Tax rate by region Bulgaria

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Navigating SaaS VAT: A Guide for Businesses in Bulgaria

Bulgaria’s alignment with the European Union’s VAT system ensures a standardized tax framework for businesses operating within its borders. This guide dives into the intricacies of SaaS sales tax in Bulgaria, empowering you with the knowledge and tools necessary for seamless compliance.

The standard VAT rate applicable to SaaS services in Bulgaria stands at 20%. Understanding this rate is crucial for accurately calculating and remitting VAT to the authorities. While there are no specific exemptions for digital services like SaaS, a reduced rate of 9% might apply to specific categories. It’s essential to consult with tax professionals to determine the relevant rate applicable to your specific business operations.

 

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Bulgaria

Bulgaria adopted the EU VAT system in 2007, enhancing its tax framework to align with European standards.

Official government link: National Revenue Agency

20.00%

E-products and services VAT/Sales tax rate

9.00%

Reduced tax rate

Reduced tax rate product categories

E-books

Exempted product categories

No digital goods or services categories are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies have to register as soon as goods are being delivered or services are being provided

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To apply for VAT registration in Bulgaria, ensure you apply at least 7 days before starting your taxable supply. Prepare the necessary documents, such as your company’s Articles of Association and an extract from your company’s national trade register. Fill out the VAT registration form available on the Bulgarian National Revenue Agency website and submit it. The registration process typically takes about 2 weeks for confirmation.

List of digital and electronic services liable for tax

E-books, images, movies, videos, downloadable and streaming music, cloud-based software, as-a-Service products (SaaS, PaaS, IaaS), websites, site hosting services, internet service providers, online ads, and affiliate marketing.

Penalties

Penalties for late filing of VAT returns can range from BGN 500 up to BGN 10.000 and for late payment of VAT an interest of 5% on the outstanding amount will be charged.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the 14th day of the month following the reporting period

E-invoicing requirements

Not mandatory

How-To Guides: Bulgaria SaaS VAT

Step: 1 Threshold

Effective January 1, 2007, Bulgaria requires non-EU vendors (including online platforms) of digital services to consumers (B2C) in Bulgaria to register for and collect VAT, regardless of the sales amount.

 

Effective January 1, 2019, Bulgaria applies a VAT registration threshold of EUR 10,000 for EU-established digital services providers. 

Step: 2 Business Registration

VAT registration is completed with the National Revenue Agency (НАП). Local company formation is not required solely for VAT registration, although non-EU suppliers may need a fiscal representative.

Step: 3 TIN/VAT Number

You receive a VAT ТIN (BG… format) from НАП upon registration under the Bulgarian VAT Act (ЗДДС).

Step: 1 Standard VAT Rate

Standard VAT in Bulgaria is 20 % on taxable supplies (including digital services to consumers).

Step: 2 VAT Formula

To calculate your tax amount, consider the following formula: 

 

Tax Amount= NetPrice × 20%

Step: 3 Reverse Charge (B2B)

For B2B cross‑border services within the EU, reverse charge applies — supplier does not charge VAT; customer accounts for VAT in their member state. For services to non‑EU business customers, VAT is typically outside scope (no Bulgarian VAT collected). EU B2C digital services under OSS: VAT at customer’s country rate applied.

Step: 1 Selling B2C

Charge VAT at the customer’s country rate if using OSS for EU consumers; if under threshold and not using OSS, Bulgarian VAT (20 %) applies to sales to Bulgarian consumers. For non‑EU consumers, no Bulgarian VAT charged (out of scope).

Step: 2 Selling B2B

Do not charge VAT on cross‑border B2B supplies; apply reverse charge (customer self‑accounts) for EU business customers; state supply is outside Bulgarian VAT for non‑EU businesses — verify foreign VAT rules.

Step: 3 Invoice Requirements

Must include:

 

  • supplier legal name and address
  • VAT number
  • invoice date
  • sequential invoice number
  • customer details (name/address)
  • description of services
  • net amounts
  • VAT amount by rate
  • total gross
  • currency
  • indication of reverse charge or OSS usage where applicable.

E‑invoicing permitted per EU VAT rules.

Step: 1 Filing Interval

Standard VAT returns are monthly (or quarterly under OSS for cross‑border B2C).

Step: 2 Filing Deadline

Domestic VAT returns generally due by the 14th day of the month after the reporting period; OSS returns are filed quarterly by the end of the month following the quarter.

Step: 3 Submission

File electronically via НАП’s e‑services portal (requires digital credentials); payment via bank transfer or electronic methods prescribed by НАП

Step: 4 Record Keeping

Maintain VAT records and supporting documentation (invoices, contracts, proof of place of supply, evidence of customer status/location) for at least 10 years per VAT record‑keeping requirements.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Bulgaria’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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