Bulgaria: Changes in the Bulgarian Value Added Tax Act effective as of 2018

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bulgaria: Changes in the Bulgarian Value Added Tax Act effective as of 2018

intl-updates-small.jpg

An amendment to Bulgaria's VAT Act has been adopted concerning the provision of supplies in stages. If an agreement for a supplier to deliver in stages specifies so, then each completed stage will be considered a separate supply. This amendment applies to the supply of services as well as to goods.

In another change, the deadline for submitting an application for mandatory VAT registration upon reaching the BGN 50,000 ($31,700) taxable threshold has been reduced to seven days. If the threshold is reached for a period of not more than two consecutive months, the application must be submitted within seven days after the date on which the threshold was reached.

In cases where a party is obliged to submit an application for mandatory VAT registration but fails to do so within the statutory deadline, that party is liable for the VAT on taxable supplies that exceed a value of BGN 50,000. Businesses should be aware that VAT is due for the period from the date the threshold is exceeded until the date of the VAT registration or the date on which the grounds for VAT registration cease to exist. Also reduced to seven days is the deadline for applying for the mandatory VAT registration of a party acquiring goods from a VAT-registered party following a reorganisation, the transfer of a going concern, or a capital contribution in-kind.

From January 1 2018, the submission of a list of assets will no longer be required in cases where a party wishes to refund VAT credit for goods available and/or purchased at the moment of VAT registration. The VAT refund will simply be reported in the purchase ledger via the respective invoices.

varbanov.jpg

Petar Varbanov

Petar Varbanov (petar.varbanov@eurofast.eu)

Eurofast Global

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
Gift this article