Issue V/2020

I. International acts

Commission Regulation (EU) 2020/1434 of 9 October 2020

Commission Regulation (EU) 2020/1434 of 9 October 2020 amending Regulation (EC) № 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) № 1606 / was published in the Official Journal of the EU. 2002 of the European Parliament and of the Council, in relation to International Financial Reporting Standard 16.

Briefly, under the amendment to IFRS 16 introduced by Regulation 2020/1434, the lessee will be able to choose not to assess whether a rental rebate resulting from a Covid-19 pandemic that meets the cconditions of paragraph 46B is an amendment of the lease agreement.

The companies shall apply the amendments to IFRS 16 Leasing from 01.06.2020 for the financial years starting on or after 01.01.2020.

II. Judgments of the Court of Justice of the European Union

Decision of the ECJ on
Case C 528/19

On 08.10.2020 the European Court of Justice issued its judgment in case C-528/19.

This reference for a preliminary ruling concerns the interpretation of Articles 5 (6) and 17 (2) (a) of the Sixth Directive 77/388/EEC.

The request was made in the course of a dispute between Mitteldeutsche Hartstein-Industrie AG and the Tax Administration Y, Germany, concerning a refusal to deduct VAT paid on supplies received for the execution of works on the extension of a municipal road.

According to the decision of the ECJ, a taxable person has the right to deduct the value added tax paid on the received supplies for the construction works for extension of a municipal road, performed in favor of a municipality, when this road is used by the taxable person within his economic activity. and for public use, provided that such extension work does not go beyond what is necessary to enable the taxable person to pursue his economic activity and that the costs of carrying them out are included in the price of the supplies made by the same taxable person.

III. Bylaws

New thresholds for declaration in Intrastat

By his order № RD-05-918 / 20.10.2020, the President of the National Statistical Institute set new thresholds for declaration in the Intrastat system in 2021, namely:
• For the “Shipments” flow – BGN 270,000;
• For the “Receipts” flow – BGN 430,000.
Also, the order sets thresholds for statistical value under the Intrastat system for 2021, as follows:
• For the “Shipments” flow – BGN 14,700,000;
• For the Receipts stream – BGN 7,300,000.

IV. Draft bills and discussions

Bill amending and supplementing the Tax and Social Security Procedure Code

On October 21, 2020, a Bill amending and supplementing the Tax and Social Insurance Procedure Code was published.

The bill provides for:
1. Changes related to voluntary declaration of data on shipments of goods with high fiscal risk.

2. Changes related to the competence of the NRA bodies.
3. Changes related to the constitution of a representative in the proceedings under the Tax and Social Security Procedure Code, when a party is a legal entity, and suspension of the proceedings in case of death or absence of a representative of the legal entity
4. Changes related to the electronic documents and service of notices in the administrative proceedings under Tax and Social Security Procedure Code.
5. Changes related to certificates on social security legislation.
6. Amendment related to the Judgment of the Court of Justice of the European Union of 25 July 2018 in Case C-553/16.
7. Changes related to the securing and collection of public receivables.
8. Changes related to limitation periods in respect of public receivables.
9. Changes in the administrative penal provisions.
10. Other changes related to the enforcement, the revision proceedings and the competence of the NRA bodies.

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