Bulgarian VAT rates and VAT compliance

Bulgarian VAT rates

Bulgaria follows the EU rules on VAT compliance, however it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Bulgaria must charge the appropriate VAT rate, and collect the tax for onward payment to the Bulgarian tax authorities through a VAT filling: see Bulgarian VAT returns briefing.

Once  registered for Bulgarian VAT, you will have to start following the local rules in a number of aspects. This includes:

  • Issuing invoices with the disclosure details outlined in the Bulgarian VAT Act.
  • Electronic invoices with proper signature, authenticity and agreement by the recipient.
  • Maintenance of accounts and records, which must be held for at least 10 years.
  • Correct invoicing of customers for goods or services in accordance with the Bulgarian time of supply VAT rules.
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

The current rates are:

Bulgaria VAT rates

Rate Type Which goods or services
20% Standard All other supplies of goods or services
9% Reduced Hotel accommodation
0% Zero Intra-community and international transport

What is the tax point for Bulgarian VAT?

The tax point (time of supply) rules in Bulgaria determine when the VAT is due.

In general, for goods where a VAT invoice has not been issued, i.e. most B2C transactions, the tax point is generally the physical supply of the goods or the payment, whichever is earlier.  For goods supplies where an invoice is issued, i.e. most B2B transactions, the tax point is generally deemed to be the invoice date regardless of when the actual supply took place.  For the supply of services where no VAT invoice is issued i.e. B2C services the tax point is usually considered to be the time when the service is delivered to the customer or the payment, whichever takes place earlier. In the case of longer B2C services the tax point occurs when the service has been completed. For service supply where a VAT invoice is issued i.e. B2B services the tax point occurs on the invoice date regardless of when the supply occurred.

Need help with your Bulgarian VAT compliance?

Researching Bulgarian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

Latest Bulgarian news

Bulgaria raises 2020 Intrastat threshold

Oct 19, 2019

Bulgaria is to raise its Intrastat reporting thresholds starting 1 January 2020. The new dispatches threshold will be BGN 290,000, currently BGN 280,000. The Arrivals threshold will be BGN 470,000

EU VAT and tax veto review

January 25, 2019

The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies.  The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states. 

Bulgaria deferred import VAT Jul 2019

January 22, 2019

Bulgaria is to introduce a deferred import VAT scheme on 1 July 2019. Details of the new regime were transposed into the Regulation for the Application of the VAT Act on 8 January 2019.