer;5. the newly discovered or intervening facts which the appellant wishes to be taken into account upon adjudication of the case by the court of intermediate appellate review instance, and an exact listing of the reasons which have prevented the appellant from citing the newly discovered facts;6. the new evidence which the appellant wishes to be taken upon examination of the case by the court of intermediate appellate review instance, and a narrative of the reasons which have presented the appellant from citing or presenting the said evidence;7. signature of the appellant.Attachments to AppealArticle 261. The following shall be attached to the appeal:1. transcripts of the appeal and of the attachments thereto according to the number of persons who participate in the case as an opposing party;2. a power of attorney, where the appeal is lodged by an attorney-in-fact;3. the new written evidence cited in the appeal;4. documentary proof of payment of stamp duty.Verification by First-Instance CourtArticle 262. (1) If the appeal does not conform to the requirements referred to in Items 1, 2, 4 and 7 of Article 260 and Article 261 herein, a communication shall be sent to the party, instructing the party to cure the non-conformities within one week.(2) The appeal shall be returned where:1. the said appeal has been lodged after expiry of the time limit for appellate review, and2. the non-conformities are not cured in due time.(3) The order of return shall be appealable by an interlocutory appeal.Answer to Intermediate Appellate Review Appeal and IntermediateAppellate Review Cross-AppealArticle 263. (1) After accepting the appeal, the court shall transmit a duplicate copy thereof together with the attachments to the other party, which may submit an answer to the appeal within two weeks after receipt of the said copy and attachments. The provisions of Article 259 (2) to (4), Items 1, 2, 4 and 7 of Article 260 and Article 261 herein shall apply, mutatis mutandis, to any such answer.(2) Within the time limit for answer, the opposing party may lodge an intermediate appellate review cross-appeal. The intermediate appellate review cross-appeal must conform to the requirements applicable to an intermediate appellate review appeal.(3) The court shall verify the conformity of the intermediate appellate review cross-appeal according to Article 262 herein. After accepting the said cross-appeal, the court shall transmit a transcript thereof together with the attachments to the other party, which may submit an answer within one week after receipt of the said transcript and attachments.(4) The intermediate appellate review cross-appeal shall not be examined if the intermediate appellate review appeal is withdrawn or returned.(5) After expiry of the time limits referred to in Paragraphs (1) and (3), the case, together with the appeals and the answers, shall be transmitted to the superior court.Withdrawal of Intermediate Appellate Review Appeal and Waiver of Rightof AppealArticle 264. (1) During any stage of the proceeding, a party may withdraw, in whole or in part, an appeal lodged.(2) Any advance waiver of the right of appeal shall be invalid.Joining Intermediate Appellate Review AppealArticle 265. (1) Not later than during the first hearing in the court of intermediate appellate review instance, each of the co-parties to the case may join the appeal lodged by the co-plaintiff or co-respondent thereof. Joinder shall be effected by means of submission of a petition in writing with transcripts according to the number of parties.(2) In the cases of necessary joinder of parties, the court shall constitute the co-parties of the appellant ex officio.Citing New Facts and Evidence ProhibitedArticle 266. (1) In an intermediate appellate review proceeding, the parties may not allege new circumstances, cite and present evidence which the said parties could have cited and presented in due time in the first-instance proceeding.(2) Prior to the conclusion of the trial, the parties may:1. allege any new circumstances and cite and present any new evidence solely if the parties were unable to learn of such circumstances and to cite and present such evidence prior to the lodgment of the appeal or within the time limit for an answer, as the case may be;2. allege any circumstances which have occurred after the lodgment of the appeal or after expiry of the time limit for an answer, as the case may be, circumstances which are relevant to the case, and cite and present evidence of any such circumstances.(3) Taking of evidence which was not admitted by the first-instance court by reason of procedural breaches may not be moved for in an intermediate appellate review proceeding.Preparatory HearingArticle 267. (1) The intermediate appellate review court, sitting in camera, shall verify the admissibility of the appeals applying, mutatis mutandis, Article 262 herein, shall pronounce on admission of the new evidence cited by the parties, and shall schedule an examination of the case in public session. The issues of the admissibility of the appeals and the motions for evidence may alternatively be addressed during the first hearing of the case, if the court determines that the oral explanations of the parties must be heard as well.(2) The court may hear again witnesses and expert witnesses, if the court deems this necessary.Public Session of Intermediate Appellate Review CourtArticle 268. (1) The intermediate appellate review court shall examine the appeals, sitting in public session with the parties being summoned, and the appeals and the answers shall be reported during the hearing.(2) The taking of evidence shall follow the general rules and, if necessary, the hearing of the case shall be adjourned.(3) After addressing the issues referred to in Article 267 herein and taking of the evidence, the court shall proceed with the oral arguments, where to Article 149 (3) herein shall apply, mutatis mutandis.Intermediate Appellate Review Court: PowersArticle 269. The intermediate appellate review court shall pronounce ex officio on the validity of the judgment and on the admissibility in the appealed part of the said judgment. On the rest of the issues, the said court shall be limited by what is stated in the appeal.Adjudication in Case of Null and Inadmissible First-Instance JudgmentArticle 270. (1) Where a first-instance judgment is null, the intermediate appellate review court shall declare the nullity and, if the case is not dismissible, shall return the said case to the first-instance court for rendition of a new judgment.(2) The nullity of the judgment may be raised according to an action procedure sine die or by means of an opposition.(3) Where the judgment is inadmissible, the intermediate appellate review court shall invalidate the said judgment and shall dismiss the case. Where the grounds for invalidation are lack of cognizance of the dispute, the case shall be transmitted to the competent court. If an unbrought action has been examined, the judgment shall be invalidated and the case shall be returned to the first-instance court for pronouncement on the action brought.(4) The judgment of the district court may not be invalidated solely due to the fact that the action was cognizable in the regional court.Judgment in Case of Incorrect First-Instance JudgmentArticle 271. (1) Where the first instance judgment is valid and admissible, the intermediate appellate review court shall resolve the dispute on the merits, upholding or reversing the first instance judgment in whole or in part. If the judgment is not appealed by the other party, the position of the appellant may not be affected adversely by the new judgment.(2) Upon reversal of the judgment on the principal action, the pendency of any actions which may be joined thereto and on which the first-instance court has not pronounced shall be restored.(3) The court shall reverse the judgment also in respect of the co-parties of the appellant who have not appealed.Judgment in Case of Correct First-Instance JudgmentArticle 272. Where the intermediate appellate review court upholds the first-instance judgment, the said court shall reason the judgment thereof, inter alia by reference to the reasoning of the first-instance court.Applicability of First-Instance Proceeding RulesArticle 273. Save insofar as there are any special rules for the proceeding before the court of intermediate appellate review instance, the rules applicable to the proceeding before the court of first instance shall apply, mutatis mutandis.Chapter Twenty-OneAPPELLATE REVIEW OF RULINGSAppellate Review by Interlocutory AppealArticle 274. (1) Interlocutory appeals may be lodged against the rulings of the court:1. where the ruling bars the further progress of the case, and2. in the cases expressly specified in the law.(2) Where the rulings referred to in Paragraph (1) are rendered by a court of intermediate appellate review instance, the said rulings shall be appealable by an interlocutory appeal before the Supreme Court of Cassation. The rulings referred to in Paragraph (1), rendered by a panel of the Supreme Court of Cassation, shall be appealable before another panel of the same court.(3) Where the prerequisites covered under Article 280 (1) herein apply, appealability by an interlocutory appeal before the Supreme Court of Cassation shall apply to:1. the rulings of the intermediate appellate review courts whereby any interlocutory appeals against rulings barring the further progress of the case are left without consideration;2. the rulings whereby other proceedings are resolved on the merits or the progress of any such proceedings is barred.(4) Cassation appealability shall not apply to any rulings in cases with an appealable interest not exceeding BGN 1,000.Time Limit for Appellate Review and Interlocutory Appeal ContentArticle 275. (1) Interlocutory appeals shall be lodged within one week after communication of the ruling. If a ruling rendered during a court hearing is appealed, this time limit shall begin to run in respect of the party who appeared during the said hearing as from the day of the said hearing.(2) In respect of interlocutory appeals, the provisions of Article 259 (2) to (4), Articles 260, 261, 263 and 273 herein shall apply, mutatis mutandis.Answer to Interlocutory AppealArticle 276. (1) After accepting the appeal, the court shall transmit a transcript to the other party, which may submit an answer within one week after receipt of the said transcript.(2) After expiry of the time limit referred to in Paragraph (1), the appeal, together with the answer and the attachments thereto, if any such have been submitted, shall be transmitted to the superior court. The court shall attach a transcript of the ruling appealed.Stay of ProceedingArticle 277. An interlocutory appeal shall not stay the proceeding in the matter of the case, nor the enforcement of the ruling appealed, unless otherwise provided for in a law. The court competent to examine the appeal may stay the proceeding or the enforcement of the ruling appealed until adjudication of the interlocutory appeal, if the said court deems this necessary.Examination and Adjudication of Interlocutory AppealArticle 278. (1) Interlocutory appeals shall be examined in camera. The court, if it deems it necessary, may examine the appeal sitting in public session.(2) If it vacates the ruling appealed, the court itself shall address the issue under the appeal. The court may also take evidence, if the court deems this necessary.(3) The ruling rendered on the interlocutory appeal shall be binding upon the inferior court.(4) Save insofar as there are any special rules in this Section, the rules applicable to the appellate review of judgments shall apply, mutatis mutandis, to the proceeding on interlocutory appeals.Appellate Review of OrdersArticle 279. The provisions of Articles 274 to 278 herein shall furthermore apply, mutatis mutandis, to the interlocutory appeals against the orders of the court.Chapter Twenty-TwoCASSATION APPELLATE REVIEWScope of ApplicationArticle 280. (1) Cassation appealability before the Supreme Court of Cassation shall apply to any intermediate appellate review judgments wherein the court has pronounced on a material issue of substantive law or procedural law which:1. is addressed in conflict with the case law of the Supreme Court of Cassation;2. has been addressed by the courts in a conflicting manner;3. is relevant to the accurate application of the law, as well as to the progress of the case.(2) Cassation appealability shall not apply to any judgments in the matter of cases with an appealable interest not exceeding BGN 1,000.Grounds for Cassation Appellate ReviewArticle 281. A cassation appeal shall be lodged where:1. the judgment is null;2. the judgment is inadmissible;3. the judgment is incorrect by reason of violation of the substantive law, a material breach of the rules of court procedure, or lack of justification.Stay of Enforcement of Intermediate Appellate Review JudgmentArticle 282. (1) The lodgment of a cassation appeal shall not stay the enforcement of the judgment.(2) The appellant may move for a stay of the enforcement of the intermediate appellate review judgment. In such case, the appellant shall be obligated to furnish due security. The amount of the security shall be set at:1. in judgments on pecuniary receivables: the amount awarded;2. in judgments regarding rights in rem: the appealable interest.(3) In all other cases, the amount of security shall be set by the court.(4) Where security has been furnished in connection with the enforcement of a judgment regarding rights in rem to corporeal immovables or movable things, the said security shall be retained if, within two weeks after the cassation appeal has been left without consideration, the holder of the receivable brings an action for compensation for the damages resulting from the delay of enforcement.(5) Where enforcement of the awarded receivable has been secured, the security shall be released after the action is dismissed or the proceeding is terminated.(6) If the intermediate appellate review judgment is reversed, the enforcement of the said judgment shall be stayed. In case the new judgment is different from the previous judgment, the provision of sentence two of Article 245 (3) herein shall apply, mutatis mutandis.Time Limit for Cassation Appellate ReviewArticle 283. The appeal shall be lodged care of the court which has rendered the intermediate appellate review judgment within one month after service of the said judgment upon the party. The time limit for cassation appellate review shall be interrupted according to Article 259 (2), (3) and (4) herein.Cassation Appeal: ContentArticle 284. (1) The appeal must contain:1. the name and address of the lodging party;2. an indication of the judgment appealed;3. an accurate and reasoned narrative of the cassation grounds;4. formulation of the prayer;5. signature of the appellant.(2) The cassation appeal shall be countersigned by a lawyer or a legal adviser, save as where the appellant or the representative thereof possesses a licensed competence to practise law. A power of attorney on the countersigning or a certificate of licensed competence to practise law shall be attached to the appeal.