VAT Bulgaria Guide

Read our guide and find out everything you need to know about VAT Bulgaria, from registration to filing, and more.

Expanding your business to Bulgaria requires a solid understanding of its VAT system. Like all EU countries, Bulgaria has its own set of VAT rules and regulations, and navigating these can be complex, especially for those unfamiliar with the Bulgarian tax system. In this guide we provide all the essential information about Bulgarian VAT, helping you understand how it affects your business operations in Bulgaria.

What is the Bulgaria VAT rate in Bulgaria?

In Bulgaria VAT (Value Added Tax) is known as Danŭk vŭrkhu dobavenata stoĭnost (DDS). If your business activities fall under certain criteria, you'll need to register for a Bulgaria VAT number and comply with local VAT regulations. The standard Bulgarian VAT rate is 20%, the reduced rate is 9%, and there is also a 0% rate.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT	20%	All other taxable goods and services.
Reduced VAT rate	9%	Hotel accommodation and newspapers and journals.
Zero rate VAT	0%	Intra-community supplies and international passenger transport.

Registering for VAT in Bulgaria

Resident businesses are required to register for VAT in Bulgaria if they exceed the turnover threshold of BGN 100,000 (nil for non-resident businesses) in any 12-month period.

If the annual turnover of your cross-border sales to Bulgaria exceeds the €10,00 threshold and you have not chosen to pay the VAT via the One Stop Shop, you must register for VAT in Bulgaria. Businesses storing products in Bulgaria or participating in an FBA (Fulfilled-by-Amazon) program that includes Bulgaria must also register for VAT.

Businesses can apply for their Bulgarian VAT number by downloading an application form from the Bulgarian National Revenue Agency website. Foreign companies should submit their application to their local tax office, whereas those engaged in distance selling are required to submit their registration form to the main office in Sofia. The process usually takes no more than a couple of weeks.

Fiscal representative in Bulgaria

Non-EU businesses conducting taxable transactions in Bulgaria are required to appoint a local fiscal representative. This representative is responsible for ensuring compliance with Bulgarian VAT obligations and is jointly liable for the VAT.

Bulgarian VAT return filing and penalties

All Bulgarian VAT returns are to be submitted monthly. VAT return submissions and VAT payments should be made electronically via the National Revenue Agency website. The deadline for filing VAT returns is the 14th day of the month following the reporting period.

Failing to meet the Bulgarian VAT filing and payment deadlines can result in penalties. Fines of BGN 500 to BGN 10,000 may be imposed for missed returns, while missed payments will incur interest of 5% on the amount outstanding.

Bulgarian Intrastat declarations

Intrastat declarations in Bulgaria are required for EU traders who reach a certain threshold in goods movement to or from other EU countries. The threshold for Intrastat declarations in Bulgaria is BGN 700,000 for arrivals and BGN 1 million for dispatches. Declarations are due by the 14th day of the month following the reporting period. Businesses failing to submit an Intrastat return could face fines of up to BGN 5,000.

Reverse charge in Bulgaria

The reverse charge mechanism in Bulgaria applies to certain goods and services, shifting the VAT liability from the supplier to the recipient. This mechanism is often used in transactions involving foreign businesses to simplify VAT reporting.

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