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Econt voluntarily pays over BGN 13 million to the National Revenue Agency despite winning a lawsuit




Nikolay Sabev


“I do not want to be in legal relations with the state of which I am a minister,” said Transport Minister Nikolay Sabev, co-founder of the company, as his personal motive.

Econt will voluntarily pay more than BGN 13 million to the National Revenue Agency, although the company has won a case at first instance in this case, Econt reports.

The court battle over whether Econt should charge VAT retroactively on the postal services provided by the company for the period 2013-2015 has been going on for more than a year, the company said.

Meanwhile, the NRA proposed that the company voluntarily and with an old date charge VAT on the value of postal services provided by Econt for the period from 2016 to 2019. The NRA’s proposal is for the company to collect the disputed amounts from its customers.

The court ruled in favor of Econt at first instance. However, the company decided to pay the amount in question to the National Revenue Agency and chose not to continue the lawsuits.

The claim of the National Revenue Agency for reverse charge of VAT for the period amounts to BGN 3,800,000. This amount was filed in 2020 and a lawsuit was filed

The company won the case at first instance. The main arguments of the court were that this was the law at the time, as well as the proven fact that the NRA itself also used postal services without VAT on the basis of existing legislation.

Days before Christmas 2021, however, Econt received a new invitation to pay VAT on services for the period 2016-2019. Despite the court’s decision in its favor on the previous invitation, the company decided to end the lawsuit and pay the NRA the entire claimed amount of BGN 6,580,865. Interest is to be charged separately to it. Thus, the total amount paid by Econt will exceed BGN 13,000,000.

The main arguments for this action of the company are both economic and socio-political, as well as moral and personal.

High costs, deposits and years of litigation are just some of the company’s economic reasons.

On the other hand, the new socio-political situation in the country leads the partners to the conviction that from the autumn of 2021 the funds entering the state budget will be spent openly and only for the benefit of the taxpayers of Bulgaria.

The company’s conviction is that it is inadmissible to demand from its clients the amounts claimed by the NRA with an old date. In this sense, Econt decided to take full payment of the sums.

“I do not want to be in legal relations with the state of which I am a minister,” said Transport Minister Nikolay Sabev, founder of Econt, as his personal motive.

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