Summary:
- The article outlines the requirements for issuing credit and debit notices under Art. 126b of the law in cases of uncollectible debt.
- The credit notice must state the circumstance under Art. 126a, the tax base and delivery tax for which the claim is uncollectible, and the date and amount of any received payments or repayments.
- A report must be issued on the reduction of the tax base and accrued tax, and a protocol must be created containing specific information.
- The reduction of accrued tax is defined in cases of complete and partial non-payment. A general protocol may be issued for uncollectible receivables for supplies made to different recipients in the same tax period.
- The debit notice must state the date and amount of received payment, the tax base and tax contained in the payment, and the date and number of the issued credit notice.
Unofficial translation
OBLIGATIONS IN UNCOLLECTIBLE COLLECTION
Reduction of tax base and accrued tax on bad debt
Art. 124. (1) In addition to the requirements under Art. 115, para. 4 of the law in the credit notice under Art. 126b, para. 1 of the law must also state:
1. the circumstance under Art. 126a, para. 2 of the law and the date of its entry into force;
2. tax base and delivery tax for which the claim is uncollectible;
3. date and amount, if any, of the received payments or repayments for the delivery under item 2.
(2) The person issues a report under Art. 126b, para. 2 of the law on reduction of the tax base and accrued tax.
(3) In the protocol under Art. 126b, para. 2 of the law must state:
1. number and date;
2. name and identification number under Art. 94, para. 2 of the publisher’s law;
3. name and identification number of the recipient;
4. the circumstance under Art. 126a, para. 2 of the law and the date of its entry into force;
5. number and date of the invoice issued for the delivery for which the claim is uncollectible;
6. the tax base and delivery tax under item 5;
7. number and date of the document(s) and amount of the tax credit used for the received supplies of goods or services directly related to the supply, the basis of which is being changed;
8. difference between the tax under item 6 and the used tax credit under item 7;
9. date and amount, if any, of the payments received and repayments for the delivery under item 5;
10. amount of full or partial non-payment of the delivery under item 5, determined as the difference between the amount of the tax base and the tax under item 6, and the total amount of payments received and repayments under item 9;
11. the contained tax in the amount of full or partial non-payment of the delivery, determined under Art. 126a, para. 3 of the law;
12. the reduction of the accrued tax, determined under para. 4, item 1 or 2;
13. the reduction of the tax base corresponding to the reduction of the accrued tax under item 12.
(4) The reduction of the accrued tax under Art. 126b, para. 4 of the law in cases of:
1. complete non-payment on delivery is defined as the difference between the tax charged on the delivery and the tax credit used by the supplier for goods or services received by him, directly related to the delivery;
2. partial non-payment on delivery is determined by the following formula:
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x = (VAT – MPC) x
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DPA
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, where:
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VAT
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x is a reduction of the accrued tax;
VAT – delivery tax;
PDK – used tax credit;
VAT – tax proportionally included in the amount of partial non-payment.
(5) In the cases under Art. 126b, para. 2 of the law, the supplier may issue a general protocol for uncollectible receivables for supplies, for which the relevant circumstance under Art. 126a, para. 2, item 6 of the law occurred in the same tax period, regardless of the fact that the supplies may have been made to different recipients. The issued general protocol must contain:
1. number and date;
2. name and identification number under Art. 94, para. 2 of the publisher’s law;
3. total amount of the reduction of the accrued tax for all supplies for which a reduction of the accrued tax is carried out.
(6) For the purposes of issuing a general protocol under para. 5 the supplier is obliged to draw up a report on the determination of the total amount of the reduction of the tax base and the total amount of the reduction of the accrued tax. The reference should contain the information under para. 3, items 3 – 12 for each of the supplies included in the general protocol, for which Art. 126b, para. 2 of the law.
Increase in accrued tax, reduced in bad debt
Art. 125. (1) In addition to the requirements under Art. 115, para. 4 of the law in the debit notice under Art. 126b, para. 6 of the law must also state:
1. date and amount of the received payment or the repayment of the delivery;
2. tax base and tax contained in the received payment;
3. date and number of the issued credit notice under Art. 126b, para. 1 of the law, which reduced the tax base and the accrued delivery tax.
(2) The person issues a report under Art. 126b, para. 7 of the law on the increase of the reduced assessed tax upon receipt of full or partial payment or repayment of a delivery for which the tax base and the assessed tax are reduced under Art. 126b, para. 2 of the law.
(3) In the protocol under Art. 126b, para. 7 of the law must state:
1. number and date;
2. name and identification number under Art. 94, para. 2 of the publisher’s law;
3. name and identification number of the recipient;
4. number and date of the protocol issued under Art. 124, para. 3 or 5;
5. date and amount of the received payment or repayment for the delivery for which a protocol has been issued under Art. 124, para. 3 or 5;
6. proportionally the tax contained in the received payment or repayment under item 5;
7. increase in the accrued tax, determined under para. 4, item 1 or 2.
(4) The increase under Art. 126b, para. 7 of the law on accruals, reduced in the case of uncollectible receivables, tax in the cases of:
1. full payment or repayment on delivery is determined in the amount of the reduction of the accrued tax under Art. 124, para. 4, item 1;
2. partial payment or repayment on delivery is determined by the following formula:
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x = (VAT – MPC) x
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GDPR
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, where:
|
|
VAT
|
x is a reduction of the accrued tax;
VAT – delivery tax;
VAT – tax proportionally included in the amount of the partial payment or repayment made;
PDK – used tax credit.
(5) The increase of the accrued tax under para. 4, item 2 is determined for each payment or repayment separately.
(6) In the cases under Art. 126b, para. 7 of the law, the supplier may issue a general protocol for the received payments or repayments for supplies, for which the relevant circumstance under Art. 126a, para. 2, item 6 of the law occurred in the same tax period, regardless of the fact that the supplies may have been made to different recipients. The issued general protocol must contain:
1. number and date;
2. name and identification number under Art. 94, para. 2 of the publisher’s law;
3. total amount of the increase in the accrued tax, reduced in the case of an uncollectible claim, for all supplies for which full or partial payment has been received or the claim has been fully or partially settled.
(7) For the purposes of issuing a general protocol under para. 6, the supplier is obliged to draw up a report on the determination of the total amount of the increase in the accrued tax, reduced in the case of uncollectible receivables. The reference should contain the information under para. 3, items 3 – 7 for each of the deliveries included in the general protocol, for which payment has been received or the claim has been fully or partially repaid.
Declaration and reporting of issued documents in case of reduction of tax base and accrued tax in case of uncollectible claim
Art. 126. (1) The credit notice under Art. 126b, para. 1 of the law is indicated in column 3 “Type of document” of the reporting registers under Art. 124 of the Act with code “23”.
(2) The protocol under Art. 126b, para. 2 of the law is indicated in column 3 “Type of document” of the sales log under Art. 124, para. 1, item 2 of the law with code “29”. The reduction of the accrued tax specified in the protocol under Art. 124, para. 3, item 12, is reflected with a sign (-) in the corresponding column of appendix No. 10, in which the accrued tax was reflected.
(3) The debit notice under Art. 126b, para. 6 of the law is indicated in the reporting registers under Art. 124 of the law under the general order of the law.
(4) The protocol under Art. 126b, para. 7 of the law is indicated in column 3 “Type of document” of the sales log under Art. 124, para. 1, item 2 of the law with code “29”. The increase in the reduced assessed tax specified in the protocol under Art. 125, para. 3, item 7, is reflected with a sign (+) in the corresponding column of appendix No. 10, in which the reduced tax was reflected.
Source parliament.bg
