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Bulgaria VAT country guide

VAT compliance and reporting rules in Bulgaria

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.

Our VAT Calculator & VAT Filer products on a single platform, VAT Calc,  are unique in that they come with all of this included out-of-the box for Bulgaria and scores of other countries around the world.

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%
VAT number format BG 1234567890 (ten digits for non-residents; only nine for residents)
Registration threshold BGN 50,000. 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%
Reduced rates 9%: Hotel and other overnight accommodation
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 50,000. 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 No provision for recovery
Import VAT deferment Only allowed for certain government contracts, and various metals and chemicals exceeding BGN 50,000 per shipment.  Exemption is allowed in the case of an import and immediate (30 days) intra-community supply. 
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 780k; arrivals: BGN 520k
SAF-T N/a
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.

 

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