CUSTOMS AND TAX REGULATIONS IN THE DUTY FREE ZONES
Duty free zones are part of the territory of the Republic of Bulgaria, but for the foreign goods, being at the Free Zones Territory or passing through it, duties and VAT are not needed to be paid. It is under the regulations of the European Community Customs Code, The Customs Law (article 166 – article 176) and the VAT Law of the Republic of Bulgaria.
These tax concessions facilitate the Bulgarian and foreign traders, importers, exporters and producers to use flexible ways for transiting and storing of foreign goods on the territory of the duty free zone, mostly as property change, delivery conditions change, correction of the delivery and transport parameters, without having tax obligations at the property change.
For the period of stay at the free zone, to the goods are not added duties and VAT.
Duties and VAT are obligatory only at the import – i.e. at the import of the goods on the territory of the Republic of Bulgaria.
The foreign corporate bodies, offshore companies and others, not having a place of business in the Republic of Bulgaria, under the Corporate Income Tax Law, could operate free on the territory of the Free Zone without having tax obligations, according to the Bulgarian legislation, and it is not necessary to be registered as companies or corporations under the Bulgarian Trade Law.
There are certain kinds of goods, for which is not allowed to use these tax concessions. Such are the alcohol products, tobacco products and fuels. At the free zone retail is not allowed as well. They are not duty free shops.