Bulgaria’s National Revenue Agency (NRA) has reported significant tax violations in one-third of the commercial establishments inspected in the country’s popular mountain resorts.
During an extensive winter control campaign, fiscal inspectors found that 479 businesses were in breach of tax regulations, revealing widespread non-compliance within the tourism sector.
The campaign involved inspections of over 1,500 establishments across major resorts such as Bansko, Borovets, Smolyan, Pamporovo, Razlog, Dobrinishte, and Banya.
The violations uncovered included failures to issue cash receipts, discrepancies between the recorded and actual cash amounts in registers, incorrect VAT calculations, and non-compliant sales documentation.
A notable issue was restaurateurs continuing to apply the outdated 9% VAT rate instead of the current 20%, which came into effect on January 1.
As a result of these breaches, 453 establishments were issued violation notices, while 14 are set to face further sanctions. Additionally, 57 businesses were subjected to sealing as a punitive measure.
Intensive Inspection Methods Reveal Non-Compliance
The NRA’s inspection strategy included “open surveillance,” where tax inspectors were physically present in businesses for several days to monitor transactions and ensure compliance.
Another tactic employed was the use of “mystery shoppers,” who posed as regular customers to test whether businesses issued proper sales receipts.
This approach led to the discovery that some traders deliberately avoided issuing receipts in an attempt to evade taxes.
Among the most concerning findings was incorrect VAT reporting in 243 restaurants, highlighting systemic issues in compliance.
Furthermore, 59 establishments were found to have completely failed to provide customers with any receipts, a direct violation of tax regulations.
Consumer Rights and Measures to Combat Tax Evasion
Authorities are encouraging consumers to play an active role in ensuring tax compliance. According to the VAT Act, customers are entitled to withhold payment until they receive a valid receipt for goods or services.
This legal provision is designed to protect consumer rights while also curbing tax evasion and promoting fair competition among businesses.
To further aid compliance efforts, the NRA has launched an electronic brochure detailing the importance of requesting receipts.
Additionally, consumers can utilize the NRA’s mobile app, available on both iOS and Android platforms, which allows users to scan receipts and verify compliance with tax regulations.
Broader Implications for Bulgaria’s Tourism Sector
The findings from this inspection campaign raise concerns about the financial integrity of Bulgaria’s tourism-dependent businesses.
With the country’s mountain resorts drawing thousands of visitors annually, ensuring tax compliance is crucial not only for government revenue but also for maintaining a fair business environment.
The NRA has signaled that it will continue rigorous inspections throughout the year, particularly in high-traffic tourist areas, to deter future violations. Businesses found to be repeat offenders could face stricter penalties, including increased fines and extended closures.
As Bulgaria looks to maintain its reputation as a top winter tourism destination, authorities emphasize that tax compliance must remain a priority.
By enforcing stringent regulations and engaging consumers in oversight, the government aims to ensure transparency and fairness within the sector.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members