VAT GUIDE IN BULGARIA
BULGARIAN VAT GUIDE FOR BUSINESSES
VAT in Bulgaria is a consumption tax levied on the supply of goods and services within the country, as well as on imports and certain intra-Community transactions. Bulgaria, as a member of the European Union, applies VAT rules in line with the EU VAT Directive, while also maintaining specific national regulations.
Businesses that exceed the mandatory registration threshold (BGN 100,000 in a 12-month period) are required to register for VAT with the Bulgarian tax authorities. Voluntary registration is also allowed for businesses below this threshold.
Non-resident businesses carrying out taxable transactions in Bulgaria may also be required to register for VAT and comply with local VAT obligations, either directly or through a tax representative.
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VAT Rates
Who Needs to Register for VAT?
In Bulgaria a taxable person is any business or individual conducting economic activity in Bulgaria, whether local or foreign.
Established businesses in Bulgaria must register for VAT if their taxable turnover exceeds BGN 100,000 (approx. EUR 50,000) in any 12 consecutive months or within two months. This includes most taxable and exempt supplies.
Non-established businesses (foreign entities) must register before performing any taxable supply, regardless of turnover, unless the reverse charge applies.
Bulgarian-established businesses supplying taxable services to other EU countries must register, even if below the threshold.
EU-based businesses installing or assembling goods in Bulgaria for unregistered recipients must register, regardless of turnover.
Anyone receiving cross-border services subject to the reverse charge in Bulgaria must register, regardless of turnover.
In cases where related parties operate similar activities in the same location, their turnovers are combined when assessing the registration threshold.
VAT Obligations
VAT Invoices
In Bulgaria, taxable persons are required to issue invoices for all taxable transactions, including exports, intra-Community supplies, and advance payments. However, invoices are generally not necessary for retail (B2C) sales unless the customer specifically requests one. Invoices are also not required for certain exempt supplies, such as free-of-charge transactions or specific financial services.
To be considered valid, an invoice must meet the conditions outlined in the Bulgarian VAT Act. A valid VAT invoice is essential to claim input VAT deductions or to apply for a refund under the EU Directive 2008/9/EC or the EU 13th Directive refund procedures.
Records: a taxable persons in Bulgaria must maintain detailed accounting records sufficient for the tax authorities to assess their VAT obligations. Specific registers are required for certain transactions, such as goods sent for services within the EU or under call-off stock arrangements.
Records may be stored either in Bulgaria or abroad, as long as they remain accessible to the Bulgarian tax authorities during audits.
Retention Periods:
- Paper records must be kept for 5 years after the statute of limitations expires.
- E-invoices must be stored for 10 years from 1 January following the year the VAT became due.
Electronic Archiving:
- Allowed and must ensure authenticity, content integrity, and readability.
- Must be accessible online during audits.
- Reliable audit trails (e.g., EDI, e-signatures) are required.
- No restrictions on storage location as long as access is guaranteed.
VAT Deadlines
Filing Frequency: Monthly
Deadline: VAT returns must be submitted by the 14th of the month following the reporting period.
Payment Deadline: Same as filing – by the 14th of the following month. Late payments incur daily penalty interest.
Currency: VAT is due in BGN but can be paid in any currency, as long as it matches the BGN amount.
Payment Method: Bank transfer to the National Revenue Agency (NRA).
Bank Details (as of 1 Oct 2023): For VAT and central budget taxes, the IBAN is BG88BNBG96618000195001.
If the 14th is a non-business day: Payment is due the next business day.
VAT Refund
Applies to businesses not established or VAT-registered in Bulgaria. Must not have made taxable supplies in Bulgaria during the refund period (with some exceptions like reverse-charge supplies and international transport).
For EU Businesses:
- Refunded is under EU Directive 2008/9/EC and local Ordinance N H-9/16.12.2009.
- Claim is submitted electronically via the portal in the business’s home country.
- Applicant can appoint a local representative.
- No refund if the business made taxable supplies in Bulgaria (except certain exempt/reverse-charge ones).
Non-EU Businesses:
- Refund is under EU 13th Directive 86/560 and Ordinance H-10/24.08.2006.
- VAT refund is only available if the claimant’s country refunds VAT to Bulgarian businesses.
Countries eligible: Israel, Iceland, Canada, South Korea, Moldova, North Macedonia, Norway, Serbia, Ukraine, Switzerland. - Claims must be submitted through a Bulgarian-fiscal representative.
Refund Conditions & Deadlines:
- The deadline is set for June 30th, of the following year.
- The period covered should be at least 3 months (unless it’s the year-end);
- The minimum VAT amounts needed: ≥ BGN 400 for 3+ month periods, ≥ BGN 50 for shorter periods
- Refund issued within 6 months to the bank account specified in the claim.
Penalties for non-compliance
Late Registration & Deregistration
Late registration: Penalty from BGN 500 to BGN 5,000
Additional penalty equal to the VAT that should have been charged
Late deregistration: Penalty from BGN 500 to BGN 5,000
Late Payment & Filings
Failure to file VAT returns or maintain ledgers:
Penalty from BGN 500 to BGN 10,000
Late/missing/inaccurate Intrastat or ESL declarations:
Penalty from BGN 500 to BGN 5,000
Errors
Failing to charge VAT:
Penalty = uncollected VAT, but not less than BGN 500
Delayed VAT charge:
Up to 6 months: 5% of VAT not charged (min BGN 200)
7–18 months: 10% of VAT not charged (min BGN 400)
Failure to self-charge VAT:
Regular: 5% of VAT or min BGN 50
If corrected in next period: 2% of VAT or min BGN 25
Non-deductible input VAT claimed: Penalty of 100% of that VAT
Failure to issue proper VAT documents: Penalty = VAT shortfall, but not less than BGN 1,000
Correction allowed: Mistakes may be corrected with invoice cancellation and reissuance, along with a signed protocol—but penalties may still apply
Failure to Notify Changes
No specific penalty, but if changes affect VAT obligations, the standard penalties above may apply
VAT Fraud
Avoiding > BGN 3,000: Criminal liability
1–6 years imprisonment or up to BGN 2,000 fine
Avoiding > BGN 12,000:
3–8 years imprisonment + possible property confiscation
Common VAT Terms
- Value Added Tax (VAT) – Данък върху добавената стойност (ДДС)
- Taxable person – Задължено лице
- Taxable supply – Облагаема доставка
- Input VAT – Данъчен кредит
- Output VAT – Начислен ДДС
- VAT return – ДДС декларация
- VAT registration – Регистрация по ДДС
- Reverse charge – Самоначисляване на ДДС (обратно начисляване)
- Exempt supply – Освободена доставка
- Zero-rated supply – Доставка с нулева ставка
- Standard VAT rate – Стандартна ставка на ДДС
- Reduced VAT rate – Намалена ставка на ДДС
- Intrastat declaration – Интрастат декларация
- EC Sales List (ESL) – Справка-декларация за вътреобщностни доставки
- Invoice – Фактура
- Credit note – Кредитно известие
- Self-billing – Самофактуриране
- Electronic invoice (e-invoice) – Електронна фактура
- VAT refund – Възстановяване на ДДС
- Tax period – Данъчен период
- Tax base – Данъчна основа
- National Revenue Agency (NRA) – Национална агенция за приходите (НАП
