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Bulgarian VAT Compliance – Rates & Registration

If a company not established in Bulgaria is providing ‘taxable supplies’ of goods or services in Bulgaria, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Bulgaria assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Bulgaria. Some of the most common examples are:

  • Importing goods into Bulgaria from outside the European Union.
  • Buying and selling goods in Bulgaria.
  • Selling goods from Bulgaria which are delivered to customers outside of Bulgaria (business or private customers).
  • Acquiring goods in Bulgaria from another EU country (Intra-community acquisitions).
  • Holding inventory in Bulgaria for sale, distribution or consignment.
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds.
  • Organising events in Bulgaria where attendees or delegates must pay admission.

If you are currently, or plan to conduct any of the above (or similar) transactions in Bulgaria, you should contact us immediately for a complimentary consultation.

Bulgarian VAT Rates, Number Formats & Thresholds

*Thresholds apply for sales up to 1st July 2021 only, after which the EU rules were updated: For non-EU sellers, there is no revenue threshold and registration will be required in all member states where sales are made. For EU-based sellers, a threshold of €10,000 per annum applies – but this threshold refers to all EU sales, so if your sales revenue across the whole EU is greater than €10,000 – you will need to register in every EU state where you deliver goods. Read more about registrations options and the OSS here.

VAT Rates VAT Number Format Distance Selling Threshold* Intrastat Threshold
20% (Standard) BG123456789 BGN 70,000 BGN 460,000 (Arrivals)
9% (Reduced) BGN 280,000 (Dispatches)
VAT return periods

Monthly

Annual returns

No

EC Sales Lists frequency

Monthly

EC purchase lists

No

Other reporting requirements

No

Extended reverse charge

If a non-established business supplies services to a customer in Bulgaria who is registered for VAT in Bulgaria then the customer is responsible for accounting for VAT under the reverse charge. Please contact us if you would like details of how the extended reverse charge applies in Bulgaria.

Fiscal Representation

A business established in a country outside the EU that has not entered into an agreement for mutual assistance with Bulgaria must appoint a tax representative to register for VAT in Bulgaria.

Contact us for a complimentary consultation.

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