Whether you’re a European or non-European company, establishing certain activities in Bulgaria may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Bulgaria.
If you deal with companies in Bulgaria, you may be able to claim a Bulgarian VAT refund.
Here you can find the specifics of VAT regulations in Bulgaria, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|VAT introduced in Bulgaria||1994|
|VAT name in Bulgaria||Danak varhu dobavenata stoinost (DDS)|
|VAT ID format in Bulgaria||BG999999999 / BG9999999999|
|Territories with special status in Bulgaria||n/a|
VAT rates in Bulgaria
|Standard VAT rate||20 %|
|Reduced VAT rate (1)||9 %|
|Reduced VAT rate (2)||n/a|
|Super reduced VAT rate||n/a|
|VAT parking rate||n/a|
|Zero VAT rate||no|
Thresholds triggering VAT reporting obligations in Bulgaria
|Intrastat threshold at introduction||430 000 BGN (+/- 219 300 EUR)|
|Intrastat threshold on dispatch||270 000 BGN (+/- 137 700 EUR)|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Bulgaria
|Intrastat declaration||monthly depending on threshold|
|EC Sales List (ESL) declaration||monthly|
|VAT returns||monthly, quarterly depending on threshold/for certain services|
VAT-related penalties in Bulgaria
|Failure to file a VAT return||Penalty of from BGN 500 (approximately EUR 255) to BGN 10,000 (approximately EUR 5,113)|
|Late payment of VAT||Penalty of 5% of the amount of VAT due, with a minimum of BGN 200 (about EUR 102) or BGN 400 (about 205) in case of repeated offence. If the VAT due is paid between 6 and 18 months: 10% of the amount of the VAT with a minimum of BGN 400 (about EUR 205) or BGN 800 (about EUR 409) in case of repeated offence.|
|Failure to report ESL/DEB||Penalty from BGN 500 (about EUR 255) to BGN 500 (about EUR 2,556)|
Useful links on VAT in Bulgaria
|Tax Authorities in Bulgaria||Tax authorities|
|Ministry of Finance in Bulgaria||Ministry of Finance|
|Check a VAT number in Bulgaria||Check a VAT number|
|EU VAT Guide||EU VAT Guide|
The current VAT rates in Bulgaria are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Bulgaria:
In Bulgaria just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
You may need a VAT number in Bulgaria to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Bulgaria, use our VAT simulator or contact us.
VAT Bulgarian is named Danak varhu dobavenata stoinost (DDS)and the VAT numbers in Bulgaria have the following structure: BG999999999 / BG9999999999.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Bulgariayou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Bulgaria must complete and submit VAT returns in Bulgaria detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly, quarterly depending on threshold/for certain services.
Failure to comply with the deadlines imposed by the Bulgarian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Bulgaria:
In addition to VAT returns, companies may be required to provide the Bulgarian authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Bulgaria can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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