In Bulgaria, VAT reporting for companies involves several key steps and considerations to ensure compliance with tax regulations. Here's a structured overview of the VAT reporting process:

1. VAT Registration

• Mandatory Registration: Companies must register for VAT with the National Revenue Agency (NRA) if their taxable turnover exceeds the threshold of BGN 50,000 (approximately €25,564) within a 12-month period.
• Voluntary Registration: Companies below this threshold may choose to register voluntarily, which can be beneficial for reclaiming input VAT on business expenses.

2. VAT Rates

• Bulgaria applies the following VAT rates:
  • Standard rate: 20%
  • Reduced rates: 9% and 0% (for specific goods and services such as certain food products, medicines, etc.)

3. VAT Reporting Periods

• Monthly Reporting: Most companies in Bulgaria are required to submit monthly VAT returns. The reporting period covers the calendar month, and the VAT return and payment must be submitted by the 14th day of the following month.
• Quarterly Reporting: Certain smaller businesses with annual turnover below a specified threshold (typically BGN 300,000) may qualify for quarterly VAT reporting.

4. VAT Return Submission

• VAT returns and related documents (such as intra-EU transactions through Intrastat declarations) must be submitted electronically through the NRA's online portal (National Revenue Agency's Electronic Services Portal).

5. Contents of VAT Return

• The VAT return typically includes:
  • Total sales and purchases subject to VAT during the reporting period.
  • Output VAT (VAT charged to customers).
  • Input VAT (VAT paid on purchases and expenses).
  • VAT payable or refundable based on the difference between output and input VAT.

6. VAT Payment

• VAT payable must be remitted to the NRA by the deadline specified for the reporting period. Payment can also be made electronically through the NRA's portal.

7. Compliance and Penalties

• Non-compliance with VAT reporting obligations, such as late submission or underpayment, can result in penalties, fines, and interest charges imposed by the NRA.

8. Accounting Records

• It's essential for companies to maintain accurate and up-to-date accounting records, including VAT invoices and receipts, to support VAT reporting and compliance.

9. Consultation

• Given the complexity of VAT regulations and reporting requirements, companies are advised to consult with a qualified tax advisor or accountant who is familiar with Bulgarian tax laws. They can provide tailored guidance and ensure compliance with VAT obligations.

Understanding and adhering to these VAT reporting procedures is crucial for companies operating in Bulgaria to avoid potential penalties and maintain good standing with the tax authorities.

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