2018/0004/BG
EC/EFTA
BG Bulgarie
  • X00M - MARCHANDISES ET PRODUIT-DIVERS
2018-04-09
2018-01-12

Fiscal Devices (FD), Integrated Automated Business Management Systems (IABMS) and the requirements for business management software.

Draft Regulation amending Regulation N-18 of 2006 on recording and reporting sales at retail sites by means of fiscal devices

The draft Regulation contains amendments to the legal framework, which can be divided into the following five main groups:

I. Amendments relating to the persons selling/refilling liquid fuels

The main reason for introducing a detailed description of the flow meters used in sites with electronic fiscal memory systems (EFMS) is the identification of sites where liquid fuels are pumped using flow meters and gauging systems. The existing legal framework does not contain sufficient possibilities for ensuring a greater level of detail in the information received by the National Revenue Agency, without this being related to an on-the-spot check. In this connection, the proposed amendments aim to make the information received by the National Revenue Agency via the remote link more detailed as regards revenues from the EFMS, thus identifying the sites which use usage meters - flow meters or gauging systems.

The proposed amendments to Regulation N-18 of 2006 provide for the validation of the excise duty form's unique control number (UCN) when submitting information documents regarding the quantities of liquid fuels delivered via an EFMS by means of a bar code scanner. The aim of the proposal is to avoid the introduction of UCN numbers by operators of EFMS sites which are not found in the National Revenue Agency database and to increase the credibility of the information in the “Fiscal devices with remote connection” software which is exchanged with the “Fuel Control” information system.

In this regard, it should be noted that the proposed amendments relate to the implementation of the National Revenue Agency's control activities in sites where EFMS are used. The additional information obtained will help to improve the quality of the analyses carried out in relation to controls on the sale of liquid fuels.

The proposed amendments in Section IV of Regulation N-18 of 2006 regarding the issue of a single fiscal receipt for each liquid fuel sale/refill to each individual customer, which may include the sale of more than one item from a different tax group, have three main aims, two of which are directly linked to reducing the grey economy in the sale and distribution of liquid fuels.

1. Restricting the possibility of using tax credits from persons registered under the VAT Act by means of invoices for "fictitious" deliveries.

In the course of carrying out their control activities, the National Revenue Agency bodies have identified cases in which customers are refuelled without a fiscal receipt being issued. The next customer is then issued a fiscal receipt which includes the sale of the previous customer. The EFMS’ functionality allows a customer at an end-user liquid fuel distribution site to be issued an invoice through the available EFMS for items from different tax groups that are not paid by the recipient of the invoice. This is what creates prerequisites for unfair tax behaviour by certain indebted persons. Next, the proposed amendments are also intended to prevent the restriction of consumers’ rights in end-user liquid fuel distribution sites.

2. Restricting the possibility for customers at service stations to officially record larger quantities of liquid fuels than are available, which they have received from another source without having paid excise duty and/or which are of unknown origin.

3. Improving the quality of the information provided by the EFMS to the National Revenue Agency.

It is currently possible to carry out more than two refuels on more than one vehicle, i.e. for different customers, by issuing a document that merges the sales rather than issuing a sales receipt (fiscal receipt) to each individual customer. Obtaining reliable data will improve the quality of the analyses of the business activity of the taxable persons operating sites in which EFMS have been registered and put into operation.

The proposed amendments to Regulation N-18 of 2006 provide for the verification of data submitted to the National Revenue Agency by EFMS manufacturers/importers in connection with their obligation to submit data for the service technicians who have the capacity to perform servicing activities on the EFMS they manufacture, who have been trained and have received a service key, to be covered by a protocol for data submitted and accepted in accordance with the form specified in the draft. The requirement is necessary for the authentication of correct data entry into the National Revenue Agency's information system, with the intention of rejecting data entered incorrectly. Individuals will be given seven days from the date on which their data was denied to submit the correct data.

The proposed amendments to Regulation N-18 of 2006 provide for a change in the procedure for submitting diagrams by persons using EFMS. It is proposed that, prior to the registration of the EFMS, the taxable persons submit an application for initial inspection of the EFMS to the Bulgarian Institute of Metrology (BIM) in a form approved by its head and published on the Institute’s website, for the purpose of an on-the-spot check.

The proposed amendments create an additional opportunity for persons who are not end-user distributors and use the EFMS at supply/refuelling sites by means of flow meters/gauging systems to provide information to the National Revenue Agency.

