VAT registration is either compulsory or voluntary. To register for VAT, first you need to have a general registration under Art. 80, paragraph 1 of Tax Social Security Procedure Code which is done officially for all entities listed in the Commercial Register and the BULSTAT register.
Once you have been entered into the register of the National Revenue Agency, you will receive an identification number with mark BG in front of it.
Who is subject to VAT registration?
- All taxable persons doing taxable provision of goods or services and are based in Bulgaria.
- All taxable persons engaged in taxable provision of goods or services other than those where the tax is payable by the recipient and are not based in Bulgaria.
Who are taxable persons
All persons engaged in an independent economic activity, whatever the purpose or results.
What’s the definition of „independent economic activity“
Any economic and other activity which is performed regularly or in one’s professional capacity for consideration. This also includes exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis as well as any activity of producers, traders or persons supplying services, including activities of the professions.
In which cases is VAT registration compulsory
Once you have reached taxable turnover of BGN 50,000.
Once a taxable person has reached taxable turnover of BGN 50,000 or more in the last 12 consecutive months prior to the current month, that person must file an application for registration under VATA /Art. 96, paragraph 1 of VATA/ within 14 days of the expiration of the tax period in which the person reached that turnover threshold.
When supplying goods with assembly or installation
Any person not based in the territory of the country but in other Member State who carries out taxable supplies of goods for assembly or installation on the territory of Bulgaria by it or on its behalf where the recipient of that supply is a person not registered under VATA /Art. 97 of VATA/. Application for registration must be filed within 7 days prior to the occurrence of the tax event of the supply.
When supplying services, the tax for which is payable by the recipient
Application for registration must be filed within 7 days prior to the date on which the tax becomes chargeable. The tax base of the received service is taxable.
For distance selling of goods
All taxable persons supplying goods where the supply is carried out on the territory of Bulgaria, in case of distance selling /Art. 98 of VATA/, must file an application for registration within 7 days prior to the occurrence of the tax event.
Applies to supplies whose total value of distance selling in the current year is higher than the amount specified in the VAT Act – BGN 70,000.
For intra-Community acquisitions
Every non-taxable legal person or taxable person, not otherwise registered and making intra-Community acquisitions /ICA/ of goods, if the total value of the taxable intra-Community acquisitions in the current calendar year exceeds BGN 20,000 /Art. 99 of VATA/.
Voluntary VAT registration
Any person – taxable, conducting independent economic activity who does not yet meet the requirements for compulsory registration under VATA may register voluntarily /Art. 100 of VATA/.
Ask the lawyers at International Law Office „D. Vladimirov & Partners“ for consultation!
Our professional experience with clients from different countries works for your benefit. We can advise you on all conditions and features of the VATA registration procedure. We can prepare and file all necessary documents, should you authorize us for that.
Contact us for consultation and assistance.