putting purchases through the company accounts

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jue
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putting purchases through the company accounts

Postby jue » Sat Apr 26, 2008 4:47 pm

Hi,

We have had a company for property purposes for some time but have never put any "purchases" through it. Are there any advantages / disadvantages to this, and are there any restrictions.

e.g. can we put a pool through it or furniture etc etc

Ta
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Hoowster
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Postby Hoowster » Sat Apr 26, 2008 5:41 pm

The best way to find out about this all this to consult an accountant but in simple terms do you want to pay tax or not?

When people buy houses they deposit their 5000 leva into the firms account (working capital) they have to do that to buy a house or land (by Law) Apartment purchase does not require the buyer to open a company as apartments are usually sold leasehold. If an apartment is sold freehold (with a proportion of the land it sits on) a company has to be formed to buy.
If you have a company it is generally seen as trading or not. If it gets income it should be paying tax, if it doesnt a zero return is made yearly (so you still need an accountant) When people buy a house the house is a company address so items like desks, PC's, telephones, car, etc can be seen as articles that are needed by the company to operate.

But if companies yearly submit a NIL return why buy in the firms name at all.

It all depends on WHAT your company is doing...IF its earning, the Bulgarian government will expect you (the company) to pay tax on what you earn.....

So as I say see an accountant and ask these questions when you are in Bulgaria as if you have a company you will need one for the yearly return at least. Also the laws change here so quickly :roll: you will need a good one to keep you informed of whats required.


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AJ113
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Postby AJ113 » Sat Apr 26, 2008 7:03 pm

If you want to put a purchase through your accounts you must get a faktura. This is NOT the till receipt, it is a special form of invoice showing your company details, and you have to ask for it at the time of purchase.

As my accountant told me - 'nyama faktura - nyama pari.'

As for your house, purchases under 500 leva are tax deductable, purchases over 500 leva are considered an asset and are awarded a depriciation value.

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Chippy
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Postby Chippy » Sat Apr 26, 2008 7:48 pm

Very true AJ113. The Faktura is key

Chippy

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murun
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Postby murun » Sat Apr 26, 2008 7:56 pm

Hi I purchased my property over a year ago and have not used my company account since, does anyone know if I can simply close it now, and open a regular Bulgarian Bank account. Or do I need to keep sending in a nil tax return just because I puchased a property. Thanks


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