# EUR-Lex - 12005SPN06/06 - EN

Important legal notice

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# 12005SPN06/06

**Protocol concerning the conditions and arrangements for admission of the Republic of Bulgaria and Romania to the European Union - Annex VI:List referred to in Article 20 of the Protocol: transitional measures, Bulgaria - 6.Taxation **

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Official Journal L 157 , 21/06/2005 P. 0115 - 0117 *

6. TAXATION

1. 31977 L 0388: Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ L 145, 13.6.1977, p. 1), as last amended by:

- 32004 L 0066: Council Directive 2004/66/EC of 26.4.2004 (OJ L 168, 1.5.2004, p. 35).

For the purposes of applying Article 28(3)(b) of Directive 77/388/EEC, Bulgaria may maintain an exemption from value added tax on international transport of passengers, referred to in point 17 of Annex F to the Directive, until the condition set out in Article 28(4) of the Directive is fulfilled or for as long as the same exemption is applied by any of the present Member States, whichever is the earlier.

2. 31992 L 0079: Council Directive 92/79/EEC of 19 October 1992 on the approximation of taxes on cigarettes (OJ L 316, 31.10.1992, p. 8), as last amended by:

- 32003 L 0117: Council Directive 2003/117/EC of 5.12.2003 (OJ L 333, 20.12.2003, p. 49).

By way of derogation from Article 2(1) of Directive 92/79/EEC, Bulgaria may postpone the application of the overall minimum excise duty on the retail selling price (inclusive of all taxes) for cigarettes of the price category most in demand until 31 December 2009, provided that during this period Bulgaria gradually adjusts its excise duty rates towards the overall minimum excise duty provided for in the Directive.

Without prejudice to Article 8 of Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products [8], and having informed the Commission, Member States may, as long as the above derogation applies, maintain the same quantitative limits for cigarettes which may be brought into their territories from Bulgaria without further excise duty payment as those applied to imports from third countries. Member States making use of this possibility may carry out the necessary checks provided that these checks do not affect the proper functioning of the internal market.

3. 32003 L 0049: Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States (OJ L 157, 26.6.2003, p. 49), as last amended by:

- 32004 L 0076: Council Directive 2004/76/EC of 29.4.2004 (OJ L 157, 30.4.2004, p. 106).

Bulgaria shall be authorised not to apply the provisions of Article 1 of Directive 2003/49/EC until 31 December 2014. During that transitional period, the rate of tax on payments of interest or royalties made to an associated company of another Member State or to a permanent establishment situated in another Member State of an associated company of a Member State must not exceed 10 % until 31 December 2010 and must not exceed 5 % for the following years until 31 December 2014.

4. 32003 L 0096: Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (OJ L 283, 31.10.2003, p. 51), as last amended by:

- 32004 L 0075: Council Directive 2004/75/EC of 29.4.2004 (OJ L 157, 30.4.2004, p. 100).

(a) By way of derogation from Article 7 of Directive 2003/96/EC, Bulgaria may apply the following transitional periods:

- until 1 January 2011 to adjust the national level of taxation on unleaded petrol used as propellant to the minimum level of EUR 359 per 1000 l. The effective tax rate applied to unleaded petrol used as propellant shall not be less than EUR 323 per 1000 l as from 1 January 2008,

- until 1 January 2010 to adjust the national level of taxation on gas oil and kerosene used as propellant to the minimum level of EUR 302 per 1000 l and until 1 January 2013 to reach the minimum level of EUR 330 per 1000 l. The effective tax rate applied to gas oil and kerosene used as propellant shall not be less than EUR 274 per 1000 l as from 1 January 2008.

(b) By way of derogation from Article 9 of Directive 2003/96/EC, Bulgaria may apply the following transitional periods:

- until 1 January 2010 to adjust the national level of taxation on coal and coke used for district heating purposes to the minimum levels of taxation laid down in Annex I, Table C,

- until 1 January 2009 to adjust the national level of taxation on coal and coke used for purposes other than district heating to the minimum levels of taxation laid down in Annex I, Table C.

The effective tax rates applied to the energy products concerned shall not be less than 50 % of the relevant Community minimum rate as from 1 January 2007.

(c) By way of derogation from Article 10 of Directive 2003/96/EC, Bulgaria may apply a transitional period until 1 January 2010 to adjust the national levels of taxation on electricity to the minimum levels of taxation laid down in Annex I, Table C. The effective tax rates applied to electricity shall not be less than 50 % of the relevant Community minimum rate as from 1 January 2007.

[8] OJ L 76, 23.3.1992, p. 1. Directive as last amended by Regulation (EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36).

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