(3) The following shall be attached to the appeal:1. a narrative of the grounds for cassation appealability under Article 280 (1) herein;2. transcripts of the appeal and of the attachments thereto according to the number of persons who participate in the case as an opposing party;3. a power of attorney, where the appeal is lodged by an attorney-in-fact;4. documentary proof of payment of stamp duty.Verification of Conformity of Cassation AppealArticle 285. (1) The intermediate appellate review court shall verify the conformity of the appeal, and if the said appeal does not conform to the requirements covered under Article 284 herein, the said court shall send a communication to the party, instructing the party to cure the non-conformities within one week.(2) If the appeal is conforming, the intermediate appellate review court shall transmit the said appeal together with the papers exchanged and the case to the Supreme Court of Cassation.Return of Cassation AppealArticle 286. (1) The appeal shall be returned by the intermediate appellate review court where:1. the said appeal has been lodged after expiry of the time limit for appellate review;2. the non-conformities are not cured in due time;3. the intermediate appellate review judgment is not subject to cassation appellate review under Article 280 (2) herein.(2) The order of return shall be appealable by an interlocutory appeal.Answer to Cassation Appeal and Cassation Cross-AppealArticle 287. (1) After accepting the appeal, the intermediate appellate review court shall transmit a transcript thereof together with the attachments to the other party, which may submit an answer to the appeal within one month after receipt of the said copy and attachments. The provisions of Article 259 (2) to (4) and Article 284 herein shall apply, mutatis mutandis, to any such answer.(2) The opposing party under the appeal may lodge a cassation cross-appeal within the time limit for answer. The cassation cross-appeal must conform to the requirements applicable to a cassation appeal.(3) If a cassation cross-appeal is lodged in due time, the intermediate appellate review court shall verify the conformity of the said appeal and shall transmit a transcript thereof together with the attachments thereto to the other party, which may submit an answer within two weeks after receipt of the said transcript and attachments.(4) The cassation cross-appeal shall not be examined if the cassation appeal is not examined.Admission of Cassation Appellate ReviewArticle 288. The Supreme Court of Cassation, sitting in camera in a three-judge panel, shall render a ruling on admission of the cassation appellate review.Summoning of Parties in Cassation ProceedingArticle 289. Prior to the first day of each month, the Supreme Court of Cassation shall promulgate in the State Gazette the days on which the said Court is to sit during the next succeeding month, and the cases subject to examination. Where circumstances necessitate any departures from this procedure, the parties shall be notified by means of communication.Examination of Cassation AppealArticle 290. (1) The appeal shall be examined by a three-judge panel of the Supreme Court of Cassation sitting in public session.(2) The Supreme Court of Cassation shall verify the correctness of the intermediate appellate review judgment solely on the grounds cited in the appeal.Reconciliation of Case LawArticle 291. Where the intermediate appellate review judgment has been rendered with a conflicting case law, the Supreme Court of Cassation:1. shall specify, by a reasoned judgment, the conflicting judgment wherein the case law it considers correct; in such case, the said Court shall render a judgment in the matter of the case on the basis of the said case law;2. where it holds that the case law in the judgments is incorrect, the said Court shall specify, by a reasoned judgment, why the said case law is incorrect; in such case, the said Court shall render a judgment interpreting the law on the basis of the circumstances of the case;3. where it holds that the case law in the conflicting judgments is inapplicable to the pending dispute, the said Court shall specify, by a reasoned judgment, why the said case law is inapplicable; in such case, the said Court shall render a judgment interpreting the law on the basis of the circumstances of the case.Proposal for Interpretative JudgmentArticle 292. Where issues have been addressed in a conflicting manner by the Supreme Court of Cassation, the panel shall propose to the general meeting to render an interpretative judgment and shall stay the proceeding in the matter of the case.Cassation JudgmentArticle 293. (1) The Supreme Court of Cassation shall leave standing or shall reverse, in part or in whole, the judgment appealed.(2) The judgment shall be reversed as wrong where the substantive law has been violated or where material breaches of the rules of court procedure have been committed or the judgment is unjustified.(3) The court shall return the case for a new examination by another panel of the intermediate appellate review court solely if any procedural steps at court have to be repeated or new such steps have to be performed.(4) Where the judgment appeal is null or inadmissible, the rules of Article 270 herein shall apply.Re-examination of CaseArticle 294. (1) The court whereto the case has been transmitted shall examine the said case according to the standard procedure, with the proceeding commencing from the legally non-conforming step which has served as grounds for reversal of the judgment. The instructions of the Supreme Court of Cassation regarding the application and interpretation of the law shall be binding upon the court whereto the case has been returned.(2) Upon re-examination of the case, the court shall furthermore pronounce on the costs of conduct of the case at the Supreme Court of Cassation.Cassation Appellate Review of Judgment upon Re-examination of CaseArticle 295. (1) Where the prerequisites covered under Article 280 (1) herein apply, the second judgment of the court of intermediate appellate review instance may be appealed over violations committed upon the re-examination of the case. Any such appeal shall be examined by a three-judge panel of the Supreme Court of Cassation which, upon reversal, shall resolve the dispute on the merits.(2) Where the grounds for reversal necessitate the performance of any procedural steps at court, the Supreme Court of Cassation shall reverse the intermediate appellate review judgment and shall render a new judgment, where after the said Court shall perform the requisite steps. In such case, the rules applicable to the intermediate appellate review proceeding shall apply, mutatis mutandis.Chapter Twenty-ThreeEFFECT OF JUDGMENTSEntry into EffectArticle 296. The following judgments shall enter into effect:1. which are unappealable;2. where against no intermediate appellate review appeal or cassation appeal has been lodged within the time limit set by the law, or an appeal lodged has been withdrawn; in the latter case, the judgment shall enter into effect as from the day of entry into effect of the ruling whereby the case is dismissed;3. in respect of which a cassation appeal has not been admitted to examination or has been denied consideration.Respect of JudgmentArticle 297. An effective judgment shall be binding upon the court which has rendered the said judgment and on all courts, institutions and municipalities in the Republic of Bulgaria.Extent of EffectArticle 298. (1) A judgment shall enter into effect solely between the same parties, in respect of the same demand, and on the same grounds.(2) An effective judgment shall furthermore have effect in respect of the heirs of the parties, as well as in respect of the successors thereto.(3) A judgment rendered in the matter of actions for civil status, including in the matter of matrimonial actions, shall have effect in respect of everybody.(4) A judgment shall furthermore enter into effect in respect of any motions and oppositions regarding a right of retention and set-off granted by the said judgment.Non-Re-resolvabilityArticle 299. (1) A dispute, which has been resolved by an effective judgment, may not be re-resolved save in the cases where the law provides otherwise.(2) The re-instituted case shall be dismissed ex officio by the court.(3) The effective judgment may not be contested by the party as rendered in a simulated procedure.Binding Effect of SentenceArticle 300. An effective sentence of a criminal court shall be binding upon the civil court which examines the civil consequences of the act, regarding whether the act has been committed, the wrongfulness of the said act and the guilt of the perpetrator.Extension of Effect on Action by ProsecutorArticle 301. Where the case has been commenced on an action brought by a prosecutor, the effective judgment shall be furthermore binding upon the party in the interest whereof the prosecutor has brought the action.Binding Effect of Judgment on Administrative DisputeArticle 302. An effective judgment on an administrative dispute shall be binding upon the civil court regarding whether the administrative act is valid and legally conforming.Chapter Twenty-FourREVERSAL OF EFFECTIVE JUDGMENTSGrounds for ReversalArticle 303. (1) The interested party may move for a reversal of an effective judgment where:1. new circumstances or new written evidence of material relevance to the case are discovered which could not have been known upon adjudication of the said case or which the party could not procure in due time;2. falsity of a document, of testimony of a witness, of a conclusion of an expert witness, upon which the judgment is founded, is established according to the due judicial procedure, or a criminal act by the party, by the representative thereof, by a member of the court panel or by a server in connection with the adjudication of the case, is so established;3. the judgment is based upon a decree by a court or by another government institution which has subsequently been vacated;4. another effective judgment, which conflicts with the judgment, has previously been rendered between the same parties, in respect of the same demand, and on the same grounds;5. the party, consequent to a breach of the respective rules, has been deprived of an opportunity to participate in the case or has not been duly represented, or where the said party has been unable to appear in person or through counsel owing to special unforeseen circumstances which the said party was unable to overcome;6. the party, upon a breach of the respective rules, was or, respectively, was not represented by a person referred to in Article 29 herein.(2) It shall be inadmissible to reverse a judgment whereby a divorce or a marriage annulment is decreed or a marriage is declared non-existent.(3) A reversal of a judgment by default may not be sought for a reason for which a reversal of the said judgment could have been sought or is sought under Article 240 (1) herein, or an action could have been brought or is brought under Article 240 (2) herein.Reversal on Petition by Third PartyArticle 304. The party in respect of whom the judgment has effect may also move for a reversal of the judgment, even though the said person has not been party to the case (Article 216 (2) herein).Time Limit for ReversalArticle 305. A petition for reversal shall be submitted within three months reckoned from the day:1. whereon the petitioner learnt of the intervening circumstances, or from the day whereon the petitioner could procure the new written evidence: in the cases referred to in Item 1 of Article 303 (1) herein;2. of entry into effect of the judgment or of learning of the sentence, but not later than one year after the entry into effect of the said sentence: in the cases referred to in Item 2 of Article 303 (1) herein;3. of learning of the act of reversal, but not later than one year after the entry into effect of the said act: in the cases referred to in Item 3 of Article 303 (1) herein;4. of entry into effect of the last judgment: in the cases referred to in Item 4 of Article 303 (1) herein;5. of learning of the judgment, but not later than one year after the entry into effect of the said judgment: in the cases referred to in Items 5 and 6 of Article 303 (1) and Article 304 herein.Petition for Reversal: ContentArticle 306. (1) A petition for reversal must conform to the requirements covered under Articles 260 and 261 herein and must contain an accurate and reasoned narrative of the grounds for reversal. If the petition does not conform to these requirements, the party shall be sent a communication, instructing the party to cure the non-conformities within one week.(2) Upon failure to cure the non-conformities of the petition for reversal in due time, the provisions of Article 286 herein shall apply.(3) The petition shall be submitted care of the first-instance court. A transcript shall be attached to the said petition, and the said transcript shall be served upon the opposing party. The said party may give an answer within one week after receipt of the transcript.Petition for Reversal: Examination and AdjudicationArticle 307. (1) The Supreme Court of Cassation, sitting in camera, shall pronounce on the admissibility of the petition for reversal.(2) The petition for reversal shall be examined by the Supreme Court of Cassation sitting in public session, within which the parties shall be heard and the requisite evidence shall be taken. Where a reversal of a judgment of the Supreme Court of Cassation is sought, the petition shall be examined by another three-judge panel of the Supreme Court of Cassation.(3) If it determines that the petition is well-founded, the Supreme Court of Cassation shall reverse the judgment in whole or in part and shall return the case for a new examination by another panel of the competent court, also specifying the point wherefrom the new examination of the case must commence.(4) In the case referred to in Item 4 of Article 303 (1) herein, the court shall reverse the incorrect judgment.New Examination of CaseArticle 308. The general rules shall apply upon the new examination of the case in the matter of which the judgment has been reversed.Stay of EnforcementArticle 309. (1) The submission of a petition for reversal shall not stay the enforcement of the judgment. The court, acting on a motion by the party, may stay the enforcement under the terms established by Article 282 (2) to (6) herein.(2) If the judgment is reversed, the enforcement of the said judgment shall be stayed. In case the new judgment is different from the previous judgment, the provision of sentence two of Article 245 (3) herein shall apply, mutatis mutandis.PART THREESPECIAL ACTION PROCEEDINGSChapter Twenty-FiveSUMMARY PROCEEDINGScope of ApplicationArticle 310. The procedure established by this Chapter shall apply to examination of any actions:1. for labour remuneration, to pronounce a dismissal wrongful and to revoke such dismissal, for compensation for the period of unemployment due to the dismissal, and for correction of the grounds for the dismissal as entered in the work book or in other documents;2. for protection of premises leased or loaned for use;3. for establishment and cessation of an infringement of rights under the Copyright and Neighbouring Rights Act, the Patents and Utility Models Registration Act, the Marks and Geographical Indications Act, the Industrial Designs Act, the Topographies of Integrated Circuits Act, and the Protection of New Plant Varieties and Animal Breeds Act; 4. for ascertainment and cessation of violation of rights under the Consumer Protection Act; 5. other actions whereof the examination in a summary proceeding is regulated in a law.Verification of Statement of ActionArticle 311. (1) On the day of receipt of the statement of action, the court shall verify the conformity thereof and the admissibility of the action.