Draft Regulation amending Regulation N-18 of 2006 on recording and reporting sales at retail sites by means of fiscal devices, the requirements for business management software and the requirements for persons who make sales via an e-shop
The draft contains primarily amendments to the rules of Regulation N-18 related to the amendment of Article 118(3) of the Value Added Tax Act (ZDDS) and the new paragraph 3a of the same text, published in the State Gazette (SG) No 96 of 2019.
1. Main changes resulting from the provision of Article 118(3a) ZDDS
The draft proposes that a person carrying out sales of goods and/or services via an e-shop register and report sales through a document, not issued by a FD or IATMS, registering the sale, instead of through a fiscal or system receipt, in cases where the sale is carried out by a card-not-present transaction using a credit or debit card and provided that the following conditions are simultaneously fulfilled:
the sales management software meets the requirements laid down in the draft Regulation;
for sales made via the e-shop, the person accepts card-not-present transaction payments using a credit or debit card and does not accept other types of payments requiring the issue of a fiscal/system receipt, and
the software does not manage sales other than the indicated sales.
In order to be able to use the proposed new procedure for registering and reporting sales, the persons must submit additional information regarding the e-shop(s) about:
the payment methods accepted by the e-shop;
the payment service providers with which it has a contract for the provision of a virtual POS;
payment accounts to which payments from sales of goods or services are sent, including those associated with the virtual POS;
the fulfilment of specific conditions for identification of each order and for complete and accurate information about the sale.
According to the draft, the use of the alternative option for issuing another document registering the sale shall be allowed only on condition that the taxable persons accept card-not-present transaction payments by credit or debit card only on payment accounts in banks and/or other payment service providers, with the taxable person as the holder. The accounts might be held at a payment services provider established in the EU or in a country with which the Republic of Bulgaria has concluded a double taxation agreement, including a clause on bank information exchange.
The sales registration document issued must be readable and contain at least the following details:
1. name, number and date of document;
2. details of the taxable person;
3. unique number of the customer order in the e-shop;
4. number of the virtual POS through which the payment is made;
5. reference number of the financial transaction;
6. name of the good/service, tax group code, quantity and value by type of goods/services purchased, unit price, total payment amount and method(s) of payment;
7. two-dimensional bar code (QR code)
It is proposed that the persons who have elected to register and report sales through the proposed alternative option be obliged to submit to the National Revenue Agency (NRA) monthly a standard audit file for all sales made via the e-shop. The information must be submitted electronically by the 15th day of the month, following the month it refers to, in accordance with the procedure established by the Executive Director of the NRA.
2. Changes resulting from the amendment to the provision of Article 118(3) ZDDS
According to the amendment, in the case of sales of goods or services provided by self-service machines with electric power supply, which are registered and reported through fiscal devices for self-service machines (FDSSM), with the exception of currency exchange services, the fiscal receipt registering the sale can only be visualised on the display without issuing a paper document.
In view of this, the draft envisages that, in addition to entertainment services, other services provided through self-service machines be registered and reported by display visualisation. The
proposal covers all services provided by self-service machines with electric power supply, and the provision of currency exchange services through currency exchange kiosks is explicitly excluded.
In order to prevent sales which are not registered and reported through FDSSM, it is proposed that, where communication between the self-service machine and the FDSSM is disconnected, the persons will not be able to register and report sales of goods/services through a self-service machine with electric power supply.
3. Other amendments
It is proposed that additional obligations be introduced for fiscal devices/IATMS testing by the joint committee. The texts concerning the functional and technical requirements for IATMS have been made more precise.
An extension of the deadline for fulfilling the requirements of the Regulation for persons using integrated automated trade management systems (IATMS) is proposed, because in the course of elaborating the existing and developing new IATMS it was established that the deadlines provided for meeting the requirements of the Regulation concerning the provision of sales information are insufficient. This is attributed to the multitude of specific types and economic activity organisations of the entities using or intending to use IATMS for registering and reporting sales revenues from goods and services. At the same time, the completion of some existing systems is carried out outside the territory of the Republic of Bulgaria, which further complicates and delays the fulfilment of the regulatory requirements. Taking into account the complexity of the development process and the time needed for testing and approving an IATMS, it is proposed that the deadline be extended to 31 March 2020, on condition that the persons submit the required documents related to IATMS testing to the NRA and the Bulgarian
Institute of Metrology by 31 January 2019.
Amendments to the electronic fiscal memory systems (EFMS)
It is proposed that a special procedure for EFMS operation under conditions of ongoing repair at a retail site be created, in cases where the system needs to be moved (entirely or of individual components). Also, for the purposes of carrying out subsequent analysis and tax control at retail sites/sites for liquid fuel refill, in which propane-butane cylinders for domestic use are filled by electronic filling scales, the texts of the Regulation have been made more precise. A possibility is provided for, where the EFMS submits registration details to the NRA server, that details about the electronic filling scales used at the sites be submitted as well. Texts concerning details of document delivery from EFMS to the NRA server are proposed.
Amendments concerning the persons performing maintenance/repairs
The possibility for submitting information in XML format is proposed with the purpose of facilitating the persons who have obtained permission for servicing FD/IATMS by the BIM, as well as the persons carrying out servicing of measuring instruments included as components in the EFMS.