Bulgarian companies go bankrupt because of “competitive imports”, which evade taxes

“Many Bulgarian companies, suffer from “competitive imports” with tax evasion and are forced to close down. The reason is that their partners use internal delivery channels within the European Union that do not pay VAT, Dimitar Brankov, Deputy Chairman of the Bulgarian Industrial Association (BIA), told Klassa. He gave as an example the importers of commodities and raw materials from Greece. In addition to the subsidies they receive in our southern neighbour country, they do not pay taxes in Bulgaria, which renders the price offered by our companies uncompetitive.

Another scheme for siphoning millions from the State is being implemented by shell companies that sting their fair partners by not paying VAT. According to BIA, the National Revenue Agency (NRA) and the other inspecting authorities demonstrate passive control practice with regard to the so-called shell companies. “This is a large-scale problem and affects many branches,” stated Dimitar Brankov. Practically, the fair companies pay for their unfair partners. According to BIA’s observations, hoteliers and all those operating in the tourism industry and services are those who suffer most. Complaints on the part of large industrial enterprises, where big deliveries of inputs and raw materials are made are becoming more frequent. “The law cannot catch rogue companies. The State has decided that it is easier to take money from the fair players rather than chasing the incorrect. All who obey the law suffer because an entity has entered the chain and everybody along it suffer,” BIA commented.

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