VAT in Bulgaria
Value Added Tax (VAT) is a consumption tax that is applied to goods and services in Bulgaria. It is a form of indirect tax that is collected by businesses and remitted to the government. VAT in Bulgaria is currently set at a standard rate of 20%.
Businesses in Bulgaria that have an annual turnover above a certain threshold (currently BGN 50,000) are required to register for VAT and charge VAT on their goods and services. Once registered, businesses must file VAT returns on a regular basis, typically on a monthly or quarterly basis, and pay the VAT they have collected to the government.
Businesses can also claim back the VAT they have paid on their own business purchases, this process is called VAT refund.
VAT registered businesses in Bulgaria must also issue invoices that show the VAT amount charged. The invoice should also indicate the VAT registration number of the seller, the date of issue, the name and address of the buyer, and a description of the goods or services sold.
Non-EU businesses that supply goods or services to Bulgaria must also register for VAT if they exceed certain thresholds. They must appoint a fiscal representative in Bulgaria to register for VAT and file VAT returns.
VAT can be a complex and time-consuming compliance area for businesses, it’s recommended to consult with a tax professional or a lawyer to ensure that the VAT obligations are met correctly and on time.
In summary, VAT is a consumption tax applied to goods and services in Bulgaria, currently set at 20%. Businesses that exceed a certain threshold are required to register for VAT, charge VAT on their goods and services, file VAT returns and pay the VAT they have collected to the government. Non-EU businesses must also register for VAT and appoint a fiscal representative if they exceed certain thresholds.