It is foreseen that in the case of disconnection/interruption of the communication between the tank gauging system (TGS) and the central recording device, on the one hand, and between a TGS probe and console, on the other hand, the EFMS will continue to operate for up to 15 minutes following the disconnection. If the connection is not restored within 15 minutes of the interruption, the system will be blocked. If the connection/communication is restored within 15 minutes of the interruption, the system will continue to operate and a message about the restored connection will be sent. In the event of an EFMS being blocked, it is foreseen that only ongoing sales will be completed.

The proposed amendments to Regulation N-18 of 2006 also provide for the servicing organisations, when submitting information to the National Revenue Agency, to submit information not only on gas pumps, but also on flow meters/gauging systems.

Draft Regulation N-18 of 2006 stipulates that, when information documents are submitted in the event of a fuel delivery notification by the EFMS (31) to the National Revenue Agency for a delivery declared with an excise duty form, the information will not be accepted if the completed excise duty form number is not available in the National Revenue Agency database of excise duty form's submitted by the Customs Agency. As a result, the proposed amendment will improve the accuracy of the information in the “Fiscal devices with remote connection” software which will be exchanged with the “Fuel Control” information system.

Draft Regulation N-18 of 2006 stipulates that persons using EFMS who have not submitted a diagram to the National Revenue Agency must do so within one month of the amendments’ entry into force.

Definitions of the different types of containers for storing/refilling liquid fuels used in Article 3(12) - (14) of Regulation N-18 of 2006 will be introduced, namely: “Tanks fixed to the ground,” “Mobile tanks” and “Road tankers for the carriage of liquid fuels”

The proposed amendments to the provisions of Article 16a(4) stipulate that the EFMS will be put into operation and registered with the National Revenue Agency in the presence of the National Revenue Agency and BIM’s inspection bodies. In this connection, it is proposed that the format of the certificate for registration of EFMS be amended by adding the names and signatures of the above-mentioned bodies.

The necessary costs for implementing the draft Regulation will not exceed the approved budget of the National Revenue Agency.

The proposed amendments to Regulation N-18 of 2006 will not lead to significant expenses for the persons under Article 3 of Regulation N-18 of 2006. The amendments relating to the procedure and methods for reporting to the National Revenue Agency by persons who are not end-user distributors and use the EFMS at delivery/refuelling sites by means of flow meters/gauging systems will not lead to additional costs for the persons in question as they currently use these means for flow metering.

II. Amendments relating to the procedure for implementing reversal transactions

Draft Regulation N-18 of 2006 proposes amendments relating to the procedure for implementing reversal transactions. The draft Regulation N-18 of 2006 provides for the implementation of reversal transactions via the fiscal device (FD) or the integrated automated business management system (IABMS). The proposed amendments provide for an adjustment in the case of a recall or return of goods, or due to an operator error, after a client’s account repayment has been settled (reversal transaction), to be documented via the FD or IABMS. In this regard, it is foreseen that the reversal transaction, in the case of an operator error, shall be implemented no later than on the last day of the month in which it was made, and as regards a reversal transaction in the event of return/recall of goods, it will be documented at the time when the amount is returned to the client. The proposed amendments stipulate that checks for cash availability in the FD/IABMS should be carried out in cases where reversal transactions are implemented and that reversal transactions should not be permitted in the case of insufficient cash.

In this regard, the proposed amendments regulating different types of reversal transactions by FD/IABMS aim to obtain more detailed information about the registered and accrued sales turnover of the taxable persons. The information will also help to improve the quality of subsequent business activity analyses carried out by the National Revenue Agency.

III. Introducing requirements for the sales management software used in sales outlets and for persons, i.e. manufacturers/distributors and users of such software.

In most of the sales outlets in the country, trading management systems/software are used which manage sales at the site via a FD. At present, the legal framework only contains requirements for FDs used at sales outlets, but not for the sales management software. This makes it possible for the software to incorporate features that allow, at the time of completion of a sale, an order to not be sent to the FD to print a fiscal receipt (FR), but rather for the non-fiscal device to print out and provide the customer with a bill that mimics the fiscal one. Thus, through the software, the taxable person has the opportunity to avoid taxation on part of the turnover from sales at the site. The control procedures carried out by the National Revenue Agency revealed that the percentage of hidden turnover in outlets using sales management software ranges from 30 % to 70 %. The number of cases in which taxable persons use other means of manipulating the information created by the software, including deleting it from the devices which use the software, is also increasing. This information is sometimes stored on a remote server or cloud, with the taxable persons claiming that they have no access to the information and cannot provide it to the revenue authorities when an inspection is being carried out.

