Who enter into its field? Types of supply under the VAT act. Rate. VAT registration compulsory or optional. Tax declaration and payment.
Value added tax
Who enter into its field?
local entities;
foreign entities, with place of activity on the territory of Republic of Bulgaria;
local and foreign individuals, with place of activity on the territory of Republic of Bulgaria.
Types of supply under the VAT act:
taxable;
non-taxable;
free.
Rate:
20% for domestic supplies;
7% for tourist services (hotel accommodation);
0% for export and transactions with EU countries.
VAT registration compulsory or optional:
Entities are obliged to register for VAT purpose if they have performed:
- transactions with a place of supply in Republic of Bulgaria exceeding 50 000.00 BGN for the last 12 months.
- intra-community acquisitions exceeding 20 000.00 BGN during the calendar year;
- distance sales in Republic of Bulgaria exceeding 70 000.00 BGN during the calendar year.
each entity can apply for voluntary VAT registration;
individuals are obliged to register for VAT purpose if they have performed income for services (different from labor, civil and managing contracts) in the territory of Republic of Bulgaria, exceeding 50 000.00 BGN for the last 12 months.
Tax declaration and payment:
Monthly VAT returns are filed and the tax is due by the 14th of the following month. The tax period is a calendar month.
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