VAT registration for businesses in Bulgaria.

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VAT for businesses in Bulgaria

Bulgarian companies are subject to VAT registration according to specific rules. In this article you will find out more about the different possibilities of VAT registration.


Mandatory VAT registration for taxable turnover in Bulgaria

Any company making taxable supplies of goods or services in Bulgaria, thus accumulating a taxable turnover of more than BGN 50,000 (approximately EUR 25,000) over the last 12 months, is obliged to register for VAT in Bulgaria and to charge Bulgarian VAT of 20% on its supplies. At the present moment, there is a draft law which foresees an increase of the limit to 100,000 leva. VAT is reduced to 9% for tourist services.

Taxable transactions generating a turnover, subject to VAT, include not only supplies of goods or services to Bulgarian customers, but also exports to non-EU Member States and supplies of goods and services to individuals/ entities not subject to VAT (e.g. private individuals) in other EU Member States.


VAT registration for intra-Community acquisitions

Even if the taxable turnover of a Bulgarian company is below the registration ceiling of BGN 50,000, the company may still be subject to VAT registration if it receives goods shipped from other EU Member States by suppliers who are VAT taxable entities in another EU Member State. The legal obligation to register for VAT exists only if the intra-Community acquisitions reach the amount of BGN 20,000 (approximately EUR 10,000) during the calendar year.


VAT registration for “reverse charge” services

Generally, services supplied to another business, subject to VAT in an EU state, are taxable in the customer’s Member State. The final customer must pay the VAT in his own country, from which it will be deducted by the business using the so-called “reverse charge” mechanism. As these services are taxable in the customer’s country, they do not constitute a part of the company’s taxable turnover for the purposes of mandatory VAT registration.

However, such businesses are subject to special VAT registration in Bulgaria for all services supplied by the Bulgarian company to entities subject to VAT in another EU Member State. The VAT registration does not depend on the number of purchases or turnover of the individual or the entity.


If you want to know more about VAT registration, please contact us.