(Specific features)

1. NATIONAL REVENUE AGENCY BULGARIA INTRASTAT LEGISLATION AND INTRASTAT DATA COLLECTION SYSTEM (IDCS) - 2008 (Specific features) Krassimir Ivanov Director, Intrastat Directorate – NRA, BG CoRD, June 2008 Luxembourg

2. Purpose and Background • To present briefly IDCS Functionality – 2008 based on amended BG legislation • Sponsored by EU Phare Programme • Contractor: European Dynamics Ltd. - Greece • Introduction into operation: July 2008

3. Main objectives • Main objectives of the new Intrastat information system: • support of the Intrastat Register of obliged IsOs; • provide to IsOs free of charge tools for current entry of data, preparation and submission of IsDs; • management of collection of declarations, performance assessment, IsOs compliance management, risk assessment and sanctioning; • 100% submission/acceptance of declarations in electronic form signed with EES/CES.

4. Legislative framework • EU Regulations (638/2004, 1982/2005, 1915/2005) • Statistics of I/C Trading of Goods Act • Ordinance of CoMs on specific goods and movements of goods • Ordinance of MF for implementation of the Intrastat system • Orders of Executive Director of NRA for: • Approval of working documents; • Empowerment of NRA officials for sanctioning • Methodological guidelines, logistical documents, help-desk function, training, etc.

5. Legislative Requirements (1) • Deadline for submission of declarations – 10th of the month following reference period • Thresholds – exemption and statistical value • Intrastat obligations – annual or “current” • 100% preparation, submission and processing of declarations in electronic form; • Intrastat “Ledgers” (only in electronic form) – obligatory for all IC Operators (commodities) and Intrastat operators (IOs): - minimum data entry for Operators; - regular (full/simplified) data entry for IOs; - organized on yearly basis with all 12 months; - entry of data on “per transaction” basis;

6. Legislative Requirements (2) • Types of declarations for ARRs and DISPs: 1) Monthly - containing all transactions (lines) or nil; - Correction of errors or inconsistencies by resubmission of monthly declarations; 2) Corrective (only after monthly declaration accepted without errors or inconsistencies) - containing only: • lines to be modifies (couple of lines – existing line and new one containing data for modification; • lines to be deleted or to be added (single lines); - Correction of errors or inconsistencies - by submission of additional corrective declarations; • No aggregation of similar lines.

7. Legislative Requirements (3) • Obligatory registrations for electronic submission of declarations with EES and as Intrastat operator • Ways for submission: 1) via upload of XML files (using the off-line tool): • Obligatory via the web (Internet site of NRA) signed with EES; • by exception, via local offices of NRA signed with CES of desk officer; 2) Via web-forms (using the on-line tool) • Verification and validation of data – errors / inconsistencies • Sanctioning – for non-compliance with deadlines and for incorrect data

8. Specific features of the system (1) • Covers all requirements of the amended legislative framework; • Provides for full bi-directional co-relation between prepared and submitted declarations and the protocols (results) of their acceptance; • The system fully controls and manages actions of the IsO in accordance to legal requirements; • Maintains the Declarants Register and is fully interconnected to General Tax and VAT Registers;

9. Specific features of the system (2) • Risk control of compliance of IsOs on the basis of 6 risk factors related to regularity and timeliness of submission of declarations and quality of submitted data; • 5 “report generators” – for IsOs, TDPs, Declarations, Erroneous declarations and Sanctions; • Usage of “Envelopes” with XML messages for data transmission: • INSTAT – for submission of monthly and corrective declarations and “ledgers”; • INSRES – for transfer of protocols from acceptance of declarations to the off-line tool; • INTRANS – for free transfer of data from recorded transactions between off-line/off-line and off-line/on-line tools;

10. Specific features of the system (3) • Covering all possible organizational variants of preparation and submission of declarations: - one person is preparing and submitting the declaration; - one person prepares, another person submits the declaration; - data is extracted from a corporate system and imported to on-line or off-line tool; - “rescue operation” for creating “ledgers” from submitted declarations; - export of transactions from on-line tool and import to off-line-tool; - different installations of off-line tool depending on usage of EESs;

11. Specific features of the system (4) • Full control of data in accepted declarations: • verification – acceptability of codes from nomenclatures; • validation – 5 types of rules: • on way of submission according to type of obligation; • on way of submission according to type of commodity; • trusted ranges; • quantity by supplementary unit; • seasonal goods;

12. Structure of the system • Overall architecture of the system: • 4 functional modules: - Module “Intrastat Operator” (IOM) – in on-line or off-line version; -Module “Collecting Authority” (CAM) - Module “Verification & Validation” (VVM) - Module “Declarants Register” (MDR) • Bilingual system – Bulgarian and English; • Allows modification to any other language by translation and substitution of “resource files”

13. Modules and Functions (1) • DRM – Declarants Registry Module 1) System maintenance – IOs, NRA staff, profiles and access rights, electronic signatures, nomenclatures, archiving, etc.; 2) Intrastat liability and compliance management; 3) Notifications, reminders and general correspondence; 4) Performance management, evaluation and analysis; 5) Querying, reporting and graphical presentation function – “report generators”; 6) Sanctions management.

14. Modules and Functions (2) • IOM – Intrastat Operator Module (existing as an off-line or on-line tool) 1) IO and TDP profilesManagement function; 2) Intrastat operator’s “Ledger”; 3) Local Verification of data, including maintenance of nomenclatures; 4)Off-line preparation of declarations (XML/INSTAT+); 5) Understanding and processing of acceptance protocols (XML/INSRES+) 6) Export, transfer and Import of transactions (XML/INTRANS); 7) Export and transfer of “ledgers” (XML/INSTAT+); 8) Off-line reporting obligations control.

15. Modules and Functions (3) • CAM – Collecting Authority Module 1) Control of access rights of IOs EESs; 2) On-line Intrastat operator’s “Ledger”; 3) Acceptance and processing of declarations – via the web, from local NRA offices and from on-line ledgers; 4)Preparation and dispatch of acceptance protocols and on-line correspondence; 5) Interfacing to VVM and Reporting to DRM; 6) On-line reporting obligations control

16. Modules and Functions (4) • VVM – Verification and Validation Module 1)Rules management and errors management; 2) Declarations structure management; 3) Verification and validation processing; 4)Reporting to CAM.

17. Thanks for your attention! Questions? For contacts: Krassimir Ivanov Director of Intrastat Directorate, National Revenue Agency, BG Tel.: +359-2-9859-3335 E-mail: k.ivanov@nra.bg