Tax and accounting treatment of the consortiums

Deloitte tax seminar invitation

Last years, the Bulgarian revenue authorities and the Bulgarian Supreme Administrative Court (SAC) created a contradictory practice related to the provision of goods and services by participants in consortiums registered as civil societies under the Obligations and Contracts Act (OCA). This led to uncertainty in the accounting and tax treatment of these relations and various negative tax implications such as rejection of input VAT or additional VAT assessments.

The current Draft Bill for amendment of the Value Added Tax Act (VATA) provides for new provisions that regulate VAT position of consortiums – civil societies and the participants thereto. It is expected that the changes will enter into force as of 1 January 2017.

Deloitte Bulgaria organizes a seminar “Tax and accounting treatment of the Consortiums”. Purpose of the seminar is to clarify the legal status of consortiums under the OCA and its partners. From there we give you the accounting and tax treatment coming from this legal status.
We will comment the practice of the Bulgarian revenue authorities, SAC, The Court of Justice of the European Union (CJEU). We will discuss the practical aspects of the changes in the VATA.
The seminar is meant for accountants, finance specialists and managers. The seminar will have a practical approach. The facilitators are lawyers and managers of Deloitte with a lot of experience in this area.

We will discuss during the seminar the following topics:

  • What is the legal nature of the agremeents for the achievement of a joint purpose between the participants in a consortium and the consortium itself? How we shall interpret the will of the parties?
  • Based on the legal nature, how should the provision of goods and/or services between the participants and the consortium be treated from a VAT perspective?
  • What is the accounting and tax treatment of the cases where there are no supplies between the participants and the consortium?
  • How we should interpret the practice of the Bulgarian revenue authorities and SAC in the context of the practice of the CJEU?
  • What will change when the expected amendments in the VATA entered into force?
  • Is there any other options to participate in a public tender under the Public Tenders Act (PTA), except through a consortium – civil society, and what is their treatment?

As the seminar will have an interactive set-up, there will be over opportunity for asking question by you! Questions raised by e-mail on front will be answered with priority.

Time, venue and fee

The seminar will take place at 9 December 2016 in Grand Hotel Sofia, from 10:00 to 12:00. After the conference, there would be a lunch and networking opportunity for all participants.
Participation fee is EUR 70 (VAT excluded). For two or more participants from the same company, the fee is EUR 60 (VAT excluded) per 1 participant.

Please confirm your participation by sending completed registration form by 8 December 2016 to:

Silvia Valcheva,
tel: (02) 8023 395, (02) 8023 300.
We are looking forward to seeing you at the seminar!

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