Bulgaria – registration threshold
Country Briefs
Bulgaria
6 December 2024
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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.
In this VAT guide, we have brought together the specific features of the Bulgarian regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
Basic information |
|
|---|---|
| EU membership | 2007 |
| ISO code | BG |
| 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) | n/a |
| Reduced VAT rate (2) | 9 % |
| Super reduced VAT rate | n/a |
| VAT parking rate | n/a |
| Zero VAT rate | yes |
Thresholds triggering VAT reporting obligations in Bulgaria |
|
|---|---|
| Intrastat threshold at introduction | 700 000 BGN (+/-358 000€) |
| Intrastat threshold on dispatch | 1 000 000 BGN (+/-511 000 €) |
| 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 return | monthly depending on threshold |
|---|---|
| EC Sales List (ESL) return | monthly |
| VAT returns | monthly, quarterly depending on threshold/for certain services |
|---|---|
| Reporting currency | BGN |
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 | A penalty of 10% more than the standard late payment interest in Bulgaria applied to the VAT due |
| Failure to report ESL/DEB | A fine of 500 BGN (approx. 255 EUR) to 10 000 BGN (approx. 5112 EUR) per ESL declaration. |
Useful links on VAT in Bulgaria |
|
| Tax Administration 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 |
|---|
Need VAT assistance in Bulgaria? Contact us now.
A foreign company carrying out transactions in Bulgaria subject to Bulgarian VAT, may be required to appoint a tax representative. Established in Bulgaria, the fiscal representative will fulfill the company’s VAT obligations to the Bulgarian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Bulgaria.
Intra-Community and Bulgarian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Bulgaria, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Bulgaria? Contact us now.
The VAT rates currently in force in Bulgaria are as follows:
Need a tax representative in Bulgaria? Contact us now.
Do you need a VAT fiscal representative in Bulgaria? Certain operations may require VAT registration and the filing of VAT returns in Bulgaria:
To check whether your activities give rise to VAT obligations in Bulgaria, use our VAT simulator .
Need a VAT tax representative in Bulgaria? Contact us now.
In Bulgaria , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Bulgaria? Contact us now.
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.
Bulgarian VAT is named Danak varhu dobavenata stoinost (DDS)and the VAT numbers in Bulgaria have the following structure: BG999999999 / BG9999999999.
The administrations in charge of VAT in Bulgaria are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Bulgaria, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Bulgaria, use our VAT simulator or contact us.
Companies with a VAT number in Bulgariamust complete and file dVAT decl arations in Bulgaria detailing all taxable income (sales) and expenses (costs), at regular intervals: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:
Need VAT assistance in Bulgaria? Contact us now.
In addition to VAT returns, companies may be required to provide the Bulgarian authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Bulgaria can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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