Bulgarian Luxury Cars Registered as Fast Food Trucks to Evade VAT

Bulgaria’s police authorities have discovered a total of 157 luxury cars that were registered as vans or pickup trucks in order to avoid the payment of sizable value-added tax.  The police have already started legal procedures against 30 owners of such cars.

In one of those cases, the authorities have already managed to collect for the state budget the evaded VAT that amounted to BGN 44 459 (EUR 23.000) together with the interest, the Interior Ministry press service announced. The scheme works as luxury expensive vehicles such as BMW X 5, BMW X 6, Porsche Cayenne, Audi Q 7, Mercedes ML, Mercedes GL, etc, are registered as trucks.

To achieve this, the owners just remove the back seats, and have a special firm install a light screen behind the driver seats. Thus, the car receives a protocol for the modification that it has been turned into a light truck, and trucks in Bulgaria are free of VAT.