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 Covid-19 VAT rate cuts

Bulgaria has temporarily cut VAT to help support businesses and consumers during the Coronavirus pandemic crisis.

Supply Old rate New rate Implementation date End date
Hospitality, restaurants, cafes and books 21% 10% 01 Jul 2020 31 Dec 2020

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.