Goods purchased and/or services received by the Bulgarian company from local suppliers would be generally subject to 20% VAT chargable by the suppliers. The invoices issued to the Bulgarian company from the Bulgarian suppliers have to be reported in the purchase ledger and VAT return of the Bulgarian company for the month in which they were issued. According to the general rule, the taxable event in Bulgaria occurs on the date on which the ownership over the goods is transferred or the service is rendered. The Bulgarian company would be obliged to issue invoices for the supplies within 5 days after the occurrence of the taxable event.
The goods sold and/or services performed by the Bulgarian company are usually subject to 20% Bulgarian VAT provided that the place of supply is on the territory of Bulgaria. The customers and clients of the Bulgarian company can execute the payment for the ordered goods or services based on pro-forma invoices.