Bulgarian VAT rates and VAT compliance

As an EU member state, Bulgaria follows EU rules on value-added tax (VAT) compliance. Bulgarian VAT is administered by the National Revenue Agency (Natsionalna agentsiya za prihodite – NRA).

Bulgaria applies a standard VAT rate alongside a reduced rate and zero-rating for specific goods and services.

Businesses registered for VAT in Bulgaria must apply the correct VAT rate to taxable supplies and remit the tax to the NRA by submitting periodic VAT returns.

Some supplies are exempt from VAT in Bulgaria. These commonly include:

• Certain financial and insurance services
• Healthcare and medical services
• Education and vocational training
• Certain cultural and non-profit activities
• Residential rental of immovable property

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT number is required for businesses carrying out taxable activities in Bulgaria.

Bulgarian-established businesses must register for VAT once annual taxable turnover exceeds BGN 100,000 within a rolling 12-month period. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration.

Non-established (foreign) businesses making taxable supplies in Bulgaria must generally register for VAT from the first taxable supply unless the reverse-charge mechanism fully applies. There is no turnover threshold for nonresidents.

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of EUR 10,000 applies. Once exceeded, VAT must be charged in the member state of consumption, and the supplier may register locally or elect to use the OSS scheme.

Get more information on VAT registration in Bulgaria.

VAT-registered businesses in Bulgaria must file monthly VAT returns.

Returns include output VAT on sales and recoverable input VAT on purchases.

In addition to VAT returns, businesses may also be required to submit:

• EC Sales Lists (EU Sales Lists)
• Intrastat declarations (for intra-EU goods movements above thresholds)

All filings are submitted electronically through the NRA’s online portal.

Get more information on VAT returns in Bulgaria.

Foreign businesses storing goods in Bulgaria must consider VAT registration if those goods are held for sale.

Holding inventory in Bulgaria for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record.

Bulgaria applies EU call-off stock simplification rules in line with the EU VAT Directive.

VAT is generally payable on the importation of goods into Bulgaria.

• Import VAT is due at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Bulgarian consumers must charge VAT once the EUR 10,000 EU-wide B2C threshold is exceeded unless they elect to use the One-Stop Shop (OSS) scheme.

The standard VAT rate of 20% generally applies. Businesses must register for Bulgarian VAT or use OSS depending on their cross-border supply model.

EU-established businesses may reclaim Bulgarian VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Bulgarian VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements.

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms.

Bulgaria applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

Bulgaria is preparing to introduce a Standard Audit File for Tax (SAF-T) reporting framework as part of its broader digital tax administration reforms.

The SAF-T system will require businesses to submit standardised electronic accounting data to the National Revenue Agency in a structured format. SAF-T files typically contain detailed transactional information, including:

• Sales and purchase invoice registers
• Accounting ledger data
• VAT transaction data
• Fixed asset information
• Inventory records

The SAF-T regime is expected to be introduced gradually, with phased implementation based on company size and turnover.

Once implemented, SAF-T reporting will operate alongside VAT returns and other reporting obligations, allowing the NRA to perform automated data analysis and audit checks.

Businesses operating in Bulgaria should monitor future guidance from the National Revenue Agency regarding SAF-T technical specifications and implementation timelines.

Intrastat declarations monitor intra-EU trade in goods. Bulgarian VAT-registered businesses must submit Intrastat filings if annual thresholds set by the Bulgarian statistical authorities are exceeded.

• Reporting is typically monthly once thresholds are exceeded.
• Filings include commodity codes, values, quantities, and partner member state details.
• Submissions are made electronically through the designated statistical reporting systems.

Bulgaria requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states.

Details typically include:

• Customer VAT identification numbers
• Total value of goods or services supplied
• Transaction type

Businesses must issue VAT-compliant invoices that include:

• Supplier and customer details
• VAT number(s)
• Description of goods or services
• VAT rate(s) and VAT amount

Bulgaria does not currently operate a real-time invoice clearance system for VAT purposes.

Time-of-supply rules:

• Goods: VAT generally becomes chargeable when the goods are delivered or when the invoice is issued, whichever occurs first.
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.
• Imports: VAT is due at customs clearance.

VAT records must generally be retained for 10 years. VAT returns and payments are generally due by the 14th day of the month following the reporting period.