VAT Compliance and Refund

Smart. Flexible. Compliant.

“Entering a new market is always a complicated task, which involves the necessity of a comprehensive tax compliance with the local rules and regulations. Based on our experience for over 30 years helping foreign businesses in Bulgaria, we are able to conduct you through all issues and allow you to concentrate on your core activities.

Our tax compliance solution is a one-stop shop for foreign businesses in the area of corporate and value added taxes, intrastat, representation, registration and refund.”

Bogdan Ivanchev, Business Development Manager

Bogdan Ivanchev

VAT Compliance and Refund

Smart. Flexible. Compliant.

“Entering a new market is always a complicated task, which involves the necessity of a comprehensive tax compliance with the local rules and regulations. Based on our experience for over 30 years helping foreign businesses in Bulgaria, we are able to conduct you through all issues and allow you to concentrate on your core activities.

Our tax compliance solution is a one-stop shop for foreign businesses in the area of corporate and value added taxes, intrastat, representation, registration and refund.”

Bogdan Ivanchev, Business Development Manager

VAT Compliance and Refund

Smart. Flexible. Compliant.

“Entering a new market is always a complicated task, which involves the necessity of a comprehensive tax compliance with the local rules and regulations. Based on our experience for over 30 years helping foreign businesses in Bulgaria, we are able to conduct you through all issues and allow you to concentrate on your core activities.

Our tax compliance solution is a one-stop shop for foreign businesses in the area of corporate and value added taxes, intrastat, representation, registration and refund.”

Bogdan Ivanchev, Business Development Manager

For your business scale, scope of activity and specific needs

Local VAT Compliance
EU Companies

EU Companies
  • Without permanent establishment in Bulgaria, but implementing:

Obligatory VAT Registration

  • Distance sale of goods to physical persons in BG exceeding BGN 70,000 annually
  • Digital services, union MOSS scheme, if the recipients are physical persons located in BG
  • Intra-community acquisition of goods exceeding the threshold of BGN 20,000 annually
  • Domestic sale of good or services exceeding BGN 50,000 annually

Voluntary VAT Registration

  • Distance sale of goods to physical persons in BG below BGN 70,000 annually
  • Taxable supplies of goods, which are installed or assembled in BG
  • Services received from foreign suppliers with a place of performance in BG, which are taxable and the VAT is due by the recipient

Local VAT Compliance
Non-EU Companies

Multinational Enterprises
  • Without permanent establishment, but using Accredited (Fiscal) representative perform VAT taxable transactions in Bulgaria

  • Digital services, non-union MOSS scheme, when the recipients are physical persons located in EU or BG

Local VAT Compliance
EU Companies

EU Companies
  • Without permanent establishment in Bulgaria, but implementing:

Obligatory VAT Registration

  • Distance sale of goods to physical persons in BG exceeding BGN 70,000 annually
  • Digital services, union MOSS scheme, if the recipients are physical persons located in BG
  • Intra-community acquisition of goods exceeding the threshold of BGN 20,000 annually
  • Domestic sale of good or services exceeding BGN 50,000 annually

Voluntary VAT Registration

  • Distance sale of goods to physical persons in BG below BGN 70,000 annually
  • Taxable supplies of goods, which are installed or assembled in BG
  • Services received from foreign suppliers with a place of performance in BG, which are taxable and the VAT is due by the recipient

Local VAT Compliance
Non-EU Companies

Multinational Enterprises
  • Without permanent establishment, but using Accredited (Fiscal) representative perform VAT taxable transactions in Bulgaria

  • Digital services, non-union MOSS scheme, when the recipients are physical persons located in EU or BG

VAT Refund

Refunds

Regular

  • EU or non-EU businesses with or without permanent establishment performing taxable transactions in BG and requiring VAT Compliance, according to the VAT act.

Ad hoc

  • Businesses based in BG which incur VAT in EU from received goods and/or services on the territory of the EU, according to Ordinance №9 from 16.12.2009.

  • Businesses not based in the EU which incur VAT in BG from received goods and/or services on the territory of the country, according to Ordinance №10 from 24.08.2006.

  • Individuals not based in the EU which incur VAT in BG from received goods and/or services on the territory of the country, according to Ordinance №12 from 24.08.2006.

VAT Refund

Refunds

Regular

  • EU or non-EU businesses with or without permanent establishment performing taxable transactions in BG and requiring VAT Compliance, according to the VAT act.

Ad hoc

  • Businesses based in BG which incur VAT in EU from received goods and/or services on the territory of the EU, according to Ordinance №9 from 16.12.2009.

  • Businesses not based in the EU which incur VAT in BG from received goods and/or services on the territory of the country, according to Ordinance №10 from 24.08.2006.

