The standard VAT rate in Bulgaria
is 20%. Most supplies in Bulgaria are liable to VAT and legal entities and tax liable individuals must register for VAT in Bulgaria
at the competent authorities. Reduced rates and exemptions are available. Our Bulgarian lawyers
can help you register for VAT in Bulgaria.
Register for VAT in Bulgaria
VAT registration is required for all Bulgarian companies and Bulgarian tax liable persons who produce VAT taxable sales in Bulgaria that reach the 50,000 BGN limit (approximately 26,000 euros) within a financial year. Any legal entities or taxable individuals who record taxable sales below this limit can register for VAT voluntarily.
Any tax liable person or legal entity in Bulgaria not registered for VAT purposes can be automatically registered by the competent authorities and different penalties can apply. Foreign suppliers are not required to register for VAT purposes in Bulgaria, however, certain conditions must be fulfilled for this to be possible. Our lawyers in Bulgaria can provide more information about the commercial laws in Bulgaria.
Who is liable for VAT in Bulgaria?
The standard VAT rate of 20% applies to taxable supplies of goods or services and the import of goods. Intra-community acquisitions and various other actions fall under the scope of the European Community. In order to simplify the VAT registration
and verification procedure within the European Union, traders have the option to register for an EORI number
. Our Bulgarian lawyers
can provide complete details about this registration.
A reduced VAT rate of 9% applies in Bulgaria for hotel accommodation and other touristic establishments. A zero VAT rate applies for: international transport of goods and international transport of passengers, supplies concerning international transport, duty-free trade supplies and others.
The following categories of services are exempt from VAT in Bulgaria:
- health care supplies,
- social security and welfare supplies,
- supplies related to culture or religion,
- supplies related to land and buildings,
- postage services and stamps etc.