(2) The court shall instruct the plaintiff to amplify, particularize the allegations thereof and to eliminate the contradictions therein, where the said allegations are obscure, deficient or imprecise.Preparation of Case in CameraArticle 312. (1) On the day of receipt of the answer of the respondent or of the expiry of the time limit for receipt of the said answer, the court, sitting in camera, shall:1. schedule a hearing of the case for a date within three weeks;2. prepare a written report on the case;3. invite the parties to reach a settlement and explain thereto the advantages of the various procedures for voluntary resolution of the dispute;4. pronounce on the motions for evidence, admitting the evidence which is relevant, admissible and requisite;5. determine an amount and a time limit for depositing of the costs of taking of evidence.(2) The court shall serve upon the parties a transcript of the order, and, in addition to the said transcript, shall serve upon the respondent a transcript of the written answer and the evidence attached thereto, and shall instruct the parties to take a stand, within one week, in connection with the instructions given and the report on the case and to undertake the relevant procedural steps, as well as advise the parties of the consequences of non-compliance with the instructions.(3) The court shall pronounce on any motions made in due time in connection with the instructions and the report on the case on the day of receipt of the said motions. The order on the motions made shall be communicated to the parties.Consequences of Non-compliance with InstructionsArticle 313. Where the parties fail to comply with the instructions of the court within the time limit set, the said parties shall forfeit the possibility to do so later, unless the omission is due to special unforeseen circumstances.Joinder of ActionsArticle 314. (1) The plaintiff may, by the stand thereof on the report of the court, and the respondent may, by the written answer, approach the court with a motion to pronounce, by the judgment thereof, regarding the existence or non-existence of a disputed legal relation upon which the outcome of the case depends in whole or in part.(2) Counter actions may not be brought, third parties may not be impleaded, and actions may not be brought against any such third parties according to the procedure of this proceeding.(3) In actions for eviction from premises leased or loaned for use, oppositions as to ownership and to improvements made in the immovable shall be inadmissible.Examination of CaseArticle 315. (1) During the hearing for examination of the case, the court shall reinvite the parties to reach a settlement, and if no such settlement is reached, the court shall take the evidence presented and shall hear the oral arguments.(2) During the same hearing, the court shall assign a day whereon the said court is to publish the judgment thereof and which shall be the day as from which the time limit for appellate review of the said judgment shall begin to run.Time Limit for Rendition of JudgmentArticle 316. The court shall publish the judgment thereof with the reasoning within two weeks after the hearing during which the examination of the case was concluded.Applicability of Rules before Intermediate Appellate Review CourtArticle 317. The rules of this Chapter shall apply, mutatis mutandis, to the proceeding before the intermediate appellate review court.Chapter Twenty-SixPROCEEDING IN MATRIMONIAL SUITSMatrimonial ActionsArticle 318. The actions for divorce, for marriage annulment and for establishment of the existence or non-existence of a marriage between the parties shall be examined according to the procedure established by this Chapter.Special Capacity to SueArticle 319. Spouses who are minors and limited interdicts may bring matrimonial actions and be sued under such actions of their accord.Divorce When Wife PregnantArticle 320. The proceeding in the matter of a matrimonial action shall be stayed on a motion by the wife if she is pregnant and until the child attains the age of twelve months.Examination of CaseArticle 321. (1) During the first hearing for examination of the case on an action for divorce, the parties must appear in person. In case of non-appearance of the plaintiff without reasonable excuse, the proceeding shall be dismissed.(2) After addressing the preliminary issues and the issues pertaining to the conformity of the statement of action, the court shall be obligated to redirect the parties to mediation or another procedure for voluntary resolution of the dispute.(3) If the parties reach agreement on commencement of mediation or another procedure for voluntary resolution of the dispute, the case shall be stayed.(4) Each of the parties may move for a resumption of the proceeding in the matter of the case within six months. Unless such a motion is made, the case shall be dismissed.(5) Where agreement is reached, depending on the content of the said agreement the case shall be dismissed or a proceeding for divorce by mutual consent shall be proceeded with.(6) If the parties fail to reach agreement on a mediation procedure or another procedure for voluntary resolution of the dispute, the examination of the case shall continue.Exhaustive GroundsArticle 322. (1) In an action for divorce, the plaintiff must raise all grounds for the deep and irrevocable break-down of the marriage. Any uncited grounds, which have occurred and have become known to the spouse prior to the conclusion of the oral arguments, may not serve as grounds for bringing a new action for divorce.(2) All matrimonial actions may be joined there between. The demands for exercise of parental rights, interspousal personal relations and child maintenance, use of the matrimonial home, interspousal maintenance and the surname shall mandatorily be brought and examined by such actions.(3) The provisions of Paragraphs (1) and (2) shall furthermore apply to the respondent regarding the actions which the said respondent could have brought.(4) An action for marriage annulment by reason of a violation of the age qualification under Article 12 and by reason of threat under Item 2 of Article 96 (1) of the Family Code may not be brought after the action for divorce is dismissed.Interim MeasuresArticle 323. (1) Acting on a petition by any of the parties, the court where before the action for divorce or for marriage annulment has been brought shall rule on interim measures regarding the maintenance, the matrimonial home and the use of the property acquired during the marriage, as well as regarding the care of the children and the maintenance thereof.(2) The court shall pronounce on any such petition during the hearing during which the said petition is submitted, unless additional evidence has to be taken. In such case, a new hearing shall be scheduled within two weeks.(3) The ruling referred to in Paragraph (1) shall be unappealable but may be modified by the same court.Judgment on Matrimonial ActionsArticle 324. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on matrimonial actions.Entry into Effect of Judgment of DivorceArticle 325. A judgment on divorce shall enter into effect, even if the said judgment has been appealed solely in the part thereof concerning the fault.Surname after DivorceArticle 326. By the judgment whereby the divorce is granted, the court shall also address the issue of the surname which the spouses will be able to use in future.Continuing Case upon Plaintiff's DeathArticle 327. (1) When the plaintiff spouse dies and the action for divorce is based on the fault of the surviving spouse, the court shall allow the descendants or ascendants called to accept the succession to state whether they wish to continue the case. This rule shall furthermore apply to an action for marriage annulment, if the surviving spouse acted in bad faith.(2) If nobody states a wish to continue the case within the time limit allowed, the said case shall be dismissed. The case shall also be dismissed if the action for divorce is not based on the fault of the surviving spouse or if, upon an action for marriage annulment, the surviving spouse acted in good faith.(3) Where the case is continued, the court shall pronounce solely on the culpable behaviour of the survivor cited by the deceased spouse as grounds for marriage annulment.Continuing Case upon Respondent's DeathArticle 328. Upon the death of the respondent, the persons referred to in Article 327 herein may continue the case if the action brought is in reference to Article 13 of the Family Code and the plaintiff acted in bad faith when the marriage was contracted.Costs of CaseArticle 329. (1) The court costs of matrimonial suits shall be awarded against the spouse at fault or the spouse who acted in bad faith. Where there is no fault or bad faith, or where both spouses are at fault or acted in bad faith, the costs shall be left borne by each one of them as incurred.(2) Upon dismissal of the action for divorce, the costs shall be determined according to the procedure established by Article 78 herein. The same procedure shall furthermore apply to determination of costs upon appellate review of the judgment.Divorce by Mutual ConsentArticle 330. (1) Upon a motion for divorce by mutual consent, the spouses shall appear in person during the court hearing.(2) Where any of the spouses fails to appear without reasonable excuse, the case shall be dismissed.(3) After satisfying itself that the consent of the spouses to divorce is serious and firm, and after determining that the agreement reached under Article 101 of the Family Code does not conflict with the law and is in the interest of the children, the court shall grant the divorce and shall endorse the agreement by a judgment.(4) Examination of the petition shall be adjourned solely if additional evidence has to be taken.(5) The judgment whereby divorce by mutual consent is granted shall be unappealable.Chapter Twenty-SevenPROCEEDING IN CIVIL STATUS CASESGoverning ProvisionsArticle 331. (1) Any actions to establish or disavow filiation, as well as any actions to terminate adoption, shall be examined according to the procedure established by this Chapter.(2) Articles 319 and 327 herein shall apply, mutatis mutandis, to any actions covered under Paragraph (1) regarding the continuing of the case by the heirs of the adopter to establish that it is well-founded.Joinder of Actions for MaintenanceArticle 332. (1) An action for maintenance of the child may be joined to the action to establish paternity or maternity, but interim maintenance may not be awarded in the matter of such cases.(2) An action for compensation of the adoptee who has contributed to an augmentation of the property status of the adopter may be joined to the action to terminate adoption. Any such action may be brought as a counter action as well.Duty to CooperateArticle 333. (1) The parties to a filiation case shall be obligated to cooperate upon the preparation of the conclusion by the expert witness, unless the research involves a substantial or sustained risk to the life or health of the said parties.(2) The court shall pronounce on a refusal to cooperate by a ruling which shall be subject to appellate review by separate appeal. Where the refusal is rightful, the court shall determine another method of research into filiation which does not involve any such risk.(3) For obtaining any samples whereupon the inviolability of the body is not impaired, the court shall command, where necessary, the application of appropriate methods of compulsion.(4) If evidence cannot be taken according to the procedure established by Paragraphs (1) to (3), the court may decree that the requisite post-mortem samples be taken except in the cases where this is prohibited by a law.Judgment on Civil Status ActionArticle 334. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on any action for civil status.Termination of Proceeding upon Child's DeathArticle 335. The proceeding in the matter of cases to disavow paternity shall be terminated in the event of death of the child.Chapter Twenty-EightINTERDICTIONCommencement of ProceedingArticle 336. (1) The full or limited interdiction of a person may be moved for by a statement of action by the spouse, by members of the immediate family, by a prosecutor and by any person who has standing to do so.(2) The participation of a prosecutor in the proceedings referred to in Paragraph (1) shall be mandatory.Immediate Impressions of PersonArticle 337. (1) The person sought to be interdicted must be examined in person and, if necessary, the attendance thereof shall be compelled. Where the said person is placed in a medical-treatment facility and the health condition thereof precludes that he or she be brought in person to a court hearing, the court shall be obligated to obtain an immediate impression of the condition of the said person.(2) If, after the examination, the court deems it necessary, the court shall appoint a provisional curator to take care of the personal and property interests of the person referred to in Paragraph (1).Examination of ActionArticle 338. (1) The court shall pronounce on the statement of action after an examination of the person sought to be interdicted and of the family members thereof. If this proves insufficient, the court shall proceed with taking of other evidence and hearing of expert witnesses.(2) If the person is placed in a medical-treatment facility, the court shall procure information on the condition of the said person.(3) After the entry into effect of the judgment whereby the person is interdicted, the court shall communicate this to the authority on tutorship and on curatorship in order to institute tutorship or curatorship.(4) The plaintiff shall not be entitled to costs in the interdiction proceeding. If the action is dismissed, the plaintiff shall owe the respondent the costs incurred thereby in connection with the case.Judgment on Action for InterdictionArticle 339. A judgment by default and a judgment upon acknowledgment of the demand shall not be rendered on any action for interdiction.Vacation of InterdictionArticle 340. (1) The provisions of this Chapter shall furthermore apply to a vacation of interdiction.(2) A vacation of interdiction may be requested, inter alia, by the authority on tutorship and on curatorship or by the tutor.Chapter Twenty-NineJUDICIAL PARTITIONCommencement of ProceedingArticle 341. (1) Any co-heir who wishes a partition shall submit a written petition to the regional court, attaching thereto:1. a certificate of death of the decedent and a certificate of heir ship of the said decedent;2. a certificate or other written evidence of the succession immovables;3. transcripts of the petition and the attachments for the other co-heirs.