The standard VAT rate in Bulgaria is 20%. There is a reduced rate of 9% for hotel accommodation, and other goods and services. There are many variations to the rates above, including exempt taxable supplies.
How much is VAT tax in Bulgaria?
Value-added tax (VAT) The standard VAT rate is 20%. A reduced VAT rate of 9% applies to certain tourist services.
Do you charge VAT on services Bulgaria?
If so, then you always charge and collect VAT on every sale in Bulgaria. All of your “domestic” sales get 20% VAT added to the total. That’s pretty simple. If not — if you’re VAT-registered in any other EU country — then you only collect taxes on B2C sales.
How do taxes work in Bulgaria?
All income earned in Bulgaria is taxed on a flat rate of 10%. Employment income earned in Bulgaria is also subject to various social security insurance contributions. In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%. Corporate income tax is also a flat 10%.
Do I need to register for VAT in Bulgaria?
VAT registration is required for all Bulgarian companies and Bulgarian tax liable persons who produce VAT taxable sales in Bulgaria that reach the 50,000 BGN limit (approximately 26,000 euros) within a financial year.
Is there VAT on food in Bulgaria?
The Bulgarian tax authorities are slashing the vat rate on books and restaurants to 9% in an effort to ease costs on these goods and services in light of the Coronavirus pandemic. … Supplies of food in shops and vending machines will remain subject to the standard 20% VAT rate.
How is VAT applied?
VAT stands for Value Added Tax and is a general tax placed on almost all goods and services sold. The simple principle behind VAT is consumers pay a tax on the products they buy based on the value of the product. VAT rates are percentage based, which means the greater the price, the more the consumer pays.
Do I have to charge VAT to overseas customers?
VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK. Northern Ireland to a destination outside the UK and EU .
Do I have to charge VAT to overseas customers for services?
If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.
How do you avoid VAT?
If you happen to offer a variety of products or services which are distinctly different, you may be able to avoid passing the VAT threshold by chopping up your business into smaller businesses that handle one product or service each. Your annual revenue is now split up between these separate businesses.
Is Bulgaria a tax haven?
Bulgaria. Bulgaria has the lowest personal and corporate tax rates within the European Union (Andorra isn’t a member), both of which are a flat rate of 10%.
Does Bulgaria have income tax?
Individuals are taxed in Bulgaria based on their tax residency status. Bulgarian tax residents are taxed on their worldwide income. Non-residents are taxed in Bulgaria only on their Bulgarian-source income, which has a very broad legal definition.
What’s the cost of living in Bulgaria?
A single person estimated monthly costs are 494$ (858лв) without rent. Cost of living in Bulgaria is, on average, 46.39% lower than in United States. Rent in Bulgaria is, on average, 78.65% lower than in United States.
Cost of Living in Bulgaria.
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What is Eik in Bulgaria?
EIK validator – EIK comes from the bulgarian for Unified Identification Code – a code issued to companies with which they identify themselves with the authorities and other companies.
How do I get a VAT number in Bulgaria?
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.
What is tax ID number in Bulgaria?
For Bulgarian citizens – Unified Civil Number (UCN) which consists of a block of 10 digits; 2. … The Official number from the NRA is assigned by the National Revenue Agency and could be found in official certificates issued by the Agency. All legal entities receive TIN upon their registration.