The VAT registration procedure may be either mandatory or by choice (voluntary). The VAT Act provides for the general procedure and certain specific cases of registration, depending on various conditions and types of business activity.

Mandatory VAT Registration

The obligation to register arises when a taxable person established in the territory of Bulgaria reaches a taxable turnover of BGN 100,000 or more over a period no longer than the last 12 months preceding the current month. In such a case, the person must file an application for VAT registration within 7 days of the end of the tax period during which the turnover was reached. If this turnover is reached within two consecutive months, the application is filed within 7 days of reaching the turnover.

Threshold for Mandatory VAT Registration

The mandatory registration threshold of BGN 100,000 is valid until 31 December 2024. As of 1 January 2020, a requirement was introduced for mandatory registration in the case of the successive carrying out of the same type of activity by two or more related persons, or persons acting in concert, at one and the same commercial outlet. This prevents the avoidance of registration by changing the entity carrying out the activity before the registration turnover threshold is reached.

Registration for Persons Established in Other EU States

Any EU person who is not established in Bulgaria but makes taxable supplies of goods that are assembled or installed in Bulgaria must register for VAT. The application for registration is filed no later than 7 days before the date on which the chargeable event occurs; however, the supplier is under no obligation to register for VAT if the recipient is a VAT-registered person.

Registration upon Receipt of Taxable Services

Taxable persons who receive taxable services with a place of supply in Bulgaria where the supplier is from abroad must also register for VAT. The application is filed no later than 7 days before the date on which the tax on the supply becomes chargeable, and the recipient of the supply is obliged to charge tax on the value of the service.

Registration for Distance Sales

Persons who carry out distance sales in Bulgaria and whose total value of such sales exceeds BGN 70,000 during the current year are required to register for VAT. The application is filed up to 7 days before the date on which the chargeable event occurs.

Registration for Intra-Community Acquisitions

Persons who carry out intra-Community acquisition of goods with a total value exceeding BGN 20,000 for the current year must also register for VAT. The application is filed within 7 days before the chargeable event for the acquisition.

Registration by Choice (Voluntary)

Persons who do not meet the conditions for mandatory registration may choose to register for VAT voluntarily. Such an application may be filed as early as the initial registration of the company in the commercial register.

Note: The НАП has the right to refuse VAT registration to persons whose registration it has terminated or refused, until the grounds for the refusal cease to exist, or until 24 months have elapsed from the date of termination.

VAT Registration Procedure

The application for registration is filed with the territorial directorate of the НАП at the person’s registered seat or address. Upon the initial registration of a company, the application may also be filed with the Registry Agency.

Filing of the Application

The application for registration may be filed in person by the natural person, by the company’s legal representative, or by an authorised representative holding a notarised power of attorney (usually an accountant), or by an attorney holding an express written power of attorney.

The following are attached to the application:

  • A statement of the taxable turnover by month for the last 12 months.
  • A statement of the intra-Community acquisitions, if the registration concerns the intra-Community rules.
Time Frame

The VAT registration procedure usually takes 14 days. The НАП carries out a review of the grounds for registration within 7 days of the filing of the application, after which, within 7 days, it issues a registration act or a reasoned refusal.

The date of VAT registration is deemed to be the date on which the registration act is served.

Should you require further information, assistance or consultation regarding VAT, please contact us on tel.: 0887550706 or by e-mail: [email protected]