Numerous businesses contemplating expansion often contemplate Belgium as a prospective location, often due to its advanced level of development. Nevertheless, venturing into a new market necessitates acquainting yourself with the […]Read in: 6 min
VAT Bulgaria – rates, registration, Intrastat
- Last update: 26.07.2023
- Published: 20.03.2023
- Read in: 5 min
Value Added Tax (VAT) is a fundamental taxation system applied in the European Union, and in Bulgaria, it is regulated by the Value Added Tax Act.
In this article, we will examine the different VAT rates. Bulgaria has a single standard rate, a reduced rate, and a zero rate. We will also explore which categories of goods and services fall under each respective VAT rate. Let’s explore the details!
From the following article you will find out:
- What are the applicable VAT rates in Bulgaria?
- When should you register for VAT in Bulgaria?
- What is the deadline for submitting your VAT return in Bulgaria?
- How does the VAT registration process look like in Bulgaria?
- What is the Intrastat threshold in Bulgaria?
Standard VAT rate in Bulgaria
Much like other countries in the European Union, Bulgaria, with its capital in Sofia, follows a single standard VAT rate. Set by the Bulgarian authorities, this rate stands at 20%.
All goods and services falling outside the scope of reduced or zero-rated VAT are subject to the standard 20% VAT rate.
The reduced VAT rate in Bulgaria
Bulgaria currently has a single reduced VAT rate of 9%, which will remain in effect until at least 31 December 2023. It is essential to highlight that this reduction is a temporary measure implemented in response to the pandemic.
Goods and services subject to the 9% VAT rate in Bulgaria include:
- hygienic articles,
- printed and digital magazines,
- tickets for sports and recreational events,
- natural gas and central heating,
- food products for children,
- restaurant and catering services.
Zero VAT rate Bulgaria
There is also a zero VAT rate in Bulgaria, which applies to:
- intra-community supply of goods,
- export of goods outside the EU,
- transport of goods and services related to air and watercraft.
When does the obligation to register for VAT in Bulgaria arise?
An entrepreneur must register for VAT in Bulgaria when:
- they warehouse and/or purchase goods and then subsequently sell them in Bulgaria,
- they import to and exports goods from Bulgaria.
Just a friendly reminder: Bulgaria is an EU member, therefore it is subject to the mail order limit of €10,000 within EU countries. Any sales exceeding this threshold should be settled locally or under the VAT OSS procedure.
Should you require assistance with any of these matters, don’t hesitate to schedule a free consultation with us. Simply let us know your needs, and we will handle your VAT registration, ensuring smooth and trouble-free VAT settlements and returns.
VAT registration in Bulgaria
Regarding VAT requirements in Bulgaria, a business registered in either Bulgaria or another EU country is eligible to apply for VAT registration. However, it is essential to be aware that VAT legislation does not permit retroactive VAT registration.
On another note, the application for a VAT number should be submitted to the National Revenue Agency before conducting any initial transactions. This proactive step helps avoid penalties and interest.
Furthermore, it is worth mentioning that companies offering services and selling goods, even if not based in Sofia, can also seek VAT registration in Bulgaria.
National Revenue Agency - the Bulgarian tax office
In Bulgaria, the National Revenue Agency (NRA) is also known as ‘Natsionalna agentsiya za prikhodite’ (NPA).
It is located at the following address: Gurko Street 12, 1000 Sofia Center, Sofia, Bulgaria.
Telephone: +359 700 18 700.
Submitting VAT returns in Bulgaria
In Bulgaria, businesses are required to submit their VAT returns by the 14th of the month following the VAT settlement month.
It’s important to note that only monthly settlements are mandatory, and there is no obligation to submit an annual return. However, if no transactions occur during a particular month, a nil return must be submitted.
Intrastat in Bulgaria
Just a reminder, Intrastat declarations involve recording the movement of goods within the EU, covering both imports and exports to and from Bulgaria.
The Intrastat thresholds in Bulgaria are set at BGN 700,000 for imports and BGN 1,000,000 for exports of goods. Additionally, when imports reach BGN 5,000,000 and exports exceed BGN 10,700,000, the Intrastat legislation mandates additional statistical reporting.
VAT Bulgaria - Summary
In Bulgaria, there are two applicable VAT rates: a standard rate of 20% and a reduced rate of 9%, which remains in effect until the end of 2023. Furthermore, specific taxable services are subject to a zero VAT rate.
VAT registration is available for both resident and non-resident companies in Bulgaria. In addition to registration, certain companies are obligated to submit Intrastat declarations. This requirement arises for goods imported and exported to and from Bulgaria at the border rate.
If you require any assistance with VAT registration, document filing, ensuring correct VAT settlement for your goods and services, or if you’re uncertain about the applicable rates in Bulgaria, don’t hesitate to schedule a free consultation.
Moreover, if you’re interested in the applicable VAT rates in the EU or specific countries such as Czech Republic, Croatia, the Netherlands, France, Romania, Italy, Germany, or Spain, we can provide all the relevant information.