  • Individuals not based in the EU which incur VAT in BG from received goods and/or services on the territory of the country, according to Ordinance №12 from 24.08.2006.

Why to choose Sb VAT Compliance and Refund Solution?

ESSENTIAL

Sb VAT Compliance and Refund Solution

Sb VAT Compliance and Refund is a complete solution that covers the whole process of VAT related obligations. It ensures timely VAT filing, proper long term reporting processes and planning and make sure that the client are VAT compliant in all required tax jurisdictions in Bulgaria.

Thanks to our knowledge of the local regulatory requirements and the previous experience in managing VAT reporting, we can design flexible solution, tailoring the client needs, scope and industry.

Sb VAT Compliance and Refund service package includes:

  • Initial Due Diligence – еvaluation of the business structure from VAT perspective, consultancy on specific VAT cases, refund procedure, budgeting and cash flow planning
  •  
  • Local VAT registration for EU companies (specific, voluntary and obligatory) and non-EU companies with accredited (fiscal) representation
  •  
  • Recurring VAT Services – Pre-processing and control of the VAT input information, preparation of monthly VAT returns, Submission to the National Revenue Agency of monthly VAT returns, VAT Payment services to the NRA via a local bank account
  •  
  • Compliance Services – Assistance with VAT claim and recovery, Invoicing requirements, VAT thresholds, FX rates, Movement of goods (Custom Clearance and Intrastat). Constant update and confirmation to the foreign company for the local tax payments and the completion of the respective tax return cycle
  •  
  • Consulting Services – VAT refund for non-resident businesses and individuals, assistance in VAT litigation procedures, VAT incentives and exemptions for special projects, Industry focused VAT consulting
Ask For Solution
Business Development Department

ESSENTIAL

Sb VAT Compliance and Refund Solution

Sb VAT Compliance and Refund is a complete solution that covers the whole process of VAT related obligations. It ensures timely VAT filing, proper long term reporting processes and planning and make sure that the client are VAT compliant in all required tax jurisdictions in Bulgaria.

Thanks to our knowledge of the local regulatory requirements and the previous experience in managing VAT reporting, we can design flexible solution, tailoring the client needs, scope and industry.

Sb VAT Compliance and Refund service package includes:

  • Initial Due Diligence – еvaluation of the business structure from VAT perspective, consultancy on specific VAT cases, refund procedure, budgeting and cash flow planning
  •  
  • Local VAT registration for EU companies (specific, voluntary and obligatory) and non-EU companies with accredited (fiscal) representation
  •  
  • Recurring VAT Services – Pre-processing and control of the VAT input information, preparation of monthly VAT returns, Submission to the National Revenue Agency of monthly VAT returns, VAT Payment services to the NRA via a local bank account
  •  
  • Compliance Services – Assistance with VAT claim and recovery, Invoicing requirements, VAT thresholds, FX rates, Movement of goods (Custom Clearance and Intrastat). Constant update and confirmation to the foreign company for the local tax payments and the completion of the respective tax return cycle
  •  
  • Consulting Services – VAT refund for non-resident businesses and individuals, assistance in VAT litigation procedures, VAT incentives and exemptions for special projects, Industry focused VAT consulting
Ask For Solution

What is Local VAT Compliance?

Local VAT Compliance is a solution addressing the needs of foreign companies, which have to comply with the Bulgarian VAT legislation and the subsequent statutory filing, invoicing standards and additional reporting requirements. It is applicable when the generated profit of the business is not taxable in Bulgaria and respectively is not subject to Corporate Income Tax. The local VAT registration of foreign entity is an alternative of a local branch or company incorporation. 

A registered for local VAT Foreign company is not required to keep local accounting for statutory purposes in Bulgaria. It is not expected to calculate advance installments and to prepare and file Annual Tax Return. Foreign company registered for local VAT does not create and does not publish Financial Statements to the Trade Register. The standard reporting obligations are restricted to the accurate and timely preparation and filing of monthly VAT returns.

In addition, when performing intra-community transactions with goods and after reaching a certain threshold, the foreign company will become liable for Intrastate reporting as well. The invoicing to clients shall be kept in accord to the invoicing requirements and provisions as determined in the local VAT legislation. VAT compliance audits from the authorities are expected and shall prove the due care of the foreign entity when performing its taxable transactions using the Bulgarian VAT number.

The local VAT registration of foreign entity is an eligible solution in the following cases:

  • The taxable transactions on the territory of Bulgaria are accidental or for a limited period of time – usually not longer than 6 months. In this case no permanent establishment in Bulgaria will be formed.

  • The taxable transactions on the territory of Bulgaria are continuous, i.e. permanent establishment is formed, but the activities are of supporting, ancillary and preparatory nature and are neither directly related nor transformed into the main activity of the company.