The European Commission has formally asked Bulgaria to apply VAT to the activities of public bailiffs.

Under national law in Bulgaria, only the activities of private bailiffs are subject to VAT while the activities of state bailiffs such as staff of the regional courts are not subject to VAT. The Commission considers this situation incompatible with European Union law on VAT, which rules that public bodies should be subject to VAT for activities in which they engage as public authorities where treatment as non-taxable persons would lead to significant distortions of competition.

The request takes the form of a Reasoned Opinion. If the rules are not brought into compliance within two months, the Commission may refer the matter to the European Court of Justice.

Further details at h]ttp://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/413&format=HTML&aged=0&language=en&guiLanguage=en