In compliance with the COUNCIL DIRECTIVE 2006/112/EC of 28 November 2006 on the common system of value added tax, and art.133 from VATA “Registration of foreign person, who is not settled in the state” the foreign companies:
– which are obliged or intend to receive a Bulgarian VAT registration;
– don’t have commercial units and place of activity in Bulgaria;
– execute taxable supplies on the territory of Bulgaria,
have to use the services of Fiscal representative.
The Fiscal representative shall be a local individual or legal person and he bears a solidarity responsibility for the liabilities of the foreign company before the Bulgarian tax authorities. Usually the foreign companies conclude two contracts – the first is for fiscal representation /this shall be signed before a notary officer/ and the second for Administrative, VAT and custom services.
Further to the signed agreement for fiscal representation the Fiscal Representative shall first register the foreign person for Unified Identical Code /as from January 1st, 2008/ with the Registry Agency.
After that the registration of the Foreign company under the VATA shall be executed in the competent directorate of the National Revenue Agency where is located the registered address of the Fiscal Representative. In compliance with art.135 from the VATA the Fiscal representative shall file an Application for VAT registration in the respective directorate of the National Revenue Agency.
As a result from this Application, the respective directorate of the National Revenue Agency shall issue an ID code under VAT which contains the sign BG followed by the previously obtained for Unified Identical Code. In this way the foreign company will be entitled to execute transaction in the same way as Bulgarian company. On the other hand, after the issuing VAT number, the Fiscal representative will be obliged to keep and file the statutory VAT, INTRASTAT and VIES documents as well as to conduct a correct accounting process for the transactions executed through the VAT number of the Foreign company.