4. The taxable object

read Art. 24

Four kinds of taxable events exist under the Bulgarian VAT legislation.

4.1 Taxable deals

Defined as "all deals within the scope of VAT, which are not exempt deals or export deals" (art 3 VATA).

This definition requires some additional explanations:

A deal

A deal "in the scope of VAT" is every deal, though which a "business activity" is performed and whose place of performance is in the territory of the country, including the continental shelf and the exclusive zones, without the duty-free zones, entrepot stores and duty-free trade stores (art 3 VATA)

Exempt deals

Exempt deals are explicitly listed in VATA.  There are 2 types of exempt deals:

The reasons for the exemption of these two types of deals are different.  

For the first type (permanently exempt) the reasons are:

The second group is exempt through some social and political reasons and the exemption of the deals included in it creates distortions in the price system and possible cumulative effects.  The exemption term is 3 years after entering into force of the VATA (until 01.04.97).

Export deals (3 types) - art 14

Export deals will be explained in detail below.