Банкеръ Weekly

Briefs

TRADE IN SECOND-HAND CARS RESTRICTED AGAIN

Car importers succeeded to win one more tax concession at the expense of second-hand car dealers. Surprisingly, when changes in the Tax Procedures Code were conclusively being voted in Parliament, an amendment to article 29 of the Value Added Tax Act appeared. The provision stipulates that when imported new cars are sold in Bulgaria, an amount will be written off for their depreciation during the time they have stayed in the country. So far the law stipulated that the selling price could not be lower than the delivery price (in this case the value on which customs duties are paid) even when it was proven that the market price of the vehicle had decreased. In the future, that restriction shall concern only second-hand cars, independently if they have been imported one or ten years after they were made. There is no provision concerning the status quo.In the end of 2002, when amendments to the Excise Duty Act were being voted, a similar provision was moved, promoting the import of new cars.

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