1. The registration of the foreign person shall be terminated upon the availability of the general provisions under the VATA for deregistration. The deregistration shall be executed in compliance with art.109 form VATA – Procedure for deregistration initiated by the foreign person.
2. When the foreign person had not determined a new Fiscal representative then the tax authorities would have initiated a procedure for termination of the VAT registration. In this case the Deed for the deregistration shall not be presented before the Foreign person and the date of termination is the date of expiring of the 14 days term.
If the foreign person had not determined a new Fiscal representative in the 14 days term or when the deregistration had been executed under the availability of the general provisions then in compliance with art.111 from VATA the tax authorities would have deemed that the Foreign person had executed a taxable supply with tax event the date of deregistration of all available goods and/or services for which he had used entire or partial tax credit and which are:
• Assets by virtue of the Bulgarian Accountancy Act
• Or, Assets by virtue of the CITA, different from these under the Accountancy Act.
The above mentioned VAT refund to the tax authorities could be avoided in certain cases as for the legal entities it is valid upon company transformation.