In the era of globalization and fast digitalization of the economy businesses could become international in a matter of a few clicks of the mouse and gain access to overseas markets for their goods and services instantly.
What companies often underestimate or even forget is that the sale of goods and provision of services to buyers in other countries often creates an obligation for VAT registration either in their own country of establishment or in the country of destination. In this regard, here are the most common cases, where businesses must register for VAT purposes in Bulgaria. Our Bulgarian lawyers have proven record of advising foreign companies on their VAT registration in Bulgaria.
VAT Registration of Foreign Businesses in Bulgaria
Distance Selling of Goods in Bulgaria
If an EU company sells and delivers goods to Bulgarian individual clients (e.g. e-retailers selling goods on their websites), the retailer is liable to register for VAT purposes in Bulgaria as soon as his distance sales to Bulgarian clients exceed the threshold of BGN 70 000 (app. EUR 35 000) for a calendar year. Bulgarian VAT must be then charged on all goods delivered to Bulgaria.
Export of Goods from Bulgaria to a Third Country
A foreign business may need to register for VAT purposes in Bulgaria if goods are bought in Bulgaria and are subsequently re-sold and exported outside the EU by the foreign company or its non-EU customer. The foreign business VAT registration in Bulgaria is subject to the condition that the goods are transported only once during the two subsequent transactions and that the value of the exported goods exceeds BGN 50 000 (app. EUR 25 000).
Telecommunication, Broadcasting and Electronic Services in Bulgaria
Following the introduction of the mini one-stop shop (“MOSS) for telecommunication, radio- and television broadcasting and electronically supplied services to private individuals, a foreign business may register for VAT purposes in Bulgaria if it chooses Bulgaria as its “Member State of identification” for the MOSS schemes.
A foreign company supplying such services may be also liable to register for VAT purposes in Bulgaria if it has not been identified for MOSS in another EU Member States and supplies telecommunication, broadcasting and electronically supplied services to private individuals in Bulgaria.
Our Bulgarian law firm has extensive practice history related to VAT registration, representation and litigation in Bulgaria – for any case specific issues, do not hesitate to contact us.
The specific rules for VAT registration of Bulgarian businesses are described in detail in our Vat registration of Bulgarian businesses blog article.
Related links and articles:
- VAT registration Bulgaria
- Bulgaria VAT refund legal service
- Register for Bulgarian VAT
- Bulgarian business VAT registration