VAT registration in Bulgaria is compulsory and optional.
The National Revenue Agency issues an identification number for VAT purposes, having a prefix “BG”.
Compulsory VAT registration
Any taxable person who is established in Bulgaria and having a taxable turnover of BGN 50,000 (approx. € 25.000) or more for a period not exceeding 12 consecutive months preceding the current month shall submit an application for VAT registration within 7 days of the lapse of the tax period during which such turnover has accrued to the said person. When the turnover is reached for a period of not more than two consecutive months, including the current one, the person shall submit the application within 7 days from the date on which the turnover is reached.
In case of Intra-European Union acquisition where the total value of taxable intra-European Union acquisitions for the current calendar year exceeds BGN 20,000 (approx. € 10.000) any taxable person shall submit an application for VAT registration.
Each taxable person who effects a supply of goods under the terms of distance selling whereof the place of transaction is within the territory of Bulgaria are also obliged to apply for a VAT number.
Notwithstanding the taxable turnover, each person who is established in another Member State and who effects taxable supplies of goods which are assembled or installed within the territory of Bulgaria by or for the account of the said person shall register for VAT purposes. Where the recipient of such supply is a person VAT registered in Bulgaria, an obligation to register does not arise.
A person whose registration has been terminated or refused by the revenue authorities cannot be registered before the grounds for such registration refusal or the grounds for deregistration lapse, or before the lapse of 24 months from the beginning of the month following the month of deregistration or refusal of registration.
Optional VAT registration
Any taxable person, whereto the conditions for compulsory registration do not apply, has the right to get a VAT number.
As well, any taxable and non-taxable legal entity, whereto the conditions for compulsory registration do not apply, have the right to register for a VAT number for intra-European Union acquisition.
In addition, any taxable person may get a VAT number, where the said person has notified the tax administration of the Member State where the said person is registered for VAT purposes that the said person wishes the distance selling effected thereby to have a place of transaction within the territory of Bulgaria.
Keep in mind that a person whose VAT registration in Bulgaria has been terminated or refused by the revenue authorities cannot be registered before the grounds for refusal of registration or the grounds for deregistration lapse, or before the lapse of 24 months after the beginning of the month following the month of deregistration or refusal of registration.
VAT registration procedure
The person who is obligated or has the right to register submits an application for registration, completed in a standard form, to the competent National Revenue Agency territorial directorate.
As well, some documents shall be enclosed to any such application, i.e. information regarding taxable turnover.
The procedure of VAT registration in Bulgaria lasts 14 days.
Within seven days after receipt of the application, the revenue authority verifies the grounds for registration.
Within seven days after completion of the verification, the revenue authority issues an act whereby it shall effect the registration or shall refuse to effect the registration, stating the reasons for such refusal.
If a Bulgarian company uses advertising services from Google or Facebook it is obligated to charge itself VAT and deposit it locally. For this case there is a simplified registration procedure. Companies registered under this procedure do not need to charge their own customers in Bulgaria VAT.
Where a revenue authority ascertains that a person has failed to fulfil in due time the obligation to submit an application for registration, the said authority registers the said person by issuing a registration act.
For the purposes of determining the tax liabilities of the person in the cases where the said person was obligated but has failed to submit an application for registration in due time, the person is presumed to be liable for tax on the taxable supplies and taxable intra-Community acquisitions effected thereby, as well as on the taxable supplies of services received for which the tax is chargeable from the recipient:
- for the period from the expiry of the time limit for issuance of the act of registration, if the person has submitted the application for registration within the time limit, until the date on which the person was registered by the revenue authority;
- for the period from the expiry of the time limit for issuance of the act of registration, if the person has submitted the application for registration within the time limits until the date on which the grounds for registration have lapsed.
The date of delivery of the registration act is deemed a date of VAT registration.
Upon written request by the registered person, the director of the competent National Revenue Agency territorial directorate issues, within seven days, a separate certificate for the purposes of evidencing the VAT registration abroad.
For more information or legal assistance for obtaining a VAT number please do not hesitate to contact us by e-mail: firstname.lastname@example.org or call us on: +359 2 851 72 59.