(2) During the first hearing of the case, each of the remaining co-heirs may move, by a written petition, for incorporation of other immovables into the decedent's estate.First HearingArticle 342. During the first hearing, each of the co-heirs may oppose the right of any of the said co-heirs to participate in the partition, to the amount of the share of each of the said co-heirs, as well as to the incorporation of certain immovables into the decedent's estate.Pre-conditioning QuestionsArticle 343. Disavowals of filiations, contestations of adoptions, of testaments and of the authenticity of written evidence, as well as motions for reduction of testamentary dispositions and of donations, shall be examined in the partition proceeding.Judgment Granting PartitionArticle 344. (1) In the judgment whereby partition is granted, the court shall pronounce on the questions as to between which persons and in respect of which immovables the said partition is to be made, as well as what share appertains to each co-heir. Where partition of movable things is granted, the court shall furthermore pronounce on the question as to which of the co-partitioners holds the said things.(2) In the judgment referred to in Paragraph (1) or later, if all heirs do not use the succession immovables in conformity with the rights thereof, the court, acting on a motion by some of the said heirs, shall decree which of the heirs are to avail themselves of which immovables until the partition is finally made or what amounts the former must pay the latter in consideration of the use.(3) The ruling under Paragraph (2) may be modified by the same court. Any such ruling shall furthermore be appealable by an interlocutory appeal.Exclusion of Immovables from PartitionArticle 345. Where the succession includes any immovables which the decedent owned in co-ownership with third parties, the said immovables shall be excluded from the divisible estate, if a partition is not made between the heirs, of the one part, and the third parties, of the other hand, prior to the drawing up of the memorandum of division.Demands for AccountsArticle 346. During the first hearing after the granting of the petition, the co-heirs may raise demands for accounts there between, citing the evidence in their possession.Memorandum of DivisionArticle 347. The court shall draft the memorandum of division on the basis of the conclusion of an expert witness in compliance with the rules of the Succession Act.Offering for Public SaleArticle 348. Where any immovable is indivisible and cannot be allocated to any of the shares, the court shall decree that the said immovable be offered for public sale. The parties to the partition may bid in the public sale.Award of Indivisible Dwelling UnitArticle 349. (1) If the indivisible immovable is a dwelling unit which constituted matrimonial community property terminated by the death of one spouse or by divorce, and the surviving or former spouse, who has been awarded the exercise of parental rights in respect of the children from the marriage, does not have a dwelling unit of his or her own, the court, acting on a motion by the said spouse, may allocate any such dwelling unit to a share, the shares of the rest of the co-partitioners being balanced by other immovables or by money.(2) If the indivisible immovable is a dwelling unit, each of the co-partitioners who, upon the opening of the succession resided therein and does not own another dwelling unit, may move that the said dwelling unit be allocated to the share thereof, with the shares of the rest of the co-partitioners being balanced by another immovable or by money. Where several co-partitioners satisfying the conditions of sentence one lay claims to allocation of the immovable to the share thereof, preference shall be given to the co-partitioner who offers a higher price.(3) The interested parties may record a legal mortgage for the claims for balancing of the shares.(4) A motion for award may be made at the latest during the first hearing after the entry into effect of the judgment granting the partition under Article 344 (1) herein. The immovable shall be appraised at the actual value thereof.(5) Where the balancing is by money, the said balancing must be paid together with the statutory interest within six months after the entry into effect of the judgment of award.(6) The co-partitioner, to whose share the immovable is allocated according to the procedure established by Paragraphs (1) and (2), shall become owner of the said immovable after paying the money balancing as set together with the statutory interest within the time limit referred to in Paragraph (5). If the balancing is not paid within the said time limit, the judgment of award shall be invalidated ex lege and the property shall be offered for public sale. The immovable may not be offered for public sale and may be awarded to another co-partitioner who satisfies the conditions under Paragraph (2) and has moved for an award within the time limit referred to in Paragraph (4) if the said partitioner forthwith pays the price whereat the immovable was appraised upon the partition, debited with the value of the share of the said partitioner in the said immovable. The resulting amount shall be apportioned among the rest of the co-partitioners according to the quotas thereof.Final Memorandum of DivisionArticle 350. After drawing up the draft of the memorandum of division, the court shall summon the parties in order to present the said draft thereto and to hear the oppositions thereof to the said draft. Thereafter, the court shall draw up and publish the final memorandum of division.Appellate Review of JudgmentsArticle 351. The judgments under Articles 346, 348, 349 and 350 herein shall be appealable by a general appeal within the time limit for appellate review of the latest judgment.Drawing of LotsArticle 352. After the judgment on the memorandum of division enters into effect, the court shall summon the parties for a drawing of lots.Apportionment of ImmovablesArticle 353. The court may make the partition by apportioning the succession immovables among the co-partitioners without drawing of lots, where the formation of shares and the drawing of lots proves impossible or very inconvenient.Buy-out by Co-partitionerArticle 354. (1) Where the immovable is offered for public sale as indivisible, each of the co-partitioners in the partition may buy out the said immovable under the terms established by Article 505 (2) herein.(2) If several co-partitioners wish to buy out the immovable under the terms established by Paragraph (1), a new sale shall be conducted solely between the said co-partitioners, with the highest price offered in the first sale as the starting bid. The said new sale shall continue for one week and shall follow the general rules.(3) If none of the co-partitioners buys out the immovable in the sale referred to in Paragraph (2), the said immovable shall be awarded to the third-party bidder in respect of the partition who offered the highest price in the first sale.Costs of ProceedingArticle 355. The parties shall pay the costs in proportion to the shares thereof. The costs under the joined actions in the partition proceeding shall be determined under Article 78 herein.Chapter ThirtyREMEDY AGAINST AND RECOVERY OF DISTURBED POSSESSIONGeneric CognizanceArticle 356. Any actions for remedy against disturbed possession and holding and for recovery of disturbed possession and holding (Articles 75 and 76 of the Ownership Act) shall be cognizable in the regional court acting as a court of first instance.Establishment of Fact of PossessionArticle 357. (1) Under these cases, the court shall verify solely the fact of possession or of the disturbance thereof.(2) The documents attesting the right of ownership shall be taken into account solely insofar as the said documents establish the fact of possession.Verification as to Legal ConformityArticle 358. Where possession has been forfeited at a command or with the cooperation of an enforcement agent or another state body, the court shall verify the legal conformity of the command or, respectively, of the acts performed, regardless of whether they are appealable or have been appealed.Inadmissibility where Action for Ownership BroughtArticle 359. The person, who has brought an action for ownership of a corporeal immovable, may not bring an action for possession against the same respondent in respect of the same immovable while the suit for the ownership is pending, unless dispossession has been effected through violent means or through concealment after the said action has been brought.Fine for DisturberArticle 360. Where the possession or holding has been forfeited through violent means or through concealment (Article 76 of the Ownership Act), the court may, inter alia, impose on the disturber a fine not exceeding BGN 1,000.Anticipatory EnforcementArticle 361. The judgment regarding the delivery of the immovable shall be subject to anticipatory enforcement and may not be stayed.Chapter Thirty-OnePROCEEDING FOR CONCLUSION OF FINAL CONTRACTDeclaring Finality of Contract in Case of Cross-ObligationArticle 362. (1) In an action under Article 19 (3) of the Obligations and Contracts Act, if, according to the preliminary contract, the plaintiff must perform a cross-obligation thereof upon conclusion of the final contract, the court shall render judgment in lieu of the final contract, subject to the condition that the plaintiff is to perform the obligation thereof. In such case, the plaintiff must perform the obligation thereof within two weeks after the entry into effect of the judgment, inter alia through setting off the obligations to the State paid thereby for the account of the respondent.(2) If the plaintiff fails to perform the obligation thereof within the time limit referred to in Paragraph (1), the first-instance court, acting on a motion by the respondent, shall invalidate the judgment.Verification of OwnershipArticle 363. Where the obligation is for transfer of a right of ownership to an immovable, the court shall verify whether the prerequisites for transfer of the ownership according to a notarial procedure apply, including whether the transferor is owner of the said immovable.Fees and CostsArticle 364. (1) By the judgment thereof, the court shall order the plaintiff to pay the State the costs due for the transfer of the immovable and shall command the recording of a preventive attachment of the said immovable until payment of the said costs.(2) The court shall not issue a transcript of the judgment until the plaintiff proves that the costs of the transfer have been paid.Chapter Thirty-TwoPROCEEDINGS ON COMMERCIAL DISPUTESGoverning ProvisionsArticle 365. According to the procedure established by this Chapter, the district court, acting as a court of first instance, shall examine actions for a right or a legal relation arising from or appertaining to:1. a commercial transaction, including the conclusion, interpretation, validity, performance, non-performance or termination of any such transaction, the consequences of the termination thereof, as well as for filling gaps in a commercial transaction or adjustment of any such transaction to intervening circumstances;2. a privatization contract, a public procurement contract, or a concession agreement;3. participation in a commercial corporation or in another legal person which is a merchant, as well as for establishment of admissibility or nullity of a recording and for non-existence of a circumstance recorded in the commercial register;4. replenishment of the bankruptcy estate, including the actions of creditors for a declaratory judgment;5. cartel agreements, decisions and concerted practices, concentration of economic activities, unfair competition, and abuse of a monopoly position or of a dominant position.Attachments to Statement of ActionArticle 366. As an attachment to a statement of action for a pecuniary receivable, the party shall be obligated to present a statement containing the calculations required for determination of the amount of the said claim.Answer to Statement of ActionArticle 367. (1) After accepting the statement of action, the court shall transmit a transcript of the said statement together with the attachments to the respondent, instructing the said respondent to submit a written answer within two weeks, specifying the mandatory content of the answer and the consequences of the non-submission of an answer or of the non-exercise of rights.(2) The written answer of the respondent must contain:1. a reference to the court and to the case number;2. the name and address of the respondent, as well as of the legal representative or attorney-in-fact thereof, if any;3. a stand on the admissibility of the action and on whether the action is well-founded;4. a stand on the circumstances upon which the action is founded;5. the oppositions to the action and the circumstances upon which the said oppositions are founded;6. signature of the person who submits the answer.(3) In the answer to the statement of action, the respondent shall be obligated to cite exactly the evidence and the specific circumstances which the said respondent is to prove thereby, as well as to present all written evidence in the possession thereof.(4) Within the time limit for answer, the respondent may bring a counter action, may implead third parties and may bring actions there against.Attachments to Answer to Statement of ActionArticle 368. Transcripts of the answer and of the attachments thereto according to the number of plaintiffs shall be presented attached to the answer to the statement of action.Opposition to Examination According to Standard ProcedureArticle 369. (1) An opposition alleging that the dispute is not subject to examination according to the standard procedure may be lodged solely by the respondent at the latest by the answer to the statement of action, or may be raised ex officio by the court within the same time limit.(2) A ruling that the dispute is subject to examination according to the standard procedure shall be appealable by an interlocutory appeal.Consequences of Non-submission of AnswerArticle 370. Where the respondent fails, within the established time limit, to submit a written answer, to take a stand, to lodge oppositions, to cite evidence or to present written evidence, the said respondent shall forfeit the possibility to do so later, unless the omission is due to special unforeseen circumstances.Opposition to Set-Off after Time Limit for AnswerArticle 371. An opposition to set-off may be raised prior to the conclusion of the trial in the court of first instance, where taking of new evidence is not required to prove the said set-off, or prior to the conclusion of the trial in the court of intermediate appellate review instance, where the existence or non-contestation of the said set-off are established by an effective judgment of court or an enforcement order.Additional Statement of ActionArticle 372. (1) After accepting the answer, the court shall transmit a duplicate copy of the said answer together with the attachments to the plaintiff, who may submit an additional statement of action within two weeks.