Bulgarian VAT Rates and VAT Compliance

The intricacies of Bulgarian VAT rates and compliance requirements present a multifaceted challenge for businesses operating within the country’s borders. Balancing the dynamics of standard and reduced VAT rates, understanding the nuances of VAT exemptions, and navigating the complexities of VAT reporting and invoicing, can become a daunting task.

Yet, the mastery of these elements is integral to maintaining business operations and avoiding potential legal ramifications. As a business, how do you ensure you’re compliant with the Bulgarian VAT laws, and what are the potential implications of the recent VAT rate changes?

This discussion offers an in-depth exploration into these critical questions, providing a nuanced understanding of the Bulgarian VAT system that is crucial for every business operating in Bulgaria.

Key Takeaways

  • Bulgarian VAT rates must be above 15% and businesses must charge the appropriate rate.
  • VAT registered businesses in Bulgaria must submit VAT returns and collect VAT for payment to the tax authorities.
  • Bulgaria has temporarily reduced VAT rates to support businesses and consumers during the pandemic.
  • The tax point for VAT in Bulgaria depends on the type of transaction, such as physical supply of goods, invoice date, or time of service delivery.


In the context of Bulgarian VAT regulations, it is essential to have a comprehensive understanding of the VAT compliance.

This includes the study of the standard rate of 20%, the reduced rates, zero-rated transactions, and the exemptions given to certain sectors.

The modifications made in response to the COVID-19 pandemic and their implications for both businesses and consumers will also be examined.

Bulgarian VAT Compliance Overview

Understanding the intricacies of the Bulgarian VAT compliance is essential for businesses operating in the country, with the standard VAT rate set at 20%.

  • Businesses must register for VAT with the National Revenue Agency if they make taxable supplies in Bulgaria.
  • VAT Returns should be regularly submitted to the Bulgarian tax authorities.
  • Certain goods or services have reduced or zero VAT rates, in accordance with Bulgarian VAT legislation.

Guidance on VAT Compliance

Building upon the foundation of Bulgarian VAT compliance, it is crucial to offer specific guidance.

Every company must register for Value Added Tax (VAT) if their taxable supplies of goods or services exceed 82,000 BGN.

Understanding intricacies of the standard VAT rate, reduced and zero-rated transactions, as well as exemptions, is essential for VAT compliance.

Ensuring adherence to these rules supports the accurate and timely submission of VAT returns.

Simplified VAT Calculations for Bulgaria

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Frequently Asked Questions

What Is the VAT Legislation in Bulgaria?

The VAT legislation in Bulgaria aligns with EU regulations, mandating a standard rate of 20%, with certain goods and services subject to reduced rates. Exemptions and zero-rated transactions exist in specific sectors like healthcare and exports.

What Is the Standard VAT Rate in Bulgaria?

The standard Value Added Tax (VAT) rate in Bulgaria is 20%. This rate is generally applied to all goods and services, except for certain essential items and specific goods or services that may have reduced rates.

What Is the VAT Registration Threshold in Bulgaria?

The VAT registration threshold in Bulgaria is 50,000 BGN. Companies surpassing this threshold within any 12-month period must apply for VAT registration within 14 days of the end of that particular month.

What Is VAT Regulations?

VAT regulations refer to the rules governing the calculation, payment, and reporting of Value Added Tax. These regulations dictate the tax rate, eligible goods and services, and the process for filing VAT return forms.


In conclusion, understanding and adhering to the Bulgarian VAT system is essential for businesses in Bulgaria.

The impact of the Covid-19 pandemic VAT cuts, knowledge of the tax point, and assistance from solutions like Avalara are key aspects for consideration.

By keeping abreast with the latest VAT updates, businesses can ensure compliance with local and EU VAT regulations, thereby avoiding potential legal issues and penalties, and facilitating smooth business operations.

Barry Caldwell

Barry Caldwell

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