Bulgaria: VAT rate

VAT reduced rate:

VAT standard rate:

Accounting Services

ACC offers a full range of accountancy services with an emphasis on payroll, tax consulting and annual and periodic financial statements.

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Payroll Accounting

At the Accounting Competence Center in Bulgaria, we view our work as more than just a job to complete. It's an entire way of doing business.

Payroll in Bulgaria - quickly, professionally and efficiently.

Taxes in Bulgaria

Tax planning and Tax optimization

ACC Tax Specialists bring combined experience and expertise to client assignments - we are creative, driven, diligent and enjoy solid reputations with Bulgarian government representatives based on a long history of mutual respect. These relationships, combined with extensive tax optimizartion experience allow for a unique approach to tax consulting.

GENERIC TAX NAME	VAT
Tax name in BG	данък върху добавената стойност ДДС
Tax name in English	Value-added tax
Tax in force since	1994/04/01
Legal base	Laws on value‑added tax (VAT Law), see Statutory Notice No 63 of 4 August 2006 and No 113 of 28.12.2007, effective 1.01.2008.
Type of tax	DIRECT TAXES Personal income tax Corporate income tax Other
	INDIRECT TAXES VAT Excise duty Other
	SOCIAL SECURITY CONTRIBUTION

Validation of Bulgarian VAT numbers

VAT validation

Who Sets
the tax rate	the tax base	Reliefs
Central authority Regional authority Local authority Social security	Central authority Regional authority Local authority Social security	Central authority Regional authority Local authority Social security

Region of application

Republic of Bulgaria

Taxpayer

Businesses which sell goods or render taxable services. Such businesses are required to register. A registered person is any taxable person who has performed the obligation or exercised the right to register under this Act or has been registered at the initiative of the internal revenue authorities.

Tax object

Shall be levied on: any supply of goods or services with place of implementation on the territory of the country, and implemented by a tax obliged person under this Act, for export transactions executed by a taxable person and importation of goods liability for this tax covers all goods and services, unless exempted.

Basis of assessment

The price charged excluding value-added tax.

Deductions - allowances - tax credits - exemptions

Exemptions:
-Land Transactions
-Letting Residential Buildings
-Financial Services
-Insurance and Reinsurance Services
-Social Security and Health Insurance Services
-Hospital and medical services
-Education and Cultural Services
-Privatisation Transactions
-Legal Action to Secure Accounts Receivable
-Gifts
-Betting and Gambling
-Supply of Agricultural Goods or Services
-Supply of Cultural Values and Sale of Tickets
-Supply Related to Metal Scrap

Tax collect

-Registered businesses are required for each tax period to pay to the Treasury the difference between the output tax (tax on the business’ taxable turnover during the period) and the input tax (tax on the business’ purchases of goods and taxable services for the business’ use).
-Each person with taxable turnover of BGN 50,000 or more for a period of not more than the last 12 successive months prior to the current month shall apply for registration within 14 days after the expiration of the tax period, in the course of which this turnover was achieved.
-Each person who does not comply with the conditions for mandatory registration and has a total taxable turnover exceeding BGN 25,000 over a period of not more than the last 12 successive months prior to the current month, shall be entitled to registration.

Economic function

Consumption

Special features

The tax due on imported goods is paid together with the business’ other value added tax.

Tax revenue

This file was last updated on 2008/08/14.