(2) In the additional statement of action, the plaintiff may explain and amplify the initial statement of action. Within the time limit for submission of an additional statement of action, the plaintiff may modify the demand raised, may implead third parties and bring actions there against, may approach the court with a motion to pronounce by the judgment itself inter alia regarding the existence or non-existence of a legal relation disputed in the answer to the statement of action upon which the outcome of the case depends in whole or in part, as well as cite and present new evidence which the plaintiff was unable to cite and present by the statement of action.Additional AnswerArticle 373. (1) After accepting the additional statement of action, the court shall transmit a transcript of the said statement together with the attachments to the respondent who may submit an answer within two weeks.(2) In the additional answer, the respondent shall be obligated to respond to the additional statement of action. Within the time limit for submission of an additional statement of action, the respondent may approach the court with a motion to pronounce by the judgment itself inter alia regarding the existence or non-existence of a legal relation disputed in the additional statement of action upon which the outcome of the case depends in whole or in part, as well as cite and present new evidence which the respondent was unable to cite and present by the answer to the statement of action.Preparation of Case in CameraArticle 374. (1) After verifying the conformity of the papers exchanged and the admissibility of the actions brought, including the cost of the said actions, as well as the other motions and oppositions by the parties, the court shall render a ruling on all preliminary issues and on admission of the evidence. Alternatively, the court may pronounce on the admission of certain evidence in public session solely if the court determines that the oral explanations of the parties must be heard as well.(2) The court shall schedule a hearing of the case in public session, transmitting the additional answer to the plaintiff. The court shall communicate the ruling thereof referred to in Paragraph (1) to the parties. The court may furthermore communicate to the parties the court's draft of a report on the case, as well as direct the parties to mediation or another procedure for voluntary resolution of the dispute.Examination of Case in Public SessionArticle 375. (1) The court, sitting in public session, shall deliver an oral report, shall give instructions to the parties, and shall afford the parties an opportunity to set forth the stand thereof in connection with the report on the case and the instructions given, as well as to undertake the procedural steps they wish, where after the court shall take the evidence admitted and shall hear the oral arguments.(2) If the case is of factual and legal complexity, the court may allow each of the parties' time to present a written defence and a reply.Examination of Case in CameraArticle 376. (1) Where all evidence has been presented by the exchange of papers and if the court holds that hearing of the parties is not necessary, the court may examine the case in camera, affording the parties an opportunity to present written defences and replies.(2) The court shall examine and adjudicate in the case in camera where the parties move for this.(3) The court shall assign a day whereon the said court is to publish the judgment thereof and which shall be the day as from which the time limit for appellate review shall begin to run.Applicability of General RulesArticle 377. Save insofar as there are any special rules for the proceeding on commercial cases, the general rules applicable to the proceeding before the court of first instance shall apply.Applicability of Rules before Intermediate Appellate Review CourtArticle 378. The rules of this Chapter shall apply, mutatis mutandis, to the proceeding before the intermediate appellate review court.Chapter Thirty-ThreePROCEEDINGS ON CLASS ACTIONSClass ActionsArticle 379. (1) A class action may be brought on behalf of persons who are harmed by the same infringement where, according to the nature of the infringement, the circle of the said persons cannot be defined precisely but is identifiable.(2) Any persons who claim that they are harmed by an infringement under Paragraph (1), or any organizations responsible for the protection of injured persons or for protection against such infringements, may bring, on behalf of all injured persons, an action against the infringer for a declaratory judgment on the harmful act or omission, an action for the wrongfulness of the said act or omission, and an act for the blame.(3) Any persons who claim that the collective interest thereof has been harmed or is likely to be harmed by an infringement referred to in Paragraph (1), or any organization responsible for the protection of injured persons, of the harmed collective interest or for protection against such infringements, may bring, on behalf of all injured persons, an action against the infringer for cessation of the infringement, for rectification of the consequences of the infringement of the harmed collective interest, or for compensation for the damages inflicted on the said interest.Bringing Class ActionArticle 380. (1) Class actions shall be examined by the district court acting as a court of first instance according to the procedure established by this Chapter.(2) The statement of action, apart from the circumstances upon which the action is founded, shall specify the circumstances which identify the circle of injured persons and the form in which publication of the bringing of the action is proposed.(3) Evidence of the capacity of the resident to protect the harmed interest seriously and in good faith, as well as to incur the charges related to the conduct of the case, including the costs, shall be presented attached to the statement of action.Verification of Conditions for Bringing Class ActionArticle 381. (1) After verification of the admissibility of the action brought and the conformity of the statement of action, the court shall verify ex officio the capacity of the person or persons who have brought the action to protect the harmed interest seriously and in good faith and to incur the charges related to the conduct of the case, including the costs.(2) The court may hear the person or persons who have brought the action in public session.(3) The court shall not admit the case to examination if none of the persons who have brought the action satisfies the conditions referred to in Paragraph (1) or if all such persons together do not satisfy the said conditions.(4) The ruling of the court whereby the case is not admitted to examination shall be appealable by an interlocutory appeal.Preparation of Case for ExaminationArticle 382. (1) The court, sitting in public session with the parties being summoned, shall hear the stands of the parties regarding the circumstances which identify the circle of injured persons and the form of publication of the bringing of the action.(2) The court shall rule on:1. an adequate form of publication of the bringing of the action: number of announcements, through which media and for what length of time the said announcements must be made;2. an adequate time limit after the publication within which the injured persons may declare that they will participate in the procedure or will pursue a remedy independently.(3) The ruling shall be appealable by an interlocutory appeal.Acceptance of New Participants and Exclusion from ParticipationArticle 383. (1) The court, sitting in camera, shall:1. accept for participation in the procedure other injured persons, organizations responsible for the protection of the injured persons, of the harmed collective interest or for protection against such infringements, who or which have declared, within the time limit set, a motion for participation in the procedure;2. exclude the injured persons who have declared, within the time limit set, that they will pursue a remedy independently in a separate procedure.(2) The ruling whereby inclusion of new participants or exclusion from participation is refused shall be appealable by an interlocutory appeal.(3) The court shall issue a transcript of the ruling on exclusion to the persons who have declared, within the time limit set, that they will pursue a remedy independently in a separate procedure.Accommodation on Voluntary Resolution of DisputeArticle 384. (1) The court shall direct the parties to a settlement and shall explain thereto the advantages of the various procedures for voluntary resolution of the dispute.(2) The court shall approve the settlement, agreement, conciliation or another accommodation reached on a partial or comprehensive resolution of the dispute if the said accommodation does not conflict with the law and good morals and if the harmed interest can be protected in a sufficient degree through the measures included in the said accommodation.(3) The accommodation on resolution of the dispute shall take effect after being approved by the court.Measures for Protection of Harmed InterestArticle 385. (1) The court may order the respondent to perform a specific act, to refrain from performing a specific act, or to pay a specific amount.(2) Acting on a petition by the plaintiff, the court where before the action has been brought may rule on adequate interim measures for protection of the harmed interest. The ruling may be modified or vacated by the same court consequent to a change of circumstances, an error or an omission.(3) The ruling shall be subject to intermediate appellate review and cassation appellate review regardless of the prerequisites for cassation appealability covered under Article 280 (1) herein. An appellate review of the ruling shall not stay the enforcement thereof, unless the court competent to examine the appeal decrees otherwise.(4) Upon rendition of the judgment, the court shall not be bound by the measures for protection cited by the plaintiff. Considering the specifics of the case and after taking into account the stand of the respondent, the court may decree other measures which ensure adequate protection of the harmed interest.Judgment on Class ActionArticle 386. (1) The judgment of the court shall have effect in respect of the infringer, the person or persons who have brought the action, as well as in respect of those persons who claim that they are harmed by the established infringement and who have not declared that they wish to pursue a remedy independently in a separate procedure. The excluded persons may avail themselves of the judgment whereby the class action has been granted.(2) A list of the excluded persons shall be attached to the judgment of the court.(3) The judgment shall be subject to intermediate appellate review and cassation appellate review regardless of the prerequisites for cassation appealability covered under Article 280 (1) herein.(4) A judgment on a class action may not be reversed under Article 304 herein.Disposition of CompensationArticle 387. (1) The court may decree that the compensation be credited to an account of one of the persons who have brought the action, to a special account jointly disposable by the persons who have brought the action, or to a special account jointly disposable by the injured persons.(2) After rendition of the judgment, the court may obligate the persons who have brought the action to transfer the compensation to a special account jointly disposable by the injured persons, taking adequate measures to secure the execution of this obligation.Injured Persons' General Meeting and CommitteeArticle 388. (1) The first-instance court may convene a general meeting of the injured persons by publishing the notice in the form in which the bringing of the action has been published. The general meeting of the injured persons shall be presided over by the judge and may act if at least six injured persons present themselves.(2) The general meeting of the injured persons shall elect a committee to dispose of the assets on the special account and may resolve on the acts which the said general meeting assigns the said committee to perform.PART FOURPRECAUTIONARY PROCEEDINGSChapter Thirty-FourGRANTING INJUNCTIONInjunction Securing Action BroughtArticle 389. (1) During any stage of the proceeding prior to the conclusion of the trial in the intermediate appellate review proceeding, the plaintiff may approach the court where before the case is pending with a motion to grant an injunction securing the action brought.(2) An injunction may be granted to secure all types of action.Injunction Securing Future ActionArticle 390. (1) Even before the action is brought, an injunction may be sought from the generically competent court exercising jurisdiction over the permanent address of the plaintiff or over the location of the immovable which is to serve as security.(2) In the case referred to in Paragraph (1), the court shall set a time limit for bringing of the action which may not be longer than one month. Unless proof of bringing an action within the time limit set is presented, the court shall dissolve the injunction ex officio.(3) The petition to grant an injunction securing a future action by means of a stay of enforcement shall be submitted to the generically competent court exercising jurisdiction over the place of the enforcement. A stay of enforcement shall be granted solely upon furnishing of security.Prerequisites for Granting InjunctionArticle 391. (1) An injunction securing the action shall be granted where, without such an injunction, it will be impossible or difficult for the plaintiff to realize the rights under the judgment and if:1. the action is supported by convincing written evidence, or2. a bond is furnished in an amount determined by the court according to Articles 180 and 181 of the Obligations and Contracts Act. (2) The court may obligate the plaintiff the furnish a bond of money or property in an amount determined by the court even in the case referred to in Item 1 of Paragraph (1).(3) The amount of the bond shall be determined on the basis of the amount of the direct and immediate damages which the respondent will incur if the injunction is unfounded.(4) The State, the government institutions and the medical-treatment facilities covered under Article 5 (1) of the Medical-Treatment Facilities Act shall be exempted from furnishing a bond.(5) An injunction securing the action shall be granted even when the case is stayed.Injunction Securing Action for Maintenance ObligationsArticle 392. An injunction securing actions for maintenance obligations shall be granted even without compliance with the requirements of Article 391 herein. In such case, the court may alternatively take measures to secure the action ex officio.Inadmissibility of InjunctionArticle 393. (1) An injunction securing an action for a pecuniary receivable against the State, the government institutions and the medical-treatment facilities covered under Article 5 (1) of the Medical-Treatment Facilities Act shall not be granted.(2) An injunction securing an action for a pecuniary receivable by means of garnishment of receivables where against coercive enforcement is inadmissible shall not be granted.Partial InjunctionArticle 394. The court may grant an injunction securing the full amount of the action or only such portions of the action as are supported by sufficient evidence.Petition to Grant InjunctionArticle 395. (1) The petition for an injunction shall specify the precautionary measure and the cost of the action. A transcript of the said petition shall not be served upon the opposing party.