The proposed amendments to Regulation N-18 of 2006 introduce requirements for the sales management software used at retail outlets, the purpose of which is to prevent the possibility of concealing turnover from sales in retail outlets through software with this function built in.

The proposed amendments also introduce requirements for manufacturers/distributors and users of sales management software at retail outlets:

- any manufacturer/distributor of such software is expected to electronically declare to the National Revenue Agency that the software produced/distributed by it complies with the requirements of Regulation N-18 of 2006 and will provide additional information on the software referred to in an annex to the Regulation. According to the proposed amendments, the declaration is to be made through an electronic service available through the National Revenue Agency's electronic services portal following electronic signature identification. It is envisaged that the National Revenue Agency will maintain a public list of the software for which a manufacturer/distributor has declared compliance with the requirements specified in the Regulation.

- the persons in question are only permitted to use software which has been declared in compliance with the requirements of the Regulation. In accordance with an annex to the Regulation, software users will submit information to the National Revenue Agency about the software used in the outlet by means of an electronic service available through the National Revenue Agency’s electronic services portal following electronic signature identification. Obligations are introduced for software users to store the information they create and provide the revenue authorities access thereto and to all devices that the software operates with.

The proposed amendments to Regulation N-18 of 2006 will affect taxable persons using sales management software at their own or rented sites. According to information from the "Fiscal devices with remote connection" information system, 20,331 sites are currently using fiscal printers or sales management software. It should be taken into account that the number of sites is certainly greater, as most of the approved types of electronic cash registers with fiscal memory can also be used in Fiscal Printer mode.

With respect to the costs for users to bring their software into line with the requirements of Regulation N-18 of 2006, it is expected that some manufacturers will provide the new function to their customers in the form of an update to the existing version of the software without additional payment outside their subscription. For users of ERP systems, which account for a small proportion of all sales management software users, these costs are expected to be substantial but cannot be estimated at this time.

The introduction of software requirements for manufacturers/distributors and users will result in increased fiscal discipline and compliance with tax and social security legislation by persons operating retail outlets, as well as in a reduction in the grey economy share in this sector.

IV. Amendments relating to persons who sell goods via an e-shop

The proposed amendments to Regulation N-18 of 2006 introduce requirements for persons who carry out sales of goods/services via a retail outlet - an e-shop. It is envisaged that Bulgarian taxable persons - owners of electronic shops, through an electronic service available via the National Revenue Agency’s electronic services portal - will submit the information specified in an annex to Regulation N-18 of 2006 to the National Revenue Agency. Most electronic shops do not currently have any information about the trader selling through them. The purpose of the proposed amendments is for the National Revenue Agency to have information regarding the persons performing commercial activities via e-shops and to maintain a public list in which individuals can carry out checks on the owners of particular e-shops. A media campaign organised by the National Revenue Agency will promote the possibility to carry out a check on the website of the Agency for Electronic Shop Owners, which will also increase consumer protection when shopping on the internet and will reduce the grey sector of internet commerce.

The proposed amendments will not lead to significant costs for the owners of electronic shops, as the submission of information will be done electronically and the respective trader will only be required to use an electronic signature.

V. Other amendments

The proposed amendments to Regulation N-18 of 2006 envisage that, in cases where a person has an IABMS approved for a given site and opens an additional site in which the sales will be registered and reported through the same approved system, an application-declaration is to be submitted for each new retail outlet separately; in this case, no re-submission of the documents provided for the IABMS’ first approval will be required.

The proposed amendments also regulate a procedure for documenting deliveries through a fiscal device of medicines for which there is partial or full payment through the National Health Insurance Fund.

The proposed amendments to Regulation N-18 of 2006 introduce requirements for manufacturers/importers of fiscal devices to develop and provide to the National Revenue Agency a procedure for extracting structured information from the electronic journal (EJ) through a USB port in accordance with an annex to the Regulation.

The purpose of the proposed amendments is to enable the revenue authorities, in the course of their control procedures, to analyse the information contained in all fiscal and service receipts printed via the FD and registered in the EJ.