Tax Alert – Changes to VAT Act 2015 (EN)



8. Right of input VAT deduction and refund of Bulgarian VAT on purchases of goods or services

(i) Taxable persons applying the “Non-Union Scheme”

Suppliers of services under the “Non-Union” scheme shall be entitled to refund of the VAT charged on received services or purchase of goods related to the provision of telecommunication, radio- and television broadcasting services, and electronically supplied services, according to the applicable rules of the VAT Act as regards VAT refund to taxable persons not established in the EU.

(ii) Taxable persons applying the “Union Scheme”

Each service provider, registered in Bulgaria for applying the “Union Scheme” shall be entitled to input VAT deduction according to the general rules of the VAT Act as regards the input VAT on purchases of goods or services with place of supply in Bulgaria.
Taxable persons, registered in other EU Member States for applying the “Union Scheme”, who are not registered for VAT purposes in Bulgaria under the general rules, shall be entitled to refund the input VAT pursuant to the rules of the VAT Act relevant to taxable persons not established in the EU Memebr State of refund, but established in the territory of other EU Member State.

9. Mandatory VAT registration in Bulgaria outside the MOSS scheme

A Supplier of telecommunication services, radio- and television broadcasting services and services supplied electronically, who is not established in Bulgaria and has not registered voluntarily under any of the MOSS scheme regimes, shall be obliged to register for VAT in Bulgaria, in case of provision of such type of services to end customers in the country. This supplier shall not have the right to state the amount of VAT under the sales invoices issued for supplies other than the specified services. The VAT Act also puts a restriction to the right of input VAT deduction as regards the VAT on purchases of goods or services by a taxable person, registered for VAT under this mandatory VAT registration, if the purchased goods or services do not correlate to the provision of the telecommunication, radio- and television broadcasting services, and to the electronically supplied services.