(2) The petition shall be adjudicated in camera on the day on which the said petition is submitted.(3) On the basis of the ruling whereby the petition is granted, the court shall issue an injunctive order. Where a bond has been set, the court shall issue an injunctive order after the said bond has been deposited.Appellate ReviewArticle 396. (1) The ruling of the court on an injunction securing the action shall be appealable by an interlocutory appeal within one week which shall begin to run, in respect of the petitioner, as from the service of the said ruling and, in respect of the respondent, as from the day of service thereupon of a communication of the precautionary measure imposed by the enforcement agent, by the Recording Office or by the court in the cases referred to in Item 3 of Article 397 (1) herein.(2) A transcript of the interlocutory appeal shall be served upon the opposing party for an answer within one week.(3) The ruling whereby an injunction securing the action is granted may not be stayed by reason of being appealed by an interlocutory appeal.Chapter Thirty-FivePRECAUTIONARY MEASURESTypes of MeasuresArticle 397. (1) An injunction shall be effected:1. by means of imposition of a preventive attachment of a corporeal immovable;2. by means of garnishment of movable things and receivables of the debtor;3. through other appropriate measures determined by the court, including through a suspension from operation of a motor vehicle and through a stay of enforcement.(2) The court may grant several types of injunction up to the amount of the cost of action as defined in Article 69 (1) herein.Replacement of InjunctionArticle 398. (1) The court, acting on a motion by one of the parties, may, after notifying the other party and taking into account the oppositions thereof lodged within three days after the communication, grant the replacement of one type of injunction by another type.(2) Where the injunction secures an action appraisable in money, the respondent may always replace the injunction as granted by the court by a pledge of money or of securities according to Articles 180 and 181 of the Obligations and Contracts Act without the consent of the other party. This shall not apply to any injunction securing actions for ownership.(3) In the cases referred to in Paragraphs (1) and (2), the garnishment and preventive attachment shall be dissolved.Consent Regarding Object of InjunctionArticle 399. If the action is based on a contract which specifies the immovable which is to serve as security, the injunction shall be granted solely in respect of the said immovable, unless the said immovable is not available or has been encumbered, in the intervening time, by other charges which render the security insufficient.Imposition of Precautionary MeasureArticle 400. (1) Garnishment shall be imposed immediately by the enforcement agent on a motion by the petitioner on the basis of the injunctive order of the court according to Article 449 (1), Article 450 (1) and (2), Articles 507, 515, 516 and 517 herein, and a communication instead of a summons to voluntary compliance shall be served upon the respondent. In case of garnishment of a movable thing, the enforcement agent shall take an inventory, conduct an appraisal and deliver the thing for safekeeping according to Articles 465 to 472 herein.(2) Preventive attachment shall be imposed by recording of the injunctive order of the court in the notarial books. The Recording Office shall notify the respondent of the recording effected.Effect of Precautionary MeasureArticle 401. A garnishment and a preventive attachment, imposed to secure an action, shall take the effect provided for in Articles 451 to 453, Article 456 (1), Articles 508, 509 and Articles 512 to 514 herein. The secured creditor may bring an action against the garnishee for the amounts or the corporeal things which the said garnishee refuses to surrender voluntarily. Articles 435 (4) and Article 440 herein shall apply to this case.Dissolution of InjunctionArticle 402. (1) Dissolution of the injunction shall be decreed on a petition by the interested party. A transcript of the petition shall be served upon the person on whose motion the injunction has been imposed. The said person may lodge oppositions within three days after receipt of the transcript.(2) The court, sitting in camera, shall dissolve the injunction after satisfying itself that the reason for which the said injunction was granted no longer exists, or that the conditions referred to in Article 398 (2) herein apply. The ruling of the court shall be appealable by an interlocutory appeal.(3) The lifting of the garnishment, the striking of the preventive attachment, as well as the dissolution of the other precautionary measures shall be effected on the basis of the effective ruling of the court.Compensation for DamagesArticle 403. (1) If the action for the securing of which the injunction has been granted is dismissed or if the said action is not brought within the time limit set to the plaintiff, or if the case is dismissed, the respondent may seek from the plaintiff recovery of the damages inflicted as a result of the injunction.(2) In the cases referred to in Paragraph (1), for the release of the bond furnished, the interested party shall submit a petition with a transcript for the opposing party. Within one week after service of the petition, the respondent may lodge an opposition to the release of the bond and, within one month, to bring an action for the damages inflicted thereon. If the respondent fails to lodge an opposition and to bring such an action within the said time limits, the bond shall be released.PART FIVEENFORCEMENT PROCEEDINGSTITLE ONEGENERAL DISPOSITIONSChapter Thirty-SixISSUING OF WRIT OF EXECUTIONEnforcement TitleArticle 404. The following shall be subject to coercive enforcement:1. the effective judgments and rulings of the court, the adverse judgments of the intermediate appellate review courts, the enforcement orders, the memoranda on court settlement, the judgments of enforcement and enforcement orders which are subject to or are admitted to anticipatory or immediate enforcement, as well as the awards of the arbitration courts and the settlements reached before such courts in the matter of arbitration cases;2. the judgments, acts and memoranda on court settlement of the foreign courts which are enforceable within the territory of the Republic of Bulgaria without an express proceeding;3. the judgments, acts and memoranda on court settlement of the foreign courts, as well as the awards of the foreign arbitration courts and the settlement reached before such courts in the matter of arbitration cases, which have been admitted to enforcement within the territory of the Republic of Bulgaria.Proceeding for Issuing of Writ of ExecutionArticle 405. (1) A writ of execution shall be issued on a written petition on the basis of any of the acts specified in Article 404 herein. A transcript of the said petition shall not be served upon the debtor.(2) A petition based on the acts covered under Item 1 of Article 404 herein shall be submitted to the first-instance court which has examined the case or to the court which has issued the enforcement order, and where the act is subject to immediate enforcement, any such petition shall be submitted to the court which has rendered the judgment of enforcement or has decreed the enforcement order.(3) A petition based on the awards of the domestic arbitration courts and the settlements reached before such courts in the matter of arbitration cases shall be submitted to the Sofia City Court.(4) The court competent to admit the enforcement shall issue a writ of execution on the basis of the acts covered under Items 2 and 3 of Article 404 herein. A writ of execution issued on the basis of the acts covered under Item 3 of Article 404 herein shall not be delivered to the creditor until the judgment admitting the enforcement enters into effect.(5) In respect of any amounts awarded in favour of the State, the court shall issue a writ of execution ex officio.(6) A petition based on the acts covered under Item 1 of Article 404 herein shall be examined in camera within seven days by a judge of the competent court.Order to Issue Writ of ExecutionArticle 406. (1) A writ of execution shall be issued after the court verifies whether the act is prima facie conforming and whether the said act attests the receivable enforceable against the debtor.(2) In the cases covered under Items 2 and 3 of Article 404 herein, the court shall furthermore verify whether the receivable is enforceable by the methods of the Bulgarian law. Where this is impossible, the court shall decree a substitute enforcement which can satisfy the creditor.(3) The judge shall make a due note on the act regarding the issuing of the writ of execution.(4) Articles 247, 250 and 251 herein shall apply, mutatis mutandis, in the proceeding for the issuing of a writ of execution.Appellate Review of Order to Issue Writ of ExecutionArticle 407. (1) An order whereby a petition to issue a writ of execution is granted or refused in whole or in part shall be appealable by an interlocutory appeal within two weeks which shall begin to run, in respect of the petitioner, as from the service of the order and, in respect of the respondent, as from the service of the notice of voluntary compliance.(2) The appellate review of the order whereby the petition is granted shall not stay the enforcement.(3) Where the writ of execution has been issued under the terms established by Article 406 (2) herein, the order shall be appealable according to the standard procedure.Original Writ of ExecutionArticle 408. (1) A writ of execution shall be issued in a single copy, signed by a judge of the competent court.(2) Where several separate immovables have to be delivered or where the judgment has been rendered in favour of or adverse to several persons, separate writs of execution may be issued, specifying the part of the judgment which is enforceable under each writ.Replacement Writ of ExecutionArticle 409. (1) If the original writ of execution is lost or destroyed, the court which has issued the said writ, acting on a written petition by the petitioner, shall issue a replacement of the said writ on the basis of the act under which the original was issued.(2) The petition shall be examined in public session after a transcript of the said petition is served upon the execution debtor.(3) Apart from the lack of conditions under Paragraph (1), the execution debtor may furthermore raise an opposition of redemption of the debt on the basis of circumstances which have intervened after the establishment of the existence of the said debt.(4) The judgment rendered shall be appealable according to the standard procedure. After the judgment enters into effect, the execution debtor may not contest the existence of the debt on grounds which the said debtor could have raised in the proceeding for the issuing of the replacement.(5) If the act itself has been lost or destroyed and the content thereof cannot be restored by means of official documents, the petitioner may bring an action for performance against the execution debtor. For more information visit www.solicitorbulgaria.com id: 321 Fri, 01 Aug 2008 07:09:06 -0700 http://solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 http://solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 http://solicitorbulgaria.com/static2//userfiles/Image/_articles/256/CODE_OF_CIVIL_PROCEDURE3.JPG EUR http://solicitorbulgaria.com/index.php/bulgarian-code-of-civil-procedure-part-2 legal 80 negotiable info@solicitorbulgaria.com (SolicitorBulgaria) For more information visit http://www.solicitorbulgaria.com id: 320 Chapter Thirty-SevenORDER FOR PAYMENT PROCEEDINGEnforcement Order: Application for IssuingArticle 410. (1) The applicant may request the issuing of an enforcement order:1. for pecuniary receivables or for fungible things, where the action is cognizable in the regional court;2. for the delivery of a movable thing which the execution debtor has received with an obligation to return the said thing or which is encumbered by a pledge or has been transferred to the debtor with an obligation to surrender possession, where the action is cognizable in the regional court.(2) The application shall contain a prayer to issue a writ of execution and must comply with the requirements covered under Article 127 (1) and (3) and Items 1 and 2 of Article 128 herein.Enforcement Order: IssuingArticle 411. (1) The application shall be submitted to the regional court exercising jurisdiction over the permanent address or over the registered office of the execution debtor, or over the place of enforcement.(2) The court shall examine the application in private deliberation and shall issue an enforcement order within three days, except where:1. the prayer does not comply with the requirements covered under Article 410 herein;2. the prayer conflicts with the law or with good morals;3. the execution debtor does not have a permanent address or a registered office within the territory of the Republic of Bulgaria;4. the execution debtor does not have a habitual residence or a place of business within the territory of the Republic of Bulgaria.(3) Where the application is granted, the court shall issue an enforcement order, a transcript of which shall be served upon the execution debtor.Enforcement Order: ContentArticle 412. The enforcement order shall contain:1. the indication "Enforcement Order";2. date and place of rendition;3. a reference to the court and the name of the judge who rendered the order;4. the forenames, patronymics and surnames and addresses of the parties;5. the case in the matter of which the order is issued;6. the obligation wherewith the execution debtor must comply, and the costs which the execution debtor must pay;7. an invitation to the execution debtor to comply within two weeks after service of the order;8. an instruction to the effect that the enforcement order will be invalidated if an opposition is lodged within the same time limit;9. an instruction to the effect that if the execution debtor fails to lodge oppositions to the issuer of the order or to comply, the enforcement order will enter into effect and coercive enforcement will be proceeded with;10. the extent of appealability, before which court and within what time limit;11. signature of the judge.Appellate ReviewArticle 413. (1) The enforcement order shall be unappealable by the parties, except in the part regarding the costs.(2) The order whereby the application is rejected in whole or in part shall be appealable by the applicant by an interlocutory appeal.OppositionArticle 414. (1) The execution debtor may oppose in writing the enforcement order or a part thereof. Justification of the opposition shall not be required.(2) An opposition shall be lodged within two weeks after service of the order, and the said time limit may not be extended.Effect of OppositionArticle 415. (1) Where the opposition has been lodged in due time, the court shall instruct the applicant that the said applicant may bring an action regarding the receivable thereof within one month, depositing the balance of the stamp duty due.