VAT Registration of Foreign companies in Bulgaria (EU and Non-EU).
As many international companies started their activity in Bulgaria, the country became very attractive for investors from whole Europe.
What companies often underestimate or even forget is that doing business in other countries often creates an obligation for VAT registration either in their own country of establishment or in the country of destination. Learn more about the procedures and when your company could need VAT registration in Bulgaria.
For general information regarding VAT compliance and rates click here.
- Distance Selling of Goods in Bulgaria
If an EU company sells and delivers goods to Bulgarian individual clients (e.g. e-retailers selling goods on their websites), the retailer is liable to register for VAT purposes in Bulgaria as soon as his distance sales to Bulgarian clients exceed the threshold of BGN 70 000 (app. EUR 35 000) for a calendar year. Bulgarian VAT must be then charged on all goods delivered to Bulgaria.
- Export of Goods from Bulgaria to a Third Country
A foreign business may need to register for VAT purposes in Bulgaria if goods are bought in Bulgaria and are subsequently re-sold and exported outside the EU by the foreign company or its non-EU customer. The foreign business VAT registration in Bulgaria is subject to the condition that the goods are transported only once during the two subsequent transactions and that the value of the exported goods exceeds BGN 50 000 (app. EUR 25 000).
- Telecommunication, Broadcasting and Electronic Services in Bulgaria
Following the introduction of the mini one-stop shop (“MOSS) for telecommunication, radio- and television broadcasting and electronically supplied services to private individuals, a foreign business may register for VAT purposes in Bulgaria if it chooses Bulgaria as its “Member State of identification” for the MOSS schemes.
A foreign company supplying such services may be also liable to register for VAT purposes in Bulgaria if it has not been identified for MOSS in another EU Member States and supplies telecommunication, broadcasting and electronically supplied services to private individuals in Bulgaria.
Foreign companies are registered through an accredited representative. The only exception to this rule is the branch of foreign companies – they are registered under the standard procedure.
The registration shall be made only in the branch of National Revenue Agency in Sofia.
An accredited representative may be only natural persons with a permanent address or permanent residence in the country or a local legal entity that is not in liquidation or is not declared bankrupt and has no outstanding and unpaid tax liabilities and liabilities for social security contributions collected by the National Revenue Agency art. 135 (1) of the VAT Act.
The accredited representative represents the foreign person in all his tax relations arising under the VAT act. Pursuant to Art. 135, of the VAT Act, the accredited representative is jointly and severally liable for the obligations under the same law of the registered foreign person.
Innovires law firm can fully assist foreign companies obtaining VAT registration in Bulgaria. Our lawyers take the representation in front of the tax authorities in Bulgaria.
More information about the tax highlights in Bulgaria you can find here.
Contact us in case you need additional information regarding the value added tax of foreign companies in Bulgaria.