What is VAT (Bulgaria)?

Bulgarian VAT operates under EU VAT Directive 2006/112/EC, harmonised with EU rules but with some Bulgarian-specific deadlines and reduced rates.

**Registration**

Mandatory VAT registration at BGN 100,000 (approximately EUR 51,130) annual taxable turnover, calculated on a rolling 12-month basis. Once the threshold is crossed, you must register within 14 days. Voluntary registration is possible before the threshold — useful if you have significant input VAT to recover or trade with other EU businesses.

Registration application submitted via the NRA's online portal (nra.bg). The NRA issues a VAT certificate and a VAT number in the format BG + 9 digits (same as the company's UIC/BULSTAT number).

**VAT rates**

- 20% standard: most goods and services - 9% reduced: books, baby food, tourist accommodation, certain physical newspapers and magazines - 0% zero-rated: intra-EU supplies, exports outside the EU, international transport

Zero-rated supplies are different from VAT-exempt — on zero-rated you still collect input credits on your costs; on exempt supplies (financial services, insurance, healthcare, educational, cultural) you cannot.

**Monthly returns**

Unlike many EU countries where small businesses file quarterly, Bulgarian VAT is filed monthly by all registered businesses. The VAT return (VIES declaration for intra-EU supplies separately) is due by the 14th of the month following the reporting month. Payment is also due by the 14th. Returns submitted via the NRA electronic portal with qualified electronic signature.

**Intra-EU transactions**

- Supplying goods to a VAT-registered EU business: 0% with customer's VAT number on invoice; report in VIES (EC Sales List) - Buying goods from EU businesses (intra-EU acquisitions): buyer accounts for VAT via reverse charge on the VAT return - Services from EU or non-EU suppliers: reverse charge mechanism — account for output VAT on the purchase, recover as input VAT on the same return - Intrastat declarations required for intra-EU goods movements above annual thresholds