Value Added Tax

Understand the VAT system in Bulgaria, and how it affects your business...

Value Added Tax is regulated by the Value Added Tax Act. The following are subject to value added tax:

• goods or services supplied for payment
• every acquisition within the European Union in accordance with the requirements of the Valued Added Tax Act
• other acquisitions and cases specified in the law
• import of goods

Taxable persons

Taxable persons are those who are performing independent economic activity. These are, for example, producers, traders, persons providing services and others defined by the law.

Taxable amount

In general, the taxable amount includes the price paid by the customer and all other taxes and fees, connected with the supply. The tax rate is 20 percent.

VAT registration

If the taxable person realised a taxable turnover (as defined in the law) in excess of 50,000 Bulgarian Levs (approximately €25,565) during the previous 12 months, it is compulsory to register for Valued Added Tax (VAT).

To register, submit an application to the National Revenue Agency who will issue a VAT number. A company may choose to register for VAT voluntarily, even if it does not have a taxable turnover in excess of 50,000 Bulgarian Levs.

• Corporate Taxation
• Profits Tax
• Withholding Tax
• Taxation of Expenses
• VAT