A VAT number in Bulgaria can be obtained only by a person who successfully went through a registration for VAT in Bulgaria. Only a person who has already obtained a Bulgarian VAT number can charge VAT.
First, an entity has to be registered for general tax purposes in Bulgaria. The general tax registration occurs automatically by virtue of company registration in Bulgaria. The Bulgarian VAT number starts with a “BG” prefix followed by the unified identification number of the company.
Consequently, the entity may apply for a VAT number in Bulgaria either under a mandatory or voluntary VAT registration. Thus, the application must point out the registration ground for obtaining a Bulgarian VAT number. Furthermore, the application, among other things, must include information about the taxable turnover for the preceding 12 months.
The application for a Bulgarian VAT number can be submitted personally when the taxable person is individual or sole trader, or by the company manager who has the power to represent the legal entity. The application can also be prepared and submitted by a Bulgarian accountant or a Bulgarian lawyer with a notarized power of attorney.
Under the Bulgarian VAT Act, subject to registration is any taxable person who is established in Bulgaria and makes a taxable supply of goods or services.
Subject to VAT registration in Bulgaria is also any taxable person not established in Bulgaria who makes a taxable supply of goods or services other than those for which the tax is payable by the recipient.
The Bulgarian VAT Act differentiates mandatory and voluntary VAT registrations. Each of the following conditions invokes separately a requirement for VAT registration in Bulgaria.
Compulsory VAT registration in Bulgaria upon reaching BGN 50 000 turnover
Every taxable person with a taxable turnover of BGN 50 000 for the last 12 months must register for VAT purposes in Bulgaria. The application for VAT registration must be filed within 14 days from the expiry of the tax period during which the person has reached the latter or higher threshold. The taxable turnover includes the zero VAT supplies.
Compulsory VAT registration for supply or receipt of services
All taxable persons in Bulgaria who either receive services from foreign suppliers or provide services to taxable persons in other EU member states must register for VAT purposes in Bulgaria. The taxable person under this condition shall register at least 7 days before the date on which VAT has become due.
Compulsory VAT registration for supply of goods and their subsequent installation
Subject to mandatory registration is every person from other EU state not established in Bulgaria if this person conducts taxable supply of goods that are subsequently installed on Bulgarian territory by or on behalf of the same person. The person shall register at least 7 days before the occurrence of the taxable event.
Compulsory VAT registration for intra-Community acquisitions
Subject to mandatory registration is every taxable and non-taxable person that performs intra-Community acquisition of goods. However, if the total value of acquisitions does not exceed BGN 20 000 for the current calendar year the person is not required to register. The VAT registration shall be made not later than 7 days from the moment when the latter threshold was reached. Persons registered on this ground shall charge output and pay input VAT. However, persons registered on this ground are not allowed to deduct input VAT.
Persons VAT registered on the above grounds are required to charge and pay output VAT upon the intra-Community acquisition. However, they are not permitted to deduct input VAT. Moreover, persons registered under the above rule are not required to charge output VAT on the ensuing sale of goods.
Voluntary VAT Registration
Any taxable person, not required to register under any of the above mandatory grounds, can voluntary register for a VAT number in Bulgaria.