Mandatory VAT registration is required when your company’s taxable turnover in Bulgaria reaches BGN 166,000 (approximately €85,000) within any rolling 12-month period. Below this threshold, registration is voluntary. However, we strongly recommend voluntary VAT registration from day one for any company planning to invoice EU businesses — the benefits in terms of 0% intra-EU invoicing and VAT recovery significantly outweigh the compliance overhead.
VAT Registration in Bulgaria
Voluntary & Mandatory VAT Registration — Full Process, Rates, Filing Obligations & EU Rules
20% Standard VAT Rate
From €400 Service Fee
14–30 Day Registration
Monthly Return Filing
KEY FIGURES
20% Standard VAT rate
9% Reduced rate (tourism, books)
€85K Mandatory threshold (~BGN 166,000)
€400 VAT registration from
What is VAT and why does it matter for your Bulgarian company?
Value Added Tax (ДДС — Данък Върху Добавената Стойност) is a consumption tax levied on the supply of goods and services in Bulgaria and across the European Union. For businesses, VAT is not a cost — it is collected on behalf of the state from customers and offset against VAT paid on purchases. The net difference is remitted to or recovered from the National Revenue Agency monthly.
For foreign entrepreneurs operating a Bulgarian company, VAT registration is one of the most strategically important accounting decisions. A VAT-registered Bulgarian company can issue zero-VAT invoices to EU business clients, recover Bulgarian VAT on purchases, and participate in EU VAT schemes — making it a significantly more attractive counterparty for EU business partners.
OUR RECOMMENDATION: Bulgaria for Business VCC strongly recommends voluntary VAT registration from day one for all Bulgarian companies that will conduct B2B transactions with EU partners. The compliance overhead is manageable — one monthly filing — while the commercial and tax benefits are substantial. We handle registration and all ongoing monthly filings as an integrated service from €400 registration fee + €50/month ongoing.
Mandatory vs. voluntary VAT registration
There are two routes to VAT registration in Bulgaria — mandatory and voluntary. The table below compares both routes across all key dimensions to help you decide which applies to your company.
| Factor | Mandatory Registration | Voluntary Registration |
|---|---|---|
| Trigger | Annual taxable turnover exceeds BGN 166,000 (~€85,000) in any rolling 12-month period | Company elects to register at any time — no turnover threshold required |
| When to apply | Within 7 days of the end of the month in which the threshold is exceeded | At any time after company registration — even on day one |
| Registration deadline | Mandatory — company must apply immediately upon threshold breach. Late registration = penalties. | No deadline — applies when the company chooses to register |
| Who uses it | Companies that grow into the threshold or exceed it from their first invoice | B2B companies, EU-trading companies, startups planning EU operations from day one |
| Key benefit | Compliance with Bulgarian VAT law. Avoidance of penalties for late registration. | VAT-free intra-EU invoicing (reverse charge), VAT recovery on purchases, EU credibility |
| Our recommendation | Apply immediately — do not wait until the last moment. Late registration triggers back-dated VAT liability. | Strongly recommended from day one for all B2B companies trading within the EU |
MANDATORY REGISTRATION DEADLINE: If your company’s taxable turnover reaches BGN 166,000 (~€85,000) in any rolling 12-month period, you must submit a VAT registration application within 7 days of the end of the month in which the threshold was exceeded. Late registration renders the company liable for VAT on all taxable supplies from the threshold date — even before registration. Penalties range from BGN 500 to BGN 5,000. Monitor your turnover closely.
Why register for VAT voluntarily? Six key benefits
Voluntary VAT registration is available to any Bulgarian company from day one — regardless of turnover. For internationally managed companies conducting B2B operations within the EU, the benefits substantially outweigh the compliance overhead of one monthly filing.
Issue VAT-free invoices to EU clients
As a VAT-registered Bulgarian company, you can issue invoices to VAT-registered buyers in other EU member states at 0% VAT (intra-community supply, reverse charge). Your EU clients strongly prefer this — it eliminates the need for them to process foreign VAT.
Recover Bulgarian VAT on purchases
A VAT-registered company can deduct the VAT it pays on Bulgarian purchases — office supplies, services, equipment, software, accounting fees, and more. Non-registered companies cannot recover this VAT — it becomes a permanent cost.
Enhanced credibility with EU partners
EU businesses routinely check VAT numbers before engaging new suppliers. A Bulgarian VAT number (BG + UIC) is a visible marker of a legitimately operating EU business. Many EU companies will not contract with non-VAT-registered suppliers.
Eligibility for EU VAT schemes
VAT registration is a prerequisite for participation in the EU One Stop Shop (OSS) scheme for B2C digital services — essential for e-commerce businesses selling to EU consumers across multiple member states.
