VAT number Bulgaria
EU valid VAT number
Bulgarian VAT number for your foreign or local entity
For businesses operating in Bulgaria or engaging in cross-border transactions, obtaining a VAT (Value Added Tax) number is often a legal necessity. Whether you run a foreign company looking to do business in Bulgaria or a Bulgarian entity expanding its operations, understanding the VAT registration process is crucial. Below, we outline the key situations where a VAT number is required and the benefits of compliance.
VAT rate in Bulgaria is 20%.
When Does a Foreign Company Need a Bulgarian VAT Number?
A foreign company may be required to register for VAT in Bulgaria under the following circumstances:
- Supplying Goods or Services in Bulgaria – If a foreign company provides taxable supplies of goods or services in Bulgaria, it may need to register for VAT, depending on the nature and value of these transactions.
- Distance Selling to Bulgarian Customers – If a non-EU company sells goods to Bulgarian consumers and exceeds the €10,000 EU-wide threshold, VAT registration in Bulgaria becomes mandatory.
- Importing Goods into Bulgaria – When a foreign entity imports goods into Bulgaria, especially from outside the EU, a VAT registration might be needed to comply with tax regulations.
- Holding Stock in Bulgaria – If a foreign company stores goods in Bulgaria for local distribution or fulfillment, VAT registration is often required.
- Hiring Local Contractors or Employees – In some cases, if a foreign business hires Bulgarian contractors or employees, VAT registration might be necessary, depending on the services provided.
When Does a Bulgarian Company Need a VAT Number?
For Bulgarian businesses, VAT registration becomes necessary in several situations:
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Exceeding the Annual Revenue Threshold – If a Bulgarian company’s annual taxable turnover surpasses 166,000 BGN (€84,860), VAT registration is mandatory.
- Voluntary VAT Registration – Businesses below the threshold can voluntarily register for VAT to claim input VAT on expenses and improve their credibility with partners and clients.
- Providing Cross-Border Services – If a Bulgarian company offers services to businesses in other EU countries, it may need an EU VAT number for intra-community transactions.
- Importing and Exporting Goods – Companies dealing with international trade, particularly within the EU, often need VAT registration for compliance and tax benefits.
Benefits of VAT Registration in Bulgaria
- Legitimacy & Credibility – Having a VAT number can enhance business credibility and facilitate partnerships.
- Input VAT Deductions – Registered businesses can reclaim VAT on purchases and expenses.
- EU & International Trade – VAT registration is crucial for smooth operations in cross-border transactions within the EU.
How to Register for a VAT Number in Bulgaria
The registration process involves submitting an application to the Bulgarian National Revenue Agency (NRA) along with relevant company documents. The timeline varies but usually takes 10-14 days for processing.
For assistance with VAT registration in Bulgaria, contact us today!