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Bulgaria

 

News & Tips

Cash accounting scheme [Tip]

An  optional cash accounting scheme has been introduced as from 01/01/2014 and can be applied by taxpayers having a turnover not exceeding € 500.000 within the last 12 months. A supplier applying the scheme is obliged to charge VAT after the reception of the payment. The right to deduct input VAT arises after payment is made.


Access to electronic portal of Bulgarian VAT authorities [Tip]

In order to access the electronic services of the tax authorities, the following requirements should be met: 1) the qualified electronic signature  [required for accessing the electronic portal] should be issued by a Bulgarian licensed provider and 2) a request for accessing the electronic services of the NRA should be submitted.


Refund of VAT credit [Tip]

Refund of VAT credit is claimable within 30 days after submission of the VAT return where the person has effected supplies liable to tax at the zero rate within the last 12 months preceding the current month at a total value exceeding 30% of the total value of all taxable supplies. Otherwise, VAT credit is claimable within 30 days after submission of the most recent VAT return, when there is input VAT claimable after the application of the 2-month procedure and after setting off all other chargeable and unpaid tax liabilities and liabilities for social-insurance contributions collected by the National Revenue Agency, where the person owes such. 


DOING BUSINESS IN BULGARIA [BG] - VAT GUIDE

 

General

VAT Directive

Bulgaria

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

VAT numbers for non-resident taxpayers registered for VAT purposes in Bulgaria have 12 characters [BG + 10 digits]. 

 

What is the local name of the tax?

 

Danak varhu Dobawenata Stoinost [DDS]

 

VAT rate

VAT Directive

Bulgaria

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Bulgaria applies a standard VAT rate of 20% and one reduced rate of 9%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Bulgaria

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis [standard tax period].

No other tax periods exist in Bulgaria.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be filed by electronic means to Bulgarian VAT authorities before the 14th day of the month [14 of N+1] following the tax period [month] to which it relates.

 

Statement

VAT Directive

Bulgaria

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

No

Your company is not required to file any summarizing annual VAT return in Bulgaria.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month.

ESL should be filed by electronic means or on paper format no later than the 14th day of the month after the end of the reporting period [month] to which it relates.

Filing the statement on a quarterly basis is not possible in Bulgaria.

Payment

VAT Directive

Bulgaria

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by the filing deadline for the VAT return - 14th day of the month after the  tax period [month] to which it relates.

As from 1/1/2014, a new regime of cash accounting is available under specific conditions.

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required in Bulgaria.

 

VAT refund

VAT Directive

Bulgaria

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

VAT can be refunded through the VAT returns within two months [period for carrying forward and offsetting of the claimable VAT against VAT payable] and 30 days of filing the last VAT return [period for effective refund].

Special deadlines exist [30 days] for investors in a large investment project.

Special measures for foreign companies

VAT Directive

Bulgaria

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

No

Reverse charge is not applicable to major supplies of goods [with the exception for supplies of goods with installation and for other specific items].

 

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Yes

Reverse charge is applicable to all domestic supplies of services provided the recipient is a taxable person. 

 

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

No simplification measures are available for consignment stock. Foreign taxpayers are therefore required to be registered for VAT purposes in Bulgaria.

 

 

Do special arrangements apply to "call-off-stock"?

 

No

No simplification measures are available for call-off-stock.

Foreign taxpayers are therefore required to be registered for VAT purposes in Bulgaria.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

No

Triangulation regime ABC cannot be applied when the middleman B is also VAT registered in Bulgaria [Member State of destination C] and/or in the Member State A [departure of the transport].

Furthermore, triangulation scheme can be applicable in chain transaction involving four parties under conditions. 

 

VAT on import

VAT Directive

Bulgaria

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

No

Bulgaria has not introduced VAT warehousing regime.

 

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

 

 

Miscellaneous

VAT Directive

Bulgaria

Intrastat Threshold  

Dispatches: BGN 240,000 (BGN 260,000 in 2018)

Arrivals : BGN 410,000 (BGN 430,000 in 2018)

 

Distance Sales - Threshold  

BGN 70.000

See various thresholds applied in the EU

 Ministry of Finance - Website    www.minfin.bg

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