Invoicing and Tax regulation in Bulgaria
Invoicing Regulation in Bulgaria
In Bulgaria, invoicing regulations are mandatory for both the supply of goods and services. All businesses, whether they carry out B2B, B2C, or B2G transactions, are required to issue invoices within 14 days of the supply of goods or within 5 days from the payment receipt if it's a service. Businesses registered for VAT should include their VAT registration number on all invoices.
Real-Time Reporting / Fiscalization in Bulgaria
Fiscalization is mandatory in Bulgaria. Real-time reporting requires businesses to record and transmit every fiscal transaction to the National Revenue Agency (NRA) in real-time. It is applicable to all sales of goods or services to end consumers (B2C) and it's done via certified fiscal devices.
E-Invoicing in Bulgaria
E-invoicing is not mandatory in Bulgaria. However, its use is widespread in B2B, B2C, and B2G transactions as it greatly simplifies record-keeping and accounting processes. It's important to note that in Bulgaria, invoices can be issued, received, and stored in electronic form providing they ensure the authenticity of the origin and integrity of the content.
VAT/GST/Tax Compliance in Bulgaria
In Bulgaria, VAT compliance is obligatory for businesses with turnover exceeding BGN 50,000 a year. According to EU regulations, the standard VAT rate is 20%, while the reduced VAT rate is 9%. This applies to all B2B, B2C, and B2G transactions. Registered companies are obliged to submit VAT returns on a monthly basis, by the 14th day of the following month. Deductible VAT costs, VAT refunds, and VAT registration process are also subjects to the local tax compliance rules. It's also worth mentioning that Bulgaria introduced the reverse-charge mechanism to fight VAT fraud.