Avoid retrospective registration complications
If you register voluntarily from day one, you avoid the risk of crossing the mandatory threshold unexpectedly — which triggers a 7-day registration deadline and potential back-dated VAT liability on all prior invoices.
Position for growth from day one
Voluntary registration from company formation positions your Bulgarian entity for EU B2B operations immediately — no delay, no mid-year registration scramble, no gap in your invoicing capability.
Bulgarian VAT rates — overview
Bulgaria applies three VAT rates and several special treatments to different categories of transactions. The table below covers all rates applicable to typical Bulgarian company operations.
| Rate | Description | Common applications |
|---|---|---|
| 20% — Standard rate | Applies to all goods and services not specifically covered by a reduced or zero rate. This is the default rate for most business transactions in Bulgaria. | Most goods & services, consulting, IT, professional services, import of goods |
| 9% — Reduced rate | Applies to specific categories as defined by the Bulgarian VAT Act (ЗДДС) and EU VAT Directive. The 9% rate was introduced permanently in 2023. | Hotel accommodation, tourist services, books (physical and electronic), baby food, certain food products |
| 0% — Zero rate (export) | Applies to exports of goods outside the EU, intra-EU supplies of goods to VAT-registered buyers in other member states, and certain international services. | Goods exported outside EU, intra-community supplies (B2B with EU VAT number), international transport |
| 0% — Exempt with right to deduct | Certain transactions are VAT-exempt but the supplier retains the right to deduct input VAT. Primarily applies to specific financial and EU-funded activities. | EU-funded project income, specific financial intermediation services |
| Reverse charge — no VAT charged | For services received from foreign suppliers (EU and non-EU) and for intra-EU acquisitions of goods, the Bulgarian buyer accounts for VAT under the reverse charge mechanism — no VAT is charged by the supplier. | Digital services from non-EU providers, consulting from EU companies, software licences from abroad |
The VAT registration process — step by step
Bulgaria for Business VCC manages the entire VAT registration process on your behalf. The process typically takes 14–30 days from application submission to receipt of the VAT registration certificate.
1 — Initial consultation & eligibility assessment
Same-day response
We assess whether voluntary or mandatory registration applies to your company, review your planned transaction types, and confirm the most appropriate registration basis. We also advise on VAT number format, VIES verification, and how VAT will affect your invoicing.
Same-day or next-business-day response
2 — Document collection & preparation
2–3 business days
We collect the required documents from the company file (registration extract, Articles, director ID) and prepare the VAT registration application form (Заявление за регистрация по ЗДДС) and all supporting declarations.
Completed within 2–3 business days of engagement
3 — Proof of economic activity (voluntary registration)
Guidance provided
For voluntary registration, the NRA requires evidence of planned business activity. We advise on the most appropriate supporting documents — contracts, supplier agreements, website, or business plan — and help prepare the activity description.
Prepared together with client — our guidance provided
4 — Electronic submission to NRA
1–2 days
The complete application package is submitted electronically to the National Revenue Agency through the NRA’s e-services portal. We monitor the application status and respond to any NRA queries.
Submitted within 1–2 days of document completion
5 — NRA processing period
14–30 days
The NRA has a statutory 14-day processing period. During this time, they may request additional information or conduct a brief verification visit (rare for well-documented voluntary applications). We handle all NRA communications.
14 days statutory — typically 14–30 days in practice
6 — VAT registration certificate issued
Certificate delivered
Upon approval, the NRA issues the VAT registration certificate (Удостоверение за регистрация по ЗДДС) containing your Bulgarian VAT number (BG + UIC). We deliver it to you and set up your monthly VAT filing schedule.
Certificate delivered to client upon issuance
7 — First monthly VAT return
By 14th of following month
From the date of registration, monthly VAT returns are due by the 14th of each following month. We set up your VAT accounting and file your first return — seamlessly integrated with your monthly bookkeeping.
First return due by 14th of following month after registration
Documents required for VAT registration
The documents below are required for both voluntary and mandatory VAT registration. Most are already in our possession for clients who registered their company through Bulgaria for Business VCC.
