Input VAT Deduction
We assess the specific circumstances affecting the right to deduct input VAT, together with any applicable conditions or restrictions.
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VAT Consulting
DESLIN provides VAT consulting for specific and complex cases — from transaction analysis and input VAT deduction to international operations, reverse charge and other matters requiring detailed VAT assessment.
When a VAT Question Needs More Than a General Answer
VAT is one of the most complex and constantly evolving areas of tax legislation. For a specific transaction, the correct VAT treatment depends on the facts, the parties involved, the place of supply and the applicable rules.
DESLIN provides VAT consulting based on an analysis of the specific transaction and business model. We do not rely on standard answers where the correct treatment depends on several different circumstances.
We advise on matters involving the right to deduct input VAT, intra-EU supplies and acquisitions, international transactions, services supplied to or received from businesses abroad, e-commerce, distance sales, triangular transactions, reverse charge and other specific matters under Bulgarian VAT legislation.
Our objective is to consider the VAT consequences in time, allowing important business decisions to be made with greater clarity and a better understanding of the applicable requirements and potential risks.
Situations Where Detailed VAT Analysis Matters
VAT risk often arises not from the transaction itself, but from determining its tax treatment incorrectly. Individual analysis is particularly important in situations such as the following.
Intra-EU Supplies and Acquisitions
We analyse transactions involving goods moving between EU Member States and the questions relating to their VAT treatment and reporting.
Services to and from Foreign Businesses
For cross-border services, it is important to determine the place of supply, who is liable to account for VAT and how the transaction should be documented.
E-commerce and Distance Sales
Online sales across different markets may raise questions concerning the place of taxation, special VAT schemes and additional reporting requirements.
Reverse Charge and Triangular Transactions
For certain cross-border and specific transactions, the reverse charge mechanism or rules for triangular transactions require careful analysis of the actual circumstances.
What a VAT Consultation Can Include
The consultation begins with the specific facts and aims to provide a clear understanding of the applicable VAT treatment and its practical implications for the business.
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Analysis of the Specific Transaction
We examine the parties involved, the nature of the transaction, the movement of goods or the way services are supplied, together with the other circumstances relevant to its VAT treatment.
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Determining the Applicable VAT Treatment
We analyse how the transaction should be treated for VAT purposes based on its specific facts and the applicable rules.
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Place of Supply and Person Liable for VAT
For international transactions, we pay particular attention to where the supply is deemed to take place and which party is responsible for charging or accounting for VAT.
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Input VAT Deduction
Where the matter involves input VAT, we analyse the applicable conditions for exercising the right to deduct it.
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Documentation and Accounting Treatment
We consider how the VAT treatment affects the documentation required for the transaction and the way it should be reflected in the accounting records.
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Analysis Before an Important Business Decision
For planned transactions, investments or changes in business activities, we can review the VAT consequences before the business takes the relevant step.
How We Approach a Specific VAT Case
For complex VAT questions, the correct answer begins with the correct facts. That is why we approach each case through a clear and structured process.
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We Clarify the Facts
We establish the parties to the transaction, its subject matter, the countries involved, the movement of goods or the way the service is supplied, together with the other relevant circumstances.
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We Identify the Applicable Rules
We identify the VAT questions that need to be considered based on the specific structure of the transaction.
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We Analyse the VAT Consequences
We consider the applicable VAT treatment, potential risks and the implications for documentation and accounting.
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We Discuss the Practical Application
We present our conclusions clearly and discuss how they affect the specific transaction or the business decision being considered.
Frequently Asked Questions
When Should I Seek a Separate VAT Consultation?
A separate consultation is appropriate when you have a specific or more complex matter requiring individual analysis — for example, an international transaction, input VAT deduction, a particular place-of-supply issue, reverse charge or another situation where a general answer is not sufficient.
What Is the Difference Between VAT Registration and VAT Consulting?
VAT Registration focuses on determining whether a registration requirement or voluntary registration applies and on organising the registration process itself.
VAT Consulting focuses on analysing specific transactions and more complex VAT matters — such as input VAT deduction, international operations, services involving foreign businesses, reverse charge and other situations requiring detailed assessment.
Can You Advise on a Transaction with a Foreign Customer or Supplier?
Yes. International transactions are among the areas covered by DESLIN's VAT consulting service. Depending on the specific case, we consider the type of transaction, the countries in which the parties are established, the place of supply and the applicable VAT treatment.
What Does the Right to Deduct Input VAT Mean?
Where the applicable legal conditions are met, a business may be entitled to deduct VAT charged on certain purchases or supplies received. Whether the right to deduct input VAT exists in a particular case depends on the specific facts, the use of the goods or services acquired and the applicable VAT requirements.
What Is the VAT Reverse Charge Mechanism?
For certain transactions, the obligation to account for VAT may shift from the supplier to the customer. Whether the reverse charge mechanism applies depends on the type of supply, the parties involved and the applicable VAT rules.
Can the VAT Analysis Be Carried Out Before the Transaction?
Yes. An advance VAT analysis can be particularly useful for significant or non-standard transactions, international trade, investments and changes to the business model, as it allows the tax consequences to be considered before a final decision is made.
Get Clarity Before You Make a Decision
Tell us about the specific VAT matter or the transaction you are planning. We will review the relevant facts and discuss the applicable VAT treatment and the issues that are important to your business.