Is fiscal representative compulsory in Bulgaria ?
Bulgaria is a European Union Member State. If your business is established in another European Country appointing a tax agent or VA representative is not compulsory.
Bulgaria yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Bulgaria is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) () provided by in Bulgaria like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Bulgaria and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Bulgaria to another State, being third country or Member state.
In most cases your VAT number in Bulgaria will be similar to BG123456789 (BG + 9 digits)
BG1234567890 (BG + 10 digits).
What is the threshold for deliveries to particulars individuals in Bulgaria ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :BGN 70,000
BGN 20,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Bulgaria ?
Standard VAT rate in Bulgaria is 20%, while intermediate rate is -. On the other hand, reduced rate is 9% for hotel accommodation.
Application of Article 37 and 109 to 122 of the VAT Directive in Bulgaria : zero-rated; exempt
Please note that we open access to a detailed table of VAT rates per goods and services in Bulgaria :
See our section https://becompliant.tax/vat-rates-bulgaria
What is the scope of a fiscal representative in Bulgaria?
Fiscal representative should always diagnose your operations in Bulgaria and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Bulgaria ?
Your fiscal representative in Bulgaria will have to submit periodically on your behalf.
The VAT form you are expected to submit in Bulgaria :
In Bulgaria, the periodicity of VAT (locally called Danak varhu dobavenata stoinost (DDS) or Данък върху добавената стойност (ДДС)) is as follows :
Monthly VAT returns in Bulgaria are due 14th of the month following the taxable period, by default
Your VAT payment is due : Same as return .
What are the E/ICSL a fiscal representative submits in Bulgaria ?
The ECSL you are expected to submit in Bulgaria : 14th of following month
Your statistical declarations (Intrastat) in Bulgaria : 14th of following month
What are the late registration penalties in Bulgaria ?
The penalty for failing to submit VAT returns or maintain VAT ledgers (sales and purchase ledgers) or for submitting inaccurate VAT information ranges from BGN500 to BGN10,000.
The penalty for failing to charge VAT is the amount of VAT not charged, but not less than BGN500. Effective 1 January 2016, penalties apply for delayed VAT charge — 5% of the VAT not charged, but not less than BGN200 (for a delay of up to 6 months), and 10% of the VAT not charged, but not less than BGN400 (for a delay between 7 and 18 months).
The penalty for persons who fail to self-charge VAT is the higher of 5% of the corresponding VAT and BGN50. In case the VAT amount is self-charged in the next period, the penalty is the higher of 2% of the corresponding VAT and BGN25. Penalty of 100% of the corresponding VAT applies if input VAT is nondeductible.
The penalty for a failure to issue VAT documents that results in the payment of less VAT is the amount of the VAT not charged but not less than BGN1,000.
Where to find official information about VAT in Bulgaria
Bulgaria transposed the European Directive into national regulation
Value Added Tax Act, Promulgated, State Gazette No. 63/4.08.2006, effective 1.01.2007, last amended and supplemented, SG No. 96/6.12.2019, effective 1.01.2020.
The Revenue administration responsible for VAT in Bulgaria is :
Ministry of Finance
You can gather more information by contacting the directly :
(+359) 2 9859 2862
VAT and INTRASTAT compliance in Bulgaria
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