(2) Where the applicant fails to present evidence that the said applicant has brought the action within the time limit set, the court shall invalidate the enforcement order in part or in whole, as well as the writ of execution issued under Article 418 herein.Entry into Effect of Enforcement OrderArticle 416. Where an opposition has not been lodged within due time or has been withdrawn, the enforcement order shall enter into effect. On the basis of the said order, the court shall issue a writ of execution and shall note this on the order.Enforcement Order Based on DocumentArticle 417. Alternatively, the applicant may request the issuing of an enforcement order where the receivable, regardless of the amount thereof, is based upon:1. an act of an administrative authority, where under the admission to enforcement is vested in the civil courts;2. a document or an abstract of the books of account, whereby receivables of the government institutions, the municipalities and the banks are established;3. a notarial act, a settlement or another contract bearing notarized signatures in respect of the obligations contained therein to pay sums of money or other fungible things, as well as obligations to deliver particular things;4. an abstract of the registered pledges registry on a recorded security interest and on commencement of foreclosure: in respect of the delivery of pledged things;5. an abstract of the registered pledges registry on a recording of a contract for sale with retention of title until payment of the purchase price or a lease contract: in respect of the return of corporeal things sold or leased;6. a contract of pledge or a mortgage deed under Article 160 and Article 173 (3) of the Obligations and Contracts Act; 7. an effective act establishing a State or municipal receivable, where the enforcement of this act is effected according to the procedure established by this Code;8. a deficit deed;9. a promissory note, a bill or exchange or another negotiable security payable to order which is Equivalent thereto, as well as a bond or coupons attached thereto.Immediate EnforcementArticle 418. (1) Where a document covered under Article 417 herein, whereupon the receivable is based, has been presented with the application, the creditor may approach the court with a motion to decree an immediate enforcement and to issue a writ of execution.(2) The writ of execution shall be issued after the court verifies whether the document is prima facie conforming and whether the said document attest an obligation enforceable against the execution debtor. The court shall make a due note on the document presented and on the enforcement order regarding the issuing of the writ of execution.(3) Where, according to the document presented, the exigibility of the receivable is contingent on the compliance with a cross-obligation or on the occurrence of another circumstance, the compliance with the said obligation or the occurrence of the said circumstance must be attested by an official document or by a document originating from the execution debtor.(4) The order whereby the petition for the issuing of a writ of execution is refused in whole or in part shall be appealable by an interlocutory appeal within one week after communication of the said order.(5) The enforcement order with the noting of the issuing of a writ of execution shall be served by the enforcement agent.Immediate Enforcement Order: Appellate ReviewArticle 419. (1) The order whereby the petition for immediate enforcement is granted shall be appealable by an interlocutory appeal within two weeks after service of the enforcement order.(2) The interlocutory appeal of the immediate enforcement order shall be submitted together with the opposition to the enforcement order as issued and may be founded only upon considerations derived from acts covered under Article 417 herein.(3) The appellate review of the immediate enforcement order shall not stay the enforcement.Stay of EnforcementArticle 420. (1) An opposition to the enforcement order shall not stay the coercive enforcement in the cases covered under Items 1 to 8 of Article 417 herein, except where the execution debtor furnishes due security to the creditor according to the procedure established by Articles 180 and 181 of the Obligations and Contracts Act. (2) Where a motion for stay, supported by convincing written evidence, has been made within the time limit for opposition, the court which has decreed immediate enforcement may stay the said enforcement.(3) The ruling on the motion for stay shall be appealable by an interlocutory appeal.Partial Stay of EnforcementArticle 421. (1) Where there are multiple obligated persons, the security referred to in Article 420 (1) herein shall serve solely in respect of the person or persons for whom the said security has been furnished.(2) Where the opposition refers only to part of the receivable, as well as where the security furnished is partial, the court shall stay the anticipatory enforcement solely for the relevant part of the receivable.Action for Existence of ReceivableArticle 422. (1) An action for the existence of a receivable shall be considered brought as from the time of submission of the application for issuing of an enforcement order, where the time limit referred to in Article 415 (1) herein has been complied with.(2) The bringing of an action under Paragraph (1) shall not stay the immediate enforcement as admitted, except in the cases referred to in Article 420 herein.(3) If the action is dismissed by an effective judgment, the enforcement shall terminate and sentence two of Article 245 (3) herein shall apply.Reversal by Reason of Lack of Opportunity to ContestArticle 423. (1) Within one month after learning of the enforcement order, the execution debtor, who has been deprived of an opportunity to contest the receivable, may approach the intermediate appellate review court with a motion for reversal of the said order, where:1. the enforcement order has not been duly served upon the said execution debtor;2. the enforcement order has not been served upon the said execution debtor in person and on the day of the service the said execution debtor did not have a habitual residence within the territory of the Republic of Bulgaria;3. the execution debtor was unable to learn of the service in due time owing to special unforeseen circumstances;4. the execution debtor was unable to lodge the opposition thereof owing to special unforeseen circumstances which the said execution debtor was unable to overcome.(2) The new examination of the case shall commence with an instruction under Article 415 (1) herein to the effect that the applicant may bring an action regarding the receivable thereof within one month, depositing the balance of stamp duty due.Action to Contest ReceivableArticle 424. (1) The execution debtor may contest the receivable according to an action procedure, where intervening, newly discovered circumstances or new written evidence of material relevance to the case are discovered, which could not have been known to the said execution debtor before expiry of the time limit for lodgment of the opposition or which the said execution debtor could not procure within the same time limit.(2) The action may be brought within three months after the day on which the new circumstance became known to the execution debtor or after the day on which the execution debtor could procure the new written evidence, but not later than within one year after extinguishment of the receivable.Standard FormsArticle 425. (1) The Minister of Justice shall issue an ordinance endorsing thereby standard forms of an enforcement order, an application for issuing of an enforcement order and the other papers in connection with the order for payment proceeding.(2) Where the applicant has not used a standard form or has used a wrong standard form, the court shall attach the relevant standard form to the written instruction thereof for curing of the non-conformity.Chapter Thirty-EightCOMMENCEMENT, STAY AND TERMINATION OF ENFORCEMENTCommencement of EnforcementArticle 426. (1) The enforcement agent shall proceed with enforcement on a petition by the interested party on the basis of a presented writ of execution or another enforceable act.(2) In the petition thereof, the execution creditor shall specify the method of enforcement. The said creditor may specify several methods simultaneously. In the course of the proceeding, the said creditor may specify other methods of enforcement as well.(3) The conformity of the petition referred to in Paragraph (1) shall be verified under Article 129 herein.(4) The execution creditor may request that the enforcement agent enquire into the property status of the execution debtor, search records, and require abstracts of documents.Territorial CompetenceArticle 427. (1) The petition for enforcement shall be submitted to the enforcement agent whose area of practice covers:1. the location of the movable or immovable things where against the enforcement is levied;2. the permanent address or the registered office of the garnishee, where the enforcement is levied against receivables of the execution debtor from the said garnishee;3. the place of compliance with the obligations to act or not to act, where compliance with such obligations is sought;4. the permanent or current address of the execution creditor or the execution debtor: at the choice of the execution creditor in respect of a receivable for maintenance.(2) The execution creditor may request from the enforcement agent exercising competence over the permanent address thereof to impose a garnishment or preventive attachment on corporeal things and receivables of the execution debtor, even though the enforcement steps are subject to performance by another enforcement agent according to the rules of Paragraph (1). After imposition of the garnishment or preventive attachment, the enforcement agent shall transmit the enforcement case to the competent enforcement agent, who is to take an inventory and conduct a sale of the corporeal things.(3) Where the enforcement is levied against pecuniary receivables of the execution debtor from a garnishee with a permanent address or registered office within another geographical jurisdiction, the enforcement case shall not be transmitted.Notice of Voluntary ComplianceArticle 428. (1) The enforcement agent shall be obligated to invite the execution debtor to comply voluntarily with the obligation thereof within two weeks. Where proceeding with enforcement on the basis of an enforcement order, the enforcement agent shall invite the execution debtor by the service of the said order, and where the order has been served upon the execution debtor, a new time limit for voluntary compliance therewith shall not be allowed.(2) The notice shall contain the name and address of the execution creditor and a warning to the execution debtor that unless the said execution debtor complies with the obligation thereof within the time limit allowed thereto, coercive enforcement will be proceeded with. The notice shall communicate the garnishments and preventive attachments imposed. A duplicate copy of the enforceable act shall be attached to the notice of voluntary compliance.(3) Should the execution debtor die after receiving a notice of voluntary compliance but before other enforcement steps have been performed, the enforcement agent, prior to proceeding with the steps thereof, shall transmit a new notice of voluntary compliance to the heirs.(4) Where the enforcement agent replaces one method of enforcement by another method, the said agent shall transmit to the execution debtor communications of the garnishment and preventive attachment imposed.Extent of Personal Applicability of Writ of ExecutionArticle 429. (1) The heirs of and singular successors to the execution creditor, as well as the surety and the solidary execution co-debtor who have paid the debt, may move for enforcement on the basis of the writ of execution issued in favour of the execution creditor. The succession or the payment by the surety or execution co-debtor, as the case may be, shall be established by written evidence.(2) The writ of execution issued against the decedent may be enforced even against the property of the heirs of the said decedent, unless the said heirs establish that they have renounced the succession or have accepted the succession under an inventory. Where the heir has not accepted the succession, the enforcement agent shall set the time limit under Article 51 of the Succession Act, communicating the declaration of will of the heir to the competent regional judge for due recording of the said declaration.(3) The writ of execution shall furthermore have effect against any third party who has pledged or mortgaged a corporeal thing of his or her own to secure the debt, where the execution creditor commences the enforcement against the said thing.Execution Debtor's Ad Hoc RepresentativeArticle 430. The regional court exercising jurisdiction over the place of enforcement, acting on a motion by the execution creditor, shall appoint an ad hoc representative of the execution debtor if, upon proceeding with enforcement, the execution debtor does not have a registered permanent or current address.Enforcement Agent's PowersArticle 431. (1) The enforcement agent, if so required for the enforcement, may order any buildings of the execution debtor to be opened and may search the personal effects, dwelling unit and other premises of the execution debtor.(2) The enforcement agent may request cooperation from the police authorities or from the mayor of the municipality, borough or mayoralty, who shall be obligated to cooperate therewith.(3) The enforcement agent shall have right of access to information in the court and administrative services, including the authorities of the National Revenue Agency and the State Receivables Collection Agency, the local divisions of the National Social Security Institute, of the Central Depository, of the persons keeping a register of government securities, of the control authorities under the Road Traffic Act and of other persons who keep registers of property or possess data of the property thereof. The said agent may search records and obtain information on the execution debtor, as well as request duplicate copies and abstracts of documents.(4) In the cases where the personal presence of the execution debtor is required and the execution debtor does not appear, even though the said execution debtor has received a summons to do so, the enforcement agent may order the police authorities to bring the execution debtor.