Last Updated on December 16, 2023 by Bulgarian attorney

VAT Services in Bulgaria

At our firm, we strive to make VAT services in Bulgaria simple and hassle-free. We use cloud-based accounting and VAT services, providing you with instant access to all your VAT documentation in one place, accessible from anywhere and on any device. We have optimized our processes to ensure the highest standards of VAT services in Bulgaria.

The Value Added Tax (VAT) is a consumption tax assessed on the value added to goods and services in the European Union. It applies to almost all goods and services bought and sold for use or consumption within the EU. In Bulgaria, the VAT is regulated by the Value Added Tax Act (VATA) and the Rules on the Application of the Value Added Tax Act (RAVATA), which implement the rules of Directive 2006/112/EO on the common system of value added tax in the EU. The standard VAT rate in Bulgaria is 20%, with several exceptions.

Our team of chartered accountants can help you register your company for VAT, report your VAT, and claim refunds. After registration under VATA, the obligation to report and pay VAT arises. Registration is mandatory for some and optional for others, depending on their individual circumstances.

When is VAT registration in Bulgaria required?

In Bulgaria, VAT registration is not required if a company’s turnover in the last twelve months is up to BGN 100,000. However, if a company provides services to VAT-registered customers from another EU Member State, it must register for VAT seven days prior to the service, invoicing, and payment. If the company is not VAT-registered, VAT will be charged on invoices for purchases from the EU.

When a Bulgarian company that is VAT-registered carries out transactions with VAT-registered companies in another EU Member State, no VAT is charged. For services from third parties in non-EU Member States, no VAT is due. In the case of transactions with third parties involving goods, customs must be passed.

What is the procedure for VAT registration in Bulgaria?

After submitting an application for VAT registration within seven days, the requested documents from the National Revenue Agency must be submitted, which include a turnover statement 12 months before the current one, bank statements at the time of filing the application, contract for using of the address of registration in the Commercial Register of the company, an accounting service contract, and a power of attorney. After submitting all the documents to the NRA, the person is registered for VAT up to seven days.

What happens after the VAT registration?

All purchase invoices, sales invoices, and bank statements must be sent until 10^th of the month. The VAT declaration is submitted by the 14^th of the following month. Our VAT services in Bulgaria are on the Cloud. All you need to do is to upload your monthly invoices and bank statements to your accounting folder on the Cloud. Once your monthly invoices and bank statements are processed, your monthly VAT declaration will be uploaded to your VAT folder on the Cloud. You will have all important tax and accounting documents in one place.

How VAT can be refunded?

VAT refunds are made three months after the first refund occurs.

Refused VAT refund in Bulgaria

If your VAT refund claim has been refused in Bulgaria, it can be frustrating, but it’s important to understand the reasons behind the refusal and take appropriate steps to address the issue. Our legal team, in collaboration with our chartered accountants, have the expertise to effectively appeal VAT refund refusals before the local NRA offices and Administrative courts in Bulgaria.

Benefits of Using Our Cloud VAT Services in Bulgaria:

Instant access to your VAT and accounting folders
Access from anywhere, any device
Easy tracking of your monthly and annual VAT and accounting
All-important tax, accounting and VAT documents in one place
Safe storage of your accounting and VAT documents on the Cloud

When buying property in Bulgaria, the VAT rules that may apply are as follows:

If the seller is a physical person and the buyer is a physical person, no VAT is required.
If the seller is a physical person and the buyer is a company, no VAT is required.
If the seller is a company and is registered for VAT, or if the property value is over BGN 100,000 (€51,017.49), then VAT is required.
If the seller is a company registered for VAT and the buyer is also a company registered for VAT, then the buyer may be eligible for a VAT refund.

Read More:

If you require further information about our VAT services in Bulgaria, please don’t hesitate to get in touch.

VAT services in Bulgaria, VAT reporting in Bulgaria, VAT refund in Bulgaria.