- Company registration extract — Current extract from the Bulgarian Commercial Register confirming the company’s UIC, registered address, director, and legal form. Must be recent (within 3 months). Obtained by Bulgaria for Business VCC from Registry Agency
- Director’s passport / national ID — Valid identity document of the company’s director (Управител). Color scan of all pages. Provided by client
- Company Articles of Association — Certified copy of the company’s Articles of Association as registered at the Commercial Register. Obtained by Bulgaria for Business VCC
- Proof of business activity — Documentation evidencing the company’s planned or actual business activity — contracts, invoices, supplier agreements, or a business activity description. Required primarily for voluntary registration. Provided by client — we advise on what is acceptable
- Bank account details — Confirmation of the company’s Bulgarian corporate bank account (IBAN). Required for VAT registration and for processing of any VAT refunds. Provided by client
- Proof of registered address — Confirmation of the company’s registered address — legal address service agreement or lease agreement. Our legal address clients use our service confirmation. Provided by Bulgaria for Business VCC for legal address clients
- Declaration of tax representative (if applicable) — For certain foreign-controlled entities, the NRA may require appointment of a tax representative. We advise if this applies to your specific structure. Prepared by Bulgaria for Business VCC if required
Ongoing VAT obligations after registration
Once registered, your company has monthly VAT compliance obligations. All obligations listed below are handled by Bulgaria for Business VCC as part of our monthly accounting packages or standalone VAT compliance service.
| Obligation | Deadline | Details |
|---|---|---|
| Monthly VAT return (Справка-декларация) | Due by 14th of following month | Prepared and filed electronically by Bulgaria for Business VCC. Includes summary of output VAT charged and input VAT deductible for the month. |
| VAT purchase ledger (Дневник покупки) | Due by 14th of following month | Detailed listing of all purchase invoices on which VAT was deducted during the month. Filed as part of the monthly VAT return package. |
| VAT sales ledger (Дневник продажби) | Due by 14th of following month | Detailed listing of all sales invoices issued during the month. Filed as part of the monthly VAT return package. |
| VIES declaration (VIES декларация) | Due by 14th of following month | Monthly EC Sales List reporting all intra-community supplies of goods or services to VAT-registered buyers in other EU member states. Only required in months where such transactions occurred. |
| Intrastat declaration | Due by 10th of following month | Required if annual intra-EU trade in goods exceeds the Intrastat thresholds (BGN 780,000 dispatches or BGN 1,550,000 arrivals). Statistical reporting to Customs Agency. |
| VAT payment | Due by 14th of following month | Net VAT payable (output VAT minus input VAT) must be paid to the NRA by the 14th. Negative balance (input > output) creates a VAT credit — available for offset or refund. |
| VAT refund management | On request — processed within 30 days | If input VAT exceeds output VAT for three consecutive months, a VAT refund can be claimed. Bulgaria for Business VCC manages the refund application and NRA correspondence. |
VAT CREDIT & REFUNDS: If your input VAT (VAT paid on purchases) exceeds your output VAT (VAT charged on sales) for three consecutive months, you are entitled to a VAT refund from the NRA. The NRA processes refunds within 30 days of the refund claim. Bulgaria for Business VCC manages refund applications and NRA correspondence as part of the VAT compliance service — no additional charge for standard refund applications.
EU cross-border VAT — key rules for Bulgarian companies
Bulgarian companies frequently conduct cross-border transactions with EU partners. The VAT treatment of these transactions depends on whether the supply is B2B or B2C, whether it involves goods or services, and whether the counterparty is VAT-registered. The table below covers the most common scenarios.
| Transaction type | Scenario | VAT treatment |
|---|---|---|
| Intra-community supply of goods (B2B) | You sell goods to a VAT-registered buyer in another EU member state. | 0% VAT — zero-rated intra-community supply. Buyer accounts for VAT in their country under reverse charge. Must verify buyer’s VAT number via VIES. Report in VIES declaration. |
| Intra-community acquisition of goods (B2B) | You purchase goods from a VAT-registered seller in another EU member state. | Reverse charge — you account for Bulgarian VAT on acquisition (output) and simultaneously deduct it as input VAT. Net VAT effect is zero for fully taxable companies. |
| Services to EU business (B2B) | You provide services to a VAT-registered client in another EU member state. | 0% VAT — outside scope in Bulgaria (place of supply = client’s country). Client applies reverse charge. Report in VIES declaration if applicable. |
| Services from EU business (B2B) | You receive services from a VAT-registered supplier in another EU member state. | Reverse charge — you self-account for VAT on the service received. Deductible as input VAT if used for taxable activities. |
| Sales to EU consumers (B2C — digital/goods) | You sell goods or digital services to private consumers in other EU member states. | VAT of the consumer’s country applies. Register for EU One Stop Shop (OSS) to report and pay VAT centrally in Bulgaria — avoiding registration in each EU country. |
| Import of goods from outside EU | You import goods from non-EU countries into Bulgaria. | Bulgarian import VAT (20%) due at customs on import value + customs duties. Deductible as input VAT if goods used for taxable activities. Import VAT deferment schemes available. |
VAT services & pricing
All VAT services are fixed-fee and confirmed in writing before engagement. Monthly VAT filing is included in our Business and Enterprise accounting packages — see our Accounting Services & Pricing page for full package details.
