(Specific features)

NATIONAL REVENUE AGENCY

BULGARIA

Krassimir Ivanov Director,Intrastat Directorate – NRA, BG

CoRD, June 2008

Luxembourg

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

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.

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.

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;

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.

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

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;

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;

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;

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;

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”

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.

Modules and Functions (2)

• IOM – Intrastat Operator Module (existing as an off-line or on-line tool)1) IO and TDP profiles Management 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.

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

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.

For contacts:

Krassimir Ivanov Director of Intrastat Directorate, National Revenue Agency, BG

Tel.: +359-2-9859-3335E-mail: k.ivanov@nra.bg