Organization : Ministry of Finance
Facility : Value Added Tax
Country : Bulgaria
Website : https://www.minfin.bg/en/790
What is Bulgaria Value Added Tax?
Value added tax is levied (part one of the VAT Act):
** the recoverable taxable delivery of goods and services with a place of performance on the territory of the country;
** the import of goods;
** recoverable intra-community acquisitions of goods in the country, including new motor vehicles and excise goods.
Related / Similar Facility : Bulgaria Personal Income Tax
How To Register For Value Added Tax in Bulgaria?
Registration under the VAT Act in Bulgaria may be optional or mandatory. Registration becomes mandatory upon reaching a taxable turnover of BGN 100,000 or more than stated amount for a period not longer than the last 12 consecutive months before the current month, and the entity shall be obliged within 7 days of the end of the tax period during which it has reached this turnover, to submit an application for registration in compliance with the VAT Act.
When the turnover is reached for a period not longer than two consecutive months, including the current one, the entity shall be obliged to submit the application for registration within 7 days from the date when this turnover has been reached. The application for registration is submitted to the NRA in place or electronically. VAT Act Registration.
Tax Base of Bulgaria VAT
Tax base is the value on which tax is charged (Article 26 of VAT Act). It is determined in Bulgarian lev (BGN) and stotinki. It does not include the tax pursuant to this act.
It includes:
** the remuneration;
** all other taxes, fees and excise duties;
** all subsidies and funding directly related to the delivery;
** the associated costs of the supplier (commission, packaging, transport, insurance and others) directly related to the delivery;
** the usual packaging materials and containers, in the event they are not subject to return or the recipient is not a taxable entity (if the packaging materials or containers are returned by the recipient, the tax base is reduced by their value on return).
The tax base upon import is the customs value increased by the relevant taxes, duties, levies, fees and costs (Article 55 of VAT Act).
Tax Amount of Bulgaria VAT
The applicable tax rate is defined in Chapter Six ‘Tax Rates’ of the VAT Act as follows:
** Standard rate – 20% (according to Article 66 of VAT Act) shall be applied to taxable deliveries in the country, import of goods and intra-community acquisitions (except for those expressly indicated as taxable at a zero or reduced rate);
** Reduced tax rate – 9% (according to Art. 66a of the VAT Act (as amended SG, issue No. 102 from 2022, effective as of 01.01.2023) shall be applied to:
** accommodation service provided in hotels and similar establishments, including the provision of holiday accommodation and rental of places for camping sites or caravans, with a place of performance on the territory of the country;
** delivery of books on physical media or electronically, or both (including textbooks, reference books and study sets, children’s illustrated, drawing or coloring books, printed or handwritten sheet music editions), periodicals – newspapers and magazines, on physical media or carried out electronically or both, other than publications which are entirely or mainly intended for advertising and other than publications which consist entirely or mainly of video content or audio-musical content;
** deliveries of food suitable for babies or small children, baby diapers and similar baby hygiene items according to Annex No. 4 of the VAT Act;
Deadlines of Bulgaria VAT
Reporting declaration and all supporting documents (accounting registers (sales log book and purchase log book) and/or VIES declaration) should be submitted monthly, by the 14th of the month following the month (tax period) to which the declaration refers. No provision for extension of the submission deadline is provided.
In the event of the death of a private entity or a sole trader, the Reporting declaration, the VIES declaration and the reporting registers for the last tax period shall be submitted by the heirs or legatees within 2 months of acceptance of the inheritance, but not later than 14th of the month, including the month following the 6th of the month from the date of the legator’s death.
Additional known circumstances shall be declared, as the heirs shall submit new declarations and reporting registers within one month when they came to know. A declaration submitted by one heir also benefits the other heirs.