(5) Where necessary, the enforcement agent may ask the authorities of the Ministry of Interior to suspend from operation a motor vehicle where against enforcement is levied for a period of up to three months.Stay of EnforcementArticle 432. The enforcement proceeding shall be stayed:1. by the court, in the cases referred to in Article 245 (1) and (2), Article 309 (1), Item 3 of Article 397 (1), Articles 438 and 524 herein;2. on a motion by the execution creditor;3. in the cases referred to in Items 2 and 3 of Article 229 (1) herein, with the exception of the sale of a corporeal immovable which has already been advertised;4. in the cases referred to in Article 282 (2) herein, as well as where the intermediate appellate review judgment appealed is reversed by the Supreme Court of Cassation;5. in other cases provided for in a law.Termination of EnforcementArticle 433. (1) The enforcement proceeding shall be terminated by decree where:1. the execution debtor presents a receipt from the execution creditor, duly authenticated, or a receipt from the post office, or a letter from a bank showing that the amount under the writ of execution has been paid to or deposited with the execution creditor prior to the institution of the enforcement proceeding; if the execution debtor presents a receipt bearing an unauthenticated signature of the execution creditor, the said creditor, if a dispute with the debtor arises, shall be obligated to declare in writing that the receipt has not been issued thereby, or otherwise the said receipt shall be presumed genuine;2. the execution creditor has moved for this in writing;3. the writ of execution has been invalidated;4. the act on the basis of which the writ of execution has been issued is vacated or the said act is pronounced forged by an effective judicial act;5. the property cited by the execution creditor cannot be sold and other seizable property cannot be discovered;6. the fees and costs related to the enforcement, due in advance have not been paid;7. an effective judgment, whereby the action under Article 439 or 440 herein is granted, is presented;8. the execution creditor fails to move for the performance of enforcement steps in the course of two years, with the exception of the suits for maintenance obligations.(2) In all cases covered under Paragraph (1), the enforcement agent shall lift ex officio the garnishments and preventive attachments imposed after the decree on termination enters into effect.(3) The termination of the proceeding shall not affect the rights which third parties have acquired before that on the basis of the enforcement steps, as well as the conformity of the payment effected by the garnishee to the enforcement agent.Attestation of Enforcement StepsArticle 434. The enforcement agent shall draw up a memorandum on each step undertaken and performed thereby, stating therein the day and place of performance of the said step, the demands and statements made by the parties, the amount collected, and the costs related to the enforcement as incurred.Chapter Thirty-NineREMEDIES AGAINST ENFORCEMENTSection IAppellate Review of Enforcement Agent's StepsAppealable StepsArticle 435. (1) The execution creditor may appeal against the refusal of the enforcement agent to perform an enforcement step sought, as well as the stay and termination of the coercive enforcement.(2) The execution debtor may appeal against the decree on a fine and the levy of the enforcement against any property which the execution debtor considers unseizable, the seizure of a movable thing or the eviction of the execution debtor from an immovable, by reason of not being duly notified of the enforcement.(3) The decree on award shall be appealable solely by a person who deposited earnest money before the last day of the sale, and by an execution creditor who entered the sale as a bidder, as well as by the execution debtor, by reason of a failure to conduct due bidding at the public sale or of the property not being awarded to the highest bidder.(4) A third party may appeal against the steps of the enforcement agent solely where the enforcement is levied against corporeal things which, on the day of the garnishment, preventive attachment or delivery, if a movable thing is concerned, were in the possession of the said person. Any such appeal shall not be granted if it is established that the corporeal thing was owned by the execution debtor upon imposition of the garnishment or preventive attachment.(5) A coercive seizure of possession of a corporeal immovable shall be appealable solely by a third party who was in possession of the said immovable prior to the bringing of the action where under the judgment is enforced. If the said third party fails to appeal within the time limit for appellate review, the said third party may bring a possessory action.Lodgment of AppealArticle 436. (1) The appeal shall be lodged care of the enforcement agent with the district court exercising jurisdiction over the place of the enforcement within one week after performance of the step, if the party was present at the performance of the said step or if the party was summoned, and in the rest of the cases, within one week after the day of the communication. In respect of the third parties, the time limit shall begin to run as from learning of the step.(2) A transcript of the appeal shall be served upon the other party, and where the appeal has been lodged by a third party, transcripts of the said appeal shall be served upon the execution debtor and upon the execution creditor on the petition whereof the enforcement case has been instituted.(3) The party which has received a transcript of the appeal may lodge written oppositions within three days. After expiry of the said time limit, the enforcement agent shall transmit the appeal together with the oppositions, if any, and a duplicate copy of the enforcement case to the district court, setting forth reasoning on the steps appealed.(4) The provisions of Articles 260, 261 and 262 herein shall apply, mutatis mutandis, in respect of the appeals.Examination of AppealsArticle 437. (1) The appeals lodged by the parties shall be examined in camera, except where witnesses or expert witnesses must be heard.(2) The appeals lodged by third parties shall be examined in public session, with the appellant, the execution debtor and the execution creditor on the petition whereof the enforcement case has been instituted being summoned.(3) The court shall examine the appeal on the basis of the data in the enforcement case and the evidence presented by the parties.(4) The court shall publish the judgment together with the reasoning thereof within one month after the receipt of the appeal in the court. The judgment shall be unappealable.Stay of Enforcement upon Appellate ReviewArticle 438. The lodgment of the appeal shall not stay the enforcement steps, but the court may decree a stay. In such case, the court shall immediately transmit a transcript of the ruling on stay to the enforcement agent.Section IIRemedy according to Action ProcedureContestation of ReceivableArticle 439. (1) The execution debtor may contest the enforcement through an action.(2) The action of the execution debtor may be founded solely on facts which have occurred after conclusion of the trial in the proceeding where under the enforcement title has been issued.Remedy of Third PartyArticle 440. (1) Any third party whereof a right has been affected by the enforcement may bring an action for declaration that the property where against the enforcement for a pecuniary receivable is levied does not appertain to the execution debtor.(2) Any such action shall be brought against the execution creditor and the execution debtor.(3) The execution creditor shall be liable, under the terms established by Article 45 of the Obligations and Contracts Act, for any damages inflicted on third parties through levy of the enforcement against the property which appertains thereto.Enforcement Agent's Liability for DamagesArticle 441. The private enforcement agent shall be liable, under the terms established by Article 45 of the Obligations and Contracts Act, for any damages inflicted on the execution debtor as a result of legally non-conforming coercive enforcement. The State shall be liable for any such damages inflicted by the public enforcement agent.TITLE TWOENFORCEMENT OF PECUNIARY RECEIVABLESChapter FortyGENERAL RULESSubject of EnforcementArticle 442. The execution creditor may levy the enforcement against any corporeal thing or receivable owned by the execution debtor.Replacement of Subject and Method of EnforcementArticle 443. The execution debtor may propose that the enforcement be levied against another corporeal thing or receivable or be performed solely by some of the methods of enforcement demanded by the execution creditor. If the enforcement agent determines that the method of enforcement proposed by the execution debtor is in a position to satisfy the execution creditor, the enforcement agent shall levy the enforcement against the corporeal thing or receivable named by the execution debtor.Unseizable Corporeal ThingsArticle 444. Enforcement may not be levied against the following corporeal things owned by any execution debtor who is a natural person:1. corporeal things for habitual use of the execution debtor and the family thereof, specified in a list adopted by the Council of Ministers;2. the food which the execution debtor and the family thereof need for one month and, applicable to farmers, until the next harvest, or the equivalent thereof in other agricultural produce if such food is not available;3. the heating, cooking and lighting fuel needed for three months;4. the machinery, tools, devices and books which the execution debtor needs in his or her personal capacity where the said debtor practises a liberal profession or which an artisan needs for the practice of the skilled craft thereof;5. the land tracts owned by the execution debtor where the said debtor is a farmer: orchards and vineyards of an aggregate surface area not exceeding 0.5 hectares, or cropland and meadows of a surface area not exceeding 3 hectares, and the machinery and implements needed for the farming, as well as the fertilizers, the plant protection products and sowing seed: for one year;6. the necessary two head of draught animals, one cow, five sheep or goats, ten beehives and the domestic fowl, as well as the feed needed for the sustenance thereof until the next harvest or until the animals are turned out to graze;7. the dwelling unit owned by the execution debtor, if the said debtor and any of the family members thereof wherewith the said debtor lives together have no other dwelling unit, regardless of whether the execution debtor resides therein; if the dwelling unit exceeds the housing needs of the execution debtor and the family members thereof specified by an ordinance of the Council of Ministers, the part of the said dwelling unit in excess of the said needs shall be sold if the conditions under Article 39 (2) of the Ownership Act apply;8. the corporeal things and receivables provided for in another law as not subject to coercive enforcement.Non-applicability of UnseizabilityArticle 445. (1) Execution debtors may not avail themselves of the prohibitions covered under Article 444 herein in respect of any corporeal things which are pledged or mortgaged, where the pledgee or the mortgagee is an execution creditor.(2) The following may not avail themselves of the prohibitions referred to in Item 5 and 7 of Article 444 herein:1. any debtors on obligations for maintenance, for damages sustained as a result of a tort or delict, or for defalcation;2. any debtors in respect of cases provided for by a law.Unseizable IncomeArticle 446. (1) If the enforcement is levied against a labour remuneration or against another remuneration for work, as well as against a pension to an amount exceeding the minimum wage, the following may be withheld if the execution debtor has a monthly income:1. up to the amount of the minimum wage: the excess over the guaranteed minimum income, if the debtor has no children, and one-half of the said excess, if the debtor has children whom the said debtor maintains;2. in excess of the minimum wage: the double amount of the tax due under the Income Taxes on Natural Persons Act, if the debtor has no children, and the amount of the tax due under the Income Taxes on Natural Persons Act, if the debtor has children whom the said debtor maintains.(2) The limitations covered under Paragraph (1) shall not apply to any maintenance obligations. In such cases, the amount for maintenance as awarded shall be withheld in whole, and the deductions covered under Paragraph (1) for the other obligations of the party found against and for maintenance obligations for a past period shall be made on the balance of all income accruing to the said debtor.(3) Coercive enforcement against receivables for maintenance shall not be admitted. Coercive enforcement against student grants shall be admitted solely in respect of maintenance obligations.Invalidity of Waiver of RemedyArticle 447. Any waiver by the execution debtor of the remedy under Articles 444 and 446 herein shall be invalid.Obligation to Declare Property and IncomeArticle 448. (1) If any seizable property whereof the sale would cover the costs of the enforcement is not found in the possession of the execution debtor, the said debtor shall be obligated to appear before the regional judge and to declare, on pain of criminal liability, the entire property and all income thereof. The lack of sufficient property shall be established by memorandum.(2) The regional judge, acting on a motion by the enforcement agent, shall schedule a hearing for the appearance of the execution debtor and the execution creditor.(3) If the execution debtor fails to appear, the court shall decree that the attendance of the said debtor be compelled.(4) If the execution debtor fails to present a declaration, the said debtor shall be liable as for the presentation of a false declaration. The obligation to appear and to present a declaration and the liability for non-compliance with the said obligations shall be stated in the summons to the execution debtor.Moves Simultaneous with Notice of Voluntary ComplianceArticle 449. (1) Where the enforcement is levied against a movable or immovable thing, the notice of voluntary compliance shall furthermore specify the day whereon the inventory will be taken. The said inventory may also be taken within the time limit for voluntary compliance.(2) Where the enforcement is levied against an immovable simultaneously with the dispatch of the notice of voluntary compliance wherein the immovable is specified, the enforcement agent shall dispatch a letter to the Recording Office for recording of a preventive attachment of the said immovable.Garnishment of Movable Thing or ReceivableArticle 450. (1) A movable thing shall be garnished by means of taking an inventory of the said thing by the enforcement agent.(2) A movable thing or a receivable of the execution debtor may alternatively be garnished by the receipt of the communication of the inventory or the garnishment if the said communication specifies exactly the thing or the receivable where against the enforcement is levied.(3) The garnishment of the receivable of the execution debtor shall be considered imposed in respect of the garnishee as from the day on which the garnishment communication is served upon the said garnishee according to Article 507 herein.Effect of Garnishment and of Preventive Attachment in Respect ofExecution DebtorArticle 451. (1) As from the time of imposition of the garnishment, the execution debtor shall forfeit the right to dispose of the receivable or of the corporeal thing and may not, on pain of criminal liability, modify, damage or destroy the corporeal thing.(2) The consequences under Paragraph (1) shall occur in respect of the execution debtor as from the receipt of the notice of voluntary compliance, where the enforcement is levied against a movable or immovab