• Mandatory VAT Registration for Taxable Turnover

Any company making supplies of goods or services taxable in Bulgaria, thus accumulating a taxable turnover of BGN 50 000 (app. EUR 25 000) or more in the last 12 months, is obligated to register for VAT purposes in Bulgaria and start charging Bulgarian VAT of 20% on its supplies.

The taxable transactions generating VAT-able turnover include not only domestic supplies of goods or services to Bulgarian clients but also exports to non-EU Member-States and supply of goods and services to non-taxable persons (e.g. private individuals) in other EU Member-States.

• VAT Registration for Intra-Community Acquisitions

Even if the taxable turnover of a Bulgarian company is below the registration threshold of BGN 50 000, the company may still be liable to VAT registration under Bulgarian legislation if it receives goods dispatched from other EU Member-States by suppliers who are taxable persons registered for VAT purposes in another EU Member State. The VAT registration legal obligation arises only if the intra-Community acquisitions reach the amount of BGN 20 000 (app. EUR 10 000) for a given calendar year.

• VAT Registration for Reverse-Charge Services

Generally, services supplied to another taxable person in the EU (i.e. B2B transactions) are taxable in the Member State of the customer and the latter is liable to self-charge VAT on those services under the so called “reverse-charge” mechanism. Due to the fact that such services are taxable in the country of the customer, they do not form part of the taxable turnover of a company for mandatory VAT registration purposes.

However, those businesses are subject to a special VAT registration in Bulgaria for all services supplied by the Bulgarian company to taxable persons in other EU Member States and/or received by the Bulgarian company from taxable persons established in other Member States. The VAT registration does not depend on the amount of the supplies or the turnover of the person.

 Our Bulgarian law firm has extensive experience in the field of VAT registration, acts appealing, tax planning, should you have any further inquiries, do not hesitate to contact us.

The specific rules for VAT registration of foreign businesses in Bulgaria are described in detail in our vat registration of foreign businesses in bulgaria blog article.

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The post VAT Registration of Bulgarian Businesses appeared first on Anwaltskanzlei Delchev & Partners, Bulgarien, Sofia, Plovdiv.

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.

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The post VAT Registration of Foreign Businesses in Bulgaria appeared first on Anwaltskanzlei Delchev & Partners, Bulgarien, Sofia, Plovdiv.