Bulgaria: VAT registration and VAT number

1. VAT registration and VAT number
1.1. After the company registration in Bulgaria the next step is the VAT registration. The Bulgarian VAT legislation is based on the EU VAT rules and Directive 2006/112/EC. The VAT registration is completely separate procedure from the company registration and it is done for two working weeks after the company registration once all documents required are filed at NRA. The VAT registration in Bulgaria pursuant to the Bulgarian legislation can be compulsory or voluntarily.
1.2. The compulsory VAT registration is for companies which income turns BGN 50`000 or make purchases from abroad for more than BGN 20`000.
1.3. The voluntarily registration can be done anytime before the company income turns BGN 50`000.
1.4. The VAT registration is perfomed after the company registration based on certain documents that needs to be filed and check by NRA. Upon confirmation they register the company for VAT and give a tax VAT number which is composed from the company number given by the Registry Agency with BG in front of the number. Once the company is VAT registered it must file VAT report to the National Revenue Agency (NRA) on a monthly basis.
1.5. The Bulgarian tax authorities are very strict in terms and regulations related to the VAT law. For that reason the VAT reports must be filed each and every month up to the 14th of the present month for the previous one, they must be correct and contain all the information required about the accounting deals made due the month.
1.6. Monthly VAT returns are filed and the tax is due by the 14th of the following month. The VAT tax period is a calendar month
2. VAT rates
- VAT - 20% for domestic supplies, intra-community procurements and imports from non-EU countries
- VAT on Tourism - 9% for accommodation provided by hotels as a part of a tourist package
- VAT on EU Supplies - 0%
- VAT on Export - 0%
3. Exemptions
3.1. With the right to deduct input VAT:
Intra-community supplies, export to non-EU countries, international transport of goods and passengers, certain supplies related to international transport, sale of duty free goods under certain conditions, certain transactions related to international trade, specific supplies under international treaties, etc.
3.2. Without the right to deduct input VAT:
Transfer or rental of land or rights over land (except for regulated land and land adjacent to new buildings), transfer of old buildings or parts thereof, rental for residential purposes to individuals (an option to tax these transactions is available); financial and insurance services; gambling; certain services related to health, education, religion, culture, etc.; other specific supplies (e.g. imports of certain goods and up to a limit, etc.)
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4. VIES (Value Added Tax Information Exchange System)
4.1. It is an electronic database to process and store information from VIES declarations traders engaged in transactions within the Community. This information is exchanged at regular intervals between the EU Member States.
4.2. Declarations are submitted to a 14-day, including the month following the tax period to which they relate. They are lodged in the competence department NRA by the declarant or by his authorized representative.
4.3. European sales list (VIES) returns have to be filed monthly by the same deadline if intra-community supplies of goods or certain services have been performed during the respective month.
5. VAT deregistration
5.1. The VAT deregistration is a procedure after which the company has no right to apply VAT after the date of deregistration.
5.2. The VAT deregistration is compulsory and voluntarily. The compulsory VAT registration is process fulfilled upon the liquidation and stricking off the company.
5.3. The voluntarily deregistration can be performed if for the last two years before the present year the income is not more than BGN 70`000 or if for twelve consequtive months is filing dormant VAT reports. Upon filing of the request for VAT deregistration, NRA requires a certain package of documents and upon a tax check issue approve or refusal for VAT deregistration. After the VAT deregistration the company has no right to apply VAT in the invoices and if the company`s income threshold the amount of BGN 50`000 after the deregistration it must be registered again.
5.4. There is a third option for VAT deregistration - when the company does fulfill the requirements of the VAT. These could be: not filing of VAT reports for three consequtive months, there is not representative at the correspondence address of the company, the VAT taxes which remain unpaid to the government are more than amount of the company assets. The case of F1 Drinks is the third option for deregistration. Their VAT reports were not filed three consequtive months and they were deregistered by the government. It is possible to be registered again after some time. As far as I know he must file at once all VAT reports for the months he missed, pay all taxes he missed, pay the sanctions and after a tax check he may be registered again or he can received refusal. This is the basic information. I must check it more detailed.