Sofia heating utility adjusts users' invoices due to reduced VAT

Between BGN 10 and BGN 15 will be returned to users of the services of Sofia District Heating, who charged them higher VAT in their balancing invoices, the company told BNT on September 19. The amount will be deducted from the current invoice for payment or from the previous one if it has not been paid.

Ombudsman found wrongly charged VAT in the balancing bills for heating in Sofia

With other heating companies, there is no problem with overcharged VAT, because there are no estimated bills, and consumers pay the actual ones every month. Only those bills issued after the entry into force of the lower VAT for heating will be compensated. The VAT rate was reduced from 20% to 9%.

However, such a bill is not considered to be the full balancing bill, but only the difference between the amount paid and the actual quantities consumed. There will be no change in the bills of consumers who have overpaid their consumption during the year and have money to receive.

The scheme by which compensation is calculated is as follows. From the invoices already received and paid by the customer, the amount of the actual consumption detected at the end of the heating season is deducted.

"If during the reporting period 2021 - 2022 there was invoicing of amounts conditionally speaking for BGN 1,000, and the total was issued in the amount of BGN 1,100, that is, it provides for additional charge of BGN 100, only these BGN 100 are subject to adjustment," explained Plamen Ivanov, Director of Economic Policy at Sofia district heating company.

Instead of the charged VAT of 20%, it will be 9%. The change will be noted in the current bill.

"If there are no amounts due or if a customer has paid their invoice for August, it will be available for the customer to cash out the amount from the company or it will be offset against a subsequent bill," Plamen Ivanov said.

The corrections can now be viewed on the company's website. For people who receive paper invoices, corrections will be received within ten days.

"I think that the new documents we are issuing are completely clear and transparent as all the adjustments are described in the invoice as additional information, which is clear and understandable for consumers," Plamen Ivanov further said.

The average amount to be received by customers is between 10 and 15 BGN or less than 1% of the amounts due.

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