After the company has been established, it could be registered as VAT payer. The registration under the Bulgarian VATA is compulsory or voluntary. The National Revenue Agency of the Republic of Bulgaria creates and maintains special register under VATA. Along with the entry in the register the legal entities shall acquire identification number for the purposes of VAT in front of which shall be placed the sign “BG”.
Bulgarian tax legislation requires that transactions between related entities are carried out in line with the market principle and conditions (i.e. as if the parties involved were not related and market conditions applied). In view of the above all transactions between related parties (supply of goods and services, financing, etc.) should be substantiated with reasonable documents evidencing their market nature (i.e. contracts, invoices, performance reports, protocols, evidences of similar transactions… Continue reading »
The Bulgarian company registered under VAT is obliged to file with the authorities from the National Revenue Agency monthly VAT returns (together with purchase and sales ledgers), no matter if the Bulgarian company has executed any purchases or sales during a particular reporting period (the reporting period coincides with the calendar month).
Upon performing an intra-community supply or acquisition /transactions with registered under VAT EU companies/ in a respective… Continue reading »