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

The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
The tax agency has increased compliance yield from wealthy individuals but cannot identify how much tax is paid by UK billionaires, the committee also claimed
Saffery cautioned that documentation requirements in new government proposals must be limited if medium-sized companies are not exempted from TP
The global minimum tax deal is not viable without US participation, Friedrich Merz has argued
Section 899 of the ‘one big beautiful’ bill would have spelled disaster for many international investors into the US, but following its shelving, attention turns to the fate of the OECD’s pillars
DLA Piper’s co-head of tax for the US and Latin America tells ITR about her fervent belief in equal access to the law, loving yoga, and paternal inspirations
Tax expert Craig Hillier agrees with the comparison of pillar two to using a sledgehammer to crack a nut
The amount is reported to be up 57% from the £5.6bn that the UK tax agency believes was underpaid in the previous year
Gift this article