VAT in Bulgaria

1. What is the VAT in Bulgaria?

In Bulgaria, the standard VAT rate is 20%. This rate is applied for domestic supplies, intra-community acquisitions and importation from non-European countries. There is also a 9% reduced rate for VAT for companies in tourism and hotel accommodation services. Exemption from VAT in Bulgaria applies for exportation, intra-community supplies, international transportation of goods, transfer or rental of land, financial services, gambling and services in health, education or religion.

2. How can I get a VAT refund in Bulgaria?

VAT can be refunded in Bulgaria within two months or 30 days after filing the VAT return application. The claim can be submitted with the tax office or electronically. Invoices must also be provided in order to receive a VAT refund in Bulgaria. Companies that are not established or registered for VAT in Bulgaria can receive a VAT refund of the local input tax if they are set up in a European member state or they can receive a VAT refund on a reciprocal basis if it is a business from outside the EU.

3. How can I register for VAT in Bulgaria?

A company must register for VAT in Bulgaria only if it meets some conditions. It is mandatory to register for VAT if the tax on transactions exceeds 50,000 BGN during the previous year, if intra-community acquisitions exceed 20,000 BGN or if distance sales in Bulgaria are more than 70,000 BGN. Foreign companies must register for VAT no matter their taxable turnover. The owner can register for VAT in Bulgaria or he can appoint a legal representative. The application must be submitted with the Bulgarian tax authorities and the procedure can last for three or four weeks.

4. How does intra-community VAT work in Bulgaria?

All companies that are registered for VAT in Bulgaria must file some data to a system for collecting information on intra-community transactions. Transactions must be filed with the system if the arrival of goods from a EU member state exceeds 92,000 EUR or if the dispatch of goods is more than 102,000 EUR.

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