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This guide provides a summary of VAT (Value Added Tax) in Bulgaria, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Bulgaria or with Bulgarian customers.
Value Added Tax in Bulgaria is also known as “Danak varhu dobavenata stoinost” (DDS) in Bulgarian. The VAT system in Bulgaria, governed by the Bulgarian VAT Act, aligns with the EU VAT Directive. VAT is applicable on most goods and services within Bulgaria, as well as on imports.
Bulgarian Lev (BGN)
BG followed by 9 or 10 digits (e.g., BG123456789)
Yes, required for non-EU businesses conducting VAT-related activities.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 20% | Standard Rate | Applies to most goods and services |
| 9% | Reduced Rate | Applies to certain tourism services and hotel accommodation |
| Business Type | VAT Registration Threshold |
| Resident Businesses | BGN 100,000 per annum, though this will rise to BGN 166,000.00 from 1 January 2025. |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in Bulgaria |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 14th day of the following month | 14th day of the following month |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 20% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Bulgaria applies VAT on digital services based on the consumer’s location, typically utilizing the OSS system for EU cross-border services.
Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.
Although not mandatory for all B2B transactions, e-invoicing is required in Bulgaria for public sector transactions. Invoices must include the date, supplier and customer details, description of goods or services, and VAT rates.
Bulgaria mandates digital reporting of VAT-related transactions, with companies required to submit reports to the Bulgarian tax authorities electronically.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Bulgarian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
