Resources Taxing and accounting VAT

VAT

Bulgaria applies a flat 20% VAT tax on goods and services. You need to charge your clients VAT if the company is registered under the VAT act. In some cases registration is optional while in other it’s mandatory, i.e. trading in the EU or reaching a total of €25000 in revenue for a period of 12 months.

VAT registration involves a more complex accounting, thus the price for accounting services will be higher.

VAT registration for new companies is easier than registration for companies which already have a “history”. You should keep in mind that while the VAT registration is a fairly simple procedure the opposite, namely the deregistration, is a more complex one which often involves an inspection by public authorities.