The transfer of buildings (apartments) is subject to VAT. Practically, this means that if the seller is a Bulgarian company registered for Bulgarian VAT purposes, the seller shall be obligated to charge VAT.
Land - VAT exempt
The transfer of land is deemed a VAT exempt supply i.e. the seller should not charge VAT. It has to be noted, however, that whenever land and buildings are acquired the special attention should be paid as to the VAT - ability of the transaction because the whole transaction may become subject to VAT.
The VAT regime of the transfer of land changes from January 1, 2007.
