1. (Specific features) NATIONAL REVENUE AGENCY BULGARIA 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 – 10 th 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 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.

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. For contacts: Krassimir Ivanov Director of Intrastat Directorate, National Revenue Agency, BG Tel.: +359-2-9859-3335 E-mail: k.ivanov@nra.bgk.ivanov@nra.bg