VAT compliance and reporting rules in Bulgaria 2024
Below is summary of the major rules provided under Bulgarian VAT rules (VAT Act of 2007; Regulation for the Application of the VAT Act), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions.
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Bulgaria VAT country guide
| Highlights | Local term | Danŭk vŭrkhu dobavenata stoĭnost (DDS); Данък добавена стойност (ДДС) |
| VAT Rates - standard | 20% | |
| VAT Rates - reduced | 9%; 0% | |
| Rates news | Temporary reduced VAT cuts extended into 2024 | |
| VAT number format | BG 1234567890 (ten digits for non-residents; only nine for residents) | |
| Registration threshold | BGN 100,000. Nil for non-residents; BGN 20,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions BGN 20,000. | |
| VAT Group | Not available | |
| VAT recovery foreign businesses | Permitted, but reciprocity agreement required for non-EU businesses | |
| Fiscal Representative | Required from non-EU businesses | |
| Currency | Lev, BGN. Joined the ERM-II (forerunner to Euro membership) since July 2020 | |
| Administration | Introduction | Bulgaria introduced VAT in April 1994. Joined the European Union in January 2007 |
| VAT laws | VAT Act of 2007; Regulation for the Application of the VAT Act ; Also EU VAT Directive which takes supremacy as part of EU membership | |
| Tax Authorities | National Revenue Agency (NRA); Sofia office for non-residents | |
| VAT Rates | Standard rate | 20% |
| Rates news | Temporary reduced VAT cuts extended into 2024 | |
| Reduced rates | 9%: Hotel and other overnight accommodation; newspapers and journals | |
| Zero-rated | Intra-community passenger travel by air and sea; Exports and intra-community supplies of goods; gold to central banks; services related to vessels and aircraft | |
| Exempt | Education; financial services; health, dental, hospital, and social welfare; public postal; letting immovable property; betting and gambling; welfare services; international passenger transport; certain copyrights; public broadcasting | |
| Scope of VAT | Scope of VAT | Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge |
| Time of supply | Goods & Services (general rule) | Goods is transfer of rights to disposal (i.e. delivery); Services when performed. Prepayments result in VAT liability. Intra-community by 15th of following month if payment or invoice not sooner. |
| Reverse Charge | Earliest of payment or provision of services | |
| Continuous Services | Based on payment terms or contract terms, or end of calendar year if longer than twelve months. Intra-community supplies end of month in which performed is long term (eg more than one year) | |
| Imports | At time of clearance into free circulation in Bulgaria. Some limited opportunities for postpone VAT accounting (see separate) | |
| Goods on approval and return | No provision. Time of supply when goods sent to customer. If goods are returned, then credit note should be raised. | |
| Registration | VAT registration threshold | BGN 100,000. Nil for non-residents; BGN 20,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions BGN 20,000. |
| Voluntary VAT registration | Permitted for residents only | |
| VAT number format | BG 1234567890 (ten digits for non-residents; only nine for residents) | |
| VAT Group | Not available | |
| Non-residents | Permitted. No VAT registration threshold. Non-EU must appoint a Fiscal Representative. | |
| Fiscal Representative | Required from non-EU businesses | |
| Digital Services | Bulgaria participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021 | |
| Pre VAT registration costs | Permitted for goods in place at time of registration and for services in the establishment of the taxable supply. | |
| VAT Invoices | Issuance | Within five days of tax point, including prepayments. Intra-community supplies by 15th of the following month. Unless customer request, no requirement for B2C or retail invoices. |
| Content | Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply. | |
| E-invoices | Bulgaria e-invoice proposals | |
| Simplified invoices | Permitted for transactions not exceeding €100. May exclude VAT rate and total price including VAT. May not be used for intra-community supplies. | |
| Self-billing | Permitted with written agreement between both parties | |
| Retention of invoices | Five years. Ten years for e-invoices. Paper invoices may be digitised subject to strict controls on authenticity, storage and ready access. Records may be kept outside of Bulgaria. | |
| FX rules | Foreign currencies may not be used on invoices. The price exclusive of VAT and VAT due must be shown in Bulgarian currency - if this is done by conversion on invoice, should use ECB or Bulgarian Central Bank rate at time of supply | |