| Service | What is included | Price (excl. VAT) |
|---|---|---|
| Voluntary VAT registration | Full application package, document preparation, NRA submission, and follow-up until VAT certificate received. | €400 |
| Mandatory VAT registration | Urgent registration upon threshold breach. Includes backdating assessment and penalty mitigation advisory. | €400 |
| VAT deregistration | Application for VAT deregistration — upon liquidation, threshold drop, or voluntary deregistration. Includes final VAT return and stock adjustment declaration. | €400 |
| OSS (One Stop Shop) registration | Registration for the EU One Stop Shop VAT scheme for B2C digital services or distance sales of goods. | €200 |
| Monthly VAT return preparation & filing | Monthly purchase and sales ledgers + VAT return + electronic filing with NRA. | From €50/mo |
| VIES declaration (monthly) | Monthly EC Sales List for intra-community supplies — filed as part of monthly VAT compliance. | From €30/mo |
| Intrastat declaration (monthly) | Monthly Intrastat statistical filing with the Customs Agency for companies above the thresholds. | From €50/mo |
| VAT refund application | Preparation and submission of VAT refund claim, plus management of NRA refund process. | From €100 |
| VAT advisory — specific transaction | Written advice on the correct VAT treatment of specific cross-border or complex transactions. | From €80/hr |
| FULL VAT REGISTRATION + FIRST YEAR FILING (12 months) | Voluntary/mandatory registration + 12 months of monthly VAT returns, VIES declarations, and NRA correspondence. | From €950 |
All prices exclude Bulgarian VAT (20%). The full first-year package (from €950) includes VAT registration + 12 months of monthly VAT returns and VIES declarations. Monthly bookkeeping is charged separately unless the client is on a monthly accounting package.
Frequently asked questions
The National Revenue Agency has a statutory processing period of 14 days from receipt of a complete application. In practice, most voluntary VAT registrations are completed within 14–30 days of application submission. We track the application and follow up with the NRA as needed. Mandatory registration (upon threshold breach) must be applied for within 7 days of the end of the month in which the threshold was crossed.
Your Bulgarian VAT number is ‘BG’ followed by your company’s UIC (Unified Identification Code / ЕИК). For example, if your UIC is 123456789, your VAT number is BG123456789. This number is issued upon registration and appears on your VAT registration certificate. It can be verified by any EU business via the European Commission’s VIES system.
In certain circumstances, yes. Bulgarian VAT law allows recovery of input VAT paid on goods that are still in stock at the date of VAT registration, subject to specific conditions and time limits. We assess this on a case-by-case basis as part of the registration process.
If you exceed the BGN 166,000 threshold and fail to register within the required 7-day period, the NRA will register the company ex officio (compulsorily). You will be liable for VAT on all taxable supplies made from the date the threshold was exceeded — even before registration. Late registration fines range from BGN 500 to BGN 5,000. We advise monitoring turnover carefully and applying immediately when the threshold approaches.
For B2B supplies to VAT-registered buyers in other EU member states: no. These are zero-rated intra-community supplies — you issue the invoice at 0% VAT and the buyer accounts for VAT in their country. You must verify the buyer’s VAT number via VIES and report the supply in your monthly VIES declaration. For B2C sales to EU consumers, the VAT rules are more complex — the OSS scheme may apply.
VIES (VAT Information Exchange System) is the EU system for reporting intra-community supplies of goods and services to VAT-registered buyers in other EU member states. If your Bulgarian company makes any such supplies in a given month, you must submit a VIES declaration to the NRA by the 14th of the following month. Bulgaria for Business VCC files VIES declarations as part of the monthly VAT compliance service from €30/month.
Yes. Voluntary deregistration is possible when your taxable turnover drops below BGN 166,000 in the preceding 12-month period, or at any time by choice. Mandatory deregistration applies upon company liquidation. The deregistration process requires a final VAT return, a declaration of stock on hand (which becomes subject to output VAT), and submission of the deregistration application to the NRA. We handle the full process from €400.
Get your Bulgarian VAT number today
We handle the entire VAT registration process — document preparation, NRA application, follow-up, and certificate delivery. Voluntary or mandatory registration from €400.
VAT registration from €400
Monthly VAT filing from €50/mo
Full first-year package from €950
Monthly VAT filing from €50/mo
Full first-year package from €950
Bulgaria for Business VCC — Your Trusted Partner for Business Expansion into Bulgaria and the European Union. VAT rates, thresholds, and filing deadlines are correct as of 2024–2025 and subject to legislative change. All prices exclude Bulgarian VAT (20%). For advice specific to your company’s transactions, please consult our team directly.