Company Formation in Bulgaria

Bulgarian VAT registration

Bulgarian legislation provides for two main types of VAT registration - obligatory and voluntary. Under the general rule, taxable persons are obliged to register for VAT purposes once their taxable turnover reaches BGN 50 000 (≈ 25 560 EUR) for the last 12 consecutive months.

Voluntary VAT registration and its benefits

However, each company performing independent economic activity may apply for voluntarily VAT registration at any time from the first day of its corporate registration as long as it has not reached the above threshold.

The voluntary registration is a general one and allows deduction for any input VAT due by the recipient of supplies of goods and/or services used for further performance of taxable supplies. It is recommendable for any company the activity of which covers more than VAT exempt supplies such as financial, insurance, health, educational, etc. services.

Our experience shows that the immediate voluntary VAT registration is highly recommended for any new company which already performs or is planning to perform taxable supplies and:

  • Needs to make substantial initial investments in goods and services to be used for performance of its future taxable supplies. If VAT registered, the company will be entitled to deduct the input VAT due in respect of those goods or services; and/or
  • Plans shortly after its incorporation to: 1) perform intra-community acquisitions of goods the total amount of which will go over BGN 20 000 (≈ 10 220 EUR) within a given calendar year, and/or 2) obtain taxable services with place of supply in Bulgaria for which the company as recipient should self-charge VAT, and/or 3) perform services with place of supply in another EU member state. The reason is that if your company obtains/performs any of the above goods and/or services without already having VAT registration it has to apply for a special one which does not give right to VAT credit due for the related input supplies.

For our clients who are planning to invest in a Bulgarian company the activity of which will cover any of the hypotheses we offer two alternative solutions:

  • Purchase of a VAT registered ready-made company. This service saves our clients a lot of time and money related to the administrative obligations related to a VAT registration: drafting documents, certifications and/or apostille, filing, dealing with the tax authorities, etc. Buying a VAT registered ready-made company allows you to start immediately any actions related to the taxable activity of your investment; or
  • Services related to the voluntary VAT registration of your newly incorporated company. We will take care of all related steps and will save you the related hustle and battle with the tax administration.

 

Obligations of the VAT registered companies

Once the company is VAT registered it has an obligation to issue the respective VAT documents: invoices, protocols, credit/debit notes within the statutory terms.

Further, it has to declare its output and input supplies through filing VAT reports (e.g. VAT ledgers, VAT return, VIES declaration) with the tax authorities on a monthly basis by the 14th of the month following the month for which the reports are due.

If the monthly result of the company is VAT for payment (i.e. when the output VAT is higher than the input VAT) it is due within the same deadline as the one for filing of the reports.

 

Mini One Stop Shop (MOSS)

Bulgarian legislation provides for obligatory VAT registration for taxable persons, not established in the country and performing telecommunication, broadcasting or electronically supplied services to non-taxable persons (B2C supplies) residing in Bulgaria, unless already registered in Bulgaria on other grounds or in another EU member state under the MOSS regime.

Such suppliers are obliged to apply for registration in Bulgaria not later than the 10th of the month following the taxable event of the first supply covering the above criteria.

Suppliers registered under the MOSS regime are obliged to apply the VAT rate applicable in the EU member state where the respective non-taxable recipient is located.

 

What is included in our service?

Preparation of the documents for VAT registration (accounting documents of the company, application forms and declarations which have to be notarised by the director of the company abroad)

Translation and legalization of the documents notarised abroad

Our officers will proceed as duly authorised representatives of your company and will represent it for the purposes of filling the application for VAT registration, as well as the audits performed by the NRA

Receipt of the VAT registration certificate with translation in English

 

Fees and optional services

Service Price in EUR
VAT registration € 99
MOSS registration € 100
Pasting an apostille on the VAT certificate € 50