Bulgaria joined the EU in 2007. The country is not yet a member of the Eurozone, and trades in the Bulgarian Lev.
VAT rates in Bulgaria
The standard rate of VAT is 20%, and a reduced rate of 9% is available.
VAT registration in Bulgaria
The VAT registration limit for established and non-established businesses in Bulgaria is BGN 50,000.
Distance sales have a limit of BGN 70,000 for VAT registration.
The format for a Bulgarian VAT identification number is: BG 123456789. Every company must hold a number like this in order for accurate taxation.
VAT returns should be submitted monthly and annual returns are not required.
Are there any Intrastat thresholds in Bulgaria?
Yes. There is a limit of BGN 240,000 for dispatches and BGN 240,000 for arrivals.
VAT recovery in Bulgaria
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, but only to applicants of non-EU countries that Bulgaria has a reciprocity agreement with.
- Are there any non-VAT recoverable expenses?
Yes, recovery VAT is not allowed on goods and services intended for activities and entertainment.
Reverse charge applies to the majority of cross border services in Bulgaria. This is extended if a non-established business supplies services to a Bulgarian VAT registered customer.
Requirements and regulations in Bulgaria
A fiscal representative must be appointed to any business established in a non-EU country that has not entered into an agreement for mutual assistance with Bulgaria.
Use and enjoyment rules do not apply in Bulgaria, except for telecommunications, radio and television services.
The period of VAT recovery by tax authorities has a timescale of 5 years.
There is a period of 1 year for VAT deductions and 5 years for refunds.
Please contact us for further information about paying taxes in Bulgaria, and a member of our team will be happy to help you.