Friday, September 26, 2014

ACCOUNTING OFFICE RAIS D Ltd., 1000 Sofia, ul. Uzundjovska 12, 2nd floor, block of Vitosha Boulevar

Interpretation of the NRA on fuel costs of the vehicle. Interpretation Ex. 96-00-251 from 12.07.2010 NRA - bookkeeping, accounting services - Accounting RAIS E
ACCOUNTING OFFICE RAIS D Ltd., 1000 Sofia, ul. Uzundjovska 12, 2nd floor, block of Vitosha Boulevard mob. 0889 626172, 0885 229767; Tel. 02 9816733 E-mail: raisd@abv.bg; URL: www.schetovodstvo-raisd.com BG EN FR RU
In the query is exposed following facts: Company performing services has a truck that used in business. Signed a labor contract with a worker who is a resident other than the place where the activities of the company. Except for official purposes, the truck shall be provided to the employee to move from residence to place of work (office of the company) and vice versa. The Company homicide life on the street is registered for VAT under Art. 100, para. 1 of the Act.
Right of deduction and supplies entitled to a tax credit are governed by the provisions of Art. 68 and Art. 69 of the VAT Act. Restrictions on the right of deduction are listed in the provision of Art. 70 OT
In art. 70, para. 1 pt. 2 of the VAT Act states that the right of deduction is not available, although homicide life on the street the conditions of Art. 69 or 74, when the goods or services are intended to grant supplies or activities other than those of his business.
Should keep in mind that, under the express provision of Art. 70, para. 3 pt. 2 of the VAT in relation to Art. 70, para. 1 pt. 2 OT will be no right of deduction only for the free supply of transport services from residence to place of work and back from the employer to the employees, including those in management contracts provided free by the employer for the purposes of his business, subject to the conditions for its exercise provided by Art. 71 and 72 of the VAT Act.
At the request did not specify the brand of car, number of seating positions excluding the driver, for which transport homicide life on the street vehicle is used, the place where the employee lives, the presence or absence of a public bus or rail. Clarified due to insufficient facts generally express an opinion.
According to the definition given in 1, p. 34 of the Supplementary homicide life on the street Provisions (DR) of the Corporate Income Tax (CIT) "fringe benefits provided in kind" are expensed as social benefits of art. 294 of the Labor Code and submitted in the manner specified by Art. 293 of the Labor Code or the management of the enterprise. Social benefits should be available to all employees and persons employed under contract homicide life on the street for management homicide life on the street and control. No provision of social spending in kind where the employer or contracting entity and persons under the second sentence have no monetary relationship in any form in terms of the resulting benefits. Provision of Art. 294 tons. 3 CT allows the employer alone or jointly with other agencies and organizations to provide employees a social benefit transport services from residence to place of work and back.
An exception to this requirement is provided in par. 1 of Art. 210 of CITA under which tax expenditures homicide life on the street are not subject to the social costs of transport workers and persons employed under the management and control of residence to place of work and back
According to Art. 210, para. 2 of CIT exemption from tax expenditures does not apply when transportation is carried out by car or additional bus lines. homicide life on the street Definition of "car" e given by 1, p. 37 of the Additional CIT, which refers to the provision of 6, p. 12, letter "a" of the Law on Road Traffic. Therefore, for the purposes of CITA in "car" shall mean three or more wheels bezrelsovo motor vehicle used for transporting passengers, in which the number of seats the driver does not exceed 8.
Given the above, if transport costs are documented in accordance with Art. 10 of the companies and they can be defined as social costs as defined in a 1, p. 34 AP of law and not by car thereof perform according to the content of the concept for the material tax law, they may fall in the case of Art. 210, para. 1 CITA.
Should keep in mind the provisions of Art. 11 of CITA under which costs identified as mandatory homicide life on the street by statutory instrument shall be recognized for tax purposes and not subject to tax expenses, unless in company homicide life on the street law provides otherwise. Transport costs from home to

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