Bulgarian legislation provides for two main types of VAT registration – obligatory and voluntary. Under the general rule, taxable persons are obliged to register for VAT purposes once their taxable turnover reaches BGN 50 000 (≈ 25 560 EUR) for the last 12 consecutive months.
However, each company performing independent economic activity may apply for voluntarily VAT registration at any time from the first day of its corporate registration as long as it has not reached the above threshold.
The voluntary registration is a general one and allows a deduction for any input VAT due by the recipient of supplies of goods and/or services used for further performance of taxable supplies. It is recommendable for any company the activity of which covers more than VAT exempt supplies such as financial, insurance, health, educational, etc. services.
Our experience shows that the immediate voluntary VAT registration is highly recommended for any new company which already performs or is planning to perform taxable supplies and:
For our clients who are planning to invest in a Bulgarian company the activity of which will cover any of the hypotheses we offer two alternative solutions:
Preparation of the documents for VAT registration (accounting documents of the company, application forms and declarations)
Our officers will proceed as duly authorised representatives of your company and will represent it for the purposes of filling the application for VAT registration, as well as the audits performed by the NRA
Receipt of the VAT registration certificate
VAT registration is not required if the turnover is up to BGN 50 000. However, there is a requirement that if a company provides services to VAT-registered customers from another EU Member State, it must be registered for VAT seven days prior to the service, its invoicing, and payment. If the company is not VAT registered, VAT will be charged on the invoice for purchases from the EU. When a Bulgarian company that is VAT registered carries out transactions with VAT-registered companies in another EU Member State, VAT is not charged. For services from third parties (non-EU Member States), VAT is not due. In the case of transactions with third parties with goods, customs must be passed.
After submitting an application for VAT registration within seven days, the requested documents from the National Revenue Agency must be submitted, which include a turnover statement 12 months before the current one, bank statements at the time of filing the application, contract for using of the address of registration in the Commercial Register of the company, an accounting service contract, and a power of attorney. After submitting all the documents to the NRA, the person is registered for VAT up to seven days.
All purchase invoices, sales invoices, and bank statements must be sent until 10th of the month. The VAT declaration is submitted by the 14th of the following month.
VAT refunds are made three months after the first refund occurs.
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