Bulgarian VAT Returns

The complexities inherent in navigating the realm of Bulgarian VAT returns cannot be overstated, particularly for businesses branching out into this region. Adherence to the monthly VAT filings, irrespective of the turnover scale, alongside prompt submissions to abide by Bulgarian tax regulations, presents a challenging landscape.

Coupled with this, the opportunity for businesses to counterbalance VAT levied on sales against VAT on supplies, although laden with its own set of restrictions, introduces a further layer of complexity.

The advent of online filing, while providing a measure of convenience, has also increased the need for vigilance against potential penalties stemming from non-compliance.

In light of these factors, gaining a comprehensive understanding of Bulgarian VAT returns is nothing short of essential for businesses seeking to operate successfully within this jurisdiction.

Key Takeaways

  • Non-resident companies are required to file monthly VAT returns in Bulgaria.
  • Suppliers of online services can file quarterly VAT returns.
  • The frequency of VAT returns is determined by the type of business activity, not the level of turnover.
  • Deductions for Bulgarian VAT can be claimed by companies registered in Bulgaria, including VAT charged on sales, VAT paid on supplies, and VAT on imported goods.


In understanding Bulgarian VAT Returns, there are two pivotal aspects to consider: the key elements of the VAT system in Bulgaria and the compliance suggestions for businesses operating within this jurisdiction.

These components encompass the frequency and deadlines for VAT returns, applicable deductions, filing methods, and potential penalties.

Key Bulgarian VAT Aspects

Understanding the key aspects of Bulgarian Value-Added Tax (VAT) is crucial for businesses operating in the country. These aspects include the requirement for regular Bulgarian VAT returns, typically on a monthly basis. Businesses must also be aware of the ability to offset VAT on sales against VAT on supplies, barring certain non-deductible expenses. Additionally, adherence to filing deadlines and locations stipulated by the National Revenue Agency is necessary to avoid penalties. These aspects ensure compliance with Bulgarian tax authorities and smooth operation of taxable transactions.

VAT Compliance Suggestions

Navigating the intricacies of Bulgarian VAT compliance is crucial for businesses, as it involves regular filing of returns, adhering to specific deadlines, offsetting VAT charges, and avoiding non-deductible expenses. Understanding Bulgarian VAT legislation is the first step to understanding how to help your business depending on its specific needs.

Compliance TipsDetailsSolutions
Regular FilingMonthly VAT returns requiredSolutions that can help with your Bulgarian tax obligations
DeadlinesAdhering to specific datesPlanning ahead to avoid penalties
Non-deductible ExpensesAvoid certain costsKnowledge of VAT legislation

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Frequently Asked Questions

How Does VAT Work in Bulgaria?

In Bulgaria, VAT is levied on the sale of goods and services. Businesses must typically file VAT returns monthly, with some exceptions. Deductions are possible, but certain restrictions apply. Deadlines and penalties exist for non-compliance.

How Much Is the VAT in Bulgaria?

The standard Value Added Tax (VAT) rate in Bulgaria is 20%. This applies to most goods and services. However, certain items like some medical products and social services may have lower rates or be exempt.

Which Countries Are Getting VAT Refund?

The ability to obtain a VAT refund is not limited to specific countries. Generally, businesses that have incurred VAT in a country where they are not established may be eligible for a refund, subject to conditions.

What Is the VAT Reverse Charge in Bulgaria?

The VAT reverse charge in Bulgaria is a mechanism where the recipient of certain goods or services, such as construction or telecommunications, is responsible for reporting both input and output VAT, aiming to prevent VAT fraud.


In conclusion, adhering to the regulations concerning Bulgarian VAT returns is vital for businesses operating in Bulgaria. The mandatory monthly filing, regardless of turnover, is a key element to grasp. Additionally, the possibility of offsetting VAT charges and the stringent penalties for non-compliance are important considerations.

With an understanding of these complex rules, businesses can successfully navigate through the Bulgarian tax landscape, ensuring their operations remain compliant and efficient. The ease of online filing further simplifies this crucial process for foreign entities.

Barry Caldwell

Barry Caldwell

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