| Invoice corrections | Credit notes may be issued with a clear reference to the original invoice number and reason for adjustment. Customer must sign as evidence | |
| Compliance | Right to deduct | Excluded: business entertainment; passenger car purchases and running costs |
| Call-off stock | Following the EU's 2020 Quick Fix harmonisation reforms, stock may be transferred from an EU state to a customer location/warehouse in Romania without triggering a VAT registration and supply for a non-Bulgarian supplier. Title has not passed until the customer takes the goods for production and sale. At which time a zero-rated transaction may be effected. This must happen within 12 months of the original movement | |
| Reverse Charge - B2B | In addition to reverse charge on B2B services provided cross-border, the RC is applied in the following cases: natural gas and electricity; non-resident supply of goods to Bulgarian VAT registered customer (even if foreign supplier Bulgarian VAT registered). Domestic reverse charge: investment gold; scrap; CO2 emission certificate trading | |
| Cash discounts | When a discount is taken up, the supplier should issue a corrected credit note | |
| Bad debt relief | Bad debt relief | |
| Import VAT deferment | New import VAT relief 2024 | |
| VAT warehouse | Bulgaria has not introduced VAT-exempt warehouse arrangements. Importers may use bonded warehouses to hold and trade certain goods without paying customs duties or import VAT prior to clearance into Bulgaria | |
| Supply & install | Non-resident providers of supply of goods services can use the reverse charge, making the customer responsible for the VAT reporting, if their customer in Bulgaria is VAT registered. If not, they must register themselves. | |
| Use and enjoyment services | Bulgaria has implemented use & enjoyment VAT rules on: transport of goods; entrance to events, conferences etc; short term vehicle private rental; catering services; telecoms, broadcast and electronic services; certain passenger transport. | |
| Capital goods adjustment period | Movable property: five years. Immovable property: twenty years | |
| Non-residents VAT recovery | EU businesses may apply for Bulgarian VAT reclaims through the electronic portal of the tax authorities of their company of residency (8th Directive). Quarterly claims above BGN 100 permitted, with final claim above BGN 400 by 30 Sept of following year. Non-EU businesses must submit a paper-reclaim with supporting invoices via the Bulgarian authorities directly (13th Directive). Bulgaria does require a reciprocal agreement with the country of residence of the claimant - list includes: Canada; Israel; Switzerland; Norway. Non-EU businesses have to appoint a Bulgarian resident VAT agent for the reclaim process | |
| VAT on Digital Services | Bulgaria follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021) | |
| Live events | ||
| Distance selling threshold for goods | Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Bulgarian VAT must be charged on all sales by non-Bulgarian EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Bulgarian sales VAT with IOSS return option | |
| Cash accounting scheme | Permitted for businesses with annual turnover not exceeding €500k per annum. Excludes intra-community supplies. | |
| VAT registered cash tills | N/a | |
| Statute of limitations | Five years | |
| Other | N/a | |
| VAT Returns | Frequency | Monthly |
| Filing method | Electronic only. Requires digital signature to payment portal. | |
| Deadlines (inc payments) | 14th of the month following the reporting month for filing and payment of any VAT liability. | |
| VAT credits | Initially rolled over for two months' VAT returns. If not recovered by then, a repayment claim may be submitted. | |
| Corrections | Notification to tax office of error. | |
| Non-residents | Permitted. No VAT registration threshold. Non-EU must appoint a Fiscal Representative. | |
| Other filings | Monthly European Sales Listing for goods and services supplies without any threshold by 14th of month following. Intrastat monthly by the 14th of the following month for supply of goods above threshold: dispatches: BGN 1.9m; arrivals: BGN 1.65k. Since 2023, quarterly reporting by VAT registered businesses of cash and certain receivables. | |
| SAF-T | Bulgaria SAF-T | |
| Penalties & interest | Missed returns will incur fine of BGN500 to BGN 10,000 depending on compliance track record of taxpayer. 5% interest charge on VAT not paid within six months of payment date. Charges for continually not payment raise to 200%. Penalty 10% above Bulgarian base rate for non-payment of VAT. | |
| B2C Distance Selling returns | Bulgaria participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021. Fiscal rep no longer required for non-EU businesses (since Jan 2024) |
