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During the last weeks, lots of clients contacted us in connection with the VAT registration of joint ventures/ consortiums (JV) with at least one VAT registered shareholder. The JV (also called ‘consortium’) under the Contracts and Obligations Act are widely used for participations in public procurement procedures.

Since January 2017 the amendment of the VAT Act concerning the VAT registration of JV came into force. The JVs with at least one VAT registered shareholder have to be VAT registered within a 14-day term as of the date of the JV agreement. Under the previous regulation, the VAT registration term began as of the registration with the BULSTAT register. The fines for breaching the VAT registration deadline start form BGN 500.