The 2012 worldwide VAT, GST and sales tax guide

B RAZIL – BULGARIA 89
• The taxpayer must be qualified through a Permanent Technical
Committee (Comissão Técnica Pemanete, or COTEPE) Act.
Such dispositions must be included in the internal legislation of
each state. This may take some time because the agreement was
signed recently. However, under the law, if states fail to ratify the
ICMS Agreement within 15 days after the agreement is published,
the ratification is tacit, and the dispositions in the agreement
become valid.
Special tax regime for construction, expansion, renovation or modernization
of football stadiums. In general, the Special Tax
Regime for Construction, Expansion, Reform and Modernization
of Football Stadiums (Regime Especial de Tributação para
Construção, Ampliação, Reforma ou Modernização de Estádios
de Futebol, or RECOPA) grants the suspension of IPI, PIS and
COFINS with respect to domestic sales and importation of
machinery, devices, instruments and new equipment for construction,
expansion, renovation or modernization of stadiums to
be used in the Confederation Cup and World Cup official games.
Goods and materials imported by RECOPA beneficiary companies
are not subject to Import Tax and acquisitions of local and
foreign services by such companies are not subject to federal
taxes.
The tax benefits apply to projects approved on or before 31
December 2012 except for companies under the National
“Simples” taxation system. The benefits can be enjoyed with
respect to acquisitions and importations from the date Law No.
12350 was published (21 December 2010) through 30 June 2014.
Only legal entities previously qualified or co-qualified by the
Brazilian Revenue Service can make transactions with RECOPA
support, and such qualification may be requested by the holder of
a project previously approved by the Ministry of Sports for construction,
expansion, renovation or modernization of soccer stadiums
with intended use in official matches of the 2013 FIFA
Confederation Cup and the 2014 FIFA World Cup. A company
hired by a qualified company to execute activities or provide
goods related to its project may request the co-qualification.
Bulgaria
(Country code 359 )
Sofia GMT +2
Ernst & Young
Business Park Sofia
Building 10, Floor 2
Mladost 4
1766 Sofia
Bulgaria
Indirect tax contacts
Trevor Link +359 (2) 817-7100
Email: trevor.link@bg.ey.com