One of the core activities of the National Revenue Agency (NRA) is performing tax control and social security control, as well applying measures to counteract tax and social security fraud, incl. in the area of trading in goods and services within the EU. NRA’s newest activity in that area (since January 2014) is the performance of continuous fiscal control of the movement of goods of high fiscal risk – at fiscal control check points and points of sale. This fiscal control is aimed at increasing the collection of liabilities and protection of the financial interests of the Republic of Bulgaria and the European Union by preventing VAT fraud with goods of high fiscal risk (usually these are fast moving goods such as fruits, vegetables, meat, milk, sugar, etc.), as well as at restricting unfair competition in the trade with such goods – all of this by tracking goods movement.
For the purposes of the taxation the fiscal control combines control of documents and physical control. Thus, the fiscal control includes the following:
- Checking commercial documents (mainly these are the documents accompanying the transported goods) in order to verify the quality of the goods, as well as the legality and the correctness of the transactions and the commercial operations;
- Performing physical inspections in order to verify the actual movement of the goods and the recipients/buyers of the goods.
Fiscal control is applicable to all the goods of high fiscal risk, irrespective of the place of delivery/unloading: Bulgaria, other EU Member State or a third country. It is not applicable to goods under a customs procedure
Where is the fiscal control performed?
The fiscal control is performed at fiscal control check points and at the places of delivery/unloading of goods of high fiscal risk.
How is the fiscal control performed?
The fiscal control starts with:
- Stopping at fiscal control check points transport vehicles carrying goods on Bulgarian territory;
- Checking whether the transported goods are goods of high fiscal risk
- Checking the documents accompanying the goods in terms of goods type and quantity/volume;
- Checking the identity of the goods supplier/seller and/or the recipient/buyer;
- Checking the place(s) of goods delivery/unloading.
If the revenue officials establish that the goods transported are included in the list of goods of high fiscal risk, they can install technical devices for control purposes (TDCPs) on the transport vehicle (usually these devices are a standard seal, a special seal with a GPS tracker, a sticker, etc.) and put a ‘high fiscal risk’ stamp on the transport document.
The technical device for control purposes is removed by another revenue official at the place of delivery/unloading or when the goods are leaving the Bulgarian territory.
Please bear in mind that:
- Preliminary collateral (security) may be imposed in the course of the fiscal control;
- The fiscal control is not used to assess tax liabilities (this is not a tax audit), but it can help establishing certain facts and circumstances that are essential for the tax liabilities;
- A protocol is issued for every action performed in the course of the fiscal control.
Which persons are subject to fiscal control?
- The drivers of the transport vehicles carrying goods;
- The persons accompanying the goods (if any);
- The recipients/buyers of goods of high fiscal risk.
What are the types of fiscal control?
- Fiscal control in the case of intra-Community acquisition of goods of high fiscal risk
- Fiscal control in the case of intra-Community supply of goods of high fiscal risk
- Fiscal control in the case of goods of high fiscal risk being transported through Bulgarian territory from one EU Member State to another EU Member State
- Fiscal control of the movement of goods of high fiscal risk inside Bulgaria