LEASE = VAT DEDUCTIBILITY
The car is not a luxury, it’s a mobility tool. This is an insight of Ilf and Petrov’s famous character Ostap Bender in the novel “The Little Golden Calf” (1931). But the car is not just a mobility tool; it’s a means of production. This has been the thesis of the car importers since the establishment of the free car market in Bulgaria. At last, after more than 20 years, they achieved understanding in this respect aside the law-makers.
As of January 1st 2013 the long term vehicles rent is subject of VAT deductibility. This is a big step forward that will significantly support the business and further development of VAT registered companies. They will be able to deduct VAT for vehicle rent installments, maintenance, repair, spare parts, accessories, even fuel.
Leasing is a financial service that offers many possibilities to the Lessee, such as non-risks investment, guaranteed mobility and modern vehicles, transparent cost planning, serious tax advantages.
Ask your financial and tax consultant about the benefits and possibilities for your business development.