Legislative changes in 2018 relating to the accounting of every business

Legislative changes in 2018 relating to the accounting of every business

As has been the case in recent years, as in 2018, businesses have had to comply with a number of legislative changes. They will inevitably affect its accounting and it is important for all accountants to get acquainted with them in detail. For most companies that rely on accounting services from an accountancy office, this is not a problem. Each accounting office traditionally monitors the changes in legislation and conducts regular training and awareness raising seminars for its accountants. However, for companies that have their own accountants, it is important that they organize the necessary training themselves by involving them in training seminars and paying for them.

In brief, what does business expect in 2018? What are the changes that every accountant or accountant should be well aware of?

With the courtesy of one of the most competent accounting houses in Sofia, VTF Group , we will try to introduce you to the major changes in 2018, which will inevitably affect every business. Every manager of a company should be aware of them whether his company has its own accounting department or uses accounting services of an accounting firm.

In 2018 you will be paid, more insurance!

Since 01.01.2018, the minimum wage in Bulgaria has increased by almost 11%, from BGN 460 to BGN 510. This leads to an increase of the minimum insurance thresholds by positions. This increase is on average about 4%. So if a company uses the minimum insurance thresholds as the basis for determining the salaries of some of its employees or employees, it will need to sign annexes with them to change their wages. The same applies to the employees who in 2017 were under 510 salaries.
The minimum social security income for self-employed also changes. He gets 510 leva. Thus, if in 2017 the minimum insurance for each self-insured person was 123, 28 levs, then in 2018 the contribution was 141.78 leva per month. This is a minimum insurance, which does not include provisioning in NSSI for general illness and maternity. If he wants to have this insurance to receive indemnity from NSSI for general sickness and maternity, every self-insured person must in the year 2018 pay the amount of 159.63 BGN monthly.
By 31.01.2018 is the period within which each self-insured person should decide whether to pay a general sickness and maternity insurance in the following year in order to be able to benefit from NSSI.

As of 01.01.2018, the percentage of pension insurance is increased by 1%. There is also a change in rates for a Labor Accident Fund. Increases as an amount affect not only the contributions made by the employer but also those of the employee. This reflects the net amount that each employee received in 2017. That is why employers who want to keep the net amount of their workers are required by an additional agreement and an annex to increase the salaries of their employees.
The maximum insured income remains unchanged for 2018 and it is 2600 BGN per month.

Here, it should be noted that if you are, or have a worker who is insured in two places, you need to keep track of the amounts you are providing because they could at any time exceed the maximum insurance threshold.

 Changes regarding registration under the VAT Act

 The VAT registration in 2018 will be much faster.

How was it until now? Each company, when it exceeds as a turnover the amount of 50 000 BGN for a period of the last 12 months, has to be registered under VATA. All taxable goods and services, including advance payments and income from financial and insurance services, are considered to be turnover. Where is the change?

If, up to now, the deadline for applying for registration under the VAT Act after the turnover of BGN 50,000 was 14 days from the end of the month in which it was reached, then from 2018 this period is reduced to 7 days . The shortening of this deadline makes it very difficult to track turnover when the company is not registered under the VAT Act and uses accounting services at an accountancy office. It is therefore necessary for each manager to have a commitment and if for example this turnover reaches in less than 2 months, he reaches a short time from the date of his / her reaching by informing the accountancy office in order to avoid possible sanctions.

You should not forget that accountants in good accounting houses follow strictly and in detail any changes in legislation. Even if you are only a physical person and you do not have a company, you could get an accountancy from them. Most of the small and medium-sized business trusts the accountancy offices for accounting because it knows that it is so secure and serene.