Bulgaria operates a value-added tax (VAT) system known locally as Danak varhu dobavenata stoynost (DDS). As a member of the European Union (EU), its VAT framework is aligned with the principles of the EU VAT Directive.
Bulgarian VAT is governed primarily by the Value Added Tax Act (Zakon za danak varhu dobavenata stoynost) and related regulations. VAT is administered by the National Revenue Agency (Natsionalna agentsiya za prihodite – NRA). The NRA is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Bulgaria.
Businesses carrying out taxable activities in Bulgaria — whether resident or nonresident — must comply with Bulgarian VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Bulgarian and EU VAT rules.
