# Can I claim Software Subscriptions as a business expense in Bulgaria?

**Yes, fully claimable.** Yes, SaaS subscriptions used in the business are fully deductible against Corporate Income Tax. VAT (20%) recoverable on Bulgarian-supplied software; reverse charge applies for non-EU and EU supplies of digital services.

Typical amount: €1,534 to €12,782 per year, depending on team size and the number of paid tools.

## What National Revenue Agency (NRA / НАП) says

Software subscriptions are ordinary costs of earning taxable profit under CITA, where profit is taxed at 10%. For a SaaS tool supplied by a business in another EU country, the reverse charge applies. The Bulgarian business accounts for 20% output VAT and the same amount as input VAT in its monthly return, so the net effect is zero when the tool is used for taxable activity. Both amounts must be shown in the sales and purchase ledgers. The VAT return and ledgers are filed by the 14th of the following month.

## When you can claim

- Monthly or annual SaaS such as Slack, Notion and Adobe
- Cloud hosting such as AWS, Azure and GCP
- Domain names and website hosting
- Productivity tools and design software
- Accounting and invoicing tools used for the Bulgarian company

## When you cannot claim

- Personal subscriptions such as streaming services
- Mixed-use items without an apportionment
- Software bought outright above the capitalisation threshold, which is a fixed asset
- Duplicate subscriptions that nobody uses
- Subscriptions with no invoice in the company name

## Good to know

**Pro tip:** Keep one invoice for every subscription period, in the company name with the supplier's VAT number. Cancel unused seats each quarter, and review annual plans before renewal. Check that the reverse charge lines reach both the purchase and sales ledgers each month.

**Important:** A business that is not VAT-registered and receives reverse-charge services must register at least 7 days before the tax becomes due (Article 97a of the VAT Act), according to the NRA. Check this before you buy foreign software if you are below the €51,130 turnover threshold.

Source: https://nra.bg/wps/portal/nra/taxes/korporativen-danak

## Related expenses

- [Professional Services](https://accounts-os.com/bg/expenses/professional-fees-bg)
- [Office Rent](https://accounts-os.com/bg/expenses/office-rent-bg)