VAT Standard rate
The standard VAT rate in Bulgaria in 2022 is 20%.
VAT Reduced rate
- Accommodation in hotels and similar establishments
- Delivery of books in physical or electronic media or in both media, excluding publications that are entirely or mainly intended for advertising and publications that entirely or mainly consist of video content or audio-musical content (valid from 01.07.2020 to 31.12.2021)
- Restaurant and catering services, including home delivery, excluding delivery of alcoholic beverages (valid from 01.12.2020 to 31.12.2021)
- Products for babies and young children, including baby diapers and similar baby hygiene items (valid from 01.07.2020 to 31.12.2021)
- Delivery of general travel services, including excursions organized by tour operators and travel agents, with occasional bus transport of passengers (valid from 01.08.2020 to 31.12.2021)
- Services for the use of sports facilities (valid from 01.08.2020 to 31.12.2021)
VAT rate for EU countries in some cases can reach 15% and 5%
From the 1st July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over EUR 10,000.
When a company’s distance sales hit the threshold, the company must register for the VAT no later than 7 days before the date of occurrence of the tax event.
If goods or services were used to make taxable supplies in Bulgaria, VAT in input invoices might be credited. Examples include:
- VAT charged on the import of goods
- VAT